This is the latest sign that the economy is slowing down, and because these are labor numbers, they're going to have particular weight with the Fed. This is the kind of news that could take some of the uncertainty out of the markets and get stocks going up again.

Our imports increase as long as the economy grows,

Our imports increase as long as the economy grows. But there's certainly a concern that our exports are down despite the fact that Asian and European economies have begun to rebound. Maintaining the high deficit is dangerous because that means a huge debt, and if our creditors lose confidence in the U.S. economy and begin selling dollars, which drives down the value of the currency, that could spark a serious inflation threat.

There is a real sense of foreboding about the economy now that Katrina has struck with full force. This storm will be the most devastating ever for the U.S. oil and refining industries.

We are moving toward an economy that is less and less productive, absolute rigidity in the labor market, an administrative centralism that breaks with the trend of recent years.

Today's disappointing labor report supports the notion that the emerging soft patch in the U.S. economy is here to stay.