Stocks plunged as the Bureau of Labor Statistics reported that no new jobs were created in August, holding the unemployment rate persistently at 9.1%. The latest BLS jobs report, the worst in almost a year, confirms fears of a stalling recovery. Also affecting the markets was the news of major banks, including Bank of America, Goldman Sachs, and J.P. Morgan Chase, facing federal lawsuits concerning the securities sold duing the housing bubble. Friday's markets closed with the Dow down 253 points, 2.2%
The news of both tumbling markets and a grim employment outlook breaks just after Gallup reports on the rising fears of being laid off. Job insecurities are double what they were in 2008. What does this mean for our recovery?
This article appears in Sep 1-7, 2011.
