A private employment services consulting firm ADP, released its employment report for December, 2008. U.S. private, non-farm employment declined further last month by 693,000 jobs. Manufacturing employment in particular has been declining for 27 straight months—over two years,--with December losses standing at 120,000 jobs. Not surprisingly, the markets reacted badly to this news and also to a real-life illustration of the shedding of the jobs, by Alcoa Inc. The world’s largest aluminum producer announced today that it will cut 13,500 workers from its labor force, plus cut capital expenditure and production this year. By the end of the morning trading, the Dow, NASDAQ and S&P500 all slid about 2%. Remember that Federal Reserve Open Market Committee meeting in December, when the interest rates were set at almost zero? Well, yesterday, the minutes from the meeting were released. Turns out that the Fed policy-makers thought the economy took such a turn for the worse last month, that they even considered dropping setting the Federal lending rate all together. However, those who argued that such action (or inaction) would look like the Fed was throwing in the towel prevailed and the rate was set... at almost zero. In other words, if you are taken back by just how badly the U.S. economy is fairing, you aren’t the only one—the Federal Reserve officials couldn’t believe it either! Congressional Budget Office released its deficit projections for 2009, and it’s going to be ugly. Projected annual budget deficit is going to hit $1.2 trillion this year. But wait! This does not include the economic stimulus package that will likely be around $775 billion currently being negotiated by the incoming Obama administration and Congress. So, get to know the Trillion-Dollar Deficit, it’s moving in next-door and will stay for awhile.