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November 5th, 2008

More Proof a Losing Economy Won the Election

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Last night’s presidential election wasn’t enough to propel stocks upward today as weak economic factors and reports continue to weigh on markets. Voters cast their ballots yesterday with the recovery of the economy in mind, and investors continue to play the market based on reactions of economic reports.

Today’s October-job report from Challenger, Gray and Christmas revealed the announced layoffs of 112, 884 workers, up 19% from September:

The number of workers affected by job cut announcements increased to 112,884 in October, from 95,094 in September. This was the highest total in about five years. Year to date, 875,974 cuts have been announced, 14% more than in all of 2007.

Job cuts have begun to noticeably grow into other industries beyond just financial firms and the auto industry:

Year to date, the financial services industries has announced cuts totaling 129,150 while the automotive industry has announced cuts totaling 110,610. Both industries are undergoing huge changes that will leave the industries looking very different a year from now than they looked a year ago. Companies are disappearing and others are being swallowed by others.

The stock market reacts to daily, short-term circumstances. The current and future administration must continue to develop strategies to correct the economy in the long term (it’s a slow process). The Labor Department’s job report due out Friday could cast another negative shadow on stocks and consumer confidence, all the more reason voters want reassurance that their choice was the right one.

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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