THE TRAIN WRECK – AT 8:52 A.M. ET:  Very bad economic news this morning, as AP reports via the Washington Post:

WASHINGTON -- The unemployment rate rose in August for the first time in four months as weak hiring by private employers wasn't enough to keep pace with a large increase in the number of people looking for work.

The Labor Department says companies added a net total 67,000 new jobs last month, down from July's upwardly revised total of 107,000. Wall Street analysts expected a smaller gain, according to Thomson Reuters.

Overall, the economy lost 54,000 jobs as 114,000 temporary census positions came to an end. State and local governments shed 10,000 positions. The jobless rate rose to 9.6 percent from 9.5 percent in July.

COMMENT:  Have you noticed that the economic news in some sector gets grim just as some federal program expires - like Cash for Clunkers, or the recent housing incentives.  In other words, our economy is artificially propped up by temporary government subsidies – sort of like a socialist or third-world country. 

We are in deep trouble.  It's the private economy that's the real economy.  We can't depend on a  federally funded "coupon" economy.

There are news reports surfacing this morning that President Obama may propose some kind of tax cut just before the November election.  Would that have a political effect?  It would be pretty transparent, considering the timing, and may make Americans more angry than grateful.

September 3, 2010