ADP: Sucks

Posted 2012-05-02 08:27
by Karl Denninger
in Employment

The CNBC crooners are out again refusing to say what this report was in plain English: It sucks.

Employment in the U.S. nonfarm private business sector increased by 119,000 from March to April on a seasonally adjusted basis. The estimated gain from February to March was revised down modestly, from the initial estimate of 209,000 to a revised estimate of 201,000.

This just plain bites.

Worse, goods producing jobs decreased straight-up.

The so-called "de-leveraging" story is dead as well, as the so-called "savings rate" (in which paying down debt is called "saving") is going down rather than up, which strongly implies that people are once again turning to credit simply to survive.

The attempt to reinflate the Ponzi bubble that burst in 2008 has failed. Worse, it appears that we we may be weeks to months at most from broad financial market recognition of this failure -- and if so, we're about to have one hell of a crash and this time there are no policy actions available that will make a difference in the outcome.

Be prepared or get caught outdoors when the storm arrives.

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