U.S. Economy: Employers Eliminate 533,000 Jobs, Most Since 1974

U.S. Economy: Employers Eliminate 533,000 Jobs, Most Since 1974 By Bob Willis and Rich Miller Dec. 5 (Bloomberg) --

HIGHLIGHTS

• Companies Slashed Payrolls: last month at the fastest pace in 34 years as the economy headed for its deepest and longest recession since World War II.
• Employers cut 533,000 Jobs: Unemployment rate rose to 6.7 percent, the highest level since 1993 with losses so far this year totally 1.91 million jobs.
• Nariman Behravesh: Chief Economist at IHS Global Insight, “It’s unbelievable,” he went on to say, “We’re well on our way to the worst recession of the postwar period.”
• Revisions for September and October: increased job losses by 199,000. The October figure was revised to 320,000 from the previous estimate of 240,000. November was the 11th consecutive drop in payrolls.
• Mark Zandi: Chief Economist at Moody's Economy.com,“Almost all businesses are in survival mode,” “Policy makers from the Federal Reserve to Congress and the new administration are going to have to be very aggressive.”

COMMENTS

Testing the Markets: Is it time to put your toe in the water? Great bargains everywhere. What's a Fat Cat to do? I see a toe lightly feathering a vat of acid. If you don't need ten toes dip in.

Global Disorder will find a New Paradigm:

* New Tax Structures - look for it coming to a country or continent near you.
* New Oversight - rules that will impact the way you do business.
* New Regulations- that will hopefully dampen the rip and tear capitalism that helped create our current global market decay.

* World Wide Tariffs - Look for the revival of tariffs or defacto tariffs that will begin to appear around the globe as job creation becomes number one.
* Oil Revenues Decline - look for world wide terrorist traffic to slow significantly. These campaigns our expensive and don't run on credit.

* Federal Reserve - Sorry Ben, looks like an A for effort and an F for application. The world economies are melting and the Fed's lack of critical oversight is in the middle of it.
* Nationalize the Federal Reserve: Time to make a change in personnel and structure. Reconnect our monetary system to the taxpayers not private international banking interests.

* Bailout Money: focus on rebuilding the real economy (middle class worker). This is hard pain staking work but will start to change the current downward momentum.
* National Health Care: Massive unemployment, crushing corporate health & retirement burdens, and rising premiums that are forcing the rolls to swell well beyond the 40mm number of uninsured USA citizens that swamp our emergency rooms and hospital balance sheets. This will force the creation of a national single payer health care program.

* Leadership: In a capitalistic environment you are not rewarded for failure. Look for legacy leadership to be cycled out in both Business and National Politics. It will be subtle but wide reaching by the end of Obama's four years term.

Conclusion
Folks, we are all on the merry go round and some of us can't get off while others are being thrown off into brick walls. The good news is we have the ability to rebuild a more effective economic and political order. Maybe not by choice but desperation. Fasten your seat belts, refocus your thinking to a forward mode, opportunity an action awaits the astute and patient individuals.


James Monachino