We are officially in the land of reading between the lines to only find good news.  The number of newly laid-off workers dropped unexpectedly last week, but the number of people continuing to get their unemployment money rose to nearly 6.3 million, setting a record high for the 13th straight week.

631,000 people filed for unemployment last week... down from the prior week's 645,000.  But this is only a 14,000 job difference.  One company can make up that difference in one day.  GM is set to layoff another 21,000 workers for example.

Furthermore, the current number of people receiving unimployment jumped to 6.27 million, the highest on records since 1967 and steeper than economists expected.  Yet the stock market is still up because we somehow found good news here?

I would say the only good news is that the savings rate is holding steady, even slightly increasing.  The personal savings rate rose to 4.2 percent from 4 percent in February. It was at 4.4 percent back in January... that's the first time in more than ten years the rate has been above 4 percent for three straight months.

But economists look at the higher savings rate as a worrisome sign.  That's a very short term way to look at things.  There is no quick fix to the problem and Americans need to start saving, reduce their debt, and feel like their house won't lose more value before we are truly on the road to recovery. 

Households have been cutting back on spending and boosting savings during the recession, worried that they need to replenish depleted nest eggs as job cuts mount and investment values plunge.

Consumer spending accounts for 70 percent of total economic activity... so it's understandable that it's so closely watched, but the savings rate increasing is a good thing for the long term.  Maybe things will get worse before they get better and the road to recovery will take longer, but at least we'll be fundamentally and financially sound if we continue to save... otherwise we'll be dealing with another "economic crisis" in 5 to 10 years.

Read more here.

 50 milllion retirees are receiving $250 payments from the government over the next few weeks as their share of the $787 billion package is enacted.  Let's do some quick math... 50,000,000 x $250.00 = $12,500,000,000.00.  The government is spending over $12 billion to stimulate the economy by giving retirees a lousy $250. 

Economists say the payments will help out just as the recession is showing signs of easing a little.  I'd like to know what economists are saying this... maybe Denture Cream, Model Airplanes, and Cribbage Boards see a boost, but $250 doesn't go far these days.

The $600 stimulus for the rest of America didn't work, what makes them think this will have an effect?  The checks are going to those who receive Social Security, Supplemental Security Incom, railroad retirement or veteran's disability benefits.  Maybe that $12.5 billion should just go towards Social Security!  The government know that the fund is going to run out when all the baby boomers start taking payments so why not start funding it with extra money now?

Or better yet spend it on something to actually help the economy in the long run.  We're putting a $250 band-aid on a trillion dolllar knife wound.

Read more here.

It was more a matter of when, not if, for Chrysler.  The lenders and Treasury Department couldn't come up with an agreement to reduce the automakers $6.9 Billion in secured debt... so flip the pages to the next Chapter... that would be 11.

Read the details here.

The home price crisis continues.  You can be the proud owner of a home in Michigan for as little as $1,000.  Yes, it probably needs an extreme home makeover from Ty what's his face, but still... you can't buy the tile in the bathroom for that much at Home Depot.  

 This crisis isn't even close to over until home prices stabilize... and with all the FOR SALE signs around I don't think that's happening any time soon.  If you've got the cash feel free to buy now in depressed markets like Arizona, Florida and California... but don't be surprised if prices fall another 15 percent. 

Check out these great buys in Flint, MI on craigslist.  What a steal!

Read more on $1,000 homes here.

The unemployment rate is soaring just like the stock market.  Does this make any sense?  No.

All 372 reporting metro areas had increasing unemployment rates.  Companies are laying off workers like crazy so they can barely hit their low earnings estimates... but this is a short term solution to a much larger problem.  You don't spend money when you don't have a job and you don't spend money when you're worried about losing your job.  How many of you are in one of those positions?

Bend, OR has a 17 percent unemployement rate... a 9.2 percent month over month increase.  Might as well start calling it Bend Over, OR.  Indiana, North Carolina, California, and Michigan also had huge increases. 

More people applying for unemployment benefits and more State and Local governments going broke.  The next dominos are ready to tip over and the DOW will be back at 7000 in no time.  Take profits now and buy back later in the year. 

Read more here.

Citibank has received $45 Billion in federal bailout money and also failed the government stress test... and now they're requesting permission to pay bonuses to certain employees.   I know that America is the land of the free and the home of the brave... but come on.

And the stock is up almost 9 percent this morning after failing a test.  Pretty sure my stock never went up after failing tests back in college.

Read more here.

At least 6 of the 19 largest banks have failed the stress test, including Bank of America and Citibank.  

This is a test to find out if the banks have enough capital for some worst case scenario financial situations.  And now they're all appealing... how can you appeal the fact that your bank sucks?  This makes zero sense.  I've sucked on a lot of tests and have never had the option to appeal.  Give me a break.

The government wants these banks to raise capital by converting preferred shares to common shares, which would hold off the need for capital injection.  I'd stay away from the banks.  This market rally is starting to look even more fairy tale-like.

Read more here.

Everyone must like the sunny weather because there isn't much else to be confident about.  A few companies beat their extremely low expectations and apparently the worst is over?  Try not to forget about commercial real estate and the State and Local Governments that are soon going to need a bailout.  California and Michigan... how's your balance sheet looking?  A lot like GM and Chryslers... throw another money band-aid on it.

Read more on Consumer Confidence here.

What happened to the dominance of the British Pound?  I remember only a couple years ago when I was in London and paying 4 pounds (or quid) for a beer... which was around $8.  Now it's fallen over 25 percent versus other major currencies and things don't look like they're getting better.  Except maybe on Britain's Got Talent... can that little island really keep coming up with more and more talent like this?  Simon Cowell hit a jackpot with the last few episodes, but maybe he wants paid in US dollars (or even Yen) this year instead.

Too bad the Pound can't impress like Hollie Steele (see below)... Or Susan Boyle for that matter.

Read more here.

On April 27, 1937 the U.S. Social Security system made its 1st benefit payment.  This is very significant because 72 years later the system is still "working".  But watch out, the Madoff Ponzi Scheme was nothing compared to Social Security. The last payment isn't too far off... we'll just need a "bailout" to keep the largest Ponzi Scheme of all time, known as Social Security, alive.  Don't count on it.