US private-sector employment rocketed higher in October, the Labor Department reports. Last month’s bigger-than-forecast 268,000 increase is the biggest monthly rise so far in 2015 and dramatically above the soft increases in the previous two months. The gain is strong enough to dispense the first improvement in the annual pace of growth since May. It remains to be seen if the bullish rebound survives future revisions and endures in the months ahead. But for the moment, today’s employment report just gave the Federal Reserve a green light to start rising interest rates.
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Some of the usual suspects were advocating bank failure earlier this week on Bloomberg TV as a policy roadmap for success during economic and financial crises. It’s a convenient recommendation because the idea’s inherent contrarian drama offers a veneer of logic and provides an entertaining talking point for television. Saving bankrupt entities from the laws of free-market gravity, after all, is grounded in economic logic, common sense and a pro-growth agenda. All true… except when it comes to banks. This isn’t open for debate. Banks are different and must be treated differently when the grim reaper is knocking. Hundreds of years of empirical evidence speak loud and clear on this point. Learning from history isn’t on everyone’s agenda, however. But no matter how many times you insist that down is up, the historical record remains unchanged.
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● US jobless claims rise, but remain near historic lows | CBS MoneyWatch
● US Oct job cuts down 14% vs. Sep and 1.3% lower YoY | Challenger, Gray
● US Consumer Comfort Index falls to 7-week low | Bloomberg
● Bank of England expects low rates and inflation to continue | Telegraph
● Economists expect rebound in US Oct job growth | Reuters
● German industrial output slumps in Sep on emg mkt weakness | MNI