Here is a statement release from Christina Roemer, quick to take today's employment report as...
...the most hopeful sign yet that the stabilization of financial markets and the recovery in economic growth may be leading to improvements in the labor market. (...)
There are many bumps in the road ahead. The monthly employment and unemployment numbers are volatile and subject to substantial revision. Therefore, it is important not to read too much into any one monthly report, positive or negative. But, it is clear we are moving in the right direction.
I've done a lot of driving today, so I've heard a lot of coverage of the employment report on the radio, and the only misgivings about it that I heard was that it might be a "blip". There was nary a whisper that just perhaps the specific jobs created in the specific industries they were created in might be unsustainable. Even some mainstream commentators admit that the easy credit policies of the Fed at least contributed to the bubble in the first place. Yet, with Bernanke having doubled the Fed's balance sheet in order to keep interest rates around 0%, is it such a hard connection to make that an even more extreme easy credit policy just might induce a false-recovery bubble?
In fact, this rebound in employment, following a "jobless recovery" in capital markets (as evidenced in the bull market we've been having) strikes me as perfectly fitting the Austrian Business Cycle Theory's characterization of an economic bubble.
What That Jobs Report Might Really Mean
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