Thursday, October 19th, 2017

3 Horrible job reports in a row- Stocks tanks

3 Horrible job reports in a row, nothing less.

Trifecta of horrible jobs reports have hit this second quarter. According to labor department 80,000 new jobs were added in the month of June , making it a most dismal quarter this year 2012. The economy is also lurching and grinding with poor numbers all around.

These numbers of bare minimum 125,000 jobs needed are not enough to keep up with the growing labor force. This the state of affairs after four years of dismal growth. According to Keith Hall former chief economic adviser to the White house “80,000 jobs isn’t enough to keep up with population growth” He further adds “ Even at a quarter million, that’s making progress. But it’s going to take years and years and years to get back those (13 million) lost jobs”. Meanwhile the unemployment rate stays at stubborn 8.2 percent. Here is a chart of S&P 500 Intra day.

So what has this done to the stock market? It sold off at the news and hammered all the positions crimson red on the screens. The market was overbought to begin with as you see in the charts here and now its plowing down as there are no buyers to come forward. How can it keep up with dismal news painted every month from a single most important economic report? The failures of the financial markets is a clear barometer of our state of prosperity.

The mop up efforts by Feds will continue, they may come back and start pumping liquidity to facilitate the economy with their tools of the trade namely QE3. This has worked to a great extent in the past, but in the absence of any concentrated efforts to create real growth and jobs this too is a bandage on an injured leg and we hobble along well into November so to say.

Meanwhile Spin doctors and spokesmen have fanned out to the spin studios putting optimistic gloss on a horrible animal which I cannot name. No matter how bad it gets there are always things like “ It could be worse” or “ We need to do better” and Europe is to blame for the ills of our bad news.

Meanwhile Romney campaign has seized the opportunity to build on the anxiety and hopes of the voters calling this a “ kick in the gut” and “ disturbing “ news today. They are keeping the conversation focused on Jobs and economy and not side tracked by Health Care talk that has been circling around lately.

Meanwhile the blame on the Congress is nevertheless surfacing again. When all else fail blame the Congress for short falls. They too deserve some of it.Blame everyone including former President who has been out of office for four years.

The bottom line is Americans do not have jobs and an economy that can support many facets of this recession. Its not only the jobs that are not there, there is a lack of ability to lead and have a certain, stable environment where things will grow and prosper. The bad part of this is that not much is going to change till November 6, 2012. These next four months could be toughest you have seen in last years. There will be irregular income streams, slow growth and more bad job reports and a stock market that may frustrate investors.

Comments

2 Responses to “3 Horrible job reports in a row- Stocks tanks”
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