With the U.S. job market announcement of a 4,000 person job decline for the month of August, many economist don't just see this as a one month spike. There is much talk about a gradual weakening across several service sector jobs, the majority of American jobs. Some of these industries that have shown decline include factories, home builders, and public schools.
As an added bonus, consumer spending has been slowing down as well, amid triggering fears the economy is dwindling down. If another two months of steady job declines continue, then a recession is most certain. The heightened threat of a recession will surely prompt the Federal Reserve to cut short term interest rates by 25 to 50 basis points. 
Countrywide Financial, based in California, said last Friday that it would probably cut 20 percent of its 60,000 workforce over the next three months. That works out to 12,000 job lay offs in the near term future. This is not going to be good for the economy at all. As well as many of other sub prime loan lenders, the lay offs could add up to well over 30,000 job cuts. As the mortgage industry corrects itself for its foolish lending practices, the economy will simply have to adjust. Many writers on the Internet are screaming Recession! As I am, only because the thought scares me as I am sure it scares many others as well.
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