This morning we got a triple header on the great website www.Calculatedriskblog.com. As the market soars higher day after day many things are surging. Here are three:
Unemployment claims surged this week and last week’s claims were adjusted upward. John Hussman predicted that employment would go back in the shitter in October and November. Here we go.
In the week ending Oct. 9, the advance figure for seasonally adjusted initial claims was 462,000, an increase of 13,000 from the previous week’s revised figure of 449,000 [up from 445,000]. The 4-week moving average was 459,000, an increase of 2,250 from the previous week’s revised average of 456,750.
Foreclosures surged in September with repossessions topping 100,000 for the first time in history.
From RealtyTrac: Foreclosure Activity Increases 4 Percent in Third Quarter
Foreclosure filings were reported on 347,420 U.S. properties in September, an increase of nearly 3 percent from the previous month and an increase of 1 percent from September 2009. A record total of 102,134 bank repossessions were reported in September, the first time bank repossessions have surpassed the 100,000 mark in a single month.
“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James J. Saccacio, chief executive officer of RealtyTrac. “We expect to see a dip in those bank repossessions — and possibly earlier stages of the foreclosure process — in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks.”
The trade deficit surged in September. So much for a weak dollar spurring exports. You actually need a manufacturing base to export stuff. I don’t think the Chinese want to import CDOs, MBSs, and CDSs from Wall Street.
The Census Bureau reports:
[T]otal August exports of $153.9 billion and imports of $200.2 billion resulted in a goods and services deficit of $46.3 billion, up from $42.6 billion in July, revised. The increase in the deficit in August was due to both oil and China, although the bulk of the increase was because of trade with China. The trade deficit with China increased to $28.0 billion in August from $25.9 billion in July (NSA).
The imbalances have returned …
I wonder how high the market will go today on this great surging news.