Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Unemployment High, Stocks Rise
#21
well, porsche sales are up 60% this year in america, some people seem to make money. you might want to reflect on why germany emerged as the first world's most competitive economy from the crisis, growth this year above 3.5%, unemployment on the lowest level for the last 20 years (below 3 million, about 7%), ahead of china in exports again, consumer spending and stock prices exploding, and even the wages are rising. germany used the same tools, government stimuli, but used them a bit differently, encouraging the industry not to lay of workers. what also helps is the demographics. are you still believing the rapid rise of population is a good thing?
"You know, Paul, Reagan proved that deficits don't matter." Dick Cheney
Reply
#22
jt Wrote:Nor do they know how much these jobs will cost them in terms of health insurance. Further, they have no idea how much more in taxes they will be paying next year.
Yes, but that's not because of Obama.
It's because americans are incedibly messy with paperwork. They can't even recopy a german family name without mistake.
Today banks face a second subrpime crisis, a foreclosure crisis to be exact, and the main cause is... papers have been lost.
I have myself experienced to my expands administrative mistakes with reputedly ultra serious companies.

So your guys are unable to correctly apply the right taxation rules when they change? Well, you can't even do it when they don't. S2

Q
For americans, a Porshe is a cheap car. 8)
They buy it because of its relatively low fuel consumption. LOL!S6
Reply
#23
Brooklyn Wrote:Well stocks aren't doing too bad. But unemployment is still high. According to the linked CNN article, some folks think that high unemployment will signal to investors that more stimulus is on the way.

http://money.cnn.com/2010/10/08/markets/...1&iref=BN1

Quote:"The economy's sluggishness also increases the odds of the Fed pumping more money into the financial system, which is viewed as a positive sign among some investors, because it adds liquidity to the system," Tuz said

He expects the market to continue moving higher, in part on speculation about Fed action. Stocks could also gain some traction if third-quarter financial results start coming out stronger than expected.

In my opinion, stocks are higher because now is the best time to replace labor, with technology and increase the productivity of the remaining labor force. Stock are higher because large public firms have adjusted to a lower level of consumer demand, and have cut labor costs more than enough to compensate for lower demand.

In my opinion, 9 to 10% unemployment will remain for the coming years, while firms continue to improve the bottom line.

As crappy as it sounds, this is the new economy. I could be wrong. In fact, I hope I'm wrong.
maybe you find the answer in this thread http://ai-jane.org/forums/viewtopic.php?t=13169 where the first post contains a link where warren buffet states
Quote:"The rich are always going to say that, you know, just give us more money and we'll go out and spend more and then it will all trickle down to the rest of you," Buffett said. "But that has not worked the last 10 years, and I hope the American public is catching on."
"You know, Paul, Reagan proved that deficits don't matter." Dick Cheney
Reply
#24
Unemployment is still very high, and the economy is still an utter mess. The much ballyhooed remedy of Central Planning(think predatory legislation), and Keynesian utopianism, the country will be stuck for some time to come.

And Obama states that we are digging ourselves out of a hole? One person in the hole shoveling dirt out, and one on top shoveling it back in. What a combination. :twisted:
___________________________________________________________________________________________________
About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
Reply
#25
Here is an interesting graph:
[Image: Labor%20Force%20Participation_1_0.jpg]
(You can enlarge it in the LINK)
Quote:At 64.2%, the labor force participation rate (as a percentage of the total civilian noninstitutional population) is now at a fresh 26 year low, the lowest since March 1984, and is the only reason why the unemployment rate dropped to 9% (labor force declined from 153,690 to 153,186). Those not in the Labor Force has increased from 83.9 million to 86.2 million, or 2.2 million in one year! As for the numerator in the fraction, the number of unemployed, it has plunged from 15 million to 13.9 million in two months! The only reason for this is due to the increasing disenchantment of those who completely fall off the BLS rolls and no longer even try to look for a job. Lastly, we won't even show what the labor force is as a percentage of total population. It is a vertical plunge.
Employment (labor force participation rate) really cooled off after the 2000 stock market crash, never recovered and then plunged mid 08.
Jefferson: I place economy among the first and important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our choice between economy and liberty, or profusion and servitude. If we can prevent the government from wasting the labors of the people under the pretense of caring for them, they will be happy.
Reply
#26
Or some simply fell off the grid because there was no longer an incentive to work?
Reply
#27
In absence of available jobs, there is always little incentive to work.

Recently net unemployement rate fell nonetheless.

...bad news for Obama bashers.
Reply
#28
Not really. The 9% factor has been jenned up, in preparation to the 2012 race. Since no person has ever been reelected with 8%, or higher, unemployment, it is essential to get the numbers down, no matter how much they must be tortured.

Fred, how is it possible to have the percentages drop, when only 36,000 jobs have been added? From your link:

Quote:The Labor Department survey of company payrolls showed a net gain of 36,000 jobs in January. That's scarcely one-fourth the number needed to keep pace with population growth.
___________________________________________________________________________________________________
About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
Reply
#29
Here Fred, read this.
___________________________________________________________________________________________________
About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
Reply
#30
The unemployement rate is decreasing, by any metric or benchmark you may use, the net, real number of poeple not working.
And it's easier to get a 8% when the elections come when the true numbers are getting closer to that and not further.

I told you there would be bad news for the anti-Obamies.
Reply
#31
Fredledingue Wrote:The unemployement rate is decreasing, by any metric or benchmark you may use, the net, real number of poeple not working.
And it's easier to get a 8% when the elections come when the true numbers are getting closer to that and not further.

I told you there would be bad news for the anti-Obamies.

The unemployment rate is decreasing because people are leaving the workforce permanently or see no reason to work anymore so they don't. Won't hear the details on that anytime soon from Mugabe.
Reply
#32
The only unemployment rating to look at is U6 - and that is somewhere around 25%.

What must be remembered is a 9% or more of new unemployment is over and beyond existing unemployment. When the employment new hires is essentially non-existent, any unemployment is a deep dive. What is the off-setting new-hire numbers? I think somewhere around 350,000 per month of new hires is necessary to keep the employment at equilibrium.
Reply


Possibly Related Threads…
Thread Author Replies Views Last Post
  Why the Rich Love High Unemployment quadrat 19 5,957 05-31-2011, 04:22 PM
Last Post: jt

Forum Jump:


Users browsing this thread: 1 Guest(s)