The markets are wild today on the back of comments from the ECB and Jobless Claims that shot higher to 474,000. The SPDR S&P 500 ETF (NYSE:SPY), SPDR Dow Jones Industrial Average ETF (NYSE:DIA) are trading lower while the PowerShares QQQ Trust, Series 1 (NASDAQ:QQQ) are higher.
The Jobless Claims numbers have skyrocketed over the last month. Just a month ago, people filing for unemployment sat below 400,000. Last week, the number of filings jumped to 431,000 and this week to a staggering 474,000. This massive jump in Jobless Claims has many wondering if it is another ploy by the Federal Reserve and government to enact a controversial QE3.
In June, QE2 is supposed to come to a close as the $600 billion will have been used up. It is obvious, this infusion of money has done little to fix the massive housing problem or even truly curb the unemployment number. On the negative side, food and energy prices are killing the average American. If you take away the drug (free money), the junkie will freak out. Even Ben Bernanke must see this. Therefore, is it plausible to think that a sudden spike in Jobless Claims may give the Federal Reserve the ammo to push out QE3? It is hard to imagine this spike in Jobless Claims being a mere coincidence just one month prior to the end of QE2.