A dismal labor report Friday showed the economy added zero net workers in August, intensifying pressure on President Obama to unveil a major jobs initiative during his speech to Congress next week.
The Labor Department report showed the unemployment rate stuck at 9.1 percent. It was the weakest jobs report since September 2010.
In a nutshell, this is the great goose egg economy — a big zero, a big nothing — and this better be one hell of a speech next week. There is a plethora of bad news. You have what is going on in Greece, you have lawsuits potentially coming today or Tuesday against the banks. You have the Fed in a Wall Street Journal article overnight asking Bank of America if they are going to be OK if things get really bad. There are a lot of confidence issues in the marketplace, the jobs number only made things worse and people wonder about this jobs number and its correlation with Philly Fed. That is scary.”