Saturday, June 05, 2010

Hungary And Employment

431,000 jobs were added in May, and 411,000 of those jobs are census workers. Investors wanted to see the number 500,000+. Doing the math we see that corporate America added a measly 20,000 jobs. Somebody has to get coffee.

Add the slow pace of job growth, which is a polite way of stating the problem, along with a spreading European financial crisis and significant jitters are coloring market activity.

As an observer, the European crisis is not going away soon and is in fact cascading into more countries. Hungary is the latest to testify.

On the other hand, the journalists report that investors still have the opinion that the US economy is rebounding, but the rebound is weak. This is not news. We know all about it. The malaise is thick in the air.

Reuters: Wall Street hit by jobs data and European worries
...Hungarian official said the country was at risk of a Greek-style crisis...


The CBOE Volatility Index or VIX .VIX, Wall Street's favorite barometer of investor fear, shot up 20.43 percent to 35.48.


"We interpret it that this is confirmation that we are not going to have a V-shaped type recovery, but are in a below- average recovery..."

1 comment:

Glynn Kalara said...

CORPORATISM is thick in the air and on the beaches of the Gulf. On the Corp. side the CEOs are all now Barons like in the time of Henry the 8th with huge estates and incomes and special treatment from a fawning political class and bureaucracy. On the State side as long as the rich are taken care of the jobs are waiting along with those fat public pensions and life long benefits. It's a corrupt ( Crony Capitalistic) set up and there seems like no way out right now. For the few it's paradise on Earth for everyone else it's survival time.