If anyone needed proof the US economy is in trouble and that Canada is only a step behind (contrary to Harper's claims that "our fundamentals are strong") consider this: Last week, 497,000 Americans applied for unemployment benefits -- a seven year high and well above the Wall Street forecast of 475,000. Normally, only 325,000 (over a four week rolling average) should be applying for benefits, the rolling average right now is 474,000. Even worse, the number of people staying on the rolls is now 3.591 million, the highest in over five years.
How long will it be before the number of non-seasonal workers collecting EI here is over 400,000? We may already be there, in fact. Stay the course isn't going to cut it, Steve. If Americans are hurting that bad, it's only a matter of time before we feel the effects.
Sidebar: The European Central Bank, which sets interest rates for the 15 EU and 3 non-EU states using the Euro, today kept the rate banks charge each other within the zone at 4¼%. Guess that'll mean a further flight of money from the States to Europe given the 2¼% spread -- at a time when America needs that least.
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