{"id":197870,"date":"2008-01-04T17:39:00","date_gmt":"2008-01-04T22:39:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/01\/04\/economic-update-4\/"},"modified":"2008-01-04T17:39:00","modified_gmt":"2008-01-04T22:39:00","slug":"economic-update-4","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2008\/01\/04\/economic-update-4\/","title":{"rendered":"Economic Update"},"content":{"rendered":"

Job growth was only 17,000 in December<\/a>. The already anemic prediction had been 80,000 jobs, as opposed to the 115,000 in November.<\/p>\n

What’s more, private sector employment fell<\/a>.<\/p>\n

As a result, unemployment hit 5%, a 2 year high, and this number is artificially low, due to things like discouraged workers, and statistical machinations of the Bush DoL.<\/p>\n

So the job numbers, along with the markets dropping 2% today, have put more pressure on the Fed to cut rates<\/a>.<\/p>\n

BTW, generally the market rallies on bad jobs reports, because there is an assumption that falling interest rates will drive money to stocks.<\/p>\n

In the world of $100\/oil, we have the rebels in Nigeria’s delta area threating an escalation<\/a>, though oil has dropped in response to the poor job numbers.<\/p>\n

Do you remember Bankruptcy reform? Well it ain’t working<\/a>. Bankruptcies have risen 40 percent in 2007.<\/p>\n

Just so you know, the Fed is still pumping more money into the collapsing credit markets, so they are increasing the amount of money that they are auctioning<\/a> on Jan 14 and 28.<\/p>\n

You remember these loans…I made a crack about people putting up magic beans<\/span> as collateral.<\/p>\n

Just in case you are wondering how the credit crunch can effect you, the Massachusetts Secretary of State is looking into Merrill Lynch advice<\/a> for Springfield’s reserve fund. They lost 91.4%<\/span>, about $10 out of every $11 they invested by listening to their broker<\/p>\n

There is, however, a bit of good news, asset backed commercial paper, a sort of short term loan used by businesses, has increased for the first time since August<\/a>.<\/p>\n

Of course, there has been an Augean level of currency pumped into the market by central banks, so I’m calling dead cat bounce<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Job growth was only 17,000 in December. The already anemic prediction had been 80,000 jobs, as opposed to the 115,000 in November. What’s more, private sector employment fell. As a result, unemployment hit 5%, a 2 year high, and this number is artificially low, due to things like discouraged workers, and statistical machinations of the …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973],"tags":[],"class_list":["post-197870","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197870"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=197870"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/197870\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=197870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=197870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=197870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}