Weak Job Growth + Housing Depression = QE 3

Stop denying it, just consider the facts--QE 3 is an inevitability.

Look at these troubling statistics:

Case-Shiller Home Price Index finally confirms double-dip in housing
ISM Manufacturing at lowest level since Sept 2009
ADP Payroll Report Comes in at 38K vs. expectations of 175K--Foreshadows weak Non-Farm Payroll tomorrow
US economy has to create 100,000 jobs per month to keep the unemployment rate steady
To meaningfully lower the unemployment rate requires 200,000 new jobs per month (CBO report)
Chicago PMI (for May) Collapses--Drops to 56.6 from 67.6--largest decline since Oct 2008 (worldwide financial collapse)
US 1st Quarter GDP came in at 1.8%, way below expectations of 3%
Greece, Ireland, Portugal, and Spain on verge of collapse--any debt restructuring will implode the German and French banking systems, ushering in Lehman 2.0.
China PMI (proxy for global growth) fell to 52.1--a 10 month low
Most importantly for the Fed--the stock market is not rising at the Fed's mandated 0.1-0.2% rate per day. According the Fed this must be a sign of deflation, which requires them to trash the dollar and print more money.

No wonder gold is up today when everything else is down significantly.

Black Swan Insights

Words of Wisdom from Leonardo da Vinci

1. I have been impressed with the urgency of doing. Knowing is not enough; we must apply. Being willing is not enough; we must do.

2.Simplicity is the ultimate sophistication.

3.Life well spent is long.

4.Life is pretty simple: You do some stuff. Most fails. Some works. You do more of what works. If it works big, others quickly copy it. Then you do something else. The trick is the doing something else.

5. Marriage is like putting your hand into a bag of snakes in the hope of pulling out an eel.

2 comments:

AnonymousApril 30, 2013 at 12:27 AM
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PENNY STOCK INVESTMENTSJanuary 13, 2014 at 7:06 PM
Theirs no hope for the future job market. Automation outsourcing office automation corporate consolidation you name it I will not be long before everyone will be making 5 dollarsan hour. All a company will need to do in the future is command those in governmant and government will do what they say..