Yes, We Can't...

Economists React: ‘Disturbing’ Way to Start Labor Day Weekend

The Wall Street Journal, September 2, 2011

> Disturbing. There is no other way to describe the August employment report. The economy added exactly zero jobs over the month, the first time that precise number has occurred since World War II. Worse, the totals for both June and July were revised downward sharply. Indeed, if August is also downgraded we could see a negative number. The details were as distressing as the headline number. ... –Naroff Economic Advisors

> What is particularly “bad” is the earnings data. We often say that the economy could create a trillion jobs each month but if nobody is earning any money, consumer spending is going nowhere. In August, average hourly earnings fell by 3 cents to $23.09. While this follows a decent gain in July, the year-over-year change in earnings is just 1.9%, a terribly weak rate of wage growth. Further, average weekly hours fell by one tenth. This is not good… Irrespective of any “one offs” that are skewing the data, job creation is the lifeblood of an economy — not necessarily equity prices. Without it, people should really cease acting surprised that consumers aren’t spending a ton of money, think we’re still in a recession and find their confidence falling through the floor. –Dan Greenhaus, BTIG LLC

*********************************