Inside Friday's Bizarre NFP
Chris Kimble | Jan 10, 2014 02:24PM ET
Many were looking forward to the closely watched 'Jobs Friday.' Now that the numbers are in, they are lower than many expected.
Speaking of lower, have you seen the labor participation rate? It's at the lowest level in more than 30 years. By way of explanation, the participation rate refers to the number of people who are either employed or actively looking for work. The striking chart below comes from Global Financial Data.
Since the early 1970's, both the unemployment and participation rates have never been in sync simultaneously TO THE DOWNSIDE.
So is this a result of the Fed's easing?
The Participation rate's tanking is important evidence.
The Velocity of Money has been tanking since 2000 as has the Participation Rate. Does the direction of these two reflect what is going on behind the scenes despite the stock market's all-time highs? And just what impact will this strange data have on the fed's taper timeline?
Stay tuned.
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