NOT OUT OF THE WOODS - AT 2:29 P.M. ET:  The administration and its soldiers in the press give us "signs" that the economy is improving.  Unfortunately, most of the signs seem to be pointing in the other direction:

May 12 (Bloomberg) -- Home prices in the U.S. dropped the most on record in the first quarter from a year earlier, led by California and Florida, as banks sold foreclosed properties.

The median price fell 14 percent to $169,000, the National Association of Realtors said today. Prices dropped in 134 of 152 metropolitan areas, with the deepest declines in Cape Coral and Ft. Myers, Florida, followed by San Francisco and San Jose.

COMMENT:  We're not going to get out of this economic mess unless there is major job creation.  The Obamans are trying to sell the idea that their stimulus package will do it.  But we're not seein' it.  We're looking at continued losses, and, just as bad, attempts by states and localities to raise taxes, one of the worst things you can do in a recession.

May 12, 2009