December 5th Edition

Good Morning All,

The much anticipated November U.S. employment figures were released this morning, and they were well beyond the consensus call, but not too far removed from the whisper number. Yesterday's late day, low volume sell-off was likely symptomatic of these rumours thereby discounting the actual news in advance. We are now about to see, on this important trading day, whether the markets bend to this news or rally in the face of it. The initial movement will reflect the former while we await a hold around 815 on the S&P 500.

Fed Chairman Bernanke's fearful comments did nothing to reassure markets either as his "deer in the headlights" look has become increasingly unsettling. It is once again interesting to point out that one of the few apparently calm and confident people at this juncture is the President elect; fortunately for all of us, his name is Obama and not McCain.

In Canada, parliament will now be prorogued until the end of January at which time a budget will be presented and voted upon. What I would like to know is why we have to wait so long for something that can be composed in days. Budgets come from behind doors one, two or three as they either raise taxes or cut them, print money or constrain spending, this need not be a long drawn out process. It seems simple to this writer: allot money to the provinces for infrastructure spending; as the dusty engineering plans already exist across the land. Let's get busy and make a deal sooner rather than later....and let's stop the divisive politics that raises the spectre of separatism while ignoring the more important threat of deflation. It is also time to prorogue the government's head in the sand attitude toward a stimulus package. I knew I could sneak that word in somehow.