It's The Economy Stupd: Jobless Claims

What is there to say.  Claims are up.  That’s not a good thing. 

 

Economic Event	Period	Economic Survey	Actual Reported	Original Prior	Revised Prior
Initial Jobless Claims	MAY 12	365K	370K	367K	370K
Continuing Claims	MAY 5	3225K	3265K	3229K	3247K

 

Spain

 

The yield on Spanish bonds are up 85 basis points in 2 weeks.  That’s a very steep increase in the risk premium in a really short period of time.  That is a warning signal if ever there was one.

 

Greece

 

Okay, there was a great piece in The Wall Street Journal on Greece yesterday.  $898 Million was withdrawn from Greek banks on MONDAY!  One day, 700 Million Euros disappear from the Greek banking system.  That’s not a good thing!  What’s going to happen to Greece?  It’s like a multiple choice test:

 

Greece will…

A) Leave the Euro

B) Repudiate their debt

C) Renegotiate their debt

D) Repent and do what the rest of the Euro nations want them to do

E) None of the above

F) A&B

G) C&D

 

My answer is ‘F’, which is also just happens to be the grade I would give Greece for their handling of their entire economy.

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7^th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One City Plaza, 7th Floor

Corner of North Blvd & 4th Street

Exit 1B I-110 Convention Street,

Turn Left to get to North Blvd,

Turn Right on North Blvd