Markets Await Jobs Tally
With a hopeful eye on tomorrow’s employment numbers from the U.S. Labor Department, markets around the world were treading wateron Thursday. Global economic markets reacted positively to the possibility of an agreement with Greece that really amounts to little more than kicking the can down the road for three years. Meanwhile, indications are that Ireland is following in Greece’s path. Both countries have received mixed messages and little assistance from the EU/IMF, which may well control the fate of both nations.
The euro rose to $1.45 against the dollar. To add to the stress on the banking sector, Goldman Sachs was subpoenaed by Congress for the purpose of explaining its conduct at the outset of the recession. The country’s financial institutions are taking deep hits in equity markets as housing prices slip further and foreclosures continue to rise.
There are 44 million Americans currently receiving food stamps. Most Americans are having difficulty keeping pace with the rising gas prices and with the escalating food prices. The Obama Administration and the country have a lot riding on Friday’s jobs report. Analysts project a jobs report showing 180,000 new jobs. Anything less will be problematic economically and politically.
According to NBC News, the top two elements causing weakness in consumer confidence are the price of oil and the inaction by Congress on the debt ceiling. Moody’s Investor Services reported that there was a “small but rising risk of a short-lived default by the United States if the government’s debt limit was not increased in coming weeks.”
Many Main Street residents wonder if the Republican Party, in its all-consuming dedication to upsetting President Obama’s second term is trying to destroy the nation and global economy along the way. Main Street thinks the budget cuts are very necessary but that this is not the time or place for these negotiations.
Republicans have a bold budget plan on the table but when polled individually, very few of them, including one announced Presidential candidate Newt Gingrich, are opposed to the concept while yet another, Mitt Romney, is a supporter of health reform similar to Obamacare.
In the troubled eurozone, Greece’s efforts to privatize certain assets for collateral purposes are stalled and decisions from the EU and IMF about more funds seem to contradict any resolution. The announcement that Greece was granted three additional years to restructure its debt seemed to stabilize the euro. Ireland appears to be the next mounting hurdle as the EU and IMF are clinging to their available resources.
Here’s hoping the jobs report does not disappoint tomorrow.
Similar Posts:
- Payroll Downtrend Stunning
- Debt Ceiling Stalemate Edgy
- Armageddon 11 Days Away
- Data Shakes Markets
- Tax Cuts Yield Short Term Gains
