AS THEY WERE SAYING, THE RECESSION IS OVER - AT 10:21 A.M. ET: 

Dec. 17 (Bloomberg) -- More Americans than anticipated filed first-time claims for unemployment benefits last week, a reminder that the labor market will take time to strengthen and may weigh on the economic recovery.

Initial jobless claims rose by 7,000 to 480,000 in the week ended Dec. 12, from a revised 473,000 the prior week, Labor Department figures showed today in Washington. The number of people receiving unemployment insurance was little changed in the prior week, while those getting extended payments increased.

Federal Reserve policy makers yesterday said weakness in the labor market is restraining consumer spending, which accounts for about 70 percent of the world’s largest economy.

COMMENT:  The recession is far from over.  This began as a Wall Street recession.  That recession is plainly in the past, with zillion-dollar bonuses being paid once again.  But now it's a Main Street recession, with no great signs of easing.  People are hurting, and nothing the federal government is doing seems to be effective in easing the pain, except for the awarding of extended unemployment benefits.

The economy is usually the most powerful issue at election time.  Think 11 months ahead.  It's likely to dominate the 2010 midterms, unless there's some international trauma that strikes.

December 17, 2009