Corporate profits and financial markets soar with diminished labor force, The market is not the economy but food stamp recipients part time workers and labor force dropouts are minimal consumers

Corporate profits and financial markets soar with diminished labor force, The market is not the economy but food stamp recipients part time workers and labor force dropouts are minimal consumers

“The Congressional Budget Office recently warned that Obamacare would “keep hours worked and potential output during the next 10 years lower than they would be otherwise.” That nonpartisan verdict should be bad news for workers.”…Washington Times February 14, 2014

“Nearly half of U.S. companies are reluctant to hire full-time employees because of the ACA. One in five firms indicates they are likely to hire fewer employees, and another one in 10 may lay off current employees in response to the law.

Other firms will shift toward part-time workers. More than 40 percent of CFOs say their companies will consider switching some jobs to less than 30 hours per week or targeting part-time workers for future employment.”…Duke University Fuqua School of Business December 11, 2013

Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

There is not a one to one correlation between the labor force and economy and financial markets.

However, food stamp recipients, part time workers and labor force dropouts are minimal consumers.

There will come a day of reckoning and recent Walmart quarterly results may be a harbinger of that.

From Zero Hedge March 3, 2014.
“‘The Market Is Not The Economy’ And The Winner-Takes-All Society”

“You hear that old saw that “the market is not the economy,” a lot these days, and for good reason. As ConvergEx’s Nick Colas notes, the S&P 500 breaks to record highs – but U.S. labor markets remain sluggish; investor portfolios do well – but over 47 million Americans (more than 15% of the population) are still in U.S. food stamp program – the same as August 2012. The important question now is: “Is the market TOO different from the economy?””

CorporateProfitsEconomy

 

“Record corporate profits – the reason for all-time highs in U.S. equities – come with little hiring or wage gains. The hottest growth stories are business models with lots of customers but very few employees. The recently purchased WhatsApp – for $19 billion – has 55 employees. Investment payoffs – and increasingly social outcomes as well – are technology-enabled, asymmetric and sporadic. How soon before we reach a tipping point?

Via ConvergEx’s Nick Colas,

Last week the local government of San Francisco announced that Google has promised to give $6.8 million over the next two year to pay for over 31,000 low-income young people to use the city’s mass transit system for free. Mayor Edwin Lee applauded the company for helping ease San Francisco’s “Affordability crisis for lower and middle-income families”. Without Google’s help, the successful pilot program would have run out of money in July of this year.

Google’s initiative seems to be a direct response to numerous local protests over its practice of providing free shuttle busses throughout the city for the sole benefit of its employees. Local and often long-time residents, fed up with cost of living inflation from their new stock-option enriched neighbors, see the busses as a symbol of an out-of-touch elite and the companies they serve. Some of the protests have turned violent. Even Wired magazine, a widely read voice of the merits of technology, sees the problem. In the most recent issue: an editorial entitled “Breaking Point: Silicon Valley Can’t Avoid the Haters”, and a back page questionnaire – “Am I a Silicon Valley Douchbag?”

There’s an old Wall Street aphorism that goes “The market is not the economy”, something akin to “A Google bus is not the San Francisco economy.” In both cases, you’d think there were would some correlation. A hugely profitable Silicon Valley should mean a broadly wealthy and generally content “City by the Bay”. And a rocking stock market should indicate a U.S. economy solidly on the mend after the Financial Crisis and accelerating in 2014. Neither seems to be true.”

Read more:

http://www.zerohedge.com/news/2014-03-03/market-not-economy-and-winner-takes-all-society

 

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10 responses to “Corporate profits and financial markets soar with diminished labor force, The market is not the economy but food stamp recipients part time workers and labor force dropouts are minimal consumers

  1. citizenwells

    Good morning.

  2. John in Illinois

    Anyone listening to Kerry talking about the Corrupt government in the Ukraine? Was he talking about the USA as an example?????

  3. Good morning, CW et al,

    Well, he’s at it again – Zero with his pen and/or phone. Politics trumps everything.

    ,(quote)
    As early as this week, according to two sources, the White House will announce a new directive allowing insurers to continue offering health plans that do not meet ObamaCare’s minimum coverage requirements.
    Prolonging the “keep your plan” fix will avoid another wave of health policy cancellations otherwise expected this fall.

    The cancellations would have created a firestorm for Democratic candidates in the last, crucial weeks before Election Day.

    Read more: http://thehill.com/blogs/healthwatch/health-reform-implementation/199784-new-obamacare-delay-to-help-midterm-dems#ixzz2v0pWXQn9

  4. Watch Holder’s Justice Dept. get involved in this case. Obama is trying to make the millennial generation into slackers, staying on mommy’s insurance coverage until age 26, etc. What a ridiculous lawsuit, this girl suing her parents because she no longer lives at their house and wants them to pay for her college. Ridiculous, but very much consistent with the Obama era of inflated entitlements.

    http://www.nbcnews.com/news/education/n-j-honor-student-booted-home-sues-parents-college-aid-n43826

  5. MORE ON THE UKRAINE….

    NATO is standing by to enter the Ukraine. Lines are being drawn and sides taken. Obama is showing his weakness. Lurch Kerry has threatened Russia with being expelled from the G8 (as if they give a rat’s crap about the G*). That should make the bear snort and shrug, especially since they have all the Aces.. Do you think Russia give a crap about those ineffective clubs and cliques, like the UN; NATO, EU?

    Putin, like the rest of the world, has no respect for Obey… and Kerry is a joke. The world is now laughing but soon will be weeping over the absurdity of weaklings and political idiots playing at geopolitics and the game of war:

    John Kerry, the US Secretary of State, has condemned Russia for what he called an “incredible act of aggression” and threatened “very serious repercussions”, (ha ha ha) including Russia’s possible expulsion from the G8.

    “You don’t just, in the 21st century, behave in 19th century fashion by invading another country on a completely trumped-up pretext,” Kerry said.

    Really now? Does Libya ring a bell? How about Iraq? Does Egypt come to mind? Then there was Bosnia. Then how about the president and SOS your and substandard actions, or complete lack of action thereof in Benghazi?

    ” What a mealy mouthed hypocrite. But he’s in notorious company”. The words of Hillary Clinton reverberate throughout the halls of the Department of State.:

    Secretary of State Hillary Clinton has openly boosted, gloated and beat her chest over the murder of the late Muslim strongman Muammar Gaddafi in Libya last year

    In her own words, “WE CAME. WE SAW, HE DIED”, reverberates in ominous echoes these days.

    Those currently in power would do well not to mimic the arrogant hubris of all the dead Caesars, else the Ides of March are upon them.

    Et Tu Brute?

  6. TRANSLATION OF MY LAST POST:

    “If you live in a glass house, you shouldn’t throw rocks”.

  7. citizenwells

    “*RUSSIA TEST FIRES INTERCONTINENTAL BALLISTIC MISSILE: INTERFAX
    *RUSSIA TEST FIRED MISSILE FROM RANGE IN ASTRAKHAN REGION: IFX
    *RUSSIA MISSILE LAUNCHED AT 10:10PM IN SOUTHERN RUSSIA: INTERFAX
    *INTERFAX CITES RUSSIAN DEFENSE MINISTRY ON MISSILE ”

    http://www.zerohedge.com/news/2014-03-04/stock-rally-stalls-russia-test-fires-inter-continental-ballistic-missile

  8. Lois Lerner fears for her life if she testifies at Wednesday’s oversight hearing

    They’ll probably spin it that she’s afraid of the Tea Party or the likes when we all know what the Zero regime does to those who are no longer useful to them or those who get in their way.

    Read more: http://dailycaller.com/2014/03/04/lois-lerner-fears-for-her-life-if-she-testifies-at-wednesdays-oversight-hearing/#ixzz2v22r7Fq5

  9. bob strauss

    This is a good read, and explains how the usurper lied his way to the white house.
    ****************
    The Ticket: See The Big Obama Lies; We Have An Impostor In The White House By Linda Jordan

    I don’t have a Harvard law degree like Barack Obama purportedly does, in fact I didn’t even graduate high school, but you don’t have to have a degree to know when someone’s lying to you and you don’t have to be an expert to understand the crime of forgery, fraud and treason.

    We know now that Barack Obama has a forged birth certificate, forged selective service registration and stolen social security number. Obama conspired with one or more persons to defraud the American people and to usurp the White House. It is no longer a conspiracy theory. The crime has taken place.1 Barack Obama used Fake ID to get on the ballot and into the White House. So we can all take off our tin foil hats and look at the bonafide evidence.2 Just like any jury, I am asking you to consider this evidence, with a fresh set of eyes, before coming to a conclusion.

    A key part of that evidence is Obama himself. Have you ever heard the saying, “Lie on 1”?3 Lawyers use it when a witness or suspect lies during a legal proceeding. It means that nothing they say after that initial lie is going to be believed. Barack Obama is a “Lie on 1” a hundred times over. He is a pathological, compulsive liar. 4-5 read more…….

    http://www.birtherreport.com/2014/03/the-ticket-see-big-obama-lies-we-have.html

  10. companies are fully staffed and taxed under obam, if forced to take on more workers then they will have to cut benefits and pay.

    The key to solving this is first to look at the stats and see if they are real or not. I suspect they are fake data.

    The second is to look at why company’s are not hiring, it’s clear that the policies of the government are not creating high paying jobs and choking the middle class to death .

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