Although there are many analysts touting the new job numbers as some sort of cushion keeping the market from a crash on Monday, one should think again. The true numbers behind the government numbers factor in discouraged workers. These are workers that have stopped looking for jobs and collecting benefits. This pushes the true unemployment rate to 16.1 percent.
Now that is still a little bit lower than previous (yet still depression like), but one must take into count average duration of unemployment. This number rose for the third month in a row. The number is now at a record 40.4 weeks. This is about 10 months and has doubled from where it was when President Obama took office in January 2009. Making the news even more stark is the fact that the total number of unemployed for more than half a year is now 6.18 million, which is 130 percent higher than when Obama was sworn in.
QE3 To Make it Worse?
There are rumors that the Fed may actually start QE3, yet many analysts are wary of continued weakening of the US Dollar and now that the S&P has downgraded US sovereign debt, QE3 could have unknown negative consequences for the US bond market, interest rated and of course the already abysmal housing situation.