Why did Obama's speech fall flat?

It's. Good morning what's going on number straight game is it good news. Is it bad news. We're gonna find out what Barry Armstrong from the financial exchanges here every day from nine to eleven -- you know. I'm 680 WRQ this is Feinberg and the team Michelle is off today. Brought you by network capital funding corporation in your future are financed what's the story. With. The numbers bear arms around. Had he wasn't particularly good job Todd. We had 96000. Jobs created in the stock market was expecting a 144000. Are all created the right so that's number one. The unemployment rate dropped to eight -- point 1% right so you say to yourself OK that's good went from eight point three. Down to eight point one not so fast here's why the unemployment rate dropped -- you need to be aware of this and our listeners need to know. The workforce shrunk by 360000. People that means that 360000. People just said you know what. This economy so bad and and a quick I'm not -- even look for work anymore I'm not gonna participate in the work force so it shrunk by 368000. Participation rate dropped to the lowest -- 60%. The use six which is the true level of unemployment. Fourteen point 7%. -- visions -- previous two months -- they dropped another 41000. So there's nothing good enough and in the jobs report this morning this much I can tell you there was not one I iota of good news they came out of that report. Well how about anyone want. No that's not good news -- -- -- -- is usually isn't good news I understand that you're telling us that the -- the number goes down because something bad happened because people give up looking forces and are counted anymore. But exactly but don't people get tricked by that. Well no I don't I don't normally is a stock -- not being tricked by it I can tell you what's -- solid the stock market because it's had an incredible run -- how much was it up yesterday. It was up a couple hundred points but that was because of Europe not because of our economy. -- be the reason the stock market was up yesterday -- it is up almost 2% across the board. The European Central Bank said they're gonna buy all these toxic bonds coming out of places like Spain and Italy in so. That's calmed things down in Europe and as a result we had stocks rally but it was not do based on what they thought the unemployment rate would be here in the United States because this is a bad report. Don't let anybody sugar -- this -- this is a bad bad under the. -- -- which I know you're not happy to report because you wanna see stuff that's gonna make out people happy did the stock market do well. And make the economy grow. You don't need this this is just a demonstration. That the economy. Is really sick it's it's really -- because even the jobs that are being created there in the sectors that are. Not -- is not high income jobs these are jobs like in retail store worst you know Home Depot and Wal-Mart hiring restaurants are hiring. But if your -- if you got skills in -- trying to make 809000000. Dollars a year those jobs are few and far between. OK so we were talking earlier about the possibility. That the reason the president seemed listless last night in his speech that he was just going through the motions was that he already knew this devastating news crews and couldn't act to have because it would have been out of sync or maybe just had the wind taken out of the -- -- is I understand he actually gets a numbers early is that true. It is true -- he gets the data at 430 in the afternoon so yesterday afternoon at 430. The deal CB came over and said Mr. President this is the data he knew everything we just talked about he knew at 430 in the afternoon. So some guy from an office -- comes over and -- -- this if I'm the president I say look fix those numbers. -- you're -- you're gonna get audited if your mother's gonna get audited. New York kids are gonna get audited. Everybody who knows he was gonna get for the rest of your life fix the numbers or how what is a -- president if you can't doctor if you numbers. People there had been accusations of -- in the past I guess now we know we can't believe them. No me here you can't do and I'm sure you would like to because what's going to happen in two months he's gonna be among those unemployed -- needs. This this type a report if we get these reports again because you on another report. Based on the September and October -- these two more unemployment reports that these types of reports have to be devastating to the poll numbers. Eight you know I look to the most recent Rasmussen Reports I think Romney had a three point lead can be very interesting to see what kind of a bounce if any. Obama gets as a result of the DNC well see this is isn't making a speech last seen in this is just. -- line now this has robbed I believe the convention many positive impact do whatever negative impact it might have had because of you know from my perspective it turned it did appear to be a very left wing gathering. Which could have had negative implications for the president but it seems to me this will now be the story. Even if there was so a wonderful story line that was going to be launched last night are starting to be launched that this war trouncing because this is Rick what's gonna happen in the market today. Well -- their futures are still up but they're not up as much as they were prior. To the did to the unemployment report so what happened when you saw within thirty seconds -- Was the Dow futures are up about 45 points. As soon as this data was released the Dow futures were only up 25 point so they suffered a 50% decline in there in their game. Now we'll see I mean it's still -- we we have 45 minutes before the market opens we'll see what happens there's a lot to be the the problems in Europe and in China. The these are major contributors to what goes on in the American stock market. We'll see what happens to oil prices what happens to gold prices. I you know the there's a lot of action news we're we're going to be talking about her. All morning long. So we what you're saying what what you're saying is that beyond. That there are so many factors dictating what happens with the stock market. They just because of this horrible news on jobs doesn't mean that's going to be the storyline of the stock market today. No no he's the the market could move. In a positive direction still BC we're digesting if Europe is the major. Problem that's going on with the world economy right now because there are major trading partner with the United States they by a lot of our manufactured goods Todd. But they also are the major they -- the number one consumer of Chinese -- So China does not want Europe to go into a severe recession and that's what they've been on the brink of for the last year is is going into a recession so big -- if they're. Go if Europe goes into a severe recession. And their consumption drops that doesn't only hurt the United States at -- China as well what brings down the whole world right because Europe's is big and have an economy as we are. It's a little bit bigger actually yeah I knew when you add up all the European aspects it's it's slightly larger population and slightly larger in terms of their world -- and in their percentage of the world economy so. It's a problem if -- goes into recession it's I'm sorry just wanted to get on the table for people the you're gonna be discussing this for Larry Kudlow today is -- Yup you know Larry's coming in at 930 I believe -- him and keep -- on for a long time he's he's he's the one that told me when the president gets the data. He told me that -- because I asked -- listen when does the president really find out about this. He said very he gets that data somewhere we around 430 in the afternoon the day before so he knew. The that that this was bad news went before he went and made a speech some MS ahead two speeches ready and they did in the did the tamp down one. To not be appropriate with the bad news I guess because they couldn't be too happy last night -- have this come up bright bright spot a video let's -- a couple. -- yes well. Liberty. Hello. You wouldn't. My bills haven't a little current crisis technical problems with is that you -- -- him. That's him Barrett we'll see if we can reconnect so -- so. It's. It's bad news let's just recap the numbers are so everybody can internalize this is a slow confusing with the unemployment rate actually going down April 1%. Yeah let's let's start off with a number of jobs created for the month Todd. In -- in a healthy economy that's gonna run 225. To 275000. A month. The stock market had expected minimally expected 144000. In fact the number comes in at 96000. So it misses by almost 50000. The minimal expectation on -- on behalf of the stock market that's that's number one that's very important aren't. Then you're gonna see in. Be liberal press will. Promote the fact well yeah things are getting better the unemployment rate went from eight point three down to eight point 1% don't buy that for a minute. Because the workforce shrunk by 360000. People touch -- remember the population of the United States is increasing. Yet the number of people actually working that are eligible workers. Is. That means that that's not a good sign when your workforce is shrinking it means that people have just said you know what I. I'm gonna do I'm gonna go on the dole you you talked about it earlier memory heady conversation earlier this week about the number of people. That are now on food stamp yes that's why OK we did that those people are saying are just drop out are collect Social Security disability. And I'll go on food stamps why work when I can make. Just as much money. Collecting disability and going on food stamps and all the other government programs and I'm eligible for foreign that's that's what's going on Todd. Let's get the songs of the Ted good morning. My -- how real good -- OK let's -- -- just a quick point I wanna make I don't understand how it's not. Just such common knowledge -- high school. Should understand that -- government gives it checked. Anybody whether it's a soldier what Georgia conflict to meet all its someone paving the -- government check is not stimulus. It didn't economic drain into that time Barry that we really have a haven't talked question in all these change -- policies and Alexandria on the radio. Okay thank you -- You know that that's really where we we are you know he'd beat beat the big debate and I think this election Todd is about. Do you continue. You know given away to form so to speak. And you know -- can be -- -- how many people are we gonna have on food stamps a year from now you know we have 46000047. Million now. You back I I checked the data -- this is an interesting stat. During the Reagan administration when Reagan came into office we had about eighteen million people. That were on food stamps today you've got 46 million. The economy was worse in 1980 than it is today he had less than half the number of people on food stamps. Back then that's pretty amazing Jack. Good morning you're on -- Armstrong. Our white folks good thank you call of all of numbers. The one that's most suspect I think is the number of people who -- no longer in the workforce. Bet that allows them to play all currently game. What is that number again very. 368000. Dropped out just one month this is it is aren't that credible don't understand it in this is the most important date nobody else we'll talk about it -- But 360000. People just said. I'm not gonna work anymore and who I -- orders or I ever I mean they may just be out for the time being right now because they can go on disability -- and and look at the number of people on disability relative to what it was five years ago Todd. More than -- How -- they go out on disability and and then there on food stamps and every other social program they never come back why would they come back. Seven they want wants to know if the unemployment rate is calculated the same way is under Reagan and Clinton. Yes no changes no changes OK Steve. -- ArQule Barry Armstrong. Pay go out. Do we let's call it saying that they don't want a wider than -- -- is well -- know that when you give -- government check if not they mile. Pete because you don't -- the media can and use -- public education. And so dumb down America. Back I don't know how many times I've heard people and it don't believe that all but you know a big big corporation. Them bit. Cats do that and more art. Steve disappeared on us now I'm not sure this point -- Corey -- you'll be talking about this in fifteen minutes right we will -- beyond judge -- gonna be there we read the -- show's going to be it's it's a jobs to Friday you know hey dude we're going to be talking about all morning and Larry Kudlow -- you what time 930 okay thank you very are -- will be -- nine to eleven the financial exchange NW RKO. Stay tuned. We will talk more about these numbers and I'll recap Emporia. It's very very bad news for the president but I'm getting reports that certain people in the media. Are spinning it as if it's good news for. President Obama will take a look at that as well coming up on fiber again mixing you with Michelle off on six AB WRKO. And online at WRK oh dot com. This is Boston College Station.