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Dominoes lined up for economic shakeup

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Events European and domestic have conspired to push the Almighty Indicator to its lowest level in six months: the 10-year T-note has broken to 3.05 percent.

April data still arriving shows a substantial air pocket, which the usual suspects discount as the temporary effect of gasoline prices and supply-chain disruptions after Japan's March 11 earthquake. There's more to it than that: the Chicago Fed's national index dropped from +0.32 in March to -0.45 in April, and -0.7 would signal new recession. First-quarter gross domestic product was widely expected to be revised up from 1.8 percent but was not, and the consumer spending account was revised down a half-point. Last week's new unemployment claims were supposed to unwind a quirky rise, but popped up to 424,000.

The song on the broken record here: housing. April pending home sales tanked 11 percent (versus -1 percent forecast), down 26 percent year-over-year. The Federal Housing Finance Agency...