Running On Empty

Today’s below-expectation employment report put paid to the much-vaunted idea that the weak reports in January and February were weather-related and therefore could safely be ignored.

The problem is that the stimulus efforts – deficits, QE and so forth have failed to produce an adequate recovery. The Gallup payroll to population ratio continues to decline. That’s all you need to know about employment.

At the current rate of “taper,” QE will end in October. At that point, the Fed will own 40% of all outstanding MBS and 25% of all Treasuries. That’s a deep hole to dig out of.

Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: