The Bureau of Labor Staticstics issued the following bad news report this morning. This is clearly confirmation that the economy is in trouble. The markets responded immediately by selling off. We now have to wait for the President's joint congress address next week to see if he has a meaningful solution.
In a paradoxical way the market may actually welcome the bad news as it could be an incentive for the Fed to rekindle some form of quatitative easing. So the market may be in a wait and see mode until the upcoming two day Fed meeting next week.
"Nonfarm payroll employment was unchanged (0) in August, and the unemployment
rate held at 9.1 percent, the U.S. Bureau of Labor Statistics reported today.
Employment in most major industries changed little over the month. Health
care continued to add jobs, and a decline in information employment reflected
a strike. Government employment continued to trend down, despite the return
of workers from a partial government shutdown in Minnesota."
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