MSNBC: Another jobs loss may sink stocks again ("it's very, very hard not to have a recession")

[Amerigo Vespucci]

Another jobs loss may sink stocks again
If data is worse than expected, don't be surprised to see another tumble

http://www.msnbc.msn.com/id/23868741/

updated 12:06 p.m. PT, Sun., March. 30, 2008

NEW YORK - Stocks may already be pricing in a recession, but they haven't priced in a very deep one. If this week's data on the job market and manufacturing are worse than Wall Street is anticipating, investors should not be surprised to see another tumble.

To be sure, the stock market is usually pretty adept at sizing up the economy. And many market experts are saying stocks may have already hit bottom. But considering how much mystery still surrounds the mortgage crisis — not to mention the fact that many analysts are starting to pare back their estimates for 2008 corporate profits — calling the stock market's decline over is a bit premature.

Last week began with a rally and ended with a sell-off after a batch of economic readings gave investors little to cheer about. The Dow Jones industrial average finished the week down 1.17 percent, the Standard & Poor's 500 index ended up 0.14 percent, and the Nasdaq composite index ended down 1.07 percent.

"If you start seeing deterioration in employment, it's very, very hard not to have a recession," said Jay Mueller, economist at Strong Capital Management.

[magellan]

1. The stock market is usually pretty adept at sizing up the economy?

How can it be? Forget the mystery depth of the subprime debacle; they aren't even getting real figures for unemployment and inflation.

I thought the market is historically one of the LAST indicators of the state of the economy.

[maseman]

2. I think the Dow has to sink another 1,000 points

and remain flat for six months before even beginning to grow again. That's another 8% to 10% drop. Not great for the boomers ready to retire.

Plus interest rates will start sucking for CDs and Money Market Funds due to the Fed lowering rates. Bond yields also suck. Not much good for any investors.

[Double T]

3. wall street and corporate america CONTINUE to outsource jobs to foreign slave wage nations..........

NO jobs, NO wages; NO wages, NO consumers; NO consumers, NO wall street. The idiots are killing off the creatures that fulfill their GREED. The death spiral of our economy continues.

[Vincardog]

4. Testify Br. DT

[napoleon_in_rags]

5. God, what if Bush is going to pull an FDR?

Didn't FDR argue that he needed that third term to save the economy, or am I remembering that wrong??? :tinfoilhat: