The employment picture is being ignored as it is an election year and the sitting president is a democrat. That requires the media to rave about the good news and ignore the bad news. If there’s no good news, then they just make stuff up. The war against women nonsense is the latest example.

Look at the numbers in the ADP report. Overall hiring is slowing. Manufacturing is actually starting to contract. That alone does not indicate big problems, but coupled with slowing GDP and it looks like we are headed for another dip, maybe another recession. The Fed is not turning on the money spigot and the boost from government spending has been exhausted.

The failure of government to address the underlying problems leaves us back where we were not so long ago. That raises the question of the markets. When will investors capitulate and accept the fact this economy is not ready to take off? Karl Denninger seems to think it will be real soon, maybe in time for the election.