Sheila Pell 11 a.m., Oct. 22
Good News for Obama: Unemployment Drops Below 8%
The unemployment rate was 7.8% in September, the lowest since President Obama took office, according to the Labor Department. The economy created 114,000 jobs, slightly above the 110,000 economists expected. August job creation was revised up to 142,000 from the originally reported 96,000, and July was revised up to 181,000 from 141,000. Actually, the jobs gains are not impressive given the madcap printing of money by the Federal Reserve, which has driven interest rates to staggeringly low levels. Initially, the stock market rose on the news today (Oct. 5). Since stocks, bonds, and commodities have all been buoyed by the Fed's flood of liquidity, a strengthening economy should realistically drive stocks down, because the Fed will have no rationale to continue its extremely easy money policy. But stocks often do not do the logical thing -- particularly today, when computerized high frequency trading accounts for more than two-thirds of volume.