10.02.09
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10.02.09 About one year ago, (October 3, 2008) it was reported that the number of people losing their jobs for the month of September was 159,000, the highest monthly number in five years. At that time the media was showing this bad news in the headlines. Now a year later reporters are saying that the 263,000 jobs lost this September indicate that the numbers are looking like things are getting better and we may be seeing the bottom. The fact that we need a gain of 150,000 new jobs just to stay even with the number of new workers entering the labor pool isn’t even being mentioned. The American Bankers Association reported that these job losses continue to weigh on consumers who are unable to pay their mortgage and credit card debt have risen to a new high in September. Some of those who bought new cars in the “Cash For Clunkers” program have subsequently lost their jobs and are now really behind the “eight ball”. A lot of laid off workers have run out of “unemployment compensation” payments and have no where to turn for help. This week the Senate will be looking at a bill to extend those payments for another four weeks to workers in those States that have 8 ½ % or higher unemployment rates. That really makes sense don’t it? The poor folks that live in a State that only has 8 ¼ % or less don’t deserve it????. Meanwhile, the stock market rally has reached the opposite extreme of its condition in March, with the major indexes very overbought above their key moving averages. Investor sentiment is at the opposite extreme of last March, now convinced the economic problems are over after all, and only good times lie ahead. While those conditions have been in place for a couple of months now with the market paying no attention, can the market also ignore the addition of a potential double-dip recession beginning to show up in the economic reports? The Market is finally starting to look at the reality of the situation in the economy and has been down for two weeks in a row. It should continue to the down side again this coming week, but who knows! We are staying 100% in CASH. Till next time The MTA Staff |
