Friday, July 6, 2012

Poor Jobs Report Sends Stocks Reeling

The recovery that wasn't continues to glide along on a path to... somewhere, but probably, for most Americans, nowhere.

It's not like conditions are horrifying for most people, but standards of living are slipping overall, there are still 20 million of so Americans unemployed or underemployed, but the food stamps and welfare checks keep coming like clockwork, so what's the worry?

After this morning's dismal non-farm payroll report showed a net gain of 80,000 jobs - not enough to keep up with the growing labor force (which, recently, according to government statistics - lies, mostly - is shrinking) - stocks set out on a course to the serious downside, where they belong, but, after some thought, investors, or suckers, if you will, dove back in and brought the major indices back to more respectable levels.

The Dow had been down as much as 193 points, the S&P off by 19 and the NASDAQ down 55 before the afternoon crowd came in and hoisted the averages upwards, beginning just after 2:00 pm EDT in a very thinly-traded market.

Bankers and hedgies must be a lot like most people - or sheeple - in that they are so shallow and superficial as to believe that today's sharp decline and manufactured rally will convince anyone with a brain that the miasma of the debt clutch, high unemployment and Europe's special set of problems are not deeper, more profound and long-lasting than the suck-up media would have us believe.

Following last Friday's melt-up on Europe's latest "solution" stocks have clambered about a bit, and, as of today have given back only about a third of those ill-gotten gains. There's a growing apprehension that the lofty levels of equities and insistence by central bankers to keep printing more worthless fiat is going to cause a bust bigger than anyone wants to imagine. However, given that the current scheme of low to even negative interest rates - as Denmark posted just yesterday - has thus far kept the wolf from the door for nearly four years, central bank and government can-kicking may just be able to sustain itself for another two, three or four years.

Of course, there's always the possibility that something could go horribly wrong, like having most of the major global banking firms under investigation for rigging key rates, as is the current case concerning the libor, or that Italians might just give up on the technocratic form of governance that strips away wealth a little bit at a time and decide to go back to an agrarian lifestyle, an epochal event that would surely shatter the Euro for good, but, until such an event or "black swan," the global ponzi of the central bankers and their lieutenants within the banking cartel should continue without much interruption.

One has only to look around a bit, at places like Stockton, California, which recently filed for bankruptcy, or the new Section 8 neighbors in your formerly pristine, peaceful suburb or the dependency of old-timers, poor people and previously middle class folks on government programs to get a feeling that all is not well.

It's a depressing thought to think that our elected leaders and captains of industry have colluded against the best interests of the citizenry, but, that's what seems to have taken place over the past decade or so, or, at least it's become more out in the open during that time.

There aren't many good solutions to global economic crises, and he central bankers of the world have thrown everything, including the kitchen sink, at this one, to little avail. The day is approaching when all of the economists, bankers, politicians and CEOs are proven to be charlatans, their proposals and ideas completely wrong. That day will come; the trick is to know the exact date.

Until then, free houses for everyone!

Dow 12,772.47, -124.20 (0.96%)
NASDAQ 2,937.33, -38.79 (1.30%)
S&P 500 1,354.68, -12.90 (0.94%)
NYSE Composite 7,756.61, -81.17 (1.04)
NASDAQ Volume 1,419,548,625
NYSE Volume 2,650,810,250
Combined NYSE & NASDAQ Advance - Decline: 1708-3841
Combined NYSE & NASDAQ New highs - New lows: 225-36
WTI crude oil: 84.45, -2.77
Gold: 1,578.90, -30.50
Silver: 26.92, -0.75

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