Give credit to CNN Money's Annalyn Chensky for intuitively recognizing the ridiculousness of the economic projections included in the White House's Mid-Session Review released today. That especially goes for the assumption that full-year economic growth in 2012, with the first and second quarters coming in at an annualized 2.0% and 1.5%, respectively (the latter subject to revisions which probably won't be significant), will somehow still come in at 2.6%.
Chensky gets demerits, however, for understating how fast growth will really have to be during the second half of the year to get that 2.6% (bolds are mine):
The Department of Labor reported today that initial claims for unemployment benefits increased to 362,000 from an upwardly revised (as usual) 354,000 the previous week. Expectations were for a reading of 351,000 (Business Insider's email) or 352,000 (Bloomberg).
Over at the Associated Press, also known as the Administration's Press, the headlined reaction in its 9:17 a.m. report was: "Applications Hover Near Low Levels." As usual, it took a New Media source, in this case Zero Hedge, to point out something potentially troubling in the news, namely that "this is the first time we have seen three consecutive weeks of rises since August 2010." True, the rises have been modest, but next week will almost certainly see an upward revision to this week (the case for 51 of the past 52 weeks, averaging almost 4,000 and with no decreases). Modest or not, they run counter to presumptive press claims that the job market is "healing" (Reuters) and "improving" (Bloomberg). The howler of the day came from RTT News, which "offers custom news and information solutions" for which subscribers apparently pay at least $250 a month:
The one I expected came from CNNMoney.com, which read: "Initial unemployment claims fall below 400,000 for the first time in more than 3 months, dropping 24,000 to 398,000 in latest week." The other one came from USAToday.com, which does not ordinarily issue alerts when this report appears, took the opportunity to relay the same message, followed by an assertion that today's report is "a sign the job market may be healing after a recent slump."
In a USA Today email I received 20 minutes after Tuesday's closing bell, I was informed that the exceptionally good day occurred because the stock markets were "buoyed by strong earnings reports by IBM, Coke and others." A visit to the email's linked article also partially attributed the rise to "renewed hopes that U.S. lawmakers would be able to break their stalemate and strike a deficit-reduction deal in time to avert a catastrophic government default."
That's strange, because the CNN Headline email I had received 20 minutes earlier struck a totally different and completely absurd pose, as seen after the jump: