Friday, October 07, 2011

Jobs report better than expected....

As a reminder we should really be generating 250-300k jobs per month if we want to say the economy is recovering.  Keep that in mind as we discuss these numbers...

Jobs: +103k but 45k of those are due to striking Verizon workers returning to work.

So net jobs were +58k.  Expectations were 59k so this is about as "exactly in line" as it gets.

Unemployment was steady at 9.1% while participation rate improved a bit 64.2% (still way below historical averages of 66-67%).  We've now added about 70k jobs per month since April while 150k people enter the workforce each month.  The only reason the unemployment rate has not spiked higher is that discouraged workers continue to drop out of the workforce.

The stock market has now soared about 6-8% in the last three days.  I'll take that and go home happy for the year.  The reason for the rally was principally technicals but it was sparked by concerns that the global economies were collapsing and more stimulus would save us all.  If you want to cheer this jobs report you have to realize it should mean less stimulus and in theory lower stock prices in the near term.

From the files of "only in America"

"For an hour this morning, Portland police worried that a makeshift diorama containing a packet of tomato seeds, a flannel shirt and a computer mouse spotted along Southwest 14th Avenue at Taylor Street might be a bomb.

At 8:40 a.m., police were called to investigate a suspicious box near along 14th Avenue and above southbound I-405. Police quickly blocked traffic while officers in protective gear responded to examine the cardboard box perched atop a green utility box."

 So, now I know your dying to see this menacing "bomb-like" package that caused such a commotion, right?

Well, here you go....

Is it good art?  Well, it's not for me, but how can you look at that and say "yup, we better shutdown traffic here"?  Jack Bauer detective work strikes again.

The good news is that Portland will be able to parlay this "response" into a budget request for a dozen drones, 15 hazmat vehicles, and 1,200 new border patrol cars.

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