by Larry Levin
The BLS released its latest monthly employment situation report, which was terrible yet again. Economists expected a reading of 140,000 jobs, but only 36,000 were created…another epic FAIL! With Zimbabwe-Ben following his self-imposed 3rd mandate of the Fed, which is to continue rigging the stock market higher via QE & POMO, the market reacted with shrugged shoulders and said “Jobs? Who needs them?”
Regardless of Friday’s horrible report, the market closed positive yet again. Moreover, the rally came with the lowest volume in weeks that continues to underscore the sickness of the market and the invisible hand of Ben Bernanke’s money printing scheme.
From the report we read, “The unemployment rate fell by 0.4 percentage point to 9.0 percent in January, while non-farm payroll employment changed little (+36,000), the U.S. Bureau of Labor Statistics reported today. Employment rose in manufacturing and in retail trade but was down in construction and in transportation and warehousing. Employment in most other major industries changed little over the month.”
As I mentioned above, traders were counting on 140,000 new jobs; however, BLS magicians could only conjure up 36,000 – less than a quarter of what it takes to keep up with the natural growth of the “labor” force, which is roughly 150,000 jobs. But the real “magic” is that the BS from the BLS says the unemployment rate plummeted again, this time to 9.0%.
Remember, if one maxes out his unemployment insurance, he is no longer counted as unemployed. If one reports that he stopped looking for employment for a while out of frustration, he is no longer counted as unemployed. And voila – your unemployment rate drops like a rock without any NEW jobs being created.
The BLS released its latest monthly employment situation report, which was terrible yet again. Economists expected a reading of 140,000 jobs, but only 36,000 were created…another epic FAIL! With Zimbabwe-Ben following his self-imposed 3rd mandate of the Fed, which is to continue rigging the stock market higher via QE & POMO, the market reacted with shrugged shoulders and said “Jobs? Who needs them?”
Regardless of Friday’s horrible report, the market closed positive yet again. Moreover, the rally came with the lowest volume in weeks that continues to underscore the sickness of the market and the invisible hand of Ben Bernanke’s money printing scheme.
From the report we read, “The unemployment rate fell by 0.4 percentage point to 9.0 percent in January, while non-farm payroll employment changed little (+36,000), the U.S. Bureau of Labor Statistics reported today. Employment rose in manufacturing and in retail trade but was down in construction and in transportation and warehousing. Employment in most other major industries changed little over the month.”
As I mentioned above, traders were counting on 140,000 new jobs; however, BLS magicians could only conjure up 36,000 – less than a quarter of what it takes to keep up with the natural growth of the “labor” force, which is roughly 150,000 jobs. But the real “magic” is that the BS from the BLS says the unemployment rate plummeted again, this time to 9.0%.
Remember, if one maxes out his unemployment insurance, he is no longer counted as unemployed. If one reports that he stopped looking for employment for a while out of frustration, he is no longer counted as unemployed. And voila – your unemployment rate drops like a rock without any NEW jobs being created.
Trade Date: 2/4/11
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