Slump in jobs, housing fuels cycle

As bad news flows in from both key sectors, analysts say we haven't hit bottom yet Slump in jobs, housing fuels cycle Jeannine Aversa, The Associated PressComment on this story WASHINGTON - Two cornerstones of the economy -- jobs and housing -- sank to new depths Thursday, with unemployment claims bolting higher and home prices recording one of their steepest drops on record. The bleak reports underscored the self-reinforcing cycle hampering the nation's economy: As home prices sink, foreclosures rise, banks feel pressure to shy away from lending and employers cut jobs. The Labor Department said the number of newly laid-off people filing for unemployment benefits rose to 406,000 last week, a jump of a seasonally adjusted 34,000. The last time jobless claims were higher was after the Gulf Coast hurricanes in 2005. The housing... [read full story]