In a stat that most likely will surprise few economists, credit card delinquencies are increasing in the U.S. -- a sign that the housing sector slump that has displaced thousands of employees is beginning to exact a toll on revolving credit accounts, The Wall Street Journal (subscription required) reported Friday.

The number of credit card accounts at least 60 days delinquent or that had gone into default increased to 7.6% in December 2007, up from 6.4% in December 2006, according to research compiled by RiskMetrics Group, the Journal reported. Further, Americans had $944 billion in total revolving debt in December 2007, which amounts to a seasonally adjusted annual increase of 2.7%, well below the seasonally adjusted growth rates of 13.7% and 11.1% for November 2007 and October 2007, respectively.

Another bubble: credit cards

Economist Glen Langan told BloggingStocks Friday the credit card sector, like the housing sector, is correcting from an unprecedented -- and unsustainable -- growth period.

Oil fell $1.69 to $93.98 per barrel Thursday morning as traders re-calibrated their positions on sentiment that both oil and gasoline consumption growth will moderate during the expected U.S. economic slowdown.

Heating oil dropped four cents to $2.57, unleaded gasoline fell five cents to $2.38, and natural gas declined five cents to $8.15 per million BTUs.

Independent energy trader Jim Dietz told BloggingStocks Thursday that Goldman Sachs' warning that the U.S. economy is "probably slipping into a recession" sent the worst fear possible into many oil bulls -- the fear of a changing dynamic in the oil markets.

The Goldman effect

"The Goldman report hit the market hard. Traders now sense that oil product demand, particularly gasoline demand, will moderate in the months ahead, which takes pressure off prices," Dietz said. "There's also a sense in the market now that the giddy oil market is over, that you can't count on making an easy pop [quick, 50-cent gain] each morning no matter where your long entry point is. Traders are getting much more careful about their entry points."

U.S. initial jobless claims fell by 15,000 to 322,000 for the week ended Jan. 5, substantially below the 340,000 consensus estimate, the U.S. Labor Department announced Thursday. Last week's claims were also revised upward slightly, to 337,000 from 336,000.

Analysts caution that the weekly statistic is inherently volatile, particular in December, when employers are adjusting staff for the holiday sales period.

Also, the 4-week moving average dropped to 341,000 from a revised 344,000. Economists view the 4-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.

The number of continuing claims decreased by 52,000 to 2.70 million for the week ended Dec. 29, the latest period for which figures were available.

Economic Analysis: An improvement in the weekly jobless statistic, which was a surprise, but it's important to keep in mind the volatile nature of both the one-week and December statistics. The more-telling four-week moving average is the key, and the U.S. Federal Reserve will keep an eye on it. If the 4-week average drifts above 350,000 and remains there, that would suggest a substantial softening of labor market conditions.

The U.S. Federal Reserve said it will conduct biweekly emergency auctions of loans "for as long as necessary" as part of a coordinated effort among the world's major central banks to provide liquidity to head off a potential, future credit crunch, the Fed announced Friday in a statement.

The Fed said: "The Federal Reserve intends to conduct biweekly Term Auction Facility (TAF) auctions for as long as necessary to address elevated pressures in short-term funding markets. The Board of Governors will announce the sizes of the January 14 and January 28 TAF auctions at noon on January 4."

To date, the Fed, in conjunction with the European Central Bank, has loaned more than $40 billion in 35-day loans in two auctions at interest rates of 4.65% and 4.67% per auction, respectively, Bloomberg News reported Friday.

Wheat prices pushed above $10 per bushel Monday, as dry weather threatened crops in Argentina, adding to concerns regarding a potential wheat shortage, Bloomberg News reported Monday.

The bullish move in wheat sent other grains and oilseeds higher. Argentina, now experiencing summer, is a key supply of wheat for bread, pasta and livestock feed.

The price of wheat has more than doubled in the past year, with wheat climbing another 30 cents to $10.03 per bushel Monday morning. Soybeans gained 17 cents to $11.93 per bushel. Corn rose 5 cents to $4.43 per bushel.

Global growth

Economist Steve Affinito told BloggingStocks Monday that wheat's climb is part of a global trend of higher commodity prices, driven by emerging market economic growth.

Economists surveyed by The Wall Street Journal say the risk of a U.S. recession is rising, and the U.S. Federal Reserve should cut key short-term interest rates to address it.

In the survey, 50 of 52 economists expect the Fed to cut its Federal Funds rate -- the rate charged on overnight loans between banks -- The Journal reported Monday. Only two see the Fed holding the rate steady at 4.5%, and none expects a rate increase. Some 61% say a quarter-percentage-point cut is the right move, while 27% say the Fed should cut rates by one-half point.

Also, the economists on average now put the chances of a recession at 38%, the highest in more than three years, up from 33.5% in the November 2007 survey, The Journal reported. They also reduced gross domestic product estimates across-the-board: Q4 growth is seen at a slim 0.9% annual rate, down from a prediction of 1.6% in the previous survey, with six economists expecting either a negative or flat reading. Three economists project an economic contraction in Q1 2008, with the average growth forecast at 1.5%, down from 1.9% in November 2007.

During the first week in November, consumer confidence tumbled downward to the lowest level since Hurricane Katrina, based on reports this morning. Yes -- that is the lowest level since the summer of 2005. What changed from October? Well, never underestimate the power of the media to take situations like energy prices (oil prices) and the messy house market (foreclosures and more) and extol all the bad virtues into every nightly newscast to give the public a certain perception. It happens.

The RBC Cash Index moved from over 80 to just 64 from the October to November, with the stock market's highs in October now wearing off as the DJIA settles into the sub-14,000 rage once again.

But my my, how a few weeks can change things. Oil prices consistently nearing the $100/barrel level and with so many houses on the market (and with new credit expectations for millions of buyers) caused the confidence level to plunge.

Huge losses at Merrill Lynch and Citicorp -- tied directly to subprime mortgages -- have shaken some investors as well, although they should not. Stupid decisions by financial CEOs don't make for a shaky economy, right? But then again, consumer confidence is just that - confidence. Reality can be quite different in the end.

As a girl who considers herself hip to the news, from Main Street to Wall Street to pop culture, I'm always on the lookout for trends. And the past few days I think I've spotted one, which I like to call "Too MAD Money." It's a riff on Greenspan's irrational exuberance. Let's look at the factors:

• The U.S. economy has fallen with a thunk off the top of the World Economic Forum's competitiveness survey. Replacing the States from its perch atop the economic heap: Switzerland. The U.S. is now sixth and Switzerland was lauded for its efficient markets and "sound institutional environment."
• This must mean that the U.S. is not, indeed, sound, or efficient. At least, not so much as Switzerland, Finland, Sweden and Denmark. Zoinks! Crushed by those efficient northern Europeans.
• At the same time, the U.S. indices are nearly all-time highs.
• At the same time, the U.S. economy is showing signs of a coming slowdown.
• And then, I read this headline: "Mad Money ... Mad Market." Albert Phung from Investopedia argues that Jim Cramer's famous "effect" is proof that the U.S. market does not behave efficiently. And suddenly, it all makes sense.

It's all Cramer's fault. Well, it's not really Cramer who's causing the irrationality and inefficiency, but his audience and the media types who fuel him. Because of the dozens of web sites who eagerly track his recommendations (as she puts her face in her hands, looking at her own blog), because of the millions who eagerly buy his recommended "Booyah Buys" and sell the ones which "don't have legs." Because of the endless promotion of some testosterone-fueled market-watcher by the CNBC engine and countless others. Because of you, who clicked on this link...

It's all our fault. We did this! Now get out there and buy rationally, people!