The job market figures so anxiously expected, turned out to be a big disappointment. The Federeal Government reported that U.S. employers added 431,000 new jobs in May but 411,000 of them were temporary Census 2010 positions, usually lasting only 2 weeks. It means that private sector added only 20,000 jobs - almost ten times less than in April 2010.
Worried about the stagnation on the U.S. job market and continued worries about European economies, the stock market took a 200+ dive and is expected to close below 10,000 points today. Especially worrisome are the news from Hungary that seems to have joined the infamous PIIGS club of counties of huge budget deficits and raising cost of government bonds. Like some of us, the PIIGS counties borrowed heavily in the last few years and their "credit cards rate" either has or is about to skyrocket.
As we all know, this type of borrowing cannot be sustained. It leads only to more debt and higher interest rates, finally - a default, the word that investors all over the word are dreading the most.
Bad unemployment figures are exactly what we don't need in the "post tax credit" times. Number of foreclosures in Arlington Heights and other northwest suburbs of Chicago are expected to be high for another year or more.
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