DOW futures are currently down 90 points but were down 180 points just minutes ago. The plunge was caused by the release of September’s employment report which was simply shocking:
Payrolls declined by 533,000 in the month of September, the most since 1974, 34 years ago. The “official” unemployment rate jumped to 6.7%, but I can tell you that if that number was measured as it was in the past, it would be AT LEAST twice that.
Below is the unemployment rate as calculated by Shadow Stats BEFORE this latest report:
Note the SGS Alternate, nearly 16%!! Even the BLS’s U6 measurement is approaching 12%!
And get a load of the revisions for the prior two months:
September was revised down to -403k from -284k, that’s a one month correction of 119,000 people! Holly mother of you-know-who! Why do we allow our government to get away with this type of CRAP?
And October was revised down to -320k from -240k, another 80,000 unemployed who were not previously disclosed!
The “experts” consensus expectations were for a loss of 300k? Yet another example of how wrong the “experts” have been.
Okay, so now how do the markets react?
The S&P 820 level and the DOW’s 8,200 level stopped the future’s sell off, so far. Should that area fall, then the 760 bear flag target is in play:
The bond market is swinging pretty wildly in the OPPOSITE direction, be careful, this is setting up to be another wild day.
I have some VERY POWERFUL ideas on a way forward for our money system and economy. I am going to spend this entire weekend writing and working on my ideas. You will be hearing more about those ideas shortly, I intend to involve everyone I can, the time for that is coming SOON.