In dire straits

There's no way to sugar-coat it: today's US payroll data was simply awful. Dire. Catastrophic. I thought I was pessimistic with a forecast of -450,000, but the reality was even worse. Over 530,000 jobs were lost last month, and digging into the details shows how the recession is spreading across all sectors.

The figures show the emergence of a deep and painful spell for white collar workers, as services bore the brunt with cuts of 370,000, of which 196,000 were in professional services. A graphic demonstration of the white collar recession we're entering (assuming that the carmakers dodge implosion with a Congress bailout).

Things are unfortunately not going to get better anytime soon, with the twin storms of mortgage delinquencies surging and further job losses announced today. It is unfortunate, to the say the least, that the hubris of a few has affected so many.

Regular readers will know that I have a deep-seated suspicion of regulation and state intervention, but I can't argue with the need for some recalibration of the system. One can only hope regulators don't go too far, which could potentially damaging the United States' commercial reputation for decades.

But for now, I hope that Congress shows restraint in bailing out inept management teams - where a restructuring needs to take place, use funds to give a safety net to the innocent instead. Our external credibility rests on accountability - the people who got their industries into this mess should not be allowed to walk away.