Market Mover Friday: Thar’s jobs in them thar hills! 231k private sector jobs added, UE rate climbs to 9.9%…
Update: 10:03am EST- Uhh, the DOW is starting to drop rapidly like yesterday, now down 89.62….
yay jobs! as predicted the UE rate is climbing back up as jobs are added. We ‘discouraged’ workers are encouraged by jobs being added and are coming back to the work force looking for employment!
It’s hard to keep a good economy down. Now if only Team Obama would take a vacation or something :0) We would be firing on all cylinders if they weren’t spending like money was going out of style in D.C.
Traders anxiously watching sell orders.
…Employers added 290,000 jobs in April, the Labor Department said on Friday, far more than analysts had expected. The department also revised figures for February and March to show 121,000 more jobs were added than previously thought.
The unemployment rate, however, rose to 9.9 percent as discouraged workers re-entered the labor force to look for work….
…Private sector employment increased 231,000, also the largest gain since March 2006, after rising 174,000 in March. Private payrolls have now grown for four months. Census hiring contributed 66,000 jobs.
Analysts had expected private employment to rise between 50,000 and 100,000 in April….
When last we visited with FAN/FRED they were facing skyrocketing default rates and had exponentially increased their book, they and FHA being the last purchasers of MBS loans standing (aside from the Federal Reserve which will stop its MBS purchases in March).
…Washington-based Fannie Mae and McLean, Virginia-based Freddie Mac own or guarantee about $5.5 trillion of the $11.8 trillion in U.S. residential mortgage debt. They have financed as much as 75 percent of new U.S. mortgages this year.
They have been run for more than 40 years as shareholder- owned companies that also have a federally chartered mission to promote the housing market. Those dual mandates have collided and contributed to the companies’ failure, said Federal Deposit Insurance Corp. Chairman Sheila Bair.
“Go one way or the other,” Bair said in an interview this month. “Either completely privatize them and get them completely out or run them as public utilities.” The hybrid structure, with private shareholders, public mandates and federal backstopping, “is classic too big to fail.”…
FAN/FRED/FHA are now the owners of all these loans. But they are not modifying them. The default rates are rising with unemployment. So what did Team Obama do? Did they talk to FAN FRED FHA about doing meaningful mods to keep families in their homes?
Of course not! They lifted the cap off the lines of credit these GSE’s have with Treasury. Did they raise it to the requested 400 Billion a piece?
Of course not! That would be CRAZY!
They eliminated the cap completely instead!!!, giving these monstrous entities an UNLIMITED LINE OF TAXPAYER FUNDS FOR THE NEXT 3 YEARS.
Gee what else lasts the next 3 years? Oh yeah the Obama Presidency.
…The Treasury on Dec. 24 said it would provide an unlimited amount of assistance to the companies as needed for the next three years to alleviate market concern that the $400 billion lifeline for Fannie Mae and Freddie Mac could lapse or be exhausted. The companies, the largest source of money for U.S. home loans, were seized by the government in September 2008 as their losses threatened to further disrupt the housing market.
The Treasury also relaxed its timeline for Fannie Mae and Freddie Mac to shrink their portfolio of retained mortgages. Previously, the companies were instructed to shrink their portfolios at a rate of 10 percent a year. Now, they will be required to keep their portfolios below a maximum limit, currently $900 billion, that will fall by 10 percent a year.
Washington-based Fannie Mae, which has lost $120.5 billion over the past nine quarters, has requested $60.9 billion from the Treasury this year. McLean, Virginia-based Freddie Mac has tapped $50.7 billion in government capital since November 2008 and recorded $67.9 billion in losses over nine quarters….
In other news, Obama’s ‘tough talk’ with China in Asia and Copenhagen really had an impact. NOT! Wen Jiabao made it clear China will NOT revalue the yuan to save Asia from the collapsing US Dollar. These guys are playing chicken with the global economy. I am confident China, which HAS to grow to maintain its grip on the billions of people it governs, will stick to its guns and Timmeh Geithner and Obama will bow to the reality. As HRC said during the primaries you do not argue with your banker, and Obama has ensured with his out of control spending that China will be our banker for the foreseeable future.
Prime Minister Wen Jiabao of China struck a defiant note yesterday about the country’s exchange rate policy, saying the government would not give in to foreign demands that it let the yuan rise in value.Wen said in an interview with Xinhua, the official Chinese news agency, that the currency was facing growing pressure to appreciate, but he insisted that China was committed to keeping it stable, having virtually pegged it to the dollar since the global financial crisis worsened in the middle of last year.
“We will not yield to any pressure of any form forcing us to appreciate,” he said. “As I have told my foreign friends, on one hand, you are asking for the yuan to appreciate, and on the other hand, you are taking all kinds of protectionist measures.”
The true purpose of these calls is to contain China’s development, the prime minister said.
The yuan has fallen against the currencies of most of China’s trading partners this year because it has been fixed to the weakening dollar, while China’s economy has bounced back strongly….
Scroll down for update from WSJ…
Breaking CNBC Chyron
2009 Government Budget Deficit at $1.086 Trillion SO FAR this fiscal year
CALL YOUR CRITTERS, STOP THE SPENDING!!!
The Stand with Crowded House courtesy of nefertitisheir
Stephen Kings miniseries about a plague (sp), its survivors and the battle between good and evil. I just love it! Song by Crowded House called “Don’t Dream It’s Over”.
The U.S. budget deficit broke past $1 trillion in June, a grim testament to the recession and financial crisis. The federal government spent $94.32 billion more than it made in the ninth month of fiscal 2009, the Treasury Department said Monday in its monthly budget statement.
With that latest spill of red ink, the budget gap, for the first nine months of fiscal 2009, widened to $1.086 trillion. A year earlier, the deficit was $285.85 billion for the same nine months.
In June 2008, the government ran a surplus of $33.55 billion.
Fiscal years start Oct. 1. The White House has predicted the deficit will climb to $1.841 trillion this fiscal year. The biggest deficit for any fiscal year on record is $454.8 billion, which was rung up in fiscal 2008.
A survey of economists by Dow Jones Newswires forecast a June deficit of $97.0 billion. June federal government spending totaled $309.68 billion, compared to $226.37 billion in June 2008….
For the Rickster, Learning to Drive the Long, Long Trailer:
Courtesy of appaulledwilly:
Here are 2 Approaches on learning how to drive “The Long Long Trailer”