Thursday, July 3, 2008

US Loses 62,000 Jobs in June

US Lost 62,000 jobs in June. This is the sixth straight decline in job numbers. Numbers for May were revised downward from 49,000 jobs lost to 62,000 jobs lost.

The birth and death model once again came to the rescue by adding 241,000 jobs. July is when BLS model give back some of it's gain. So look for July number to be a fugly number (July 2008 number will still not give back all of the BLS number - Look for that in Jan 2009!)

``As long as the consumer is facing these headwinds, it's going to be very tough for a major turnaround in employment growth,'' Kathleen Stephansen, head of global economics at Credit Suisse Holdings USA Inc. in New York, said before the report. ``There is very little room for the Fed to do anything.''

Actually, the fed has already done alot. Thanks for the higher gas prices and lower dollar.

This is yet another nail in the housing coffin. The only remaining hope for the housing market is lower interest rate. With inflation going up, I am not sure how long that is going to last.

Of course, the trolls are going to be out there once again touting the stocks. We might be ready for antoher bear-market rally.

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