US economy in free fall - green shoots extinguished

ad44downey

http://news.bbc.co.uk/1/hi/business/8130703.stm

US job losses worse than expected





The number of jobs lost in the US last month came in at 467,000, which was much more than had been expected.

The jobless rate rose to 9.5%, up from 9.4% in May.
The non-farm payrolls number would usually be released on a Friday but has been announced a day early because US markets will be closed on Friday.
Since the start of the recession in December 2007, the number of jobless people has risen by 7.2 million, the Department of Labor said.

inspector_monkfish

http://forums.moneysavingexpert.com/showthread.html?t=1790325

Cannon_Fodder

http://news.bbc.co.uk/1/hi/world/americas/8129840.stm

" California in 'fiscal emergency' "

" The governor of California has declared a fiscal emergency in the US state to address a budget deficit of some $24.3bn (£14.5bn).
Governor Arnold Schwarzenegger also ordered many state offices to close for three days each month until June 2010, with staff unpaid for those days. "

Washington Post - "A California that decimates itself during recessions drags the rest of the nation down with it"

ad44downey

inspector_monkfish wrote: »

http://forums.moneysavingexpert.com/showthread.html?t=1790325

My headline's alot better though.

inspector_monkfish

ad44downey wrote: »

My headline's alot better though.

it is, but there is alot more detail in my thread.....

Graham_Devon

Seems like this is going to be the USA's version of the next stage, something which I and many others have been predicting for the UK. We are about a year behind the US I believe.

Something seems to have happened to the FTSE also. Big sudden drop. Was that anything to do with this news?

Graph here:
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/3/default.stm

Certainly the FTSE and DOW seem to be taking a bashing lately, which happened when the first stage of the downturn started out. It's all a bit deja vu for me.

inspector_monkfish

Graham_Devon wrote: »

Seems like this is going to be the USA's version of the next stage, something which I and many others have been predicting for the UK. We are about a year behind the US I believe.

Something seems to have happened to the FTSE also. Big sudden drop. Was that anything to do with this news?

Graph here:
http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/stockmarket/3/default.stm

Certainly the FTSE and DOW seem to be taking a bashing lately, which happened when the first stage of the downturn started out. It's all a bit deja vu for me.

13:59 02Jul09 FTSE Moves Lower After US Payrolls Data

MARKET NEWS:

FTSE 100 4262.77 -77.94 -1.80%
FTSE 250 7407.66 -99.05 -1.31%

London Stocks Add Losses; Payrolls Examined

1257 GMT [Dow Jones] FTSE 100 building losses Thursday, hit by the June US nonfarm payrolls report which shows the US economy lost 467,000 jobs, vs consensus expectations of a 350,000 decline. "The only bit of "good" news was that the unemployment rate rose 0.1% to 9.5% rather than to 9.6% as the market feared," says ING Bank. Still, ING looks for the unemployment rate to continue rising through to the middle of next year, peaking in the 11-11.5% range. "Coupled with slowing wage growth and rising gasoline/mortgage rates together with the deleveraging and lack of credit stories suggest the US will experience a very muted economic recovery story with little inflation," adds ING.

chucky

inspector_monkfish wrote: »

13:59 02Jul09 FTSE Moves Lower After US Payrolls Data

MARKET NEWS:

FTSE 100 4262.77 -77.94 -1.80%
FTSE 250 7407.66 -99.05 -1.31%

London Stocks Add Losses; Payrolls Examined

when it hit's a 4%-5% drop then it's something to pay more attention to

tomorrow will be interesting with NY closed there will be nothing to support or buoy the London market if things don't start well

Graham_Devon

inspector_monkfish wrote: »

13:59 02Jul09 FTSE Moves Lower After US Payrolls Data

MARKET NEWS:

FTSE 100 4262.77 -77.94 -1.80%
FTSE 250 7407.66 -99.05 -1.31%

London Stocks Add Losses; Payrolls Examined

1257 GMT [Dow Jones] FTSE 100 building losses Thursday, hit by the June US nonfarm payrolls report which shows the US economy lost 467,000 jobs, vs consensus expectations of a 350,000 decline. "The only bit of "good" news was that the unemployment rate rose 0.1% to 9.5% rather than to 9.6% as the market feared," says ING Bank. Still, ING looks for the unemployment rate to continue rising through to the middle of next year, peaking in the 11-11.5% range. "Coupled with slowing wage growth and rising gasoline/mortgage rates together with the deleveraging and lack of credit stories suggest the US will experience a very muted economic recovery story with little inflation," adds ING.

Thanks, that's all I could link it too!

Could be pretty dire for the FTSE when the DOW opens then?

Tell you what, I'm looking forward to 2014. Hopefully by then, we will have some sense of stability and where we went wrong, and hopefully, though I don't hold out much hope, we don't make the same mistakes again.

I am of the belief this has got to be stage 2 for the US now, and I don't think they have the means to save everything this time round.

1echidna

Unemployment is a lagging indicator and these figures are not necessarily indicative of an economy in free fall. Dow is not behaving as if a new disaster was happening. As for green shoots they may or may not be there.

inspector_monkfish

chucky wrote: »

when it hit's a 4%-5% drop then it's something to pay more attention to

the day is still young....