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May 7th, 2009
09:46 AM ET

Economic snapshot – mixed

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Ali Velshi | Bio
CNN Chief Business Correspondent

In a continuing trend of "less worse" economic news, Initial jobless claims for the week ending May 2nd decreased by 34,000 from the previous week, to 601,000. This is the lowest it’s been since January, and lower that the 635,000 that analysts’ were expecting.

Still - continuing claims remain at a record high of 6,351,000. That's the number of people collecting unemployment insurance. More than that number are no longer collecting benefits, but are unemployed.

Also, General Motors reported a SIX BILLION dollar loss for the first quarter, continuing its march toward bankruptcy on June 1.

Add that to the budget stuff and anything we don't already know about stress tests (due out at 5pm) and we have a bunch of money-related news today.

All of the major stock averages have rebounded since hitting frightening lows earlier this year and experts are predicting an end to the recession soon.

But is the worst over? For more from Ali Velshi, check out his interview with CNN.com about what to expect.


Filed under: Ali Velshi • Economy • Finance • Unemployment
soundoff (2 Responses)
  1. Marty

    While there are now some positive signs, I think everyone is overlooking the next big housing land mine: high mortgage rates. Right now almost everyone in the US is locking in between 4.5% and 6%. I think we'll see home prices level off and maybe increase for a couple years. However, due to all the government debt, and therefore the flood of govt bonds into the market, I believe the mbs market will tank and interest rates will approach double digits. When that happens, everyone with a 5% mortgage will not be able to afford a new mortgage when they're forced to move. Then the dominoes begin to fall again...falling home prices...families under water...another spike in foreclosures...I'm callin' another big recession in 2012-2014.

    May 7, 2009 at 12:12 pm |
  2. Ryan

    I think big business is just cutting the fat. Hopefully this diet will keep them in business. If not the economy is in some big trouble. The big questions is Who is spending money?

    May 7, 2009 at 12:07 pm |