Recession Worries Could Ignite Over Weak Jobs Report

CNBC:

The first employment report of the year looks set to make or break the trading day for stocks worldwide, as investors' fears about the fate of the U.S. economy grow.

"Continuing employment growth is about all that is preventing us from thinking that the US slowdown will be a recession," ING Bank's Rob Carnell wrote in a market note.

November's strong gain of 94,000 nonfarm jobs is unlikely to be repeated, and analysts' predictions vary between 40,000 jobs added in December and a more optimistic 70,000.

"(Those numbers are) perfectly reasonable giving what's happening to the economy, Philip Shaw, economist at Investec, told "Worldwide Exchange." "If we were to see a couple of negative numbers, our outlook will change and recession would become our central view."

Read the whole story: CNBC

Comments

[JohnCitizen]

THE SUPPLY-SIDE SCAM

George Bush’s $3 trillion dollar tax giveaway to the rich over the past 7 years has been a disaster for average Americans. Supply-side (trickle-down) economics is a bogus theory promoted by those who benefit from it. In a mature capitalist system, supply side never rules, it’s always the demand side of the equation that governs growth and well-being. Think about the 1930s Depression, General Motors had plenty of supply, but demand evaporated.

Previous U.S. economic downturns have been cured with only $200-300 billion in tax cuts targeted to the middle class, because the consumer (the great middle class and 2/3rd of the economic engine) spends that tax cut and primes the economic pump. But George Bush has raised the debt that our children and grandchildren will have to pay from $6 trillion to $9 trillion for current economic growth (i.e. we all get trickled on, as the rich spend some small fraction of their gains). Unfortunately, this growth is largely and uniquely without wage gains, and so has shrunk the middle class that makes America strong and great. Also, this growth has already over ($3 trillion flushed down the toilet and gone!), as the FED has had to cut interest rates because recession is looming. Massive debt has led to a weak dollar, which is now at record lows vs. other major currencies because of FED interest rate cuts. In turn, the record low dollar has produced record oil prices ($100/barrel); and any additional needed FED interest rate cuts could cause a free fall in the value of the dollar, and guarantee recession or worse, stagflation.

The middle class is slowly being tapped out, as home values (most of their net worth and the credit card of last resort) are falling in price, and a considerable number of homeowners are heading for foreclosure. With the rich-poor divide increasing, we’re headed toward previous shining examples of trickle-down economics: South America of the recent past and feudalism in the Middle Ages! SUPPY-SIDE ECONOMICS IS A NEW FEUDALISM.

[Mike169]

Ending the Bush Administration where it began - in recession.

[studlyguy]

of course were already in a recession ,and inflation is way out of hand no matter what these fixed government reports say,always leaving out energy and food how convenient,the thing every person has to use and needs they leave out,inflation is here ,so the fed has a difficult decision lower rates and fuel the inflation even more and the dollar becomes even more worthless then it already is ,furthing us down the economic abyss into what would become the 21st century depression, or raise rates to go after inflation and make the dollar more attractive,either way were already in a recession , and the housing crises is already in full mode so lowering rates isn't going to save it, so since the damage is already done and there is no saving it , the best thing the fed could do is start raising interest rates cause either way it's going to hurt ,but the biggest danger is inflation more then anything else, so to ward off the nasty big elephant in the room INFLATION should start raising interest rates ,but the fed is in a catch 22,wouldn't want to be in Bernanke shoes

[getoffmedz]

Our limping economy is now sliding into pretending and denial mode.

March will the month of full impact.

Warning - whoever is two paychecks into credit card debt or upside-down on their mortgage is flirting with disaster for their entire family.

If you bought into the stock market above 9,000 you could be screwed.

[drkazmd65]

OK,.. Wall Street hacks,... listen up,...

For the vast majority of Americans NOT making their primary income through investments, we already know we are in a recession.

Stagnant relative wages, high costs (and rising) for food, energy, and other necessities, deflation of home values and high consumer debt, and (of course) a dropping value for the dollar relative to foreign currency,....

We are already there folks - the only real question is will this morph into an actual Depression?