Unemployment rate rises to 6.1, Dow drops 345 points

[suedanim]

We are in a recession. People are out of work, prices through the roof, the economy sucks for most of us, yet George W. Bush says the economy is on an "upswing" and McCain and the rest at the convention barely mention the economy and Palin, not at all.

Republicans don't get it. Its the economy stupid. Ya'll keep making the same fuckn mistake. Fearmongering and fascist-like nationalism worked for a minute, thats all you run on. But, while you chant nationalistic slogans, bluster about winning in Iraq, winning wars, you miss the rest of the story, domestic tranquility. Democracies do not and can not sustain a culture of war for very long. The people will always rebel.


Unemployment Rate Rises to 6.1% (http://www.nytimes.com/2008/09/06/business/economy/06econ.html?_r=1&hp&oref=slogin)
By MICHAEL M. GRYNBAUM (http://topics.nytimes.com/top/reference/timestopics/people/g/michael_m_grynbaum/index.html?inline=nyt-per)
Published: September 5, 2008

The unemployment rate jumped to 6.1 percent in August, its highest level in five years, as the erosion of the job market accelerated over the summer.

Employers cut 84,000 jobs last month, more than economists had expected, and the Labor Department said that more jobs were lost in June and July than previously thought.

So far, 605,000 jobs have disappeared since January. The unemployment rate, which rose from 5.7 percent in July, is now at its highest level since September 2003.

Jared Bernstein (http://topics.nytimes.com/top/reference/timestopics/people/b/jared_bernstein/index.html?inline=nyt-per), economist at the Economics Policy Institute in Washington, said eight months of consecutive job losses had historically signaled that the economy was in a recession.

“If anyone is still scratching their head over that one, they can stop,” Mr. Bernstein said.

Stocks fell after the release of the report, with the Dow Jones industrials down about 100 points after about 40 minutes of trading.

Layoffs have picked up speed in the last three months, contrary to earlier estimates that they had slowed. The government now says that 100,000 jobs were lost in June, doubling its original estimate.

Raises have not kept up with the rising cost of living, putting more pressure on workers as high gasoline prices and the fastest inflation in decades hurt their spending power.

Hourly wages for rank-and-file workers — those not in supervisory or managerial positions — grew 3.6 percent since August 2007, below the rate of inflation.

The report quickly became bait for the back-and-forth of the presidential campaign. Senator Barack Obama (http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obama/index.html?inline=nyt-per), the Democratic candidate, said his opponent, Senator John McCain (http://topics.nytimes.com/top/reference/timestopics/people/m/john_mccain/index.html?inline=nyt-per), “is intent on continuing the economic policies that just this year have caused the American economy to lose 605,000 jobs.”

“Today’s jobs report is a reminder of what’s at stake in this election,” Mr. Obama said in a statement.

The government said last month that the economy grew at a relatively brisk 3.3 percent clip from April to July, with businesses benefiting from foreign demand for American-made goods.

But little of that activity, analysts said, has translated to helping the average American worker.

“Whatever is growing the economy, it’s not showing up in the jobs market in any way at all,” Mr. Bernstein said.

Officials at the Federal Reserve believe activity will slow sharply for the rest of the year before returning to a faster growth rate in 2009.Manufacturing jobs were hammered again in August, with 61,000 workers losing their jobs. Nearly 60,000 administrative workers, including secretaries and temp workers, were laid off.

Gains came in the education and health care industries, which added a total of 55,000 jobs. But those gains were offset by loses at restaurants, auto dealers and factories that make parts for cars and other transportation equipment.

Friday’s report from the Labor Department was eagerly anticipated by investors who have become increasingly skittish about a global slowdown. The jobs data is considered the most reliable snapshot of the nation’s economy in any given month.

Stock markets fell sharply on Thursday, with the Dow Jones industrial average shedding 345 points, and the employment report could result in another day of volatile swings in the major indexes.

[Osborn F. Enready]

Someday, people will understand that this is DUE TO BAD DOLLAR POLICY, by BOTH PARTIES not knowing where the connection is between economics and politics.

Hope you all are ready for a lot more of this, because whichever bi-partisan gets in there, this is going to be around for a while.....and likely get much worse before it gets better.

[dgun]

The market was just reacting to the 'more of the same' message echoing over and over at the GOP convention.

[Trish]

In every administration unemployment rates fluctuate. If I remember my economics correctly, an annual unemployment rate around the 4-5% range is seen as being good for the economy. (I know, I know - doesn't sound remotely logical, but if memory serves that rate is touted as being somewhat optimum for economic growth. If we have any economists out there, would be good to know if my memory is correct here.)

The 2007 unemployment rate was 4.61% (http://www.miseryindex.us/URbyyear.asp). Until the end of 2008, we can't really know what the overall yearly rate will be. Unemployment rate alone does not reflect the overall "health" of the economy. It's one of many factors that has to be taken into consideration.

[brien]

We are in a recession. People are out of work, prices through the roof, the economy sucks for most of us, yet George W. Bush says the economy is on an "upswing" and McCain and the rest at the convention barely mention the economy and Palin, not at all.

Republicans don't get it. Its the economy stupid. Ya'll keep making the same fuckn mistake. Fearmongering and fascist-like nationalism worked for a minute, thats all you run on. But, while you chant nationalistic slogans, bluster about winning in Iraq, winning wars, you miss the rest of the story, domestic tranquility. Democracies do not and can not sustain a culture of war for very long. The people will always rebel.


Unemployment Rate Rises to 6.1% (http://www.nytimes.com/2008/09/06/business/economy/06econ.html?_r=1&hp&oref=slogin)
By MICHAEL M. GRYNBAUM (http://topics.nytimes.com/top/reference/timestopics/people/g/michael_m_grynbaum/index.html?inline=nyt-per)
Published: September 5, 2008

The unemployment rate jumped to 6.1 percent in August, its highest level in five years, as the erosion of the job market accelerated over the summer.

Employers cut 84,000 jobs last month, more than economists had expected, and the Labor Department said that more jobs were lost in June and July than previously thought.

So far, 605,000 jobs have disappeared since January. The unemployment rate, which rose from 5.7 percent in July, is now at its highest level since September 2003.

Jared Bernstein (http://topics.nytimes.com/top/reference/timestopics/people/b/jared_bernstein/index.html?inline=nyt-per), economist at the Economics Policy Institute in Washington, said eight months of consecutive job losses had historically signaled that the economy was in a recession.

“If anyone is still scratching their head over that one, they can stop,” Mr. Bernstein said.

Stocks fell after the release of the report, with the Dow Jones industrials down about 100 points after about 40 minutes of trading.

Layoffs have picked up speed in the last three months, contrary to earlier estimates that they had slowed. The government now says that 100,000 jobs were lost in June, doubling its original estimate.

Raises have not kept up with the rising cost of living, putting more pressure on workers as high gasoline prices and the fastest inflation in decades hurt their spending power.

Hourly wages for rank-and-file workers — those not in supervisory or managerial positions — grew 3.6 percent since August 2007, below the rate of inflation.

The report quickly became bait for the back-and-forth of the presidential campaign. Senator Barack Obama (http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obama/index.html?inline=nyt-per), the Democratic candidate, said his opponent, Senator John McCain (http://topics.nytimes.com/top/reference/timestopics/people/m/john_mccain/index.html?inline=nyt-per), “is intent on continuing the economic policies that just this year have caused the American economy to lose 605,000 jobs.”

“Today’s jobs report is a reminder of what’s at stake in this election,” Mr. Obama said in a statement.

The government said last month that the economy grew at a relatively brisk 3.3 percent clip from April to July, with businesses benefiting from foreign demand for American-made goods.

But little of that activity, analysts said, has translated to helping the average American worker.

“Whatever is growing the economy, it’s not showing up in the jobs market in any way at all,” Mr. Bernstein said.

Officials at the Federal Reserve believe activity will slow sharply for the rest of the year before returning to a faster growth rate in 2009.Manufacturing jobs were hammered again in August, with 61,000 workers losing their jobs. Nearly 60,000 administrative workers, including secretaries and temp workers, were laid off.

Gains came in the education and health care industries, which added a total of 55,000 jobs. But those gains were offset by loses at restaurants, auto dealers and factories that make parts for cars and other transportation equipment.

Friday’s report from the Labor Department was eagerly anticipated by investors who have become increasingly skittish about a global slowdown. The jobs data is considered the most reliable snapshot of the nation’s economy in any given month.

Stock markets fell sharply on Thursday, with the Dow Jones industrial average shedding 345 points, and the employment report could result in another day of volatile swings in the major indexes.


It was stated by Suedanim, and in in the link of the OP, that the US is in a recession. Talk about not getting it?? This is a lie and quickly undermines Bernstein's and Suedanim's credibility. A recession is defined as "two fiscal quarters of negative growth", so why doesn't Suedanim cite a source to show us proof of this recession instead of supporting Berstein's lies.

The entire global economy is slowing as evidenced by the falling price of crude on the world markets, but I suppose the Republicans are responsible for that as well:

http://www.nytimes.com/2008/09/05/business/05opec.html?ref=business

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahnOQYRWL9eY&refer=home

European options climbed to a seven-week high as investors paid up to protect holdings against further declines.

The European Central Bank yesterday cut its 2008 economic growth forecast to 1.4 percent from 1.8 percent and its 2009 prediction to 1.2 percent from 1.5 percent.

National benchmark indexes decreased in all 18 western European markets today. France's CAC 40 lost 2.5 percent, and Germany's DAX retreated 2.4 percent. The U.K.'s FTSE 100 tumbled 2.3 percent.


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The truth is the US dollar is on the rise:

http://money.cnn.com/2008/08/15/markets/oil/index.htm?postversion=2008081515


The U.S. dollar charged higher, pressuring many investors to pull money out of oil.

The dollar rose against all major currencies Friday and hit its highest level in nearly two years against the British pound.

Crude is traded in dollars, and a stronger greenback makes oil relatively more expensive to foreign buyers. Many investors have also been buying oil to hedge against dollar inflation.

"Crude probably has to move lower in the short term - perhaps to $105 or even $100 - before we can wring out the last bastions of speculative excess that are baked into the price," Tom Orr, head of research for Weeden & Co., wrote in an email.

Global woes: Oil futures were also under pressure after economic data released this week suggested the global economy is slowing significantly.

Reports from Europe, Asia and the United States all pointed to the possibility of lower oil demand worldwide.

"When you see evidence from several areas, people are much more likely to believe in demand decline," Neal Dingmann, senior energy analyst with Dahlman Rose & Co., said.

A report on Thursday from the European Union's statistics office showed the 15-nation euro zone economy contracted by 0.2% in the second quarter.

The euro zone's three largest economies - Germany, France and Italy - all shrank during the period.

Meanwhile, a report released earlier in the week showed the Japanese economy contracted in the second quarter

Because of slowing growth overseas many expect non-U.S. central banks such as the Bank of England and the European central banks to start cutting their key interbank lending rates to inject cash into their economies, according to Kasriel. However, that would also weaken their currencies and add strength to the dollar.

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So, we don't even see the world economy in a recession yet. Me thinks that the OP author's agenda is to try and shed the worst possible light upon the US. Nice try but using lies doesn't cut it.

As pointed out, the US economy actually grew by 3.3% last 1/4. but some economists dismiss it as irrelevant. As if Exports are irrelevant.

http://www.msnbc.msn.com/id/26436824

GDP revision shows economy growing at fastest pace in nearly year


updated 12:21 p.m. ET, Thurs., Aug. 28, 2008

WASHINGTON - The economy shifted to a higher gear in the spring, growing at its fastest pace in nearly a year as foreign buyers snapped up U.S. exports and tax rebates spurred shoppers at home.

The Commerce Department reported Thursday that gross domestic product, or GDP, increased at a 3.3 percent annual rate in the April-June quarter. The revised reading was much better than the government’s initial estimate of a 1.9 percent pace and exceeded economists’ expectations for a 2.7 percent growth rate.


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People can predict all of the doom and gloom they want, as they have been doing since last winter, but when the truth comes out, it usually shows their dire predictions aren't very close to what they predict, as we see in the EVIDENCE above. Chicken little couldn't have said it better.

I get so weary of poltical agendas fueling lies and half truthful discourse that I want to vomit all over those people. They are the types who love to see disasters so they can blame it upon their partisan political opposition. They would rather sink the ship than help bail it out. Traitorous partisan political hacks, the lot of them.

[xLIBREx]

Someday, people will understand that this is DUE TO BAD DOLLAR POLICY, by BOTH PARTIES not knowing where the connection is between economics and politics.

Hope you all are ready for a lot more of this, because whichever bi-partisan gets in there, this is going to be around for a while.....and likely get much worse before it gets better.

Just as the housing bubble was caused by the deals Clinton made to relax loan standards for people who really shouldn't have been getting loans. People simply aren't smart enough to separate causation from correlation and they aren't smart enough to realize the true effects of government policy changes aren't seen for years or sometimes even decades.

Some people may point out that the dollar is on the rise right now, but it's still going to settle a hell of a lot lower than it was two years ago. It's simply finding it's level just as oil did. Now if oil settles at $100 a barrel, people will see that as a victory instead of realizing it's still up 100% over 2005. Since our dollar is based on oil, that is a scary proposition. Yet neither side talks about this because they are both in he same club behind closed doors.

You may already be aware of Mises Osborne, but for those who aren't it's a great place to get an economic education:

www.mises.org

[NIOSA]

I hope all here are gainfully employed, or retired.

[DamnYankee]

You're going to hear "recession, recession, recession," quite frequently out of the enraged left over the next few weeks. It's all part of the leftist strategy of trashing the country so Comrade Obama can anoint us with oil and save us all.

[apdst]

We are in a recession. People are out of work, prices through the roof, the economy sucks for most of us

Let's start drilling. That'll put thousands of people top work and pumps millions of dollars into the economy.

[sam]

Someday, people will understand that this is DUE TO BAD DOLLAR POLICY, by BOTH PARTIES not knowing where the connection is between economics and politics.

Hope you all are ready for a lot more of this, because whichever bi-partisan gets in there, this is going to be around for a while.....and likely get much worse before it gets better.

My feeling as well, regardless of who wins the election. I was warned by a real estate agent almost2 years ago to 'start tightening your belt' because it is going to get ugly (This was when they were predicting the housing market would start coming back late 2008. Now they are HOPING it occurs by 2010.

Most people I know dont really care for either candidate or thought the selection on both sides was anything spectacular from the git go; mediocre at best.

I still can't believe anyone thinks that Palin, in the event that McCain kicked, would qualify as the POTUS. I'm not a big fan of Biden but I would be much more comfortable with him than Palin. Anyone who asks "whats a VEEP do?" would probably be as clueless as to what the president does.

[DamnYankee]

Let's start drilling. That'll put thousands of people top work and pumps millions of dollars into the economy.

The economy grew by 3.3% last quarter. Hardly a recession. But the leftists have to sh*t on the country, make people miserable.

What's bad for the country, is good for the leftists.

[apdst]

The economy grew by 3.3% last quarter. Hardly a recession. But the leftists have to sh*t on the country, make people miserable.

What's bad for the country, is good for the leftists.

I already know that. I'm just trying to give the Aloof wing a chance to show us that they REALLY give a rat fuck about the country.

[DamnYankee]

I already know that. I'm just trying to give the Aloof wing a chance to show us that they REALLY give a rat fuck about the country.

I see there are a lot of takers. :ponder:

[Milton Bradley]

You may already be aware of Mises Osborne, but for those who aren't it's a great place to get an economic education:

www.mises.org


You nailed xLIBREx. ( ...and yes, several of us on here are of the Austrian School of thought. )