Friday, July 6, 2012 – 12:01 p.m.
Four months until the Presidential election and another monthly jobs report containing more bad news on Friday.
The U.S. economy only generated 80,000 jobs in June. The expectation was for 100,000.
The unemployment rate stands unchanged at 8.2%.
The May report was revised up by 11,000 and April down by 9,000.
Average monthly job creation in the second quarter was 75,000 compared to 225,000 in the first.
The labor force participation rate is at a dismal 63.8%, and the underemployment rate, which includes people who have stopped looking for work, inched up 0.1% to 14.9%
Now Wall Street is clamoring for the Federal Reserve to further push down long term rates to help stimulate the tanking economy.
Are they kidding?
Let’s see, the 5-year U.S. Treasury Bond yield is at 0.638%, the 10-year is at 1.542%, and the 30-year is at 2.662%.
Why not just drop to zero at get it over with.
The data sounds more like a broken record and is pushing President Barack Obama closer to the edge in the contest with former Massachusetts Governor Mitt Romney.
Three more months of bad numbers and the election will likely shift, especially in battleground swing states where Romney is starting to open up leads.
And this year, more than ever, the battleground polls mean more than the national numbers.
In legitimate national polls the two men are frozen in a virtual dead heat.
A situation that’s not good for the incumbent.