BREAKING NEWS: Nonfarm Payrolls Severely Weak

Nonfarm payrolls for the month of August were reported this morning at 8:30 down 4,000, versus an expectation for an increase of 100,000. Wait, it gets worse! July was revised lower as well, to an increase of 68,000. These are levels indicative of a recessionary environment. Hang on to your hats folks, we may redefine the term "Black Friday" today. Wall Street Greek is expecting the market to not just retest lows in the near-term, but to set new ones. The Fed may now be forced to speed its rate cut, which we expected in time for its regular meeting in mid-September. Our forecast is for a 50 basis point cut, and we would anticipate the same if the Fed is forced to act today to stop financial markets from seizing up.