Government Tries to Outrun Recession… Again

I have a good friend named Bill who lives on the convergence of two tidal streams in an area aptly named: Twin Rivers. Last year his bulkhead was destroyed in a severe storm. The problem with repairing a bulkhead is that it is underwater, and that presents peculiar challenges. The easiest way to repair it is when the tide goes a long way out. That only happens when we get a strong northwest wind for a few consecutive days. Thankfully, we just got one of those spells recently. Of course, a NW wind in this part of the world, at this time of year, makes for a bitterly cold day working on the water. Nevertheless, it is only during a great receding that repair can be done.
The recent jobs report is letting us know that the “Great Receding” is continuing. The winds of change are a-blowin’. The question remains, however, “What kind of ‘repairs’ will be made, and how will the market respond?”
We are now approaching 2 million jobs lost in the US. The most in over 25 years. The number came in at -533K, meaning 25% of all jobs lost were in the last month alone. An interesting thing about receding tides and receding economies - as long as the winds keep blowing - they keep receding. But even after the winds stop, things don’t return to normal right away.
It appears now that we are in for yet a deeper and longer recession than previously thought. Each week that passes, more and more people say that exact phrase. But let’s stop for a minute and review what we have at hand.
-A negative GDP
-A 50% cut in the Equity Market
-A new weekly high in the dollar
-2nd Highest Monthly Job loss in History
-Moving toward Highest Annual Job Loss in History

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