Jobs report crushes expectations, unemployment rate plunges to 7-year low

Anyway, putting aside all of those things, and many more, and of course, have to mention again that these mediocre #'s are after 7-8 years of the most accommodative policy in recorded history... putting all of that aside, the big picture is that the labor market is just amazingly, astonishingly weak.

Policy is accommodative because the market was weak. The economy survived the most serious financial meltdown since the Great Depression, in no small part due to decisive action by the Fed, Congress, and the Treasury. The aftershocks are still playing out, and the economy didn't really begin the recovery process until 2011 or 2012.

Expansion in the money supply wasn't just for the hell of it, and it's not a coincidence that it hasn't caused any inflation; the policy was indicative of deeply abnormal conditions that have now subsided, and standing on the other side, seriously discussing the potential for a rate hike next month, we're actually the bright spot on a world stage that has been dark since 2008.

and then we also put aside the fact that during the '90's, the BLS reported #'s averaged almost +300K / month for nearly 8 consecutive years... Yes, that's ~96 months.

Comparing 2015 to the 90s belies a total misunderstanding of the events of the last 7 or 8 years. The trend looks extremely healthy, at this point. In 2015, +271k is crushing it - because that means it's over.

The Fed should realize that they have a lot of room to run still.

We're talking about moving rates up 25 bps, not issuing an edict forbidding all future hiring. This is meaningful because it means the recovery is self-sustaining, and the ahistorical rates can end - after all, they were 3-5% for all those years of 300k average numbers.

/r/investing Thread Parent