Archived IMT (2009.11.06)

The 10.2% US unemployment rate is a stark reminder to those misguided views stating the lagging nature of unemployment. That may have been true during 7% unemployment rate when capital formation was plentiful (personal credit was available, homeowners could refinance and home prices were still up on annual basis). But when unemployment exceeds 10%, new jobs are limited to temporary hiring and consumers credit (revolving and non revolving) drops 3.6% and 5.53% in Q1 and Q2 respectively, the consumer fabric of the unemployed. LOW VOLUMES helping stocks regain positive territory, but USDCAD seen supported at 1.0650 after hitting 1.0760 target. CADJPY hit the 83.72 target while remaining capped at 84.50, EURUSD capped at 1.4940.