Friday, October 3, 2008

Monthly Payroll

Nonfarm payrolls tumbled by 159,000 in September.  That was the fastest pace in five years.   The unemployment rate was unchanged at 6.1%. 

Once again, there were 42,000 jobs created by the birth/death model.  The model has 12,000 jobs created in construction.  Not only is the next president going to inherit a horrible economy, but watch out when those adjustments come in January!

So now everyone is asking for a rate cut.  But if you look at the overnight fed funds rate, you see that the feds have already had a stealth cut.  While there was a worry about deflation, with the way HeliBen is operating there has to be a worry about hyperinflation.  He's got low rates, he's got all the liquidity pumping, and now another $700 billion (treasury) to buy junk from banks. 

In other news, Wells Fargo Buys Wachovia

Now Wells Fargo is buying Wachovia with a stock swap.  So now with Wells Fargo buying Wachovia, it leaves the FDIC off the hook (well not really since they still have to worry about the deposits - which they seemed to be worried about).  WF is paying $15.1 billion in stock.  WF will raise up to $20 billion by issuing common shares.



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This commentary in no way constitutes investment advice. It should never be relied on in making an investment decision, ever. Nor are these comments meant to be a solicitation of business in any way - such inquiries will not be responded to. This content is intended solely for the entertainment of the reader, and the author.  We may hold either long or short positions in securities of various companies discussed in the blog.  The information in blog may contain misspellings and other inaccuracies.  It is provided "As IS," without express or implied warranties of any kind.  HD represents all rights to the information.

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