The Labor Department today reported that payrolls fell by 4,000 in August for the first time in 4 years. What makes matters worse is that estimates were for this number to increase by 110,000. Job losses included those in manufacturing and construction. Clearly, we can see that the housing market is starting to affect all parts of the economy now. As a result, the stock market has once again taken a beating today.
Additionally, Comments from one former Fed official — Alan Greenspan — perhaps added to Wall Street’s unease Friday. The Wall Street Journal reported the former Fed chairman on Thursday told a group of economists in Washington that the recent market turmoil is similar to that of 1987, when the Black Monday crash occurred, and of 1998, when the big hedge fund Long-Term Capital Management came close to collapsing. Greenspan’s comments come about a month ahead of the 20th anniversary of the stock market’s crash on Oct. 19, 1987.1
I’m a huge fan of Greenspan, and if he’s concerned, so should we . . . I’m sure you all know by now that I certainly am.
Sources:
1 – Yahoo Finance – Payrolls Drop for First Time in 4 Years
Related posts:
- Stock & Housing Market Update
- Real Estate Clubs Booming! – Stock Clubs Busting?
- Refinance Before Making Late Mortgage Payments
- Five Key Risks of Today’s Real Estate Market
- 7 Creative Ways to Market Your Property in a Cold Housing Market
Article Author: Joshua DorkinJoshua has written 570 articles for us.
Visit Joshua's Website: http://www.biggerpockets.com/
Joshua Dorkin (@jrdorkin) is the founder and CEO of BiggerPockets.Mr. Dorkin's vision for BiggerPockets has helped to propel it into becoming one of the top real estate destinations online. His vision for the site and its future has brought national press attention to both Mr. Dorkin and to BiggerPockets.
Joshua Dorkin
{ 2 comments… read them below or add one }
oh ye,
It’s been long forcasted that the all north american economy is going to peak in 2008-2009 and then huge market crash is expected.
It is just only a forecasting. But today we all know the condition of the market.