How could economists miss the jobs report estimate by as much as -114,000 jobs? Yes, 4000 jobs were lost when the experts expected 100,000-110,000 to be created. This could mean that corporations see slower consumer spending and along with the prolonged housing slump and the credit crunch they are tightening up. Friday, September 14, retail sales and Consumer sentiment will report and confirm or deny this premise. In spite of last week’s positive manufacturing index report and less than forecast jobless claims the stock market plunged 249 points on Friday sending bonds (including mortgage bonds) skyward as investors retreated from the market. This was the first decline in payrolls since July of 2003. Some economists are now predicting a .5 point rate cut by the Fed and think any action by the Fed may be too late at this point to prevent a recession. A loss of 114,000 jobs would lend support to this theory. Please stay informed. Thank you for the opportunity to serve you and your clients.