David Rosenberg provides his take on the data from the latest Bureau of Labor Statistics report:
Just How Ugly Is The Truth Of America's Unemployment
The data from the Household survey are truly insane. The labour force has plunged an epic 764k in the past two months. The level of unemployment has collapsed 1.2 million, which has never happened before. People not counted in the labour force soared 753k in the past two months.
These numbers are simply off the charts and likely reflect the throngs of unemployed people starting to lose their extended benefits and no longer continuing their job search (for the two-thirds of them not finding a new job). These folks either go on welfare or they rely on their spouse or other family members or friends for support.
Stoneleigh: The middle class is forced to run on a treadmill that is increasing in speed, so that they have to run faster and faster just to keep up. More and more people are failing to do so and being flung off the back all the time, but so far their plight goes largely unnoticed. For now there are sufficient bread and circuses to distract the rest of the masses, and enough opportunities for short-term profit for those at the top of the pyramid to focus their attention away from reality as well. In the meantime the pressure builds quietly closer to criticality, and as we've seen recently in Egypt, a social pressure cooker can suddenly erupt. Prevailing social mood can turn on a dime.