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:

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.

Read more:

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% underemploymentUnemployment 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-20deficitstechnicalssentiment)that the Fed needs to SepTaper.



Source: Gallup

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.”



Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS
  • michael

    I have been in a financial crisis since 2008 and have always wondered where the recovery was. I have seen no hint of it at all. Even after going back to school for retraining I have no job. So how are we going to keep this country going? Easy answer we are not going to and I think that is and was the plan all along.

    In the 1990’s I remember businesses complaining because of the high rate of employment and employees being able to set their own terms more or less. And they came right out and said something had to be done about it. Well we are living what was done about it.
    Now what are we going to do about changing it?

    I for one will not use my tech skills for any company that does not treat me with dignity, pay me appropriately and offer me long term full time. So I will be working for myself which I think is the best answer anyway.

    • Sueychop

      There are three places with LOTS of jobs:

      1. North Dakota
      2. Texas
      3. Louisiana

      There are huge numbers of oil jobs but also jobs related. The mayor of Williston, SD. flies job seekers into his town to work even at places like Sears, McDonald’s, etc. There ARE decent jobs in the oil business but you might have to pay some dues. If you get a CDL license, go to truck driving school you can make $85,000 right out of the gate driving for these oil companies. Often with overtime you can get (12 hour days) over $100,000 per year. If you go, its good to have a camper because its hard to find places to live with very few houses/apartments and lots of guys. If you go to North Dakota make sure you have a good propane heater, etc.!

  • lucille rothstein

    The dollar is fiat, the other nations know this. We are doomed, our money is worthless and it has been since 1971 when the gold standard was taken away. We have no standing, or backing. We the people of America are putting value to it because it is the only thing we can do to keep it going. When petroleum is no longer bought with dollars we will die in our own country. No one will sell us anything because we have nothing of value to trade with them. We don’t have gold, not enough to go around here. We are living the last breaths on a death bed and most of us don’t know this. Our jobs are closing down more and more, because the people who own these company’s usually in other parts of the world are coming into realization that we have nothing to buy with. It was all done with purpose, including the taking away of our jobs by the same people that are causing this. NAFTA was created by them and pushed on us by the Republicans, by poster boy for it Ronald Reagan who made sure to screw over the future people of America. Here we are now and what do the Republicans want now, WAR, the same thing they always wanted. It is late and our home is on fire and the water is too far away to make any difference. It appears that we may be entering the times of the end for most people in America. Michael I feel your pain, I too was employed by a big corporation and at first they treated me well, for several years, until the mid 2000’s I noticed that they were making cuts and laying people off and then eventually it came my turn for them to cut me out of a job too! I have been suffering since 2008 as well. The jobs out there are horrible and they pay a pittance for what they are requiring. All the school that I have has not made it any easier for me to get a job and I can just imagine what other people are going through. I don’t see it getting any better for the young people of our nation either, it seems that they will be out on the curb asking for work, with a big loan to pay back to the schools. I just cannot fathom how things will change with our huge debt that continues to grow and our money not being worth the paper it’s printed on. I just cannot see how the international bankers along with our politicians who are continuing to destroy our nation day after day, are doing anything to help us. It seems that they are hell bent on hurting us, I cannot understand why? The only conclusion that I have come up with is that they are wanting us dead. Just dead. I can only think that they want this because this gives them the opportunity to escape this themselves by giving our things away to the other nations that we owe to. I guess we get in their way.

  • Sueychop

    Obomba WILL take the U.S. into WW3 w/the Russians. He’s a puppet just like Bush who is doing the bidding of the global bankster (Federal Reserve) elite in these (Libya, Syria, soon Iran, Russia) petrodollar wars.

  • Acrimonious Jones

    Some nice fearmongering there. Kudos on that. The gallup unemployment number is just plain false, for starters. Gallup has it at 8.4 today, as opposed to that misleading chart showing 9%. That’s a HUGE difference, but you knew that of course. ALL the banks are crapping themselves right now. Good, they need to be a little bit afraid. Nice to see them actually protecting their business instead of waiting on a government bailout.

    STAGGERING unemployment rate of 17.7%! OMG! except that underemployment isn’t unemployment. You’re just lying about that one, sensationalist “journalism” right? What a load of crap.

    Oh, and HP? Serious? 250 trained flying squirrels would have done a better job of running that company in the last 3 years. You represent this as though it’s the result of economic misfortune. It’s the result if intellectual deficiency in the management ranks of HP.

    Pandering to fear is no way to do business. It’s the pseudo-intellectual equivalent of running a Miley Cyrus fanpage.

    • Tony R.

      Dream on.

  • Tony R.

    The latest jobs numbers from California were misreported in September due to a computer problem, as they’re in the process of changing systems. Tens of thousands of layoffs weren’t included in the federal database. Once the corrections are quietly made in a few weeks, it will show a net increase in unemployment, not a decrease.

    Strangely, a similar thing happened shortly before the elections in September 2012 when the miserable California numbers were entirely omitted from the statistics to make Obummer look better.