The economy can’t recover until housing recovers, and neither can recover until the labor market recovers.
From Credit Suisse compliments of ZeroHedge.com:
[This measure of labor demand suggests businesses have become a lot less willing to hire in the last two months. Jobless claims in recent months are not showing a deteriorating picture for the layoff side of payrolls, but help wanted online ads are showing weakness on the hiring side.
Biggest two-month drop since the recession three years ago. Help wanted online ads posted a second straight triple-digit decline in Aug after Jul’s big drop. Importantly, new ads accounted for the bulk of the weakness.
The two-month drop for headline help wanted online ads was -262.3K, while the two-month drop for new ads was -325.7K. Both were the worst two-month stretches since Feb 2009.]
As stated by ZeroHedge these are numbers that can’t be manipulated by the BLS. More proof the labor market remains in serious trouble after all the grand designs of Obama’s Keynesian spending which led to the national debt surpassing $16 trillion this week.
This should be setting off alarms all across the nation. What does the administration do in response? Ignore the problem, concentrate on the Democratic convention where delegates fight over the inclusion of God, and Jerusalem as capital of Israel in their platform.
Then we were treated by Sandra Fluke, the nation’s largest consumer of condoms warning us women will die in emergency rooms if Romney wins the election, preceding William, ‘held in contempt, husband of the year, and cigar aficionado’ Clinton telling us Obama is the one to lead the way forward. Really?
Here is the danger of the $16 trillion dollar limit being breached while Democrats avoid it like church. Fiscal 2012 will produce a $1.3 trillion deficit based upon spending of $3.8 trillion with revenues of $2.5 trillion.
Mandatory spending which includes entitlements such as Social Security, Medicare, and Medicaid added to the interest (which is at record lows) EXCEEDS income. 100% of Discretionary spending which includes security like the military, and non-security agencies like education are being funded with borrowed money.
That’s right, 100% of government operations; military, bureaucracies, congress, judicial, and executive branches are funded with 100% borrowed money.
While surpassing $16 trillion we now have debt that is 104% of our GDP. The world economy is slowing and the response is that central banks need to print more money. Combined with Obama’s failed economic policies, this is the recipe for another financial collapse.