Inquiring minds are looking at Reuters article about Rising Jobless Claims and snickering at the incredible bias shown. No wonder so many people have given up with the MSM. The sub-heading of the article is:
(Reuters) – New claims for jobless benefits rose unexpectedly last week, but existing home sales in August rose from a 13-year low, suggesting the economy was stabilizing after a sharp summer slowdown.
Notice the part about home sales hitting a 13-yr low? Well read this:
Separately, sales of previously owned homes increased 7.6 percent to an annual rate of 4.13 million units, a touch above market expectations.
Sales had plummeted 27 percent in July to the lowest level since 1997 after a tax credit for home-buyers expired. While sales rose last month, the pace was still the second lowest in 13 years.
Notice how this ‘good’ month only beats last months in the last 13 years? And, it you remember the numbers from last months disasterous report, you will note that this 7.6 percent rise still means home sales are way below what was predicted for last month…meaning it is probably just a meaningless bounce. What the old-timers used to call a ‘dead cat bounce’.
That phrase came about because markets that crash tend to realize a meaningless rise or “bounce” immediately afterward. The steep and farther the fall, the more it would bounce. So, brokers would say, “Even a dead cat bounces if you drop it from high enough.”
Also, last month, it home sales weren’t the important statistic. It was the jobless claim number that was positive. However, this month, all of a sudden, the more important number is the rise in home sales.
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