The pundits are beating the drums about how the economy is roaring back to life. The numbers, though, tell a far more flacid story. 49K jobs were created with only 6K of those on private payroll. That is the true story as reported by Bloomberg. When reviewing this data, Bloomberg is touting that 35 hour a week employment coupled with an increase in temporary employment is a good thing. Neither could be further from the truth. When people have neither full time employment nor are working in a capacity to be eligible for benefits, long term investment in communities — think stability, taxes, etc. — ceases. And while both former President Trump and now apparently President Biden continue to shovel trillions to the financial sector, the recent $600 given to the American Public reminds me of how Paul Atreides — Muad’Dib — of Dune fame realized that water was necessary for all, not simply the rich.
Over the three months since November, establishments shed 178,000 jobs. Over the four months since October, establishments created only 86,000 jobs. Compared to January last year, establishments shed 9.6 million jobs.
GDP growth decelerated in the fourth quarter to a 4.0% annualized rate, from the record 33.4% pace in the third quarter. And the 49K jobs created vs the gargantuan labor market is not even a drop in the bucket. To that point, anyone standing by the belief that the stock market represents the true economy of the US, is in for an extremely rude awakening. Foreclosurepedia stands by its belief that a market correction is on the way and before Q3 FY 2021 as well as a dumping of the real estate market with a massive rush in Q2 FY 2021 to dump older assets in exchange for new at rock bottom interest rates. Make no mistake that the Emperor Wears No Clothes.