Another Day Another Dollar

Disappointing employment numbers this morning, to say the least:

http://www.calculatedriskblog.com/2010/08/employment-population-ratio-part-time.html

another bank closed today, consumer spending still horid this back-to-school season, Fannie Mae REOs on a drastic rise,

http://www.calculatedriskblog.com/2010/08/fannie-mae-reo-inventory-doubles.html

and all is well - or not. As I have been saying, not much happening to lead us out of our doldrums very fast. Perhaps not a second dip but certainly not a nice solid climb as we have seen in past recessions. Perhaps we will see a steady diet of poor performance for a decade that has become the norm in Japan. Either way, no popping of corks. There is increasing noise about QE2, but even if that happens it simply adds liquidity to banks who have no one to lend to; consumers are cutting back, banks will not lend to small businesses with anything less than stellar credit and big businesses mostly have money but are not yet putting it to use. Accordingly, any stimulus - other than some targeted to create jobs - seems just a bit foolish at the moment.

Unemployment and consumer spending, which are closely tied, remain stubornly in problem territory. So it is another day and there may not be another dollar.

Disclosures: None.