Stocks had a mixed week, with the Dow up .8%, the S&P up .04%, and the NASDAQ down .18%. Initial jobless claims were unexpectedly higher this week, but this fact was balanced somewhat by the report that the trade gap had narrowed. The resultant conclusion was that while employment may not be rocketing back, the economy does seem to have regained some footing.

Banks continue not to loan out money. Our estimation is that they are scared to do so because of the new perceptions of risk. The banks are angry in their position- they don’t seem to be renewing lines of credit held by businesses.