NY Times: Job Losses and Surge in Oil Spread Gloom on Economy

[marmar]

By PETER S. GOODMAN
Published: June 7, 2008


The unemployment rate surged to 5.5 percent in May from 5 percent — the sharpest monthly spike in 22 years — as the economy lost 49,000 jobs, registering a fifth consecutive month of decline, the Labor Department reported Friday.

The weak jobs report, coupled with a staggering rise in the price of oil — up a record $10.75 a barrel to more than $138 — unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.

Investors’ recent hopes that the United States might yet skirt a recession sank swiftly in the face of gloomy indications that the economy is gripped by a slowdown and pressured by record fuel prices.

For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.

“It’s unambiguously ugly,” said Robert Barbera, chief economist at the research and trading firm ITG. “The average American already knows that gas prices are up a ton and it’s really hard to find a job. Sally and Sam on Main Street are already well aware of this, and that’s why sentiment surveys are lower than they were in each of the last two recessions.” ......(more)

The complete piece is at: http://www.nytimes.com/2008/06/07/business/07econ.html?_r=1&hp=&adxnnl=1&oref=slogin&adxnnlx=1212844140-W89Yf7TjesxMycH/jyn22w

[sam sarrha]

1. speculation on oil has become a National Security Problem, tax it 90%, other countries will soon

follow, except for countries with Dictators or Decider's who are looting their countries security

don't believe the Fascist propaganda that it isn't speculation... every day the news says, "Speculators SET THE PRICE AT"...

an economic adviser to 3 presidents on CNN said it was speculators in conjunction with hedge funds that is raising the price over $60 or $70 dollars a barrel..

[elizfeelinggreat]

2. wrongo

This administration causes "Gloom on Economy"

[CanonRay]

3. The only ones who don't seem to know we're IN a recession

is the government. Everybody else is sure of it.

[FarCenter]

5. I think that "real Gross Domestic Product" calculations are suspect

Probably the reason that GDP growth is still being reported as positive is that the "GDP deflator" calculations aren't accurate.

Although they are different from the consumer price index calculations, I'd bet that they are underweighting inflation in imported energy supplies, and possibly in imported food as well.

On the other hand, the inflated prices of energy and food sold at retail are included in the GDP revenue figures.

[bushmeister0]

4. The Hoover administration responds:

"The White House and some economists questioned the validity of the spike in unemployment, noting a surge in people counted as entering the labor force. Some suggested the Labor Department might have botched the statistical adjustments it uses to cancel out seasonal fluctuations in employment, perhaps inflating the effect of graduating college students looking for their first jobs."

See?

It's all a big misunderstanding. Just some egghead bean counters getting it all wrong. The employment situation is actually the exact opposite.

In fact, the White House, the NYT reports, is treatening to veto a bill that would extend jobless insurance because the unemployment is rate is so low.

NYT:

"The White House argues that jobless benefits have never been extended with the unemployment rate this low, a position that White House spokesman Tony Fratto said remained in place even after Friday’s report."

http://www.nytimes.com/2008/06/07/business/07jobs.html?em&ex=1212984000&en=bbfe1c4dace6171a&ei=5087%0A

All these people complaining about being out of a job should just take their damn stimulus checks and buy a 42' HD equipted TV and shut the hell up.

You know, if the damn Dumbocrats in Congress would just let W.'s tax cuts become permanent, we'd all be laying in clover right now.

[AzDar]

6. Partly right. To achieve TRUE economic nirvana, we must also let Big Oil

drill in ANWAR and other environmentally-protected areas.

Chimpolini says so; and he's always right.:eyes: