The U.S. unemployment numbers were released on Friday morning. For the 1st time since the beginning of the recession job creation was greater then job loss. Unemployment declined from 10.2% to 10% last month. We are not out of the woods yet but it is an encouraging sign that the rate of layoffs and job cuts continues to decelerate.
It appears that every Friday another U.S. bank is driven into bankruptcy. 130 U.S. banks have failed so far this year. The latest such bank was Amtrust Bank in Cleveland, Ohio. Amtrust Bank was 110 years old and had over 66 branches in Ohio and Florida. Amtrust’s deposits were transferred to New York Community Bancorp in Florida. The growing bank failures are taking their toll on the FDIC’s reserve fund.
The badly beaten down dollar reversed course substantially on Friday. This is a positive sign as investors should have more conviction about buying the U.S. dollar. Traders fled from their gold positions as hopes of a U.S. recovery soared on the positive jobs report. I know that everyone is championing the idea to invest in gold. But I think gold has had a substantial run up from $700 and would be wary.