CHESSNOID

We got a good bounce after being oversold that last few days. It is hard to say where it will close since the last hour always has either a major push up or down.  Long term i don’t feel very good about our economy even with a new president elected. We are in a recession that keeps getting worse.  Here are the job or unemployment numbers:

NEW YORK (CNNMoney.com) —

The government reported more grim news about the economy Friday, saying employers cut 240,000 jobs in October – bringing the year’s total job losses to nearly 1.2 million.

According to the Labor Department’s monthly jobs report, the unemployment rate rose to 6.5% from 6.1% in September and higher than economists’ forecast of 6.3%. It was the highest unemployment rate since March 1994.

“There is so much bad in this report that it is hard to find any silver lining,” said Morgan Keegan analyst Kevin Giddis.

Economists surveyed by Briefing.com had forecast a loss of 200,000 jobs in the month. October’s monthly job loss total was less than September’s revised loss of 284,000. Payroll cuts in August were revised up to 127,000, which means more than half of this year’s job losses have occurred in the last three months.

September had the largest monthly job loss total since November 2001, the last month of the previous recession and just two months after the Sept. 11 terrorist attacks.

With 1,179,000 cuts, the economy has lost more than a million jobs in a year for the first time since 2001 – the last time the economy was in a recession. With most economic indicators signaling even more difficult times ahead, job losses will likely deepen and continue through at least the first half of 2009.

“It’s pretty clear that we’re in a recession,” said Robert Brusca, economist at FAO Economics. “There is reason for us to believe we’ll see a drumbeat of heavy job losses for a while, and there’s room for them to get even worse.”

Everyday, there seems to be some company announcing a layoff or just shutting down completely. After this retail season and end of the year earnings report comes out, we will definitely see numbers that dward these figures.  The 2 trillion dollars spent on the fraud bailouts this past year have not contributed to helping this economy recover. The economy needs new jobs and more revenue from real production, not welfare checks to Wall Street.  Yes, shame on Senators Obama, Biden, McCain and all the other senators who passed the Fraud Bailouts.

The good news about the economy is it is so bad, the overall the demand for gas has fallen so much that we are driving billions of mile less per month now.  According to CNN.Money:

New York (CNNMoney.com) –

Gasoline prices fell for the 51st straight day, according a survey released Friday by the motorist group AAA.

The average price of regular unleaded decreased to $2.314, a 2.6 cent drop from Thursday. This is the lowest price the nation has seen since February 24, 2007, according to the national survey, which is based on credit card swipes at gas stations.

Over the last 51 days, prices have sunk $1.54, a 40% decrease.

Demand for gasoline has continued to slip, despite the fall in gas prices. MasterCard’s weekly survey of gas station credit card swipes showed demand down 3.9% last week, compared to the same period last year.

Prices have dropped 43.8%, or $1.80, from the record high price of $4.114 a gallon set July 17. The average price per gallon dropped below $3 on Oct. 18, the first time in nearly nine months.

In regards to the main source of the recession, housing continues to look bleak. We are still at record numbers of foreclosures and the numbers are continuing to grow. If housing drops another 20% in this severe recession, that will only hurt the housing market more where it could become a vicious cycle.

Yahoo. Finance:

But if a recession lasts for three-quarters of the year, as some economists are predicting, the number of foreclosures could remain high longer. Add it all up and you have another lousy year for real estate.

Home prices are down 20% nationwide since their peak in July 2006, according to the S&P/Case-Shiller home price index. Economist Nouriel Roubini of New York University, who accurately predicted the housing slide and credit crisis, expects another 20% decline in home prices next year. Patrick Newport of economic forecasting firm Global Insight projects a 15% drop.

The damage will likely hit even areas that have so far escaped many problems, such as New York City. “We don’t see the market turning until late 2009,” says Newport.

The stock numbers are up right now after shaving off 10% over the last 2 days.  Let’s see what happens in the last hour, where we could possibly gain or lose 10%  more before the weekend.