520,000 Jobs Never Existed Stunning Negative Revision To Payrolls, The Fed Warns Of Falling Angels (Video)
520,000 Jobs Never Existed Stunning Negative Revision To Payrolls, The Fed Warns Of Falling Angels Video by Silver Report
Stunning negative revisions to the Payrolls data cuts 520,000 jobs that were previously announced. In February 2019 the data after the revision was as low as 1,000 jobs added for the month. We were within 1,000 jobs of breaking our streak of positive growth. What would be the result if they had reported the real jobs data at the time?
The interesting thing was at the time we reported on this and I claimed they would need to produce a good jobs report because of how poor February’s data had been. Also, the Fed has changed their tune and is now commenting on the existential risks of production slowdowns in the global economy. They also eluded to a certain problem that has developed in the Corporate credit markets known as Falling Angels. What this term refers to is the bunching of barely investment-grade debt right above Junk, and what an economic slowdown would do to effect wholesale downgrades into junk status forcing firms to sell since they can no longer hold junk grade debt. Powell suggested this would produce a very rapid drop in prices. The most interesting part is that the Fed is actually telling the truth which means it may already be too late.