Well, he who lives by the fudge factor often dies by the fudge factor!
Perhaps the JOBS MIRACLE was just a seasonal phenomenon after all?
The GOODS PRODUCING sector was down big this month. And, the job
growth was all concentrated in Services like, health care, social
services, consulting, and, of course, the ever popular "temps."
But somehow the current "jobs boom" never did pass the smell test.
It smacked of ASSET REFLATION THANKS TO MR GREENSPAN right from the
start.
BECAUSE, IF YOU GET A LOT OF ASSET REFLATION, SOONER OR LATER, YOU'RE
GOING TO GET A LITTLE BIT OF JOB GROWTH.
And, that's bascially what we got..................OK?
I don't know if Mr Kozlowski hired another Cabana Boy this year or
not. But the jobs story is likely yesterday's news for the rest of
this year.
With higher interest rates, and the end of refis as we have known
them; JUST TRADING REAL ESTATE ISN'T GOING TO BE PROFITABLE ANYMORE.
Most real estate is price above rental yields anyway.
And, with the end of 45 year low interest rates, and this spring's
worst bond crash in 25 years; THE MOMO GAME AT THE NAZZ MAY ALSO BE
ENDING.
AFTER ALL, IF YOU GET ONLY .01% AT THE BANK, WHY NOT "PLAY STOCKS?"
AND IF YOU ARE GOING TO BE "FORCED" TO PLAY IN THE MARKETS, YOU MIGHT
AS WELL PLAY THE BIG MOMO STOCKS, RIGHT?
THAT'S OVER NOW. OR AT LEAST IT'S ENDING FAST.......AS RATES
CONTINUE UP.
Can Greenspan back off on the rate hikes? Well, no....THE PRICE OF
OIL AND OTHER COMMODITIES WILL "KEEP HIM HONEST" FROM NOW ON. THE
PUNCH BOWL IS SPILLING ON THE FLOOR NOW....AND THE BOND MARKET IS
COMING WITH "THE MOP!"
Of course, the thing that everyone is missing, or are too afraid to
mention in polite company is that unmentionable word:
Voldamort?
NO! STAGFLATION!
IT'S COMING AND PERHAPS BEFORE THE END OF THIS YEAR!
Dubya and Co had better find some more fudge factors before the
election! But I seriously doubt it will help.
Because at this point a lot of people must feel there are lies, damn
lies, and Republicans! This, gentle reader, is what happens when you run the economy, AS IF, only the rich matter. Understand?
Clink link to read it for yourself:
http://stats.bls.gov/news.release/empsit.nr0.htm
