Spin: High Unemployment Is A Good Thing!
June 3, 2011 11:55 am
There is not much that can be said to change the fact that today’s NFP series was atrocious. Fortunately, the dollar dropped hard and that was able to help equities from getting totally slammed. If you think about it, it is really kind of pathetic that the reason the markets rise and fall these days are due to the weakness/strength of the U.S. dollar.
In other words: the worse that the U.S. economy is, the harder the U.S. dollar is hit. From there we can reason that the drop for the U.S. dollar is beneficial to U.S. exporters. That leads to the thinking that a higher number of unemployed is good for the bottom line of companies, allowing them to keep up margins.
Make sure to see this discussion from earlier today regarding the outlook on this NFP Friday.
(Click on each chart to enlarge)