The Economy
This week the government reported that the October jobs report came in significantly worse than expected - showing acceleration in the pace of contraction for the economy. Nonfarm payroll employment in October plummeted 240,000. For the year-to-date, the economy has lost 1.2 million jobs net. Indeed, the October report shows labor market weakness spreading. The latest job losses were widespread with few positives. As early as January 7, 2008 we warned you of this possibility of stagflation by stating, “Stagflation means a condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn't growing but prices are growing. This is not a good situation for a country to be in.”
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