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Jobs Report: The Wall Street Fall-Out

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Everyone was watching this morning’s jobs data as a window into whether the Fed would cut rates and how deep such cuts might go. This numbers came in much lower than expected, leading almost everyone to conclude that a cut will come on September 18th. Goldman Sachs is now saying the most likely result is a fifty basis point cut. Some fear that even that won't be enough to hold off a possible recession. But you know all that.
The numbers were low enough to be scary. The first time the powers that be reported job losses since 2003. But the scariest number—at least from where we sit—was perhaps the zero job growth in the financial sector. Ordinarily, at least in recent years, the financial sector adds twenty thousand new jobs every month. Last month they added zero.
In case you aren’t paying close attention, you should know that you work in the financial sector. The zero jobs number is most likely an over-estimation, given that we’ve recently been going through a phase where the numbers get revised downwards. That means job losses.
And from the looks of it, more are coming. If the Goldman story we led off with this morning is any indication, Wall Street firms are in a retrenchment phase, and cuts may well go deeper than has been previously reported.