See latest from the AP today; Markets down big on Job Report
Some of the most pertinent excerpts below:
* The US economy added fewer than expected jobs last month with softer wage gains underscoring concerns that the Fed Reserve reluctance to lower interest rates is choking off growth prospects.
* BLS (Bureau of Labor Statistics) said that a net 114,000 new jobs were created in July.
* "Job gains have dropped below the 150,000 threshold that would be considered consistent with a solid economy".
* Data on Thursday showed weekly jobless claims jumped to the highest levels in nearly a year with around 250,000 Americans filing for unemployment benefits.
* "The trends in inflation were heading in the right direction but the softening labor market never seemed to get the focus when discussing their dual mandate".
WEITZ: Welcome to reality everyone. This is just the beginning. The monetary expansion / money printing/ lending during COVID and under Biden was completely unsustainable. Now we must face a downward period to reach somewhat of a reasonable equilibrium and I don't see that being pretty. With inflation, many are being squeezed and attempting to pass it along in higher prices which will lead to less demand and a negative cycle that will be tough to get out. Buckle Up. I fully expect to see mortgage delinquencies rise by year's end, if not sooner. That's the next shoe to drop beyond weak jobs reports and increased layoffs in my opinion.
Side note: Intel just came out today and said they were reducing 15% of their workforce. When the large tech companies are feeling the squeeze, it's certainly worth noting.
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