Here are some excerpts from Zerohedge and how I see it.
The Non-Farm Payroll came in at 161K below expectations of 173K, although August and September numbers were revised higher by 44K in total
The disturbing data must be the number of people not in the labour force which spiked 425K to 94.6M.
Not only that, the number of people holding multiple jobs just spiked to 8.05M, the highest on record. While the number of jobs growth may look impressive it is NOT one job per person across the board. The US has lost a lot of full time jobs, only to be replaced by part time and minimum wage jobs.
Meanwhile the labour participation rate remains low.
These are the signs that show that consumers may not have the money to continue spending like before.The fall in consumer confidence is a sure sign that going forward, things will be much more bumpy.
Don't believe so? Look at the US Debt Clock. Credit card debt is just shy of US$14B to reach US$1T. Consumers are loading up their credit card debts to sustain their livelihood or to fund purchases which they can no longer afford!
It seems all types of debts in the US is on course if not already surpassing the trillion dollar mark.
Both student and auto loans have long since surpassed that mark - which brings us to an interesting article about auto loans from Zerohedge.
In the recent FOMC meeting minutes the Fed was saying that consumer spending was strong... here's the chart (source: Zerohedge) which shows how 'strong' they were as repossession of vehicles spike alarmingly to levels seen in the previous recession. This is an indication the the subprime auto loans granted to push auto sales is now rearing its ugly head.
So here's how I see it. There may not be any hike in interest rate in December at all, and the present rate will continue indefinitely, or a 25 basis point hike in December, and no other rate hike thereafter indefinitely.
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