In a report from an alternate universe somewhere else in space...

In a report from an alternate universe somewhere else in space and time U. S. Payrolls Rose 166,000 in October. BEA 4th Quarter GDP 1st Estimate 0.7% Q&A: Why Did GDPNow Rise After Durable Goods? When are Construction Revisions Coming? American employers added almost twice as many jobs as forecast in October, helping steer the economy clear of recession even as the housing slump deepens. Stocks advanced and Treasury notes weakened after the report, which economists said makes an interest-rate cut by the Federal Reserve even less likely next month. 'The labor market continues to be inconsistent with fears of a recession,' said Dean Maki, chief U. S. economist at Barclays Capital in New York and a former senior economist at the Fed. 'This report will increase the Fed's conviction that it should keep rates unchanged in coming months.' My comment: Fed's conviction to leave rates unchanged? You can't be serious. Dean Maki must be talking about the Fed in some alternate universe somewhere. Wages rose less than forecast, suggesting compensation may provide less of a cushion against declining home values in coming months. Hourly wages rose 3 cents, or 0.2 percent, on average to $17.58 in October and were up 3.8 percent from a year earlier. My comment: How can they even begin to talk about wages as a cushion against home prices. The idea is absurd. Consider the following conversation. Honey, I have good news and bad news. The bad news is the value of our house fell $200,000. The good news is my hourly wages went up by 3 cents. Nonfarm payroll employment rose by 166,000 in October, and the unemployment rate was unchanged at 4.7 percent, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. Job gains occurred in professional and business services, health care, and leisure and hospitality. Manufacturing employment continued to decline, and construction employment was little changed. The BLS has shown a net gain of jobs added to new businesses in both construction and financial activities nine consecutive months from February through October. The BLS is assuming not only that jobs were added, but that new unaccounted construction businesses were created in this environment where business capex spending has been weak, housing has been horrid, and over 170 lenders have gone out of business or stopped writing loans since last December as per the A note of caution: One cannot take the birth death adjustments and subtract them from the reported numbers because one set of numbers is seasonally adjusted and the other is not. The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.