No Surprise

NFP came in at +18,000 as the economy continues to roll over. Nothing has been fixed, nothing. Monetary manipulation and fiscal stunts can cover up the stench of a rotting economy for a while, but they don’t cure anything. Lakshman Achuthan was on CNBC yesterday and confirmed that his global slowdown scenario was still operative.

The recent spate of improving economic numbers, from manufacturing to jobs to the consumer, carries for some, a distinctly feline aroma.

That is to say, while the economy may not be tumbling off a cliff like it appeared just a few weeks ago, things are far from fixed and the recent stock market rally may just be a natural, technical rebound following a six-week selloff.

“That’s your proverbial dead-cat bounce,” Lakshman Achuthan, co-founder and CEO at the Economic Cycle Research Institute, told CNBC. “There’s some false hope that there is a rebound here in the economy or in global industrial sectors in the second half.

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