Recovery Summer continues - stop me if you've heard this before

It seems to be the same pattern every week:

  1. Bad economic news
  2. “Worse than expected”
  3. Previous period revised to be worse than originally reported
  4. “It could be worse”/”It’s Bush’s fault”

Okay #4 hasn’t happened yet, but it will later today. The other three have occurred yet again.

Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended August 14, the highest since mid-November, the Labor Department said on Thursday.

Analysts polled by Reuters had forecast claims slipping to 476,000 from the previously reported 484,000 the prior week, which was revised up to 488,000 in Thursday’s report.