Unexpected Job Loss in August

Calendar September 7, 2007 | Posted by Jorge

The jobs report came out this morning showing that the U.S. unexpectedly lost 4,000 jobs in August. As a result, the market futures are all down about 1% pre-market trading. Due to the unexpected loss in jobs, the pressure has been placed on the Federal Reserve to go ahead and cut rates later this month or sometime this year. If they don’t, expect the U.S. to fall into a recession. It may be a good time right now to sell what you have for a profit because the next few days may not be the best for the market. I’d expect the market to close about 300 points down today as a result of the jobs report. I’m currently 60% invested but hopefully I can close out more of my positions for a profit in preparation for today. It’s amazing how much playing the market can teach someone about how the U.S. economy works. Of course it’s only interesting if you’re into that kind of stuff! Good luck today. It’s not going to be pretty.

Update: Markets closed down 250 points today. It was a nice sale. I picked up quite a few stocks on their way down. We’ll see a rebound next week, not necessarily on Monday but sometime next week we will in anticipation of the FOMC rate cut. Everything’s finally starting to make sense!

Category Categories: Miscellaneous | Tag Tags: | Comments Comments

  • With all those mortgage layoffs, I can't say I'm surprised.
  • Jorge
    Yeah it's not pretty. My fiancee's dad lost his job as well (was given 60 days to find a new housing contractor to work for). Both industries are not the best places to be in right now. Then again it looks as if it's extremely hard to find any jobs right now. My fiancee just graduated with her B.A. and has spent about 2 months looking for a job.
  • Ugh, that sucks. Think there is a recession to come?
  • Jorge
    You know, I honestly can't say. My instinct from my economics class back in high school (has it been over 7 years already?) is that we're already in a recession. The fact that we lost jobs last month isn't promising. Even if the government does something, the average time it takes for the economy to feel it is roughly 6 months I believe.

    I think that's the problem with being involved with such economics, especially if you're at a federal level. My understanding is that you need to be proactive, a fortune teller even. If you don't act before the actually acting is needed, things can go down the drain rather quickly.

    I knew I should have listened to my mother. Kids, when you go to college, don't change your mind about what you want to do. Go with your first instinct!
  • Jorge, i agree with you about "Go with your first instinct"

    Randis last blog post..Tips and Advice Before You Donate A Car
blog comments powered by Disqus