Investors were unpleasantly surprised by the Labor Department's report that payrolls fell by 4,000 in August, the first decline since August 2003, while the unemployment rate held steady at 4.6 percent as expected.
June and July were also revised downward. Without the ability to extract wealth from their houses, people cannot fund lifestyles that are built upon a negative savings rate. Credit at all levels is evaporating.
At some point corporate profits will have to suffer because at some point people will have to stop buying things. I'd predicted a Q3 '07 recession and I'm becoming more convinced that will be a correct statement.
1 comment:
Seems that you and Johnny Rotten share a view of Rudy:
http://winamplb1.spinner.com/2007/09/06/johnny-rotten-judges-pop-stars-and-politicians/
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