Saturday, May 22, 2010


"The number of mass layoffs by U.S. employers rose in April led by manufacturers who shed workers even as the economy began to recover.

The Labor Department said the number of mass layoff events -- defined as job cuts involving at least 50 people from a single employer -- increased by 228 to 1,856 as employers shed 200,870 jobs on a seasonally adjusted basis.

The number of mass layoffs in the manufacturing sector totaled 448 resulting in 63,616 initial jobless benefit claims, the department said. That was more than 24,000 higher than the previous month, but well below the 125,000 initial jobless claims in the manufacturing sector a year ago."

Whisper in my ear, one more time, that sweet Siren song of economic recovery. I want to believe, I want to believe.

This story is further evidence of the bleak future facing unemployed Americans and the economy as a whole. If these factories had orders they wouldn't be laying off. Since we can assume the orders aren't there we can further assume that this indicates a strong downside in the rest of the economy. It's that or every last vestige of American manufacturing has been moved offshore to slave economies so that we can get a better price at our local big box discounter.

Either way, no jobs means no money which means that the economic recovery that we keep hearing about isn't going to happen.

And to add further insult to injury the extensions on jobless benefits (socialist redistribution of wealth on parade) will begin to expire in June.

"May 20 Update: Legislation is pending in Congress that would provide an extension of federal extended unemployment benefits which are set to expire June 2. The legislation, which is supposed to be voted on next week, would extend the current unemployment benefits in place through the end of the year.

However, to date, as the legislation does not include a Tier 5 unemployment extension that would provide additional weeks of unemployment to the 99ers - the unemployed workers who have exhausted all unemployment benefits."

There is real and serious pain lurking right over the horizon.

The Mortgage Bankers Association said on Wednesday that during the first quarter, more than 10 percent of homeowners had missed at least one mortgage payment. That's a record high. It is up from 9.5 percent in the fourth quarter of last year and 9.1 percent year-over-year.

How many that are living on jobless benefits will be pushed over the edge when they disappear, adding more foreclosures to the pile of empty houses?

Buckle up and pray, pray, pray.

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