A lot better than expected. Another big stimulus package is probably off the table.
Stock market is neutral on the news so far.
Stock market is neutral on the news so far.
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A lot better than expected. Another big stimulus package is probably off the table.
Stock market is neutral on the news so far.
Black HS dropout rates are around 2X higher than White dropout rates. They have fewer job skills, so that is a problem.Unemployment for African Americans is 13%.
In addition, permanent job losses increased by more than half a million to 3.4 million. More than 8 million Americans have been unemployed for 15 weeks or more.
It’s not all rosy.
Fed has already said it will prop up the economy no matter what and that it won't care about inflation. Meanwhile it's buying distressed assets and specifically rescuing businesses that should be allowed to sink, like the fossil fuel companies (which also got an indecent share of the bailout money).Stocks are way off now. Better get the Fed on the phone.
Good question. A lot of variables to weigh, when stocks were priced to perfection. A Biden win with a GOP Senate is the only bad scenario for stocks.Fed has already said it will prop up the economy no matter what and that it won't care about inflation. Meanwhile it's buying distressed assets and specifically rescuing businesses that should be allowed to sink, like the fossil fuel companies (which also got an indecent share of the bailout money).
What more can they do?
With both DOW and NASDAQ down around 500 points at the moment, I wonder if the market is worried that these unemployment numbers have improved Trump's odds?
I mean what more can Trump do for them? He's already given them massive tax cuts and crippled regulations. Even the bankers and brokers are probably ready for a sane President, if he can't do much more to line their pockets.
Good question. A lot of variables to weigh, when stocks were priced to perfection. A Biden win with a GOP Senate is the only bad scenario for stocks.
It's not a bad scenario but it takes fiscal stimulus out of the equation (See Obama after 2010).I've heard the opposite as being true, with a Biden win and GOP Senate seen as being an ideal scenario for markets. It will keep any new taxes or legislative regulations largely off the table and force Biden to stay in the center. Aside from things like stimulus and infrastructure spending, the markets prefer D.C. gridlock to most anything else.
Stocks are way off now. Better get the Fed on the phone.
The “stock market” numbers are no where an accurate reflection on America’s economy. The Fed is 100% responsible for it. As a I have mentioned before, investing and banking is made much easier when money is free and there is a larger supply of it than what can be used.Stocks are way off now. Better get the Fed on the phone.
In other news, apparently wages (for those who still have jobs) are considerably up.
Inflation ahead?
We've all seen price inflation for most things (not gas, but most other things). The combo of price and wage inflation sounds a little scary to me.
Yes I am suggesting that. By growing its balance sheet it lowers interest rates, which boosts asset prices. Not that debatable really.Are you suggesting that the fed is juicing the markets? They are not.
Historically, the strongest markets have been Dem presidents with GOP Congress. I don’t have the link for that but my department’s chief investment strategist told us that at our meeting last week. Thought it was interesting.Good question. A lot of variables to weigh, when stocks were priced to perfection. A Biden win with a GOP Senate is the only bad scenario for stocks.
Yes I am suggesting that. By growing its balance sheet it lowers interest rates, which boosts asset prices. Not that debatable really.
This is something that very few people are talking about but could become a real problem in the timeframe you are laying out there.However, inflation is a huge concern in the next 12-24 months.
This is something that very few people are talking about but could become a real problem in the timeframe you are laying out there.
I think it was a bit of a mistake by the Fed to say they are ok with letting inflation "run hot" for a bit. I guess it depends on how long they plan on doing that. I said it a while back but inflation is one of my biggest concerns for the 2020's.It is crazy how little it is really being discussed. People just assume this is a problem for years down the road. It’s not. And when you realize the amount of cash being hoarded right now......... it’s a ticking time by mb IMO.
They did several months back when they announced they would do everything in their power.Are you suggesting that the fed is juicing the markets? They are not.
Good points.Inflation, for the time being, is a non issue. We had more deflation concerns in March-June than inflation, which is why the fed, correctly I might add, did what they did. However, inflation is a huge concern in the next 12-24 months.
The fed did what they did to encourage borrowing and spending. What has actually happened is hoarding of cash by institutions and consumers alike. Eventually, those flood gates could open and the fed will be forced to tighten. They may actually need to start tightening sooner rather than later. This, IMO, is why the markets are reacting the way they are today. Chances of another round of stimulus should be off the table for the time being.
They did several months back when they announced they would do everything in their power.
Now they've added not caring about inflation to the equation.
Not saying they were wrong to do so, because clearly the economy will be taking a slam that won't be gone overnight. But when interest rates are near zero, and it's not a good time to invest in new plants, new hires and such, where else can the money go but into the markets? Hence the surreal market surge even while we are tumbling into recession.
The flip side of that equation is if there's no place to play but the markets, yet the big players are pulling money out of the markets, where is it going?
Lots of manufacturing jobs open. Problem is some people make more on unemployment than working so they aren’t going to give that up, that doesn’t apply to just black American either.Unemployment for African Americans is 13%.
In addition, permanent job losses increased by more than half a million to 3.4 million. More than 8 million Americans have been unemployed for 15 weeks or more.
It’s not all rosy.
The “stock market” numbers are no where an accurate reflection on America’s economy. The Fed is 100% responsible for it. As a I have mentioned before, investing and banking is made much easier when money is free and there is a larger supply of it than what can be used.
This utopia of finance will never last. There is going to be a reality hitting America some day. America has never economically functioned based on its production since the early 2000s...Congress took its eye off the ball initially and let Wall Street gamble blindly with other people’s money...and then The Fed became involved and has run the nation’s economy ever since by suppressing interest rates and printing money. America has been tight-rope walking its economy ever since. The Fed did what it was organized to do...keep America out of a depression, but that comes with a steep price. A price that most Americans would prefer not to accept.