The U.S. Department of Labor this morning reports that the unemployment insurance claims have dropped to 512,000 last week. These numbers reflecting the number of people filing for jobless benefits are the lowest since January of 2009.

While there may be ample reason to fear that the Chinese will subvert our economy by dumping U.S. dollars, there is greater reason to fear the drywall that they sent with no malice aforethought.

After two consecutive weeks of a decline, the number of U.S. workers filing unemployment benefit claims rose more than expected last week.

Unless S&P 500 39% in this last quarter, it will end up the entire decade on a losing stake. Thus S&P may well become the loser of the decade.

Here is an interesting statistic, 70% of Americas economy is anchored by the consumer. We traded away our Industrial Economy for one that is Consumer based. The USA now depends on China for their consumer goods. WalMart is stocked full of merchandise made in Chinas factories. Not only that, but one of the biggest asset bubbles, the Real Estate bubble made people think they were wealthy.

Investors showed signs of relief at the Federal Reserve's latest policy statement. The much anticipated FOMC statement revealed this afternoon that the economy was recovering after a “severe downturn." However, it's not a time for rejoicing since consumer spending will still remain restricted due to job losses and sluggish income growth.

Arthur Levitt, who is a board member of Bloomberg says "Too big too fail" approach toward banks is a cancer, eating our economy. He said Paulson was right to let Lehman Brother to fail. If he kept Lehman, he would have needed to keep bank.

Federal Reserve Chairman Bernanke said today that the recession “Is very likely over” but job losses will continue to rise. Isn’t that like saying, I am in better shape now but I am still getting fatter? Of all the statistics that we hear about there are a few that hit home more than others. For me, being a mortgage broker, the interest rate is still the most important number in my life.

This morning the U.S. government reported better than expect job loss data. U.S. employers cut the fewest jobs in July 2009. Nearly 247,000 jobs were cut in July. The U.S. job loss rate dipped to 9.4 percent. Payroll cuts slowed down giving new hope for the economic growth and recovery.

The GDP report in USA shows that in the second quarter it contracted by a 1.0% annual rate in April through June 2009. Economists were expecting a 1.5% decline, so this number is better than expected. It follows on the heels of a 6.4% decline in the first quarter and 5.4% in the fourth quarter of last year, indicating that economic conditions are indeed improving. Or, getting worse at a slower pace, for you curmudgeons out there.

Housing Statistics dominate the news this week. It is followed by information on Gross Domestic Product (GDP) on Friday.

Economy is at the state where every small development is a big deal for this country. Mortgage rates could help this economy or hurt it. Today it is story about rising fears in our economy.