Searching for Good News

This is a day for incredibly lousy economic news.  The US House failed to do its part to pass a debt ceiling increase, thus starting the serious phase of negotiations (given that finance bills must start in the House).  But even worse are the GDP figures for this year, showing a terribly anemic 1.3% annualized growth in GDP for the last quarter and an incredible downward revision to the first quarter of just 0.4%.  It would take unbelievable optimism to find something good in the news today.

Actually, the is something good.  Initial unemployment claims have fallen to a seasonally adjusted 398k, continuing a rapid drop over the last month.  What on earth can we make of that?  Maybe a lot.

Continue reading