Archive for the ‘employment’ Category

The equity markets have recovered more than 20% from their recent lows. Some companies are up as much as 50% or more. The markets generally are six months ahead of the true news, so should we be optimistic? Is the light at the end of the tunnel? Should we be excited about the prospects of $500 billion of government projects and an additional $2 trillion of liquidity?

As noted by Davis Berman on his blog: “As the Wall Street Journal’s MarketBeat noted on Tuesday, the auction on three-month Treasury bills on Monday yielded a mere 0.005 per cent – the lowest yield since 1941. But here’s the really wacky part: Traders noted that the yield on three-month bills dipped into negative territory on Tuesday afternoon, as in below 0 per cent.”  http://www.theglobeandmail.com/servlet/story/RTGAM.20081209.WBmarkets20081209143427/WBStory/WBmarkets

So great optimism on the equity side of the equation and absolute fear on the side of bond investors……

A friend mentioned today that he heared murmers that gas may go as low as $1 per gallon.  When was the last time we saw that??? What does that mean about our economy???? What will our labor be worth??  What will the price of milk and eggs be?    How bad will the overall global economy have to be to allow gas prices to fall so low???????????  I am afraid to speculate? What do you think???

Will the market retest lows?  Is there sufficient cause for optimism to have the markets hold steady and rise through Inaugeration Day?

Will unemployment continue to rise?  Will housing prices continue to fall?

Will Washington really save Detroit?

Did Washington really agree to absorb approximately $300 billion in losses at Citigroup?

Is this sane or insane?

Help me!!!!! I am confused.  Leave your comments…..

The biggest banks that have received the biggest free giveaway of American taxpayers’ wealth, are now stealing the life blood of every household and the economy and our government is either blessing the theft or ignoring it.  The Red Plague of losses, illiquidity and falling values and prices continues.

Traditionally, interest rates on credit cards were competitive and set based on one’s credit ability, payment history, and market rates.  Today, credit card companies are bumping their rates up to 30+% because they want to.  This is in the face of the 10 year Treasury bond below 3% and the billions in free dollars they have received to stimulate the economy from our dear Uncle Sam.

At these rates, the amounts due will double over less than 3 years. These rates are userious, abusive and immoral.  But, Mz. Nancy and Mr. B Frank ignore the issue.  This is an issue that can not be ignored.

If outragious mortgages are reset, foreclosures abayed, and homeprices attempted to be stabilized to protect the American citizens’ balance sheets and financial solvency, the system will collapse around the explodign levels of consumer debt.

The average American with outstanding balances will get eaten in userious rates and ensuing fees.  Bankruptcy and further financial chaos of the American financial system, banks, Wall Street and Main Street can not be too much further behind.

God help America from the Death Wish of America’s Financial System and Greed (and the Blindness and Ignorance of the regulators tasked with protecting us)!!!!

The news is that half a million Americans lost their jobs in November and more than 1.9 million jobs have been lost since the start of chaotic 2008!!!!  The worst news though is that many, many of those who are still employed are on commission, or paid based on business volumes or other variable payments.  Their incomes generally are down significantly, extremely down!

Thus, the wammy is significantly worse than the statistics show.  Not only is unemployment skyrocketing with no end in sight, but average household income levels are dropping even faster and further!

The incoming Obama administration is talking about new infrastructure projects to create 2.5 million new jobs over the next 24 months.  Lead economists say that we need more like 5 million more jobs.  I say we need 5 million new jobs, but not necessarily in building, bridge and airport construction.  I am sure there are many construction and engineering workers out of work, but equally as many bankers, realtors, mortgage people, and other sales and service and skilled manufacturing people.  I am not clear on how new bridge projects, bigger and better airports and improved school buildings will help these folks.

If the thought is that all will benefit from the “trickle down effect”, we have much to pray for!

What are your thoughts??