US jobs slump as the Department of Labor reported that there were no new jobs (net) created last month.
The US jobs news is alot worse than had been predicted by commentators although the official unemployment rate remained at 9.1%.
It is the first time that this has happened since 1945 and occurred because private sector jobs were cancelled out by public sector losses.
The news has brought more fears that the US is about to succumb to a double dip recession with growth still very fragile.
The Department of Labor also revised their numbers for US jobs created in June and July in a downwards direction.
Stock markets around the world fell on the news of the US jobs figures and all eyes are now on President Obama and his speech next week.
He will spell out a new strategy for job creation and economic recovery although most people are not too hopeful about what that might be.
With the economy in the shape it’s in, there are no easy fixes or shortcuts. More help for the economy from the Fed is looking even more likely.
The US jobs news comes at the same time that the US regulator announced plans to sue various banks including Goldmans Sachs, Bank of America and Deutsche Bank.
They say that the banks misrepresented the quality of the mortgage packages that they sold, a fundamental cause of the financial crisis.
The result were losses of $30 billion for Fannie Mae and Freddy Mac leading to a bail out by the taxpayer to the tune of something like $140 billion.
The banks are currently discussing a deal that would free them from any future litigation and expense.