Seeing Red

SEEING RED….I see that Atrios had exactly the same reaction as me to today’s bad job news. Usually, Wall Street reacts jubilantly to weak job reports because it means a slacker job market, less pressure to raise wages, less inflationary pressure, and therefore a reduced chance that the Fed will increase interest rates. This attitude is so short-sighted as to call into question Wall Street’s collective sanity (Q: When does the stock market perform the best? A: When employment is up and the economy booms), but there you have it. That’s the usual schtick.

But not today. This time they seem to have gotten the message that a lousy jobs report means….the economy isn’t doing so well. I guess when their own jobs are in danger, the monthly employment report hits home a little harder than usual.