If you don’t think financial markets have been utterly destroyed by central bank intrusion then how can you explain Friday’s 460 Dow point reversal after the post-NFP low? It was pure machine rage triggered by another implied “lower for longer” Fed policy signal.
While I think the BLS establishment survey isn’t worth the paper it’s manipulated on, it did take a drastic turn for the worse. So doing, it thereby monkey-hammered the recovery narrative of the Keynesian chorus on Wall Street and at the Fed.
In fact, the alleged 245,000 monthly rate of job gains registered during the year through July was about the only fig leaf of proof they have been able to offer as to why “escape velocity” was finally at hand; and why household consumption would soon accelerate, thereby powering up a new leg of recovery.
Well, that meme was shot dead by the September report including the sharp downward revisions to prior month. The average gain for August/September was 139,000. That is, until the BLS revises it all away, the last two-months rate of jobs gain has averaged 42% lower than prior trend!
And by your way, the BLS has already announced its benchmark revision expectation for February, and its a 200,000 downward adjustment to the levels reported Friday.
Even then, we are mainly talking