Thursday, August 18, 2011

Bad Economic News Triggers Stock Plunge

The stock market is slipping rapidly -- again -- on some really bad economic news.
More Americans than forecast filed applications for jobless claims last week, suggesting that the labor market is struggling two years into the economic recovery. Claims jumped by 9,000 to 408,000 in the week ended Aug. 13. That's the the highest number in a month.
Inflation also seems to be on the horizon and double-dip recession fears are in the news again.
Here's how Joachim Fels, who co-heads Morgan Stanley's global economics team puts it:  "Our revised forecasts show the US and the euro area hovering dangerously close to a recession — defined as two consecutive quarters of contraction — over the next 6-12 months."
And all this is happening as President Obama begins his vacation on Mahtha's Vineyahd.

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