More Job Losses

Despite the spin, there was nothing good in this morning’s employment report. The boyz are pumping stocks anyway, because they can, but the reality is that the economy remains very sick. The government’s attempts to shore up the housing market are causing the same credit problems that the banks had with subprime lenders. Staggering default rates on FHA loans, Fannie Mae calling for another bailout while announcing a program to rent foreclosed homes to the occupants (“Deed for Lease”), thereby concealing its true inventory, and so on. The taxpayer is, of course, on the hook to pay for Barney Frank’s follies. The consumer is being stifled by job losses, rising taxes and sheer fear – which is entirely justified.

Until monetary and fiscal policy stops punishing saving and investment, there will be no “recovery” other than the mirage of higher consumption from government spending.

Recovery? Stick a fork in it.

Both comments and trackbacks are currently closed.