BLS report has a superfluos "L."

Day after the payroll report was a doozie. The Drive-by-Media reported breathlessly that the economy added 242,00 jobs (non farm) and Obama was taking a victory lap. Even the speculation about the FED raising rates has resumed. As usual, looking under the hood of this report shows a different picture.

First, wages and total hours worked had fallen - highly unusual when jobs created go up;

Second, 129,000 of the phantom jobs came from the B(L)S model of "Birth/Death";

Third, the B(L)S added another 100,000 for the "February effect" as the thaw set in.

So, most of the job gains were phantom gains.

HOWEVER, crude oil went up and reached $40/bbl in Europe. Clearly, this will stem further slide in oil field layoffs. Also, gold and silver is taking off per forecasts.

The long and short of it is that the FED will be reluctant to raise rates. That means continued deflation and economic stagnation.