Weekly unemployment claims were released this morning and once again were awful: it was another print north of 400k! The report read "In the week ending August 27, the advance figure for seasonally adjusted initial claims was 409,000, a decrease of 12,000 from the previous week's revised figure of 421,000. The 4-week moving average was 410,250, an increase of 1,750 from the previous week's revised average of 408,500."
The ISM manufacturing data was released after the open, which was slightly better than expected, but at 50.6 is still barely above RECESSION levels. When one looks deeper into the details, it suggests that the economy may be in a recession now, or is damn sure getting there soon.
And speaking of jobs, the ISM data is expected to affect Friday's monthly payroll number. To wit, Goldman Sachs said "ISM stronger than expected in August, although details of the report are softer than the headline suggests...We are lowering our forecast for tomorrow's nonfarm payroll report to +25k, from +50k previously. The main reason is the accumulation of evidence of weak hiring in late July and August: a sharp deterioration in perceptions of job availability in the latest Conference Board survey, a drop in today's ISM manufacturing employment index, another drop in job advertising, and a soft ADP report. Layoffs seem to have remained low, given steady jobless claims in the 410,000 range, although even here the recent pickup in layoff announcements is a concern."
Hmm, it's too bad the president's "jobs plan" isn't important enough for him to make the speech before his vacation. Then again, perhaps it is good. Maybe he shouldn't have a "plan" on creating jobs at all. His current record is terrible - like his backing of Solyndra, one of the so-called "green jobs of the future".
Just last year the president made a speech from the Solyndra "green jobs" plant in California and announced his support for a $535,000,000.00 loan guarantee. That's over HALF A BILLION DOLLARS - gone - in one year! Solyndra filed for bankruptcy!
"The true engine of economic growth will always be companies like Solyndra." - President Obama
"Companies like Solyndra are leading the way toward a brighter and more prosperous future." - President Obama
What's more, Solyndra will layoff 1,100 employees. So what we have here is the president picking a would-be winner in his make believe "green jobs" fantasy world, and saved or created (using the calculator here...) ~$486,000 PER JOB! And in case you are poor with math that is neither a saved nor a created job but rather a MASSIVE loss to the taxpayer.
Another darling of the Obama administration was Evergreen Solar and it too has recently filed for bankruptcy.
The administration also gave Seattle a $20-million grant for "green jobs" that only produced 14 of them. And that folks comes to a staggering $1,428,571 PER JOB.
On second thought, maybe president Obama should just stay in Martha's Vineyard to hobnob with the wealthy and leave the job production to someone else...ANYONE else, in fact.
Trade Date: 8/31/11
E-Mini S&P Trades*
(before fees and commissions):
E-Mini S&P Trades*
(before fees and commissions):
1. No "Secrets" trades filled today.
2. Algorithm positions (26)
3. "Reading the Tape" positions (0) ...combined Secret's, Algo, & "Reading the Tape" total...-2.25
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