Storm Clouds Gather For US Economy As Job Growth Stalls

[Purveyor]

WASHINGTON (AFP) - The US economic outlook has suddenly darkened in the wake of data showing a stalling of the job growth machine, raising risks that a housing slump will lead to a full-blown recession, analysts say.

Friday's data showing the first contraction in employment in four years, a loss of 4,000 US payroll jobs in August, stunned even the bearish analysts on Wall Street and flew in the face of most forecasts for slow but steady growth.

"People had been saying that as long as employment holds up, the consumer will be OK," and the economy will keep growing, said Nigel Gault, an economist at Global Insight.

"Now that job growth has stopped, we have to question that," he said.

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Marc Chandler, analyst at Brown Brothers Harriman, said the report "is simply horrific and fans the most pessimistic fears (that) the housing market woes will undermine the US consumer, push the US economy into recession and drag down growth in much of the rest of the world."

---EOE---

http://news.yahoo.com/s/afp/20070909/bs_afp/useconomygrowth_070909210707;_ylt=At_h_.smYcMC353k.TB1m7GFOrgF

[Olney Blue]

1. Is it time for the rapture yet?

[whistle]

2. Will tomorrow go down in history as Black Monday 2007?

[Mojorabbit]

9. Probably

as I have an appt to pull what little I have in the market out on Wed. It is the way my luck works.

[Rosa Luxemburg]

3. I guess this has pssed unnoticed?

not only have Bush and Cheney screwed up with their warmongering but they haven't got the economy under control! Then they will be blaming the Mexicans for it grr!

:mad:

[Kingofalldems]

4. No stock market expert here but

Isn't October usually the worst month for stocks?

[lligrd]

5. Giving Corporations Those Tax Breaks

was supposed to bring more jobs, according to *. Wrong again!

[Maggie_May]

6. NIKKEI Down over 400 points

Its just the beginning of our global economy. We crash they all crash!

[fed-up]

7. what will happen to unemployment #'s when military & blackwater come home from war? nt

[terip64]

8. kick

[enid602]

10. Brown Brothers Harriman

Things must look pretty dismal in Bushworld economics when even the company that Bush's grandfather once led (to finance the Third Reich) is bearish.