The other day I posted a presentation from Kyle Bass and emphasized his comments on Japan. Even earlier in the video, he talked about the U.S. and mentioned the problems in front of Yellen, by virtue of tying the Fed Funds rate to unemployment levels – specifically, given the way the U.S. calculates it unemployment rate, the 5.5% bogey might be hit very soon, even as the economy remains in the toilet.
Lo and behold, a big "upside" surprise in the NFP today dropped the rate from 6.6% to 6.3%. But, on the heels of a very bad Q1 GDP print, and with an NFP report that was really pretty lousy beneath the surface, Mr. Bass seems to be on the money again.
As for that payroll report, I defer to Zero Hedge to enumerate all the problems:
-More people dropping out of the labor force
-Bad results for workers aged 25 to 54
-Since February 2010, workers have been dropping out of the labor force at a faster pace than jobs have been created
Etc, etc...
