• 01 Mar 2013 at 1:53 PM

Sequestration Friday!

By Jon Shazar

It’s here. And it’s probably here to stay. No one’s really sure what it all means because no one bothered to take it seriously when it was put in place, and now we could be down one monthly jobs report.

The Labor Department is planning to stop producing its monthly report on mass layoffs in the U.S. labor market if sequester begins as expected Friday, according to an internal agency email. Two other economic reports—one counting green jobs and another on international labor comparisons—would also be cut.

The reports are relatively minor—they don’t cause major jumps in the stock market like other reports, such as the Labor Department’s closely tracked snapshot of the jobs market each month. There are no signs that those major reports will be affected by the sequester cuts.

Down Constitution Avenue, however, there’s still plenty of money—for now—to spread bad news.

Personal income growth plunged 3.6% in January, the biggest one-month drop in 20 years, the Commerce Department said Friday. And consumer spending rose just 0.2% with most of it going toward higher heating bills and filling up the gas tank.

The income drop was offset by Americans’ savings a hefty 2.6% rise in December. But most of that gain, analysts said, reflected a rush by companies to pay dividends and bonuses before income taxes increased on top earners at the start of 2013.

There were spending declines in January for big-ticket items that last three years or more, like cars and appliances, and non-durable goods, like clothing and food. Some economists said the declines could be blamed on a 2% federal payroll tax cut expired Dec. 31. Income taxes on the wealthiest Americans rose starting Jan. 1.

Many Steps to Be Taken When ‘Sequester’ Is Law [NYT]
With Cuts Just Hours Away, Lawmakers Go to White House [NYT]
Labor Department’s Layoffs Report Could Become Victim of Sequester [WSJ Real Time Economics blog]
Personal income plummets 3.6% in January [USA Today]

Comments (21)

  1. 1
    Posted by It's a trap! | March 1, 2013 at 1:57 PM

    I'de like to sequester Shazar in a back alley man whore operation in Guadalajara

  2. 2
    Posted by Guest | March 1, 2013 at 2:13 PM

    Doesn't sequestration require a mohel?

    -UBS Tribe Quant

  3. 3
    Posted by electedface | March 1, 2013 at 2:15 PM

    Cut Congressional Pay! – In any other job, if your approval rating fell below 80%, you'd be fired. Congress' approval rating hit below 12% – the worst since…. THE CIVIL WAR.
    http://www.youtube.com/watch?v=qsRWcnXAucI

  4. 4
    Posted by Guest | March 1, 2013 at 2:18 PM

    Shazar,

    You are smart, talented, and do great things in life. Don't let the mud slingers get you down. Matt and Bess wouldnt have brought you onboard if that wasn't the case.

  5. 5
    Posted by Guest | March 1, 2013 at 2:20 PM

    Maybe I missed this at some point, but what did Shaz do before he wrote for DB? Did he work at UBS? Does anyone know?

  6. 6
    Posted by guest | March 1, 2013 at 2:25 PM

    Managing Editor at FINalternatives. Real hedge fund news.

  7. 7
    Posted by F.O.A.D. | March 1, 2013 at 2:28 PM

    . . . says the politispambot crawling the entire web for the word "sequestration"

  8. 8
    Posted by spiderbro | March 1, 2013 at 2:30 PM

    When I see the comments on a Shaz post, I feel bad because it must suck when he reads them. Then I see his new posts and I realize maybe he really needs to start reading them.

  9. 9
    Posted by Fewdollarsmore | March 1, 2013 at 2:35 PM

    Once I told my kids that if I can't figure out how to live within my means and how to pay off my ever-increasing debt, I will automatically cut their monthly allowances. They complained. But I didn't care because sequestration, however small to resolve my financial problems, felt like the right decision to my indecisive mind.

  10. 10
    Posted by guest | March 1, 2013 at 3:04 PM

    Sequestration Friday > Castration Friday

  11. 11
    Posted by guest | March 1, 2013 at 3:11 PM

    man no post yet hitting double digit likes, tough crowd tonight

  12. 12
    Posted by DK'd | March 1, 2013 at 3:16 PM

    Thanks Mom

    Shaz

  13. 13
    Posted by guest | March 1, 2013 at 3:23 PM

    No posts until post noon on a Friday=small crowd.

    ~Guy in trading who thinks Team Dealbreaker would be better off posting things the following morning rather than at 5-7 pm when their audience is probably limited to 1st year kids and people working Asian markets.

  14. 14
    Posted by DK'd | March 1, 2013 at 3:37 PM

    I'd have to agree with you. As much as I like Matt's posts; they require an inordinante amount of brain function for a Friday. DB should have a bias to the light and fluffy on Fridays. You know, like how the Times has Science Tuesdays, Dining Wednesday, Thursday Style.

    Just a thought

  15. 15
    Posted by Guest | March 1, 2013 at 4:03 PM

    Shaz approval below 80%. He's still here…

  16. 16
    Posted by UBS Sucks Guy | March 1, 2013 at 4:54 PM

    +1000

  17. 17
    Posted by Guest | March 1, 2013 at 5:06 PM

    http://www.finalternatives.com/about

    Jonathan Shazar, Managing Editor
    Phone: +1 (212) 966-0051
    E-mail: jshazar AT FINalternatives DOT com

  18. 18
    Posted by Guest | March 1, 2013 at 5:11 PM

    Equal to the quality of work from a first-year analyst.

  19. 19
    Posted by Guest | March 1, 2013 at 5:53 PM

    Maybe Shazar just needs to be threatened with some sequastration …

  20. 20
    Posted by 1st Years Everywhere | March 1, 2013 at 9:06 PM

    HEY!

  21. 21
    Posted by Guest | March 3, 2013 at 5:36 AM

    "weren't" … maybe it truly is Shazar's mom…