A government report states that 4,000 payroll jobs were lost in the month of August. The market reacted with investors shifting from stocks to other safe investments. Variety of stocks was driven down by the news. The economy is suffering from a tightened credit market due to sub prime lending crisis. Countrywide, the largest mortgage lender in the United States, is planning to fire over 10,000 jobs. Many experts believe that the Federal Bank will lower interest rates.
