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Sharp Drop in Jobs Adds to Grim Picture of U.S. Economy (Worse than Analysts Expected)

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Hissyspit Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 05:31 AM
Original message
Sharp Drop in Jobs Adds to Grim Picture of U.S. Economy (Worse than Analysts Expected)
Source: New York Times

Sharp Drop in Jobs Adds to Grim Picture of U.S. Economy

Kevin P. Casey for The New York Times

In a report that was far worse than most analysts had expected, the Labor Department estimated that the nation lost 63,000 jobs in February. It was the second consecutive monthly decline, and the third straight drop for private-sector jobs.

Even before the bad news on jobs emerged, the Federal Reserve was already racing to ease the latest crisis in the credit markets, where seemingly rock-solid companies have been caught short because the markets are devaluing the collateral they had posted to back billions of dollars in loans. Much of that collateral consists of mortgages.

- snip -

Though monthly payroll data are notoriously volatile and subject to revision, the jobs report was so bleak that many of the few remaining optimists on Wall Street threw in the towel and conceded that the United States was already in a recession.

Godot has arrived, wrote Edward Yardeni, who had been one of Wall Streets most relentlessly upbeat forecasters. Ive been rooting for the muddling through scenario. However, the credit crisis continues to worsen and has become a full-blown credit crunch, which is depressing the real economy.

Read more: http://www.nytimes.com/2008/03/08/business/08econ.html?...


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opihimoimoi Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 06:09 AM
Response to Original message
1.  Bush/GOP will get the blame for this...MBA my ass...its not about what best for the Nation, is it?
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RC Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 06:25 AM
Response to Reply #1
2. You are forgetting we have a "Democratic Majority" in Congress
The did/will not make bu$h's tax cuts permanent. In another year the bad economy/job losses will be the Dem's fault and Repug's will again be powerless victims.
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mwb970 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 06:27 AM
Response to Reply #2
3. No, it's Bill Clinton's fault.
And Carter. And, and....FDR! No Republicans are to blame for anything, ever. Got it?
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pattmarty Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 07:28 AM
Response to Reply #3
7. you beat me to it. Gosh, anybody can tell it's Clintons fault. Both of them.
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tanyev Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 07:06 AM
Response to Original message
4. Any analyst who didn't expect this should look for different work.
Condi has lots of openings at the State Dept. I'm sure she's always looking for more people who are incapable of anticipating the bloody obvious.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 07:17 AM
Response to Original message
5. Actually, it's a lot worse than 63,000
The private sector lost more than 63,000, but was partially offset by additions in the federal, state and local sector. The public sector is likely to contract due to falling tax collections and the inability of state and local governments to tap the frozen credit markets for more spending.

Furthermore, the numbers include a +135,000 job "birth/death" adjustment that is supposed to account for the additions/losses of jobs in small companies that aren't measured directly. No one can understand how small businesses have added this many jobs given the hemmoraging of small construction companies, real estate brokers, mortgage brokers and other small businesses associated with the busted housing market.
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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:05 AM
Response to Reply #5
12. I was never counted
I opened a biz in 2002 due to 9/11

I closed the biz in 2006 due to outsourcing/offshoring

sold the house and took the inflated equity to a new state but haven't been able to find full time employment in the 20 months we've been here. Luckily hubby found a great job so I'm staying home and growing food and learning to feed us well on very little

I didn't collect unemployment at all, but am no longer in the work force due to the state of the economy

I'm one of the lucky ones though, and I know it.....
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UpInArms Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 07:21 AM
Response to Original message
6. related story: Seeing an End to the Good Times (Such as They Were)
http://www.nytimes.com/2008/03/08/business/08recession....

“The question was always, ‘Would the economy hang on by its fingernails?’ ” said Ethan Harris, the chief United States economist at Lehman Brothers. Based on the employment report, Mr. Harris said, “there’s a very high probability that we’re in a recession now.”

Even the one apparent piece of good news in the employment report was a mirage. The unemployment rate fell to 4.8 percent, from 4.9 percent in January, but only because more people stopped looking for work and thus were not counted as unemployed by the government.

Over the last year, the number of officially unemployed has risen by 500,000, while the number of people outside the labor force — neither working nor looking for a job — has risen by 1.3 million.

Employment has risen by 100,000, but even that comes with a caveat: there are also 600,000 more people who are working part time because they could not find full-time work, according to the Labor Department.

“The decline in the unemployment rate,” said Joshua Shapiro, an economist at MFR, a research firm in New York, “should not be viewed as good news.”


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Lance31 Donating Member (109 posts) Send PM | Profile | Ignore Sat Mar-08-08 08:37 AM
Response to Original message
8. Get out of the Country while you can.
Medicare and Social Security will eventually fail too. I am gearing up to relocate to New Zealand.
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Deja Q Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:09 AM
Response to Reply #8
13. Have fun pickin' kiwifruit.

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Lance31 Donating Member (109 posts) Send PM | Profile | Ignore Sat Mar-08-08 09:13 AM
Response to Reply #13
14. At least its better than Walmart :)
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provis99 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Mar-09-08 03:44 AM
Response to Reply #8
25. Americans are flooding into Canada, too.
The government can't keep up with the paperwork; they've had to hire more immigration officials to deal with it.
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ConcernedCanuk Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 08:40 AM
Response to Original message
9. When reality does hit - it's gonna hit HARD and FAST.
.
.
.

While the US government squanders trillions of taxpayer dollars on war, local economies are tanking, jobs overseas, goodwill from allies shrinking - -

Global goodwill toward the USA is at an all time low.

And the US government still interferes in other countries.

There won't be many wanting to help the USA in the coming crises.

The citizens will suffer, but their "leaders" won't.

Sad, and scary situation down there.
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sarcasmo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:58 AM
Response to Reply #9
18. I agree Canuck, when it hits many will Not know what to do.
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INdemo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 08:45 AM
Response to Original message
10. We've been lied to about the economy for 7 years......
The unemployment numbers,job starts,etc have been propped up to protect this President from an even lower approval rating and now the truth unfolds....All those economic stats that were being reported in past just didn't match the reality of what was really happening.....The Repukes will somehow blame the Democrats and with the corporate media reading their scripts there will be those that buy into their BS..We can't spend billions on a war and expect the economy to remain stable.
Ever since the budget surplus was squandered and the tax give-aways for the the rich this economy has suffered..We had an energy bill that was drafted by the oil companies enacted and we have had had high gas prices ever since...So this economic "slow down" just didnt happen within the past few months as the corporate media would have us believe......
As far as the mortgage crisis. Well that too was a set up for higher profits and the consumer is paying dearly for those multimillion CEO salaries......
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Amonester Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 11:44 AM
Response to Reply #10
23. The BORROWED billions "spent" on this phony war...
(one that wasn't a "last resort" at all to begin with, one that was completely fabricated in order for oil corporations to rob a sovereign country of it's natural resources, which is against all International Law conventions & treaties), is ending up, in big "chunks" straight into TAX-FREE, off-shore bank accounts...

In other words, the War machine has been very busy littelaly bleeding the US economy dry for (at least...) five years now, and all this, at the expense of this generation of (shrinking) taxpayers, their kids, and their grand-childrens' kids.

Those who don't realize that (or who don't WANT to face that horrifying truth as it is...) are just fooling themselves.

Couple that with the OBVIOUS questionable grabbing of hundreds of millions by CEOs and board members when their firms lost billions because of their mismanagement!!

No wonder the economy is sinking! There's just NO substantial "return" on the "investments" at all!!

BTW, how much is a "MBA" grade??

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minnesota_liberal Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:04 AM
Response to Original message
11. BushCo just has to deny reality until 1/20/09
And then any problems are the new president's fault.
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goforit Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:32 AM
Response to Original message
15. But thats O.K. because POPPY, W, CHENEY and RUMMY are doing great!!!
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Martin Eden Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:53 AM
Response to Original message
16. Somehow this has got to be Bill Clinton's fault
Everything else is, according to the Bushistas.
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Bo Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 09:58 AM
Response to Original message
17. Trillions for War + Trillions in Mtg Losses = NO SHIT SHERLOCK
We in the Mtg. Business saw this coming 2 years ago. ...It was July, 2006 to be exact when the 1st companies on Wall street Stopped buying mtg. paper.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 10:08 AM
Response to Original message
19. They forgot to mention the 450,000 people who left the civilian workforce entirely
...in February which conveniently understated the official unemployment rate
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ileus Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 10:26 AM
Response to Reply #19
22. Where are these numbers from?
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dreyer Donating Member (28 posts) Send PM | Profile | Ignore Sat Mar-08-08 10:15 AM
Response to Original message
20. Moron As**ole approach to government fails


Can we declare the Moron As**ole (with no clue about anything) approach to government a failure now. Why the draft dodging, coke sniffer, C grades loser was judged such a great prize by the Repuke party is a mystery. And their next pick, McCain, was supposedly worse (an impossibility) to them in 2000. I guess they are in withdrawls, as its hard to find a bigger Moron As**ole than the one they have.
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 10:19 AM
Response to Original message
21. Translation: "We're f**ked!"
Hold on to your knickers, people!

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LynnTheDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 11:44 AM
Response to Original message
24. Well DAMN that Clenis!!!
It just keeps on blowing everything!

Oh wait...
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