The stock market was in turmoil last week trying to make sense out of the Obama Administration’s euphoria over the latest employment report. Now I’m just a mortgage broker trying to “help families live comfortably and financially secure in their own home.” but the Jobs Report Math Doesn’t Add Up. Here’s is the math as I see it, just over 160,000 found jobs in July, that’s a plus; but 250,000 stopped looking for jobs; a net loss of 110,000 jobs! Plus … more people are working part-time due to lack of work or are being employed part-time so that employers will not be forced to pay for their health insurance because of the ObamaCare laws that go into effect next year. And this is good for the economy?
The Jobs Report signals when Federal Reserve might reduce its bond-buying efforts that have kept a lid on interest rates. But when the Fed reduces it stimulus and interest rates edge up, and the pent up demand for scarce inventory pushes home prices up, there is concern that the real estate market may cool down.
Ben Bernanke says the Fed will know when the economy is back to normal once the unemployment rate goes below 6.5%. I guess that if enough Americans leave the work force or have to settle for being under-employed, we’ll be back to normal(!?)
The only math that adds up is that the policies of this Administration have been a total disaster when it comes to economic recovery.