Gary Tanashian's  Instablog

US Economy Creates 69,000 Jobs in May

"Economists surveyed by MarketWatch had forecast a 165,000 increase in new jobs and they expected the jobless rate to hold steady at 8.1%."

They are economists doing what economists do; looking backward and never seeing change until it is in the rear view mirror.

"There's no positive spin that can be put on the May Employment report," said Jim Baird, chief investment strategist for Plante Moran Financial Advisors. "It was a disappointment, pure and simple."

No it wasn't Jim. It was expected and it is in line with our plan. Granted, I am just an outsider to your financial services industry, but this mess is playing to a script that I have had open for months now.

"The disappointing employment report sent U.S. stock futures further into negative territory. The latest data are sure to unnerve investors already worried about the worsening financial picture in Europe, a crisis that has already hit U.S. stock prices hard."

We are on the SPX 1200 to 1260 express.

"The weak job growth just confirms that business aren't about to embark on any major hiring plans until the situation in Europe clears up," said Jennifer Lee, senior economist at BMO Capital Markets. " This report does not bode well for the second half of the year."

Thank you Jen. We know that.

"The small increase in jobs puts further pressure on the Obama administration just six months before the presidential election. Republicans blame the president's policies for the slow recovery after the 2007-2009 recession and are using his handling of the economy as their main line of attack."

And they're off! Let the games begin...

"Economists say unusually warm weather boosted job creation in the winter at the expense of hiring in the early spring."

You guys have a rationale for everything.

"What remains to be seen is whether hiring picks up again soon, a tricky proposition given the recent string of data suggesting renewed softness in the economy."

Ben Bernanke sits back and awaits his moment. That moment will only come if he is respected and encouraged. Today is a big step in that direction.

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