A GRIM EMPLOYMENT PICTURE - AT 9:26 A.M. ET:  Job losses last month were greater than expected, as The New York Times just reported:

The pace of job losses quickened in June after slowing just a month earlier, casting a shadow over the Obama administration’s attempts to stanch months of stark declines in the labor market.

The American economy shed 467,000 jobs last month, and the unemployment rate rose to 9.5 percent from 9.4 percent, its highest level in 26 years, the Labor Department reported on Thursday. Job losses were widespread among the construction, manufacturing and business and professional services sectors.

COMMENT:  We may be entering a new phase of the economic turndown - what I call the "post optimism" phase.  There have been a number of optimistic statements coming out of the administration in the last few months, none of which appear to have been valid.  In a way, it's very cruel to people.  The economic picture is still very grim.

If optimism fades, the nation can turn bitter, and that can have profound political consequences.  Dick Morris has predicted that the crunch for Obama will come about September.  We don't make predictions here, but I wouldn't be shocked if Morris were right.

July 2, 2009