I looks as if we will have some significant hang over from the horrible jobs number on Friday. ZERO jobs created in the month of August on the heels of Verizon laying off 45k through the strike and employers fearing the mess that Washington was creating with the debt ceiling disaster. All in all, it was a mess of a month for the labor market.
Today our markets are closed in observance of the end of summer holiday but the world markets were crumbling under European debt fears. Those markets were down 3.5% to over 5% and the futures market is pointing to an ugly open tomorrow. Great for rates bad for retirement funds.
There isn't much to speak of in terms of economic data on the domestic calendar so all eyes will be focused on what's going on oversees and that's not good. If we think of are economy as barely treading water those folks are sinking fast. The banks are running out of capital and the leaders can't agree on the best bailout and austerity measures to address the contagion.
Look for rate pressure to be down this week with the 10yr treasury drifting down on 2%.
What amazing bi-partisan ideas will our Congress come back from recess with?
Let's stay tuned and stay positive. I really think there are some positive ideas being discussed which I will review in my next post.