It seems like some form of bailout bill is all but a done deal at this point, though we’re still waiting on thedetails. In the meantime, the “real” economy (as opposed to the financial one) is showing signs of slumping fast.
Durable goods ordersplunged 4.5% in August – more than double the 1.9% decline that economists were expecting. A key measure of businessspending, non-defense capital goods orders excluding aircraft, tanked 2%. That was the largest decline since January2007.
Meanwhile, initial jobless claims soared to 493,000,the highest since the period right after the 9/11 terrorist attacks. Some of that gain stemmed from Hurricanes Ike andGustav. But the trend higher is clear, and a sign of real economic weakness. Continuing claims ramped up to 3.542million, the highest level in five years.
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