Friday, May 2, 2014


The jobs report of this morning.  Up 288,000, way above estimates and unemployment down to 6.3%.  Wow, I thought, we're going through the roof on this one.

Nope, wrong again.  The markets sloshed around all day with the DOW finally closing down 45.  The ten year did nothing except to slide down in yield, the exact opposite of what one would have thought and volumes slipped.  Perhaps it was the dismal GDP number of 0.1% but that was expected.  Or was it the market reflecting upon the fact that the decline in unemployment was solely as a result of another large "drop out" number from the work force bringing the total number of unemployed in the country to almost 100,000,000.  That is a dreadful statistic by any measure and by anyone's politics.

I don't mean to be political but the question that is being increasingly asked is who's running the show and the answer increasingly appears to be, no one.  At this stage if one looks to the Fed it's same-oh, same-oh but we have to start asking with 100 million not even looking for work, how are we going to deal with this and the only answer I see is by keep printing money.  Now if that is the case logic would indicate that we must see a rise in interest rates which everybody with whom I have spoken is looking for and which is believed to be needed but not a peep from Janet & Co.  If anything, all indications are that she is determined to keep things right where they are in almost a perverse battle with the bond boys who are about as short as the world has ever seen according to Mad Max who checked in today asking the same questions.  Of course, if Janet really does want a fight, she isn't doing herself much good because with interest rates as at these levels Max and his lot can stay short forever…it's a free roll.  I don't get it.

Anyway, on the international front, The Leader and Angie met today to agree on new sanctions to be agreed upon at a later date if Russia crosses another red line in regard to the Ukraine.  I'm told Putin is shivering down to his jack boots.  It may be as cold in Moscow as it is in the fly-over zone…46F. as we speak on May 2.  I just don't know why I'm so confused about everything again.

Have a great weekend.

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