Post by unlawflcombatnt on Mar 4, 2011 12:44:21 GMT -6
Despite today's "good" employment report, the markets have dropped significantly. At least some people suspect that there is direct correlation between both.
Market speculators fear that Bernanke will stop giving away money to banks and other speculators, since the employment situation would no longer provide him the phony excuse of easy money to improve employment.
from Market Watch
www.marketwatch.com/story/good-news-for-economy-not-for-markets-2011-03-04
"Jobs: Good news for economy, not for markets
Commentary: Fed may take away the punch bowl if this keeps up
By MarketWatch
"Finally, some unambiguously good news on the economy. This is the jobs report everyone’s been waiting for.
According to the Bureau of Labor Statistics, hiring accelerated in almost every sector in February, leading to 192,000 additional nonfarm payrolls. The unemployment rate fell to 8.9% because people were finding work, not because they were dropping out of the work force in discouragement.
Worry about the Fed, not inflation
Federal Reserve policy, not inflation, should be investors' top concern, says Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. With the U.S. economy on the mend, the Fed should end its bond-buying program. Jonathan Burton reports.
The monthly jobs report has a lot of moving parts, and often it’s just a mess, with some parts showing strength and others revealing weakness. No matter what your view — bull or bear — you can probably find evidence to support it in the typical jobs report.
But this one was pretty much all positive. Let’s look at some of the details:
*
The participation rate — the percentage of adults who are working or looking for work — has been falling pretty steadily for three years, but it held steady at 64.2% in February.
*
Aggregate hours worked rose 0.2% in February, the 10th increase in the past 12 months. This is a measure of how much labor power is being used.
*
The diffusion index — the percentage of industries that were adding workers — increased to 68.2% in February, the highest in 13 years. That means the hiring was happening all over the economy, not clustered in just one small part.
For the economy, this report was great news, indicating that the expansion is strengthening and broadening out.
Now, we just have to keep this up for the next three or four years. If we do, the jobless rate will fall back into the 5% range where it belongs. If we do, anyone who really wants to work will be able to find a job. If we do, home owners will be able to keep up with their mortgage payments.
But for markets, it may not be so great: If the economy continues to expand this way, the Federal Reserve will definitely pull the plug on its bond-buying program, which means the Fed will take away the punch bowl that’s been juicing the markets in equities and commodities.
—Rex Nutting "
Market speculators fear that Bernanke will stop giving away money to banks and other speculators, since the employment situation would no longer provide him the phony excuse of easy money to improve employment.
from Market Watch
www.marketwatch.com/story/good-news-for-economy-not-for-markets-2011-03-04
"Jobs: Good news for economy, not for markets
Commentary: Fed may take away the punch bowl if this keeps up
By MarketWatch
"Finally, some unambiguously good news on the economy. This is the jobs report everyone’s been waiting for.
According to the Bureau of Labor Statistics, hiring accelerated in almost every sector in February, leading to 192,000 additional nonfarm payrolls. The unemployment rate fell to 8.9% because people were finding work, not because they were dropping out of the work force in discouragement.
Worry about the Fed, not inflation
Federal Reserve policy, not inflation, should be investors' top concern, says Liz Ann Sonders, chief investment strategist at Charles Schwab & Co. With the U.S. economy on the mend, the Fed should end its bond-buying program. Jonathan Burton reports.
The monthly jobs report has a lot of moving parts, and often it’s just a mess, with some parts showing strength and others revealing weakness. No matter what your view — bull or bear — you can probably find evidence to support it in the typical jobs report.
But this one was pretty much all positive. Let’s look at some of the details:
*
The participation rate — the percentage of adults who are working or looking for work — has been falling pretty steadily for three years, but it held steady at 64.2% in February.
*
Aggregate hours worked rose 0.2% in February, the 10th increase in the past 12 months. This is a measure of how much labor power is being used.
*
The diffusion index — the percentage of industries that were adding workers — increased to 68.2% in February, the highest in 13 years. That means the hiring was happening all over the economy, not clustered in just one small part.
For the economy, this report was great news, indicating that the expansion is strengthening and broadening out.
Now, we just have to keep this up for the next three or four years. If we do, the jobless rate will fall back into the 5% range where it belongs. If we do, anyone who really wants to work will be able to find a job. If we do, home owners will be able to keep up with their mortgage payments.
But for markets, it may not be so great: If the economy continues to expand this way, the Federal Reserve will definitely pull the plug on its bond-buying program, which means the Fed will take away the punch bowl that’s been juicing the markets in equities and commodities.
—Rex Nutting "