On the job front, the Labor Department reported that the number of workers receiving unemployment benefits jumped 159,000 last week to 4.78 million, the most since the government began keeping records in 1967.
As a proportion of the workforce, which has grown substantially since the 1960s, the number of people on unemployment was the highest since 1983.
There was no sign of improvement in the housing market. The number of new homes sold in the U.S. plummeted 15% in November to a seasonally adjusted annual rate of 331,000, nearly half of the number a year earlier, the Census Bureau reported.
Based on that sales rate, it would take almost 13 months to eliminate the current backlog of unsold new homes, suggesting that construction -- already at a near-standstill -- would be unlikely to pick up any time soon.
And orders for durable goods -- including big-ticket purchases such as automobiles and refrigerators -- dropped 2.6%. Excluding a huge increase in military purchasing, the drop was 4.9%. Inventories of durable goods rose to their highest level since the government began keeping track in 1992.
"It's looking like it's going to be the most severe recession since the Great Depression, or at least one of the most severe," Herzon said.
Thursday brought another wave of layoff announcements from U.S. companies, reflecting mounting distress in many corners of the economy, especially manufacturing. For some of the firms, it was the second time in the current downturn that they had unveiled cutbacks.
Cessna Aircraft Co., citing an increase in orders canceled or delayed, said it planned to lay off 2,000 workers. The Wichita, Kan., company earlier had announced 2,600 job cuts.
Oshkosh Corp., a truck maker based in Wisconsin, said it would cut 1,050 jobs, bringing to 2,400 the number of jobs eliminated since last summer.
Slot-machine maker International Game Technology said it would lay off 200 workers, citing the effect of the recession on the casino industry. The Nevada firm cut 500 jobs in November.
Eastman Kodak Co., the maker of photography products, said it would eliminate as many as 4,500 jobs, or about 18% of its workforce, after reporting a fourth-quarter loss.
Reflecting the turmoil in the financial services industry, money management firm OppenheimerFunds Inc. said it laid off 220 employees this week, or 9% of its workforce.
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It appears the "depression" is finally being recognized by some of the MSN.
ReplyDeleteBetter late than never.
And what about all the goons? It may difficult to continue to deny reality.