Oct. 2, 2009
Todays economic news was not good. This from Reuters via Yahoo! Finance:
U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, according to a government report on Friday that fueled fears the weak labor market could undermine economic recovery.
The consensus was for a loss of 180,000 jobs. Furthermore, highly respected banking analyst, Meredith Whitney, wrote in yesterdays Wall Street Journal that credit available for small business, the job creator in the American economy is non-existent:
Anyone counting on a meaningful economic recovery will be greatly disappointed. How do I know? I follow credit, and credit is contracting. Access to credit is being denied at an accelerating pace. Large, well-capitalized companies have no problem finding credit. Small businesses, on the other hand, have never had a harder time getting a loan.
This is not a good sign for getting people back to work. This credit contraction in conjunction with the make-believe economy of zero percent interest rates, money printing, and too-big-too fail has to undermine ones confidence in any data about current economic relationships. That, in turn, will make a recovery far more difficult due to the increased level of risk and uncertainty. Its going to take a long time for things to work themselves out I am afraid.