You may want to keep it local folks. Oil rose again today teasing a new record high of $146 a barrel before easing to roughly $144 a barrel, bringing prices at the pumps ever higher, now sitting at a national avg of $4.10
Not that anyone can afford to buy a tank of gas these days anyway, as payroll across the U.S. continues to be cut for the 6th straight month.
Payrolls fell by 62,000 after a 62,000 drop in May that was greater than first reported, the Labor Department said today in Washington. The unemployment rate held at 5.5 percent after soaring the most in two decades in May. The Institute for Supply Management’s non-manufacturing index sank to a five-month low.
Falling employment, along with record gasoline prices and tumbling home values, may cause consumers to tighten their budgets after spending the more than $100 billion of tax rebates. The longest string of payroll declines since the economy was pulling out of the last recession indicates limited scope for a Federal Reserve interest-rate increase this quarter.
“After the tax rebates are gone in another 30 days, you’ll see consumer spending drop back,” said Stuart Hoffman, chief U.S. economist at PNC Financial Services Group Inc. in Pittsburgh. “There will not be any employment or real wage growth to help real spending in the second half of the year.”
So while the band-aid of the Tax Stimulus Check was nice for about a month after you got it, after it’s gone, nothing has improved, infact, things have still been getting worse. And for the next 6 months all we have to look forward to is the continued free-fall of our economy as jobs continue to be lost along with houses, and with the ever rising price of oil- our ability to drive as well.
Happy Independence Day America!
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