In a report from an alternate universe somewhere else in space and time U.S. Payrolls Rose 166,000 in October.
American employers added almost twice as many jobs as forecast in October, helping steer the economy clear of recession even as the housing slump deepens. Stocks advanced and Treasury notes weakened after the report, which economists said makes an interest-rate cut by the Federal Reserve even less likely next month.
My Comment: Stocks advanced? Treasuries weakened? Look again.
"The labor market continues to be inconsistent with fears of a recession," said Dean Maki, chief U.S. economist at Barclays Capital in New York and a former senior economist at the Fed. "This report will increase the Fed's conviction that it should keep rates unchanged in coming months.
"My comment: Fed's conviction to leave rates unchanged? You can't be serious. Dean Maki must be talking about the Fed in some alternate universe somewhere.
Wages rose less than forecast, suggesting compensation may provide less of a cushion against declining home values in coming months. Hourly wages rose 3 cents, or 0.2 percent, on average to $17.58 in October and were up 3.8 percent from a year earlier.
My comment: How can they even begin to talk about wages as a cushion against home prices. The idea is absurd. Consider the following conversation. Honey, I have good news and bad news. The bad news is the value of our house fell $200,000. The good news is my hourly wages went up by 3 cents.
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