Friday, April 02, 2004

Finally, Jobs

Larry Kudlow is beaming on CNBC as I write this, for employment rose at the fastest monthly pace in four years for the month of March. The equity markets are set to rally on the news, and bonds appear poised to decline.

In a recent piece, Irwin Stelzer has encouraged the American investor to "Gather ye rosebuds while ye may." What he means is that higher oil prices and lackluster jobs growth could cool the economy down by mid-summer. At least the jobs picture is looking better now. And Stelzer pulls back from a gloomy forecast in the end, citing the fabled resilience of the U.S. economy and its ability to absorb high commodity prices, temporary joblessness, and terrorist threats.

It will be increasingly difficult for Kerry to make an issue of the economy.

Update, 4:55PM -- Stocks managed to hold large gains and bonds were trounced.


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