I woke up in the middle of the night with a thought that the Bush Administration knew that the Republicans didn’t stand a chance at the oval office, so they intentionally drove the economy directly into the ditch so that either Barack or Hillary would have such a monumental job on their hands that they may not be able to show any significant signs of recovery–even over 8 years.
Okay, now on to the story that is related to the headline:
US employers axed 533,000 jobs in November, the biggest monthly cut since 1974, the US Labor Department said.
In a dramatic indication of the worsening situation in the economy, the US jobless rate rose to a 15-year high of 6.7% from 6.5% in October.
Since these latest figures were compiled, further jobs losses have been announced, including big cuts at AT&T.
The grim economic data pushed Wall Street shares down by 2.5% while oil fell to a near four-year low of $40.
Recent data has fuelled fears that the world’s biggest economy is set for a deep, long downturn.
“This was much worse than was expected and represents wholesale capitulation. The threat of a widespread depression is now real and present,” said Peter Morici, a professor at the University of Maryland School of Business.
Reacting to the unemployment data, US President-elect Barack Obama said: “There are no quick or easy fixes to this crisis, which has been many years in the making, and it’s likely to get worse before it gets better.”
“In the past six months the US has lost 1.55 million jobs, almost as many as were lost in the whole 2001 recession,” said Ian Shepherdson at High Frequency Economics.
“You can’t get much uglier than this. The economy has just collapsed, and has gone into a free fall,” said Richard Yamarone at Argus Research in New York.
Read the whole story here.