Non-Farm Friday – Finally Good News Can Be Good News Again
Now that we have QInfinity, it's OK to have a good jobs report.
Previously in the market, bad news has been good news as poor jobs growth has put the Fed "on the table" but now that the Fed has committed to QE, more QE and, failing that, MORE QE – it's finally OK to have a good jobs report.
Last month we had terrible August Job numbers with just 103,000 jobs created in the US and it was very "disappointing," even though Aug 2011 was 96,000 jobs and Sept 2011 was even lower at 85,000 jobs. So what we have this report is very low expectations of 115,000 jobs for this September and anything over 150,000 jobs will be an upside surprise and anything over 200,000 jobs will be big trouble for Mitt Romney, who's hitched his wagon to people believing Obama is not creating jobs.
The reality is, we are currently creating jobs at a pace not seen since the first half of the last decade before the Bush/Romney tax policies kicked in and shifted capital investing away from production and into financial instruments and commodities.
Perspective is very hard to come by in America and we have very short memories – especially when it comes to jobs because 30M Americans didn't lose their jobs over-night. Even with the monthly job losses of over 400,000 a month during the crash – it still took YEARS of losing 100,000 here and 200,000 there coupled with anemic gains for us to get into the mess we're slowly working our way out of today.
Since January, 2011, over 4M jobs have been added in 20 months but, unfortunately, we need 3M jobs just to keep up with normal population growth (1.5%/yr) over that time so the extra 1M jobs is just a drop in the bucket when it comes to reversing the damage that's already been done to America. This is why it terrifies me that Romney wants to go back to "the good old days" – they weren't actually very good for middle-class Americans, were they?
Barack Obama is about 300,000 jobs away from avoiding being the second President in 50 years to have a negative jobs number for a full term – considering the month he took office we lost 900,000 jobs that were charged to him, that's pretty good but, as I said, not good…
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.