Friday, December 3, 2010

Unemployment rises to 9.8% on Weak Jobs Report

Don't worry though folks.  The trading robots have your back.  Stocks are basically flat on the news which is flat our ridiculous.  Here are the numbers from the BLS:


"The unemployment rate edged up to 9.8 percent in November, and nonfarm payroll employment was little changed (+39,000), the U.S. Bureau of Labor Statistics reported today. Temporary help servicesand health care continued to add jobs over the month, while employment fell in retail trade. Employment
in most major industries changed little in November."

My Take:

Stocks basically ignored the report thanks to the black boxes but the currency markets didn't.  The dollar got slammed and gold rose $14 dollars on the news.

Here is a look at the buck:


The Bottom Line

I wouldn't be surprised to see gold move higher later on in the session.  The drop on the dollar is ugly when you think about how bad things are in Europe.

The reality here is we continue to QE and it's not working.  Meanwhile, many countries are now heading in the opposite direction by using extreme austerity as they begin to pay back their debts.

Austerity is coming to America folks whether you like it or not.  The US dollar is going to get destroyed and inflation will then soar if we don't.  Enjoy this stimulus filled market while you can because it's days are numbered.

At some point the bond market is going to call out America on it's bloated debt load just like it has in the land of the PIIGS. 

When it does and the Fed stops spending:  The music will stop, the party will be over, and it will be time to for the hangover which isn't going to be pretty.

Today's jobs report is just more proof that we are pissing away our wealth via policies from the Fed that are a complete and total failure.

How many more hundreds of billions do we have to spend before we realize this isn't working?

Recoveries are built on jobs.  Without jobs, consumers can't buy houses, flat screen TV's, and all the other useless toys that none of us need. 

The consumer represents 70% of our economy.  Without them we die as an economy. 

Anyways, I will end it here because I am sure many of you have some stocks to buy for no fundamental reasons.

I mean that's what we do here in America these days right? The worse the economy looks the more stocks we buy.

Someone please wake me up when this episode of "The Twilight Zone" finally ends.


6 comments:

Anonymous said...

This is really, really bad. we are still @ 10% with real unemployment well over 17%! anyone who thinks QE2 will help stocks better consider jan 2009. it wont be enoug. asia is dumping dollars, buying gold but it wont be deflationary; it will be INFLATIONARY :0! sell off coming because of no tax extensions for 2011... im actually thinkin of buying phys gold here... the little 1/10 ozers becuase of the $600 reporting reqirements that will probably hold.

Jeff said...

Anon

Couldn't agree more.

The jobs number is a nightmare.

All of these POMO's are creating too many free dollars and inflation will ineveitably arrive like you said. Oil is inching up close to $90 a barrel.

There is no way this ends well.

getyourselfconnected said...

I heard there are plenty of lobs in the DC area, lol.

Jeff said...

get

Hehe

Yup

Anonymous said...

"I heard there are plenty of lobs in the DC area, lol."

Yep - where I live its 3.9% unemployment, and dropping like a stone.

http://www.google.com/publicdata?ds=usunemployment&met=unemployment_rate&idim=state:ST510000&dl=en&hl=en&q=virginia+unemployment#met=unemployment_rate&idim=county:PS510100

Still, im sure home prices will drop 30% (now 35% given the summer rise) as Jeff says they will...

Scoremore said...

Does anyone here understand the difference between jobs created and net jobs created? Because the numbers are easily confused.