Figure of the Day

Unemployment was down to 9.7%. U-6 was down to 16.5%.
The black sheep says that lots of people just quit looking for a job. The half full guy says it’s getting better.

Market was down, but rallied late. It is extremely worried about the European situation. The pound set new lows against the dollar today, but rallied back. The euro also is weaker against the dollar. Commodities broke hard. But Treasuries didn’t get a massive bid. So, the money coming out of the market must be sitting in mattresses.

Market will keep one eye on Europe, and one eye on consumer spending and bank lending. If banks begin to lend, money velocity will increase and the pieces for Taleb’s inflation drama will be in place.