Claims were looking to be lower due to auto workers working through the usual layoff period, but they remained high on the seasonally adjusted basis and looks to have rebounded from the April soft spot and subsequently gone sideways.

The EU has been struggling with something like we might be faced with- proactive deficit reduction and a private sector not stepping up to ‘borrow to spend’ to fill the gap.

Today’s durable goods shipments shortfall has caused further reductions in Q2 GDP estimates. Yes, new orders look promising, and Q3 estimates are still in the 2.5% range. And I remain on the lookout for signs of the credit expansion needed to support those forecasts in the context of the reduced federal deficit and the aggressive automatic fiscal stabilizers that remove income and savings of net financial assets as the economy grows.

Today’s combo of lower stocks and higher bond yields has been the typical response to an increased tapering possibility, along with the recently increased possibility of Summers as Fed chairman, with his presumably higher inclination to hike rates than Yellen.

EU Loans to Non Financial Corporations Outstanding

EU Loans to Households Outstanding

Initial US Jobless Claims SA and NSA