Friday, June 7, 2013

Crummy Numbers - Big Rally

As expected, the economy continues to limp along.  The jobs report this morning showed 175,000 new jobs.  With net downward revisions for the prior months, the number was barely above the 150 K mark.  The result -- 7.6 percent unemployment unchanged.  Five years after the bottom, still a pitiful recovery.  But, that's good news for Wall Street because it suggests that expansive liqudity provision by the Federal Reserve will remain the policy.

For a while, higher stock prices will paper over the continued stagnation of the American economy.  But those looking for jobs and wage gains have all but given up hope in this tepid recovery.  The economy figures to soon be body slammed by Obamacare, so don't expect a healthy economy for quite a while.

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