A poor report on job creation helped push the stock market down Friday, July 8. One of our best economics blogs, Calculated Risk, observes that job creation is going to remain sluggish for a long time, because of long-term damage that the credit bubble collapse caused to the housing market, commercial real estate and other key economic sectors.
The problem, Calculated Risk says, is excess capacity in many sectors. A debt ceiling agreement and federal spending cuts won’t fix that. The fix will take time.
Calculated Risk is a daily must-visit for me. It doesn’t always provide lively reading, but it provides lots of economic data accompanied by excellent charts and clear explanations of what the data means, and blogger Bill McBride has no discernable partisan agenda.