This page has been archived and commenting is disabled.

Summarizing Wall Street's Kneejerk Response To The NFP Report

Tyler Durden's picture


Little surprise to the payroll report on Wall Street, which is now united in its call that the only option is for the Fed to do more QEn+1

From Reuters


"It wasn't a shock today. The president who wants to get reelected doesn't care what you think of him right now. He hasn't done enough to try to create jobs and it's been obvious. Next Thursday when he comes out with this speech that's what he'll concentrate on.

"Going into a three-day weekend, people have been nervous, the international markets were all down so you're going to see a down market, especially in the morning. One of two things will happen - people will sell in the morning, close positions and get out and take 3-4 day weekends and the people left in the afternoon will be those looking for bargains, or we'll have a whole day of people looking for selling and start again on Tuesday. The last couple of days in August were good, it saved us from a disastrous month. The reason for that was money managers, whether a mutual fund or hedge fund... did a lot of window dressing and bought stocks. I think a lot of that is being undone."


"Most people were expecting a weak report, so there's not much surprise there. I would have liked to see slightly better number to give risk a boost and provide better levels at which to sell. It does provide more ammunition for the doves on the FOMC. The bottom line is that the worse the data is, the more likely it is we get additional QE. That will keep the dollar heavy against the yen and Swiss franc, and now we're even seeing it weaken a bit against the euro and sterling."


"In a nutshell, this is the great goose egg economy -- a big zero, a big nothing -- and this better be one hell of a speech next week. There is a plethora of bad news. You have what is going on in Greece, you have lawsuits potentially coming today or Tuesday against the banks. You have the Fed in a Wall Street Journal article overnight asking Bank of America if they are going to be OK if things get really bad. There are a lot of confidence issues in the marketplace, the jobs number only made things worse and people wonder about this jobs number and its correlation with Philly Fed. That is scary. My only question is why the market isn't down more?"


"The economy is slowly grinding to a halt. The problem, however, on the policy side is that I wonder whether the numbers are truly weak enough to galvanize a political response.

"To me, the major take away from this number is that it keeps policy in limbo -- it's bad but not bad enough."


"These days finding green shoots is like squeezing water from a stone. With the number coming in at 0, and the prior revised 32,000 lower, the Fed has gained greater political ability to enact a version of QE3 at their meeting in September. We see this as terrifically bearish for the dollar, bullish for gold and bullish for euro/dollar. QE3 will accomplish two things - assets in the U.S. will be further inflated, and the weaker dollar will help U.S. multinationals as their foreign earnings will inflate on the weaker dollar."


"You have to look at payroll in the context of the confidence numbers. In August, you had Congress imploding, a U.S. downgrade and a hurricane. It was a pretty rough environment for confidence on the consumer level, let alone on the employer level. It makes sense the numbers are bad. It's a bit surprising that they were this bad. But I think it was discounted. We saw some people buying Swiss francs already last night, though that's also driven by significant concerns about Europe. The poor U.S. jobs report doesn't help, of course, and now we're looking at a 3 percent move in the Swissie, so it will be interesting to see what the SNB does. The dollar should remain rangebound against the euro, probably 1.42-1.4350."


"It's clearly disappointing, although we were looking for a very low number. Part of the weakness is the Verizon strike, it wouldn't be quite as bad without the strike.

"There were a couple of encouraging things: We saw a rise in household employment and the labor participation ratio improved.

"We've had several months now that have been well below 100,000.

"The Fed downgraded their forecast for the economy. This justifies what they've done. This looks like an economy stalling out as opposed to falling into a recession."


"There was a special factor of 45k strikers in the information sector, which outweighed a positive special factor of 22k returning government workers in Minnesota after a shutdown. Still the report is disappointing, with a dip in the workweek to 34.2 from 34.3 hours, and a 0.1% dip in average hourly earnings both weaker than expected. Unemployment held steady at 9.1% as expected and the internals of the household report are positive, employment up 331k and the labor force up 366k. Still, the weak payroll internals carry more weight, and imply an economy that while probably not yet entering a double dip, is not growing strongly enough to reduce unemployment."


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 09/02/2011 - 09:12 | 1625928 Josh Randall
Josh Randall's picture

million to one shot Doc..., couldn't have seen this coming

Fri, 09/02/2011 - 09:43 | 1626117 Ancona
Ancona's picture

Fusilli Bernanke

Fri, 09/02/2011 - 09:51 | 1626161 Pladizow
Pladizow's picture

$1 Trillion - Visualized:

Fri, 09/02/2011 - 09:52 | 1626169 wang (not verified)
wang's picture

and WSJ reports on Goldman Inst report


google cache of wsj article here

Goldman Takes a Dark View

A Private Note to Hedge-Fund Clients Gives a Strategist's View; Ways to Gain From Global Pain

Fri, 09/02/2011 - 09:54 | 1626174 buzzsaw99
buzzsaw99's picture

DUH. The squid wants a selloff so they can get QE. They always throw clients under the bus.

Fri, 09/02/2011 - 10:03 | 1626247 tawdzilla
tawdzilla's picture

The wizards have QE already baked into the cake...but it's really only brownies with ex-lax.  

Fri, 09/02/2011 - 09:52 | 1626170 Pool Shark
Pool Shark's picture



"..but besides that Mrs. Lincoln; how did you enjoy the play?"


Fri, 09/02/2011 - 10:41 | 1626430 DB Cooper
DB Cooper's picture

Nothing happened here, nothing to see - move along now.

Fri, 09/02/2011 - 10:48 | 1626455 Nothing To See Here
Nothing To See Here's picture


Fri, 09/02/2011 - 09:12 | 1625929 Debtless
Debtless's picture

Long green & black ink.

Fri, 09/02/2011 - 09:22 | 1626001 urbanelf
urbanelf's picture

You should probably throw red ink in there, too.

Fri, 09/02/2011 - 09:25 | 1626021 Debtless
Debtless's picture

I believe there's an abundance of red ink already up there. 

Fri, 09/02/2011 - 09:37 | 1626094 spiral_eyes
spiral_eyes's picture

employment ain't going ANYWHERE without reindustrialisation.

when will these too-big-not-to-fail abritrageurs wise up to that, take off their dinner jackets, and put on dungarees? 

Fri, 09/02/2011 - 11:02 | 1626537 Bring the Gold
Bring the Gold's picture

It's so funny to me. People, usually people with some money, still seem to think that the ruling elite are interested in "fixing the economy". No, they don't give a shit about you mr. upper middle class/lower tier rich just like they don't give a shit about starving Africans. They care about power and control. They also have zero national loyalty. The only reason they are still in the US and Europe is because there is so much ossified capital there and it's more or less their fortress.

So they care about buildings and some of the infrastructure. The people, the "economy", they don't give two shits about an economy that benefits you. They care about their own personal wealth, power and privilege. The days of throwing down scraps of filet mingnon to the lower tier rich and upper middle class are over. The sooner folks get that through their head the sooner we actually have a shot at changing things for the better.

Still having loyalty to the powers that be means they will continue to treat you like a battered wife. They will slowly strip away your assets and then when you have no more power they will show you their true nature at the end of a truncheon or microwave tank. They think with technology and security forces they no longer need you as a buffer. That by the way was all you ever were to them, a buffer from the angry mob. They have a technological buffer now (or so they think) so you are obselete in your one function.

I saw you calling for Martial Law on your website, so clearly you embrace true fascism not the rule of mob anarchy you feared but real DYED IN THE WOOL Fascism. Support that shit and enjoy the late night knock on your door. Oh and quit pimping your pathetic website.

Fri, 09/02/2011 - 09:13 | 1625935 lizzy36
lizzy36's picture

Wall Street can fuck off.

They got us in to this mess.

More QE may bring them bigger and better bonuses.

But can we quit pretending it is going to help the employment rate.

Obama staffed his economics team with all the Wall Street "friendly" people. How did that turn out?


Fri, 09/02/2011 - 09:24 | 1626013 TruthInSunshine
TruthInSunshine's picture

More QE and Bernank's head on a pike.

More QE and former car drivers ride bikes.

Fri, 09/02/2011 - 09:24 | 1626017 LawsofPhysics
LawsofPhysics's picture

More QE, means you will see some great carry trades in fiats such as the Ruble as the dollar gets crushed.

Fri, 09/02/2011 - 09:32 | 1626050 TruthInSunshine
TruthInSunshine's picture

If Bubbles&BananasBernank launches anything other than Fed balance sheet bond maturity date reshuffling, and he weakens the USD, he dooms the Federal Reserve (at least in current composition) and Obama's reelection odds (some would say Obama should be PRAYING for USD strengthening now).

Even people not formerly paying attention know who The Bernank is, if even in a roundabout way. Millions in Texas would lasso The Bernank and BBQ his ass if they got the chance.

Shit's getting real, as a wise man once said.

Fri, 09/02/2011 - 09:35 | 1626086 SheepDog-One
SheepDog-One's picture

Praying wont do anything to strengthen the dollar. And no way is it politically viable to further trash the dollar over the next year. QE hugely unpopular with the people as well, everyone sees it as simply payoff to the ultra rich.

Fri, 09/02/2011 - 21:52 | 1628727 Carl Spackler
Carl Spackler's picture

Yes, they can, but Wall Street didn't get us into this mess.

GOVERNMENT got us into this mess. 

Wall Street just fed on all the carcasses created by government.  Now, they are calling fo rmore carcasses to feed on ala Bernanke's hokus pokus.

Fri, 09/02/2011 - 09:21 | 1625937 Cognitive Dissonance
Cognitive Dissonance's picture


Little surprise to the payroll report on Wall Street, which is now united in its call that the only option is for the Fed to do more QEn+1

Boy, that didn't take long. In fact it's right on schedule.

I can't wait until I have a port inserted into my chest. Mainlining crack fiat bitches.

Fri, 09/02/2011 - 09:23 | 1626011 Smiddywesson
Smiddywesson's picture

The quote doesn't say much.  Can anyone recall Wall Street ever being against QE?

Fri, 09/02/2011 - 09:37 | 1626098 SheepDog-One
SheepDog-One's picture

The problem now is politics takes center stage, theyre all drooling over being the first to be seen as being 'tough on rich Wall St banksters'.

QE is wildly unpopular to everyone except the ass hat beggars up above in the article.

Fri, 09/02/2011 - 09:56 | 1626194 BoNeSxxx
BoNeSxxx's picture

Agree but the pols have painted themselves into a corner and their options are severely limited.

Their box is no better than the ChairSatan's.

Do nothing, lose the election.  Do something, lose funding (and the election).

Fri, 09/02/2011 - 09:13 | 1625940 Quaderratic Probing
Quaderratic Probing's picture

Everyone who was hired because of QE please post your name below:


Fri, 09/02/2011 - 09:26 | 1626020 Smiddywesson
Smiddywesson's picture

Well, Southeby's stock is up, somebody must have been trickled upon.

Fri, 09/02/2011 - 09:33 | 1626074 WoodMizer
WoodMizer's picture

I was laid off from a cabinetshop because QE3 hiked material costs and rent for my boss.

There were four of us before QE3; now its just my boss and his illegal immigrant brother in-law. Trying to cover 3500 sq ft of overhead.

Fri, 09/02/2011 - 09:13 | 1625944 Version 7
Version 7's picture

The DAX continues to fall apart: -3.24% at this time

Fri, 09/02/2011 - 09:14 | 1625950 djsmps
djsmps's picture

Somebody just interviewed on CNBS said that the jobs data shows a softening of the job market, but the second half should do well. I thought we were in the second half.

Fri, 09/02/2011 - 09:18 | 1625981 oogs66
oogs66's picture

the 2nd half of the 2nd half!

Fri, 09/02/2011 - 12:45 | 1626924 andybev01
andybev01's picture

'Car Talk' and their 'third half' of the show...

Fri, 09/02/2011 - 09:20 | 1625992 nantucket
nantucket's picture

the "second half" is a magical thing that exists only in the minds of idiots.  it is as realiztic as a white unicorn that prances through fields of hopium, shits rainbow skittles, and gives free pony rides to everyone.

Fri, 09/02/2011 - 09:38 | 1626099 SheepDog-One
SheepDog-One's picture

Theyve been saying 'the second half' since 2009!

Fri, 09/02/2011 - 09:40 | 1626107 Cognitive Dissonance
Cognitive Dissonance's picture

I always wondered where rainbow Skittles came from. Thanks.

Fri, 09/02/2011 - 10:24 | 1626352 TruthInSunshine
TruthInSunshine's picture

Abby Joseph Cohen just said there's lots of cash in the end zone.

Did she mean sidelines?

Fri, 09/02/2011 - 14:28 | 1627167 DoneThis2Long
DoneThis2Long's picture

Abby Joseph Cohen just said there's lots of cash in the end zone.

Wasn't Jimmy Hoffa supposed to have been 'securely' placed in the end zone ? Of the Giants' Stadium ?

She' s been wrong (at least publicly) for so long, she's an ideal contrarian indicator. She was bullish as hell @ the peak in 2k. Anymore bullish and she would have had to wear GS a cheerleader outfit and pompoms. How did that work out? She all but disappeared for a looooooong time after that fabulous call.

Fri, 09/02/2011 - 10:00 | 1626221 slyhill
slyhill's picture

Free beer tomorrow.

Fri, 09/02/2011 - 10:16 | 1626304 unununium
unununium's picture

Glitch in the matrix.  They forgot to change the tape.

Fri, 09/02/2011 - 13:30 | 1627093 DoneThis2Long
DoneThis2Long's picture

2nd half of the century - and hopefully they mean this century, which, 10% is already over !!!!

Fri, 09/02/2011 - 09:15 | 1625956 alexwest
alexwest's picture

#He hasn't done enough to try to create jobs and it's been obvious


are they crasy or what ?

country runs 10+ % deficit of GDP for 3 years in row.. only happened during ww2 and




Fri, 09/02/2011 - 09:29 | 1626049 Smiddywesson
Smiddywesson's picture

Absolutely Alx.


Mr. President, you ran on a platform of creating jobs, and have spent trillions in that pursuit, however we have lost jobs during your presidency.  Is it your plan to spend trillions more pursuing the same policy?  What are you going to do differently this time and where is the money going to come from for you to even try? 

Fri, 09/02/2011 - 09:31 | 1626059 Smiddywesson
Smiddywesson's picture

Edit:  The truth is it was never about creating jobs, it was about preserving the banking system and creating votes.

Fri, 09/02/2011 - 09:56 | 1626190 FMR Bankster
FMR Bankster's picture

They will keep doing the same thing and print the money up. If not they wouldn't have appointed this a** clown Krueger as chairman of his economic advisors.

Fri, 09/02/2011 - 10:07 | 1626264 Kayman
Kayman's picture

What are you going to do differently this time - Well we tried the Hope things get better thing. Now we are going to try that change thing.


where is the money going to come from - well, I'll ask my Squidman Timmy

Fri, 09/02/2011 - 14:24 | 1627279 DoneThis2Long
DoneThis2Long's picture

Throwing $ @ a problem, w/o targeting it was not the answer. None of the programs had a back-stop, so the aid stayed here. Yes jobs were surely created. Just not here. Asia is not exactly suffering, Canada doing OK, Germany .... fine thank you, Brazil ... okee dokee. The US .... unless you worked @ the US Mint, running the printing presses ... punt.

Once the rates got to 4-5%, the politicians should have taken a good hard look at all those moronic deals signed & approved, whereby our markets can be, and are, wide open &  flooded with products made through subsidizing and sold in manipulated currencies, yet, our products exported to them are taxed and exposed to volumes of regulations and red-tape. we are pissing into the wind. While American intellectual properties are being bought on the open market for nickels & dimes in the form of dying corporations, Americans either are not allowed to touch shares of certain foreign countries, OR. must take on partners who own the majority. My bro-in-law tried to export a product into India .... yeah .... the tax was more than the item sold for. Good-fucking-luck, yet, they operate with impunity here and behave as if doing so is a God given right - many openly (now) even laughing at us.

Fri, 09/02/2011 - 09:17 | 1625969 John McCloy
John McCloy's picture

Fat chance with oil @ 87.00 and silver @ 43.00

  They better surround Gadaffi again every morning next week pre-market. Maybe S&P 900 will get some breathing room for QE.

Fri, 09/02/2011 - 09:40 | 1626109 SheepDog-One
SheepDog-One's picture

Oil too high, gold way too high, stocks ridiculously high, dollar far too low...100 other reasons why a diamond encrusted QE is not doable. 

Fri, 09/02/2011 - 09:45 | 1626128 Id fight Gandhi
Id fight Gandhi's picture

All true.

Obama really needs to press the jobs more, nothing else matters. No jobs and higher Dow and $5 gas won't get you reelected. Looks like qe3 is becoming less likely or a tease.

Fri, 09/02/2011 - 11:06 | 1626560 CrashisOptimistic
CrashisOptimistic's picture

Oil is $112.

Fri, 09/02/2011 - 11:27 | 1626649 ElvisDog
ElvisDog's picture

Wow, isn't that true. If I was Gadaffi, I would make my peace with Allah. He has to think that he's going to be sacrificed sometime close to next week's speech.

Fri, 09/02/2011 - 09:17 | 1625973 buzzsaw99
buzzsaw99's picture

i love how they talk about unemployment as if they give a flying fXKC.

Fri, 09/02/2011 - 09:17 | 1625974 max2205
max2205's picture

"We all expected to get our stops filled pre market"....duh

Fri, 09/02/2011 - 09:18 | 1625982 TruthInSunshine
TruthInSunshine's picture

What does anyone expect from sell siders, full of bullshit and eternal fraud, who will spin and spin, as their accustomed lifestyles depend on churn and on sheeple not losing faith in the Ponzi and CONfidence Game that is the equity markets?

By the way:

This is the first time since February of 1945 that the NFP has printed the Big Old Goose Egg, bitchez.

Fri, 09/02/2011 - 09:22 | 1626007 the not so migh...
the not so mighty maximiza's picture

cool fact jack

Fri, 09/02/2011 - 09:26 | 1626035 LawsofPhysics
LawsofPhysics's picture

"This is the first time since February of 1945 that the NFP has printed the Big Old Goose Egg, bitchez."


It is amazing to me how many people are glossing over this observation.  Well, we know what needs to happen, return to post WWII tax rates OR WWIII.

Fri, 09/02/2011 - 09:42 | 1626118 SheepDog-One
SheepDog-One's picture

Amazing statistic, and add on that it was really a big negative number no doubt. Proceed to WW3, draft does wonders for employment problems and population problems.

Fri, 09/02/2011 - 09:57 | 1626177 ReactionToClose...
ReactionToClosedMinds's picture

.... good catch about February 1945 ...

and not since 1979 (ugh ... I remember the terrible uncertainty as was ready to come out of grad school) ...... worker productivity dropped 3 successive quarters .... compliments of WSJ for that comparable fact

Fri, 09/02/2011 - 09:55 | 1626178 ReactionToClose...
ReactionToClosedMinds's picture

[double post ....deleted]

Fri, 09/02/2011 - 10:03 | 1626239 RSloane
RSloane's picture

It was worthy of being posted twice.

Fri, 09/02/2011 - 09:45 | 1626130 Johnny Lawrence
Johnny Lawrence's picture

And there was no birth/death adjustment then, right?

Fri, 09/02/2011 - 11:26 | 1626642 TruthInSunshine
TruthInSunshine's picture

I do not believe so.

Q: How long has CES been using the birth/death factors and is the history of birth/death available?

A: Implementation of the birth/death factors was associated with the implementation of a new probability-based sample design and estimator.  The new methodology was phased in gradually under the following schedule:  Beginning in June 2000 (with March 1999 Benchmark), Wholesale Trade on an SIC-basis was under the new methodology; in June 2001 (with the March 2000 Benchmark), Mining, Construction, and Manufacturing, on an SIC-basis, were added; in June 2002 (with the March 2001 Benchmark), all of Total Private with the exception of Services were under the new methodology; with the conversion to NAICS in June 2003 (with the March 2002 Benchmark), all of the Total Private industries were produced under the new methodology.

Historical Birth/Death factors are available at

Fri, 09/02/2011 - 09:55 | 1626184 Temporalist
Temporalist's picture

That must be BULLISH because for 66 years after that there hasn't been another the U.S. is doing amazing (as usual if you listen to the politicos and "anal-ists" pumping their propaganda).

Fri, 09/02/2011 - 10:05 | 1626257 LawsofPhysics
LawsofPhysics's picture

"for 66 years after that there hasn't been another problem."

Hhhmmmm, let's see, what were the tax rates for those 66 years again?

Fri, 09/02/2011 - 09:20 | 1625990 chump666
chump666's picture

dumbass jokers are setting bullteaps for themselves QE 3 will be an utter flop

Fri, 09/02/2011 - 09:21 | 1625994 uno
uno's picture

QE = year end bonuses

Fri, 09/02/2011 - 10:58 | 1626513 Bringin It
Bringin It's picture

No bonuses = No love for the lil'Eichmans on Whore Street. 

I expect there to be bonuses or the Capo's lose the foot soldiers.

Fri, 09/02/2011 - 09:20 | 1625995 alexwest
alexwest's picture

AND prize for moronesque explanation goes to .. WE HAVE A WINNDER




"You have to look at payroll in the context of the confidence numbers. In August, you had Congress imploding, a U.S. downgrade and a hurricane.


firms didnt hire cause of irene/downgrade, besides firms actualy didnt know about those events..



Fri, 09/02/2011 - 09:21 | 1626000 Cdad
Cdad's picture

IF QE is on deck, THEN the US dollar must strengthen considerably between now and the September meeting.  There simply would be no point in printing more money if the dollar remains in this weak state.  The oil/gold/grain reaction to what would become an accute dollar crisis would instantly consume the effects of any more money printing.  I think the Fed is smart enough to know this...but I've been surprised before.

The continued clamor for QE3 also ignores what is mounting political pressure on the FED to the contrary.  I think this wildcard truly matters.  If that dollar rally does not come, then I would suggest to you QE3 is impossible at the Sept meeting.

$5 trillion in stimulus in two years...and look where we stand.  Absolutely criminal.

Good luck out there.

Fri, 09/02/2011 - 09:23 | 1626010 Johnny Lawrence
Johnny Lawrence's picture

Great point.  How can they launch QE3 with oil at $86?

Fri, 09/02/2011 - 09:46 | 1626133 SheepDog-One
SheepDog-One's picture

Right CDad, theres about a hundred reasons why the 'gift of QE' to Wall St fatcats simply cant be done, I dont care how much theyre wining for it!

Dollar far too low already, gold too high, stocks too high, commodities too high, and its WILDLY UNPOPULAR as well! 

EVERYTHING points to no QE, but we'll get the market crash anyway because theres no way they can keep this lead balloon inflated, way to much too far too fast....$5 trillion down the hole and here we sit in the gutter!

Fri, 09/02/2011 - 10:23 | 1626349 Kayman
Kayman's picture

So, if there was no Wall Street, could the country function ?

Fri, 09/02/2011 - 10:37 | 1626401 TruthInSunshine
TruthInSunshine's picture

"So, if there was no Wall Street, could the country function ?"


The better question is:

If there was no Wall Street, how could the country not function infinitely better on all levels?

Did you know there was a time when people bought equity shares directly from the company?

Cut out the middlemen, who have become such a powerful crime & racketeering outfit, that they've bought up the politicians & regulators, I say. The free markets will figure out a way to efficiently ensure liquidity, and lots of it, wherever and whenever a free market profit incentive is there for the taking.

Wall Street is not needed. Boycott it and it will die the death suffered by all hostless parasites; by starvation.

Fri, 09/02/2011 - 09:48 | 1626147 Smiddywesson
Smiddywesson's picture

As always, Cdad, good points.

$5 trillion in stimulus in two years...and look where we stand.  Absolutely criminal.

Criminal and crazy, unless you put yourself in their place (with their crooked values).  Then, everything makes sense.

TPTB, especially central bankers, exist outside the world of citizenship and patriotism.  Those concepts just tie their hands, and they don't like their hands tied.  Consequently, patriotism isn't taught in school anymore, and they have dismantled the cultures of all the Western nations with multiculturalism.  This wasn't done for your benefit, but it sure makes things easier for TPTB.  Nobody studies the Constitution anymore, so they are no longer bound by it.

The trillions spent were spent to rescue TPTB, specifically the banking world which they sit astride and manipulate society through their puppets in office.  Those trillions weren't wasted, because the rescue of the banking system justifies any actions in the minds of TPTB. 

TPTB know the current system can't be saved, so they are kicking the can.  Nobody in their right mind would bail out foreign banks, pour money into insolvent financial institutions and simply waste trillions that can never be paid back unless they knew it was just funny money and never will be paid back.

Gold.  The only long term action being taken by governments and banks around the world is they are plowing critical liquidity into gold.  Further, the low income nations of the world are pushing their citizens into gold and the high income nations are discouraging people from holding gold.  When all is said and done, impoverishing the American people makes it easier to create a more realistic system of trade under the new monetary system. 

So, if you look at it from the viewpoint of the robber barons, everything is going according to plan, they intend to stay in power, and everything they are doing is for our own good.

Fri, 09/02/2011 - 10:06 | 1626260 RSloane
RSloane's picture

I do not expect rationality from people who have a history of behaving irrationally which is how we got 5$ trillion in stimulus to bring us to this point.

Great post, by the way.

Fri, 09/02/2011 - 10:24 | 1626354 unununium
unununium's picture

They can buy real stuff for nothing, no way in hell they don't continue to abuse that power.  In recent days they have talked about buying corporate bonds.  Bernanke's "helicopter" was actually the idea of a money-financed tax cut.

They will further sacrifice the dollar if they must, but don't neglect the effort to tar and feather the dollar's fiat competition.


Fri, 09/02/2011 - 09:42 | 1626004 Dr. Engali
Dr. Engali's picture

Good Lord ,judging the responses I have to wonder, do any of these fools do any homework? Or do the just sit around and call each other to see what they are thinking. Go out and talk to any small business owner out there and you could see this coming.

Fri, 09/02/2011 - 09:24 | 1626014 alexwest
alexwest's picture

#"There was a special factor of 45k strikers in the information


im gonna puke.. its fucking adjested data..its suposed to take care for on/off events



Fri, 09/02/2011 - 09:24 | 1626018 John Law Lives
John Law Lives's picture

Not to worry.  QE3 will save the day.  Wall Street whoremasters will leave bigger tips at their local strip clubs during lunch, and the starving college students who work there will only have $25,000 in student loan debt (instead of $25,005) when they graduate.

100% FUBAR.

Fri, 09/02/2011 - 09:25 | 1626027 Everybodys All ...
Everybodys All American's picture

These guys will mention all of the above but will some how fail to mention that Obamacare is why no one is hiring .

Fri, 09/02/2011 - 09:30 | 1626054 snowball777
snowball777's picture

Couldn't possibly be lack of customers.

Fri, 09/02/2011 - 09:55 | 1626171 Smiddywesson
Smiddywesson's picture

I think you got junked because you singled out Obamacare rather than just saying that the costs of hiring are so outrageously expensive that companies have turned to automation, overtime, and indp. contractors.  Until this is resolved, there isn't going to be any hiring.  This is a bipartisan issue.  Both parties can eat s#%$.

Fri, 09/02/2011 - 10:47 | 1626454 Kayman
Kayman's picture

Obamacare is why no one is hiring . Certainly is a big part of it.

But.... Big bankers on welfare, Big corporations on Welfare (GM and GE are the poster children) and cancerous Big Government are the current and future overhead that impeeds real business from investing and hiring.

And naturally the time frame it will take to foster a new Middle Class.

Batten down the hatches for a decade, perhaps a generation.

Fri, 09/02/2011 - 09:26 | 1626029 sbenard
sbenard's picture

I wouldn't be surprised if we see a rally on this news. Bad news is good news on Wall St. Free money printed by the Fed -- delivered by legions of helicopters -- is the permanent new Wall St "entitlement".

Fri, 09/02/2011 - 09:46 | 1626136 RSloane
RSloane's picture

I wouldn't be surprised at all.

Fri, 09/02/2011 - 09:27 | 1626030 TruthInSunshine
TruthInSunshine's picture

By the way, it's really interesting why Goldman got the urge to lower their estimates yesterday (less than 16 hours before the NFP data was released).


Hmmmm....just coincidence, I'm sure....

Fri, 09/02/2011 - 09:28 | 1626040 Everybodys All ...
Everybodys All American's picture

no front running going on there.

Fri, 09/02/2011 - 09:34 | 1626079 TruthInSunshine
TruthInSunshine's picture

Nope. Goldman has an internal ethics department (the same one that approved Abacus, Timberwolf, Hudson, and thousands of other scams on investors, their own 'highly valued clients,' and so many others that it's hard - but I'm sure not impossible - to keep track of).

Fri, 09/02/2011 - 09:26 | 1626034 MFL8240
MFL8240's picture

Holder, Naplatano and Obama are the job killing machine that must go and we cannot wait till 2012.  Impeachment for crimes against America needs to start now.

Fri, 09/02/2011 - 11:05 | 1626557 Bringin It
Bringin It's picture

I say the German court caves a la Merkel.  Caves, as in sells-out a la Merkel. 

Fri, 09/02/2011 - 09:30 | 1626052 tocointhephrase
tocointhephrase's picture

Front row seat Bitchez!

Fri, 09/02/2011 - 09:31 | 1626058 YesWeKahn
YesWeKahn's picture

Dow will rally 200 points on this. All the eyes are on Bernanke, not the job numbers.

Fri, 09/02/2011 - 09:34 | 1626078 bigdumbnugly
bigdumbnugly's picture

are you sure it just isn't just as cnbc's simon hobbes asked and just possibly one bad month that the market can shrug off?

that guy is too much.

Fri, 09/02/2011 - 09:40 | 1626091 TruthInSunshine
TruthInSunshine's picture

QE is dead.

This NFP report just officially killed it.

ObaMao needs a strong USD, to help people get more Hamburger Helper for their money, and to be able to put an extra couple of gallons in the tank.

Watch and see, bitchez.

Dolla Dolla Bill, Yo.

Fri, 09/02/2011 - 09:41 | 1626111 Caviar Emptor
Caviar Emptor's picture

Agree. They all expect monetary stimulus because for the last 30 years that's all they've gotten every time they whined. But Monetary policy has reached an endpoint. It's boxed in by biflation and to try more of the same would tank the US and global economy even harder. That would put systemic and geopolitical risk back on the table. 

Fri, 09/02/2011 - 09:44 | 1626126 TruthInSunshine
TruthInSunshine's picture

Bernank's 'genius' in the form of monetary policy (QE) has turned into an Enron or LTCM.

The more QE he does, the more consumer and producer prices rise, which dramatically dampens consumption (at a time of no or even negative real wage growth and massive unemployment/underemployment), and the more margin contraction - and inclination to lay off more employees and cut wages and benefits, ensues.

Brilliant, Bernank!

Fri, 09/02/2011 - 09:56 | 1626188 Caviar Emptor
Caviar Emptor's picture

Exactly, Truthy! THey've set off a vicious cycle, a negative feedback loop and that spells the end of monetary stimulus as the one size fits all solution to every problem since Freidman Thatcher and Reagan

Fri, 09/02/2011 - 09:58 | 1626207 LawsofPhysics
LawsofPhysics's picture

Yep.  Funny how these guys will end up pushing the reset button at the end of the day.  Not exactly the reset we were all hoping for, but it will work.

Fri, 09/02/2011 - 09:42 | 1626116 John Law Lives
John Law Lives's picture

I will bet that Chairsatan will continue to drop hints about QE3 even if they don't intend to initiate QE3 this year.

The stock market is the only tool the Fed really has to create "wealth".  I think they intend to keep it pumped up however possible.

I hope we get a change in POTUS in 2012, and maybe the clamor for Chairsatan's resignation will gain strength.  Chairsatan Chumpstain needs to go.

Fri, 09/02/2011 - 09:58 | 1626210 Caviar Emptor
Caviar Emptor's picture

I think they realize the limited value the stock market has on the "wealth effect" for the US economy today. THere are hardly any buy-hold investors left. Even pensions are pulling out. And the aging demographic says it won't change. SO that no longer works except to enrich the HFT shops and the insiders in the bulge bracket. And that's why you're seeing a crackdown that just went global: Eurozone just announced they too are going after HFT shops

Fri, 09/02/2011 - 10:29 | 1626377 John Law Lives
John Law Lives's picture

"Eurozone just announced they too are going after HFT shops"

Good news.  The markets are a joke.  I guess those 19-year old math geniuses will need a new job when HFT shops get padlocked.

Fri, 09/02/2011 - 09:50 | 1626158 SheepDog-One
SheepDog-One's picture

QE is DOA...and notice theyre trying to tone down expectations now with 'Bernankes FOMC speech likely will be QE which entails balance sheet extension'....what? Who cares about a balance sheets extension or adjustment?

Thats not a diamond encrusted Tiffany trunk full of free money for Whore St which they expect! But I do love the frantic bleating from all those on Wall St with their pleas for 'more money please, sir!'

Theyre now elbowing each other in the face to get out there and make their case for more QE, theyre panicked!

Fri, 09/02/2011 - 10:02 | 1626235 Caviar Emptor
Caviar Emptor's picture

QE is the old playbook. Wall Street disguises a very low IQ with lots of smoke and mirrors: the whole game for the last 30 years has simply been betting with the Fed, frontrunning their announcements if you're well connected. They expect QE3 because that has been the routine. 

But we're in a brave new world that's emerging out of the rubble they created. And Bernank already signaled that things are changing and he's not going to risk putting systemic risk back on the table. The old ways have failed. The first clue the Fed was changing it's stance was published in a "Research paper" that came out in May (I posted about it). in which they openly stated that the economy was different and obliquely referenced biflation without calling it that

Fri, 09/02/2011 - 10:13 | 1626289 SheepDog-One
SheepDog-One's picture

Theres also rumors out there of the Chairsatans own ass being roasted with charges after hes dismissed in a few months!

Fri, 09/02/2011 - 10:27 | 1626367 unununium
unununium's picture

Fed will stop running the printing press when we take it away from them.  No sooner.  Come on, it's a magic money machine!

Fri, 09/02/2011 - 10:00 | 1626218 Smiddywesson
Smiddywesson's picture


The game is to kick the can and buy up gold reserves, not fix the system.  Ben is going to brandish QE3 around and talk tough, but he can't pull the trigger without bringing the end of the can kicking closer.  He doesn't want that.  Everything being done is a delaying action.

Fri, 09/02/2011 - 11:13 | 1626582 Bringin It
Bringin It's picture

TiS - Banksters own .gov.  Banksters don't need Obummer, don't care if he get's reelected or not.  They'll surely own the next guy.

Bonuses and kicking the can easily trump Obummer's reelection plans.

No QEx means nobody buys enough treasuries.

Maybe another FF is required, but they'll get the job done.

Fri, 09/02/2011 - 11:20 | 1626622 TruthInSunshine
TruthInSunshine's picture

Banksters own left, right and center. They own the political stage, and decide who to let perform.

But The Bernank gets treasury buyers if the global economy gets ugly (aka truth as to our current reality is spoken of), and it looks as if they're going to sprinkle a little truth on everyones' cornflakes.

Fri, 09/02/2011 - 11:33 | 1626673 ElvisDog
ElvisDog's picture

I agree. QE3 will raise commodity prices and companies are already at the point where they must pass all commodity price increases to the consumer. Increasing food and energy costs added to a stagnant job market will piss off the very voters who would be likely to vote for Obama. Even if they don't vote for the other guy/girl they will stay home on Nov 2012. QE3 will ensure that Obama loses the election and if he doesn't realize that he's an idiot.

Fri, 09/02/2011 - 09:39 | 1626105 Sgt.Sausage
Sgt.Sausage's picture

Green shoots!

Fri, 09/02/2011 - 09:59 | 1626110 BlackholeDivestment
BlackholeDivestment's picture

...lets see, Favorite Nation status for the Dragon of Asia in the 90's establishes the Great Wal Mart of China, Robo signing starts around (just read a report) the same time, Glass Steagle and the Brooksley Born Again battle is lost, then the 911 insiders blow up trillions by calling 911 which sent the military force into Babylon for the last ZBigNew World Order move on the geopolitical chessboard, after the WMD detonation slaughters dissent against peace with Israel.

Fri, 09/02/2011 - 09:46 | 1626137 fellatio is not...
fellatio is not fattening's picture

Labor Secretary ob CNBC says that extending unemployment benefits to the "long-term" unemployed helps create jobs.  OMG  we are in deep shit!!!!

Fri, 09/02/2011 - 10:02 | 1626232 Smiddywesson
Smiddywesson's picture

Labor Secretary ob CNBC says that extending unemployment benefits to the "long-term" unemployed helps create jobs.  OMG  we are in deep shit!!!!

You left out his recommending gladitorial fights.  Slaughter is good for the economy too.

Fri, 09/02/2011 - 09:46 | 1626138 toady
toady's picture

They've been ignoring unemployment numbers for years, so now they're a problem?

This is about the banks lawsuit, not unemployment.

Fri, 09/02/2011 - 10:13 | 1626288 oa92000
oa92000's picture

bank? why msft goes lower? is msft a bank?

Fri, 09/02/2011 - 10:52 | 1626477 toady
toady's picture

The TBTF banks may be sued by the feds. It came out after hours yesterday.

TBTF banks have their fingers in everybody's pie, including msft.

Hope that helps!

Fri, 09/02/2011 - 09:48 | 1626149 oa92000
oa92000's picture

"end of america" trade is on...

Fri, 09/02/2011 - 09:52 | 1626166 rsnoble
rsnoble's picture

Gap fill complete, BTFD!

Fri, 09/02/2011 - 09:53 | 1626172 Erin_Burnett_fo...
Erin_Burnett_footfetish_society_of_TrentonNJ's picture

Stocks go up, stocks go down - buy and hold will get you to the destination in the end.

Fri, 09/02/2011 - 09:54 | 1626175 Caviar Emptor
Caviar Emptor's picture

Dax down 4%

Fri, 09/02/2011 - 09:55 | 1626176 TruthInSunshine
TruthInSunshine's picture

QE is dead, for the reasons that I and many others have stated - a mild twist is in the works, but it gets no more than 15% of what QE in earnest did in terms of bond buying, which will roundly disappoint hungry mouths of primary dealers - these same PDs made a deal with the devil, as Obama did with them, so they now have a mutual understanding.

What we'll see, instead, in the longest and cruelest campaign season for Obama, is any accretive deficit spending geared towards stimulus programs that focus on the claims of 'creating jobs.'

Obama knows which one does his reelection chances in (the former), and which one at least doesn't doom him from the start (the latter).

Fri, 09/02/2011 - 10:14 | 1626296 jon
jon's picture

QE is dead! long live QE!

Fri, 09/02/2011 - 11:17 | 1626600 Bringin It
Bringin It's picture

You're putting way too much emphasis on the supposed needs and pull of just another easily replacable puppet.

Fri, 09/02/2011 - 09:58 | 1626206 Temporalist
Temporalist's picture

Martin Feldstein on the Euro:

Feldstein Says Euro `Experiment' Is a Proven Failure


Feldstein on ECB Rates



Fri, 09/02/2011 - 10:11 | 1626281 ReactionToClose...
ReactionToClosedMinds's picture


Fri, 09/02/2011 - 10:05 | 1626253 sbenard
sbenard's picture

QE is welfare for Wall St!

Fri, 09/02/2011 - 11:18 | 1626615 Bringin It
Bringin It's picture

Of course.

Fri, 09/02/2011 - 10:09 | 1626270 ReactionToClose...
ReactionToClosedMinds's picture

every small business I know is deep into survival phase planning, maybe worse than late 1970s,   ...... hiring ... why .... for what .. when you can barely feed yourself?

politicians and bureaucrats (nor do traders or Wall Street analysts or hedge fund managers or union bosses) have no earthly idea what a fine knife edge capitalism is.  You mess with the formulas and behavioral dynamics, and the eternally competitive look for lower price points by every human being anywhere  will eat anyone alive in a matter of months. 

Capitalism (not crony capitalism) has advanced humanity faster and further than anyone could have imagined ... but it is an incredibly delicate dynamic that most biz folk themselves do not really understand.   Most businesses face margins that are knife-edge thin  .. unless you can do an Apple , etc.  

Am personally shutting down 2 businesses and hope to 'transition' control/ownership of 3rd to Euro interests ... assuming econ world does not come to a halt ...

Fri, 09/02/2011 - 10:16 | 1626307 SheepDog-One
SheepDog-One's picture

Well CNBC just said companies petulant refusal to hire is obviously due to racism. Yes thats right, CNBC deduces companies COULD hire lots of people, but they want to see Obama look like a turd and therefore simply refusing to hire out of insolence.

Fri, 09/02/2011 - 10:12 | 1626286 jon
jon's picture

welcome to new math! the successor of QE is QE. the additive identity is QE. the multiplicative identity is QE. the integral of QE is QE. the derivative of QE is QE. the limit of QE as QE approaches QE is QE.

Fri, 09/02/2011 - 10:14 | 1626294 SheepDog-One
SheepDog-One's picture

The entire economy is QE.

Fri, 09/02/2011 - 10:15 | 1626300 jon
jon's picture

the QE has QE QE oh goQEQEQEQEhelpQE QE

Fri, 09/02/2011 - 10:22 | 1626343 realitybiter
realitybiter's picture

Get short yellow!  With all the red and green flowing there will be and oversupply of yellow.  Sell, Mortimer!

Fri, 09/02/2011 - 10:32 | 1626387 unununium
unununium's picture

Thanks for the idea.  I just sold 5,000 calls and 5,000 puts at the money on CAT.  Go yellow!


Fri, 09/02/2011 - 10:28 | 1626369 overmedicatedun...
overmedicatedundersexed's picture

close the FED, print our own money, add tariffs to manufactured items, or mandate 1 job in us for 3 jobs you have as a co overseas, reduce regulations, disband dept of energy, education ..lower taxes for those working and owning business in usa - so many things that could be done so many that are knives to the heart of the Elites who work to keep the globalization meme as the the only rational idea.

any sucessful small business owner could get us out of this ..thats why we have dick heads in office and government.

Fri, 09/02/2011 - 10:34 | 1626400 loregnum
loregnum's picture

I like how so many of these wall street people act like they were expecting a 0 which we know will be negative when it gets revised, under the radar of course. Umm if you were expecting a 0/soon to be negative figure then why was the suppsoed wallstreet consensus 75k or more? Amusing how humans just flip things when they are way off. 

Fri, 09/02/2011 - 10:50 | 1626468 ak_khanna
ak_khanna's picture

The process to create jobs involves the following steps :

Replace the top management of the too big to fail banks, put the existing ones in prison and charge them with fraud and misreprese­ntation. Reclaim the remunerati­on and bonuses that they have earned during their tenure at the bank. Break the too big to fail banks into smaller ones so that they are no longer a risk to the whole financial system. Implement the Glass Stegall Act.

Use the reclaimed billions of dollars from the arrested bankers and use them to improve the infrastruc­ture of the country. This would create jobs instantly and the improved infrastruc­ture would give the confidence to the small businessma­n to hire more people.

Tax the richest 5% of the population heavily as they no longer create jobs in the country but outsource the jobs to the low cost developing nations. Stop completely the funding of election candidates by corporates and rich individual­s so that their influence on politician­s to make rules beneficial to themselves is clipped.

Ban the use of derivative­s and speculatio­n in the stock, commoditie­s and currency markets. Stopping speculatio­n in commodity markets would reduce their prices substantia­lly which would be beneficial to the majority of the population­. This would lead to a better standard of living for the middle class families and they would go out and spend helping the revival of the economy.

But in the real world we can keep on dreaming.


Fri, 09/02/2011 - 11:42 | 1626700 fellatio is not...
fellatio is not fattening's picture

AK, your comment:  Tax the richest 5% of the population heavily


Did you know that if you were to DOUBLE the taxes that the top 5% pay it would generate approx. $60b ($60 billion) dollars of revenue, our defecit is $1.2t ($1.2 trillion) how would you cover the other 95% of the defecit???  Nobody ever addresses that, it just sounds good to say tax the rich!!  I pay more taxes in 1 year than most people make in 2-3 years, you think increasing that is fair???  Go back to the dustbowl you were born in and live there.

Fri, 09/02/2011 - 13:03 | 1626997 ak_khanna
ak_khanna's picture

Why shouldnt the country recover 60 billion by taxing the rich? Wasnt the basic concept of taxation that the more you earn the more you contribute towards the development of the society through taxation? Moreover the rich dictate the politicians (by funding their election expenses) to make rules which favour the rich and make life miserable for the middle class and the poor.

So get off your high horse and look at the bigger picture? If the politicians and the rich keep on making life miserable for the common man, revolts and riots are bound to happen which in turn lead to recessions.

Fri, 09/02/2011 - 13:22 | 1627055 warchopper
warchopper's picture

Everyone says QE1 and QE2 didn't work because U6 unemployment continues to sky rocket. Well, it has worked...for college degree holders who bolster an over 4.4% unemployment rate. More QE will place more downward pressure on the unemployment rate for degree holders. So BZ for pumping trillions of dollars into the economy at the expense of labor. After all, who needs a goods producing economy anyways whenyou hve a fiat based consumer driven economy.

Mon, 09/05/2011 - 08:38 | 1633795 shacai
shacai's picture

Welcome to .Our company was founded in 2004 and was committed to internet marketing businesses in 2006. Replica Handbags are always in a great demand and sells well. Recently, we launched some new and updated them on our website. Here you can find some scarce Cheap Christian Louboutin shoes, which were difficult to find from other websites. sac à main are also always in hotsale.

We have gotten many great comments from our customers and earn a good NFL jerseys reputation in foreign makerts, more than 90% customers are satisfied with our products and service, till now our online members NFL jerseys are beyond 80,000. As of right now, we currently serve customers from over Christian Louboutin 18 countries, and we are still growing. We really hope to expand our business through cooperation with individuals and companies from around the world.

Do NOT follow this link or you will be banned from the site!