10/04 Jobs Report Today, A big Wow

We may not see the much anticipated 50bps rate cut later this month after all. Jobs report absolutely crushes expectations. Looks like a 25 bps cut may be more likely. Mortgage rates shot up today, that should simmer down real estate again. Stock market is in the green on the news so that’s a good sign. So the paradox continues, you have a certain group complaining about the cost of eggs and bacon and another group buying $4000 dollar guitars at auctions just to smash them into a thousand pieces. There is still too much money floating around the economy and rate increases didn’t fix that, assets continue to be overpriced especially housing. Where’s the match that’s going to light the recession fire though? Destroying housing with violent and sudden rate increases didn’t drag the rest of the economy down at all. The Fed was very sneaky in increasing rates but not creating a credit crunch ( like 2008 and other crashes). The Fed kept money flowing thru the economy. Sure, money got more expensive to borrow but who cares when revenues continue to roll in. Lenders are begging for borrowers right now because they (lenders) are flush with cash.

The recession will be waiting for the new president. When ? Yes, When? For now, enjoy the run, it’s been historic.

finance.yahoo.com

The September jobs report comes as investors debate whether the labor market is cooling quickly enough that the Federal Reserve will opt for a larger interest rate cut in November.