By Evelina M. Tainer, Chief Economist, Econoday
December 6, 2002

Economic news was mostly on the anemic side throughout the week. The employment report showed a weaker-than-expected labor market situation as the jobless rate jumped to 6 percent and nonfarm payrolls turned down again. The equity market's reaction was clearly negative, but stock prices turned up after Treasury Secretary Paul O'Neill announced his resignation. Economic advisor Lawrence Lindsey also resigned today. The White House said that they are looking for economic team members with "experience and judgment". While Lindsey's position is less crucial to running the government, the Bush Administration will need to find a Treasury Secretary that is respected by financial market participants.

In addition to the O'Neill-Lindsey resignations on Friday morning, consumers and investors alike are wondering what will happen to United Airlines as they prepare for Chapter 11. The government refused to guarantee a loan proposal submitted by UAL earlier in the week. The airline has a high-cost structure that clearly needs to be whittled down. Labor contracts would need to be ratified by UAL employees, who have a large stake in the survival of this major airline.