Job report bad

I took this chart from Mish. And we can see on problem, health and education was the second largest jobs producer.  Most of the health care workers and most of that paid for out of consumer spending.  Three fourths of the growth of consumer spending was really an Obamacare tax. Government job growth negative because of the connection between the flat stock market and pension payments due from local and state government.

Add in the California drought.   Factory orders have been slipping for almost a year, and we can see little  growth in manufacturing. And finally, naturally, its time for our octennial recession courtesy of DC. 

Finally, one more nightmare, the City of Chicago financial mess. As explained by Yahoo:

• Used long-term debt to finance everyday expenses and maintenance;
• Used long-term debt to finance judgments and settlements, including police brutality cases, and retroactive wage increases and pension contributions for its unionized employees;
• Restructured the city’s existing debt to extend the maturities on its bonds far out into the future in order to avoid having to pay the debt as it was coming due;
• Borrowed more money than it needed in order to make payments on the bonds its was issuing to avoid debt service expenses, essentially using debt to pay debt; and
• Possibly used the city’s portfolio of interest rate derivatives as an ATM.

Chicago will not survive a grey bar and the resulting default will drive up municipal interest costs nationwide. This is egads! cubed. HT to Mish for the Chicago alert.