The labor market showed new weakness today as jobless claims rose, but early trading in exchange traded funds (ETFs) indicates that the markets aren’t too wounded by the report.
The jump in applications for unemployment benefits rose more than expected, and former Federal Reserve Chairman Alan Greenspan said the market would likely get worse, reports Christopher S. Rugaber for the Associated Press.
Analysts predict that finding new work will be a challenge for many of the unemployed as many companies not only eliminate jobs, but institute hiring freezes.
Meanwhile, the Federal Deposit Insurance Corporation (FDIC) said it was working out a plan to help troubled homeowners. The plan would involve using the Treasury Secretary’s authority to give guarantees to mortgage lenders, reports Jeanne Sahadi for CNN Money.
Here’s hoping a plan comes soon: foreclosure filings leapt 71% year-over-year in the third quarter, just another sign that the mortgage crisis continues at full strength.
By year’s end, RealtyTrac expects that more than one million bank-owned properties will have piled up on the market and represent a full one-third of all properties for sale in the United States, reports Alan Zibel for the Associated Press.
iShares FTSE NAREIT Real Estate 50 (FTY) is down 37.2% year-to-date.