Sunday, October 23, 2011 – 02:15 p.m.

Hooray! We’re all saved.

The economy is recovering, unemployment is is improving and the Dow is going to hit 15,000 by Christmas.

What the hell.

It looks like the government and Wall Street is out serving up the Kool Aid once again. Just as anti-Wall Street protests continue to spread across the country.

However this time all the cheer-leading is making many people nauseous.

Unemployment

While some would like everyone to believe this indicator is better. It’s really not.

First time claims remain above 400,000 per week and last months jobless rate remained unchanged only because the Labor Department found a couple hundred thousand more employed workers in their back pocket. Employed workers they say were unaccounted for in July and August’s numbers.

State jobless numbers are improving merely because most claimants have exhausted their 99 weeks of benefits and now fall into the underemployment statistic.

The Markets

Lower lows and lower highs.

Not a good sign for equity markets.

The goal here is to keep this balloon inflated as much as possible. After all, if the market really tanks as it should, the situation will become problematic for any near-term improvement.

Analysts continue to revise down their estimates of corporate profits as the year-over-year comparisons don’t look as rosy.

The markets have basically been treading water now for some time.

Government Spending

The pull back in federal government spending will have a trickle down effect on state and local government.

As the money printing press slows down it will have a major impact on the overall economy.

The mere fact that the U.S. federal Reserve is purchasing a large percentage of U.S. Treasury securities at auction should have everyone concerned.

Global Debt Crisis

Sovereign and personal debt loads makes the big picture very troubling.

Marginally healthy European Union countries are out issuing debt in order to loan the money to other members, like for example Greece, in an effort to temporarily prop them up.

A zero sum game that will not work.

Real Estate

A segment with continued deterioration. Local government finances will stay under pressure as property value continued to slide powered by a steady stream of foreclosures.

There is going to be much more pain to come. Particularly with the solvency of the banking system.

Playing that same old song isn’t working………