Financial Crisis Alert: Half A Million People Drop Off Workforce In One Month, Bank of America To Cut 2100 Jobs, Shut 16 offices, HP Has Chopped 22,700 Jobs Since Last Year, Polled Unemployment Soars To March 2012 Levels!
ALERT SHOCKING REALIST NEWS Half a million people drop off workforce
Record 90.5 Million Out Of Labor Force As Half A Million Drop Out In One Month; Labor Force Participation Rate Plunges To 1978 Levels
While the Establishment survey data was ugly due to both the miss and the prior downward revisions in the NFP print, the real action was in the Household survey, where we find that the number of people not in the labor force rose by a whopping 516,000 in one month, which in turn increased the total number of people outside the labor force to a record 90.5 million Americans.
And what is even worse, the Labor Force Participation Rate declined from 63.4% to 63.2%: the is the lowest print since August 1978!
BofA to cut jobs in mortgage business: report
LOS ANGELES (MarketWatch) – Bank of America Corp. BAC -0.07% plans to cut roughly 2,100 jobs at its mortgage business, with demand for loans weakening as interest ratesincrease, according to a Bloomberg report Monday. The second-largest lender in the U.S. will also close 16 mortgage offices across the country, said the report citing unnamed sources familiar with the matter. About 1,600 employees who helped process home loans were notified of the layoffs on Aug. 29, and the reductions are expected to be completed by Oct. 31, said the report.
zerohedge ‏@zerohedge 5 min
Since Lehman, revolving credit has declined by $165 billion; non-revolving credit has increased by 475BN
HP has chopped 22,700 jobs since last year
HP is slicing jobs at a faster-than-expected rate.
The company has axed 27,700 people from its workforce, out of the the 29,000 it plans to cut, it said Monday in an SEC filing.
HP originally announced the layoff plan in May 2012, saying it would cut 27,000 (about 8% of its workforce) and then, in September, said it would cut 29,000.
HP also said the layoffs would happen very slowly, over about two years, ending at the close of its fiscal 2014 which is October, 2014.
Six months ago, in February, CEO Meg Whitman said HP had axed 15,000 employees, or was about half way done.
Read more: http://www.businessinsider.com/hp-cut-22700-jobs-2013-9#ixzz2eTpQYSkW
Gallup: Unemployment Rate Is 8.6 Percent for August
BLS isn’t the only organization tracking employment. Gallup also assesses the nation’s labor conditions, and according to its data, unemployment rose from 7.8 percent in July to 8.6 percent in August, a jump CNBC describes as “startling.”
When including the individuals who are underemployed, Gallup reports a staggering unemployment rate of 17.7 percent.
Compare that to government figures from July, when the jobless rate was 7.4 percent, or 14 percent when including the underemployed and those who have quit looking, and it seems that there has been a sudden surge in unemployment.
Gallup’s data is based on a 30-day rolling average. The organization says, “because results are not seasonally adjusted, they are not directly comparable to numbers reported by the U.S. Bureau of Labor Statistics, which are based on workers 16 and older.” Gallup tracks data on people 18 and older.
BLS, We Have A Problem: Polled Unemployment Soars To March 2012 Levels
Gallup tracks daily the percentage of U.S. adults, aged 18 and older, who are underemployed, unemployed, and employed full-time for an employer, without seasonal adjustment. Due to the lack of Arima-X ‘magic’ the results are specifically not comparable to the BLS data, but, as the chart below suggests, the correlation is high. What is most worrying about the latest data is the rapid rise in both unemployment and underemployment that the Gallup poll finds (to 8.9% unemployment and 17.9% underemployment. Unemployment rates have jumped notably in the last month to their highest in 13 months. Will the Fed ‘allow’ this data to filter into the BLS data and ‘avoid the Taper’ or are there non-economic reasons (G-20, deficits, technicals, sentiment)that the Fed needs to SepTaper.
JPMorgan Chase to stop making student loans
Quite dramatically, being the biggest bull in the China shop, JPMorgan Chase made the striking announcement this past week that it would quit trading in physical commodities. This in a week during which a Senate panel held hearings on whether banks such as Goldman Sachs and JPMorgan are manipulating commodity/material markets through their trading activities and ownership of vast stores of raw materials ranging from aluminum, oil, gasoline, heating oil, copper, power, coal, extending to warehouses, oil facilities, power plants all the while also examining the degree these financial institutions are placing themselves at the center of the global supply chain for industrial materials
JPMorgan Exits Physical Commodity Trading
OPEC to cut Oil production by 500,000 barrels a day…..last time they did was fall of 2008 ..ARE THEY EXPECTING A CRASH IN DEMAND AGAIN
The Organisation of Petroleum Exporting Countries(OPEC) may cut oil production by half a million barrels a day when its meets in December, the International Energy Agency(EIA) has said.
The body said if all go accoridng to plans, the reduction in production would be the first in five years since the last time such exercise was carried out was 2008.
It said: “ The last time OPEC cut its oil output was in late 2008 when it reduced production to 4.2 million barrels a day. During this time, oil demand fell and prices crashed amid the financial crisis.
Record $175 Billion Due Makes Banks Worst Losers
Banks are leading losses in China’s bond market this quarter as investors brace for a record $175 billion in debt due in 2014 and Standard & Poor’s warns that bad loans will escalate.
Notes issued by financial companies including China Construction Bank Corp. have lost 2.7 percent since the end of June, the most among the sectors tracked by Bank of America Merrill Lynch’s China Broad Market Index. The overall gauge slipped 1.8 percent, more than the 0.1 percent drop for industry securities globally. China’s banks have 1.07 trillion ($175 billion) of bonds maturing in 2014, up from 970 billion yuan this year, according to Citigroup Inc.
Lenders sold more bonds in the past two months after the People’s Bank of China engineered a cash crunch to prevent excessive lending from adding to the risk of defaults by property companies and local governments. Troubled borrowers are struggling to refinance maturing debt as a measure of total financing in the economy slumped for the fourth straight month in July, the longest losing streak in 11 years, and economic growth is forecast to slump to its slowest in 23 years.
“The very aggressive asset growth is a key risk for Chinese banks,” Liao Qiang, a Beijing-based senior director at Standard & Poor’s, said last week. “Credit losses for Chinese banks will go up substantially in the next two years.”