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.
1 – Yahoo Finance – Payrolls Drop for First Time in 4 Years