A good take on things....
Where’s the Beef?
Submitted by madhedgefundtrader on 06/04/2010 15:45 -0500
recovery Unemployment
That was the thorny question wracking the brains of investors Friday morning on the heels of the hugely disappointing nonfarm payroll report showing that 430,000 jobs were gained in May.
Never mind that this was the best report in several years. The problem arises when you dig deeper and find that
411,000 were temporary census workers who are going to be let go in a few months, leaving the “real” job gain at a measly 19,000.
So this is all
$887 billion in stimulus and
19 months of zero interest rates get you?
Traders wasted no time tanking the market, taking the Dow down a nausea inducing 350 points.
Private sector hiring actually plunged from 218,000 in April to only 41,000, and the overall labor force shrank by 322,000, as if it had just taken a dip in a frigid lake.
Construction took a big hit as usual, losing 35,000 jobs, while
manufacturing gained a miniscule 29,000 jobs.
There are now more than 15 million unemployed, including 6.8 million who have been jobless for more than six months. Until today’s number, our nine month long recovery produced a net loss of 133,000 jobs! At this stage of the 2003 recovery, we were regularly clocking 200,000-300,000 a month in job gains.Administration officials wasted no time trumpeting the decline in the headline unemployment figure from 9.8% to 9.7%, while privately wringing their hands over the true meaning of the report. Is Michele Obama already secretly scoping out new private elementary schools in Chicago?
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.c om . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on the “Today’s Radio Show” menu tab on the left on my home page.
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Makes you think. What an absolute bust and waste this whole exercise in Keynesian Economics has given us. How sad is it that we are on here arguing about the
success or failure of 887 billion in Stim. Zero % interest rates, printing of trillions, housing tax credits etc etc for over 2 years....and the deciding factor is if UE gets below 8%......EIGHT PERCENT.
Again....who the fuck are you crappin'?
