Massive Stock Market Rally Today!!!!!

04/18/06 | Misterrob

[misterrob]

Life is good!!!

Dow --11,268 + 194.99

S&P --1.307 + 22.32

NASDAQ --2,356 + 44.98!!!!!

[markman46]

WOW.. my Durango has a 25 gal tank and cost about 52.00 for a fill up at 2.85

[durasell]

It's a great economy if you're an investor. Doesn't do you much good, though, if you're unemployed or underemployed because your job got exported to China or India.



It benefits places like NYC and SF with large financial markets. Business is booming.

[Southack]

"It's a great economy if you're an investor. Doesn't do you much good, though, if you're unemployed or underemployed because your job got exported to China or India."

Our 4.7 unemployment rate is considered, historically, as full employment. Everyone who wants a job has one or is in transition to one.

There will always be, however, some small portion of society with outdated skills ("who moved my cheese") or a general lack of desire to work.

Likewise, there will always be people transitioning between jobs.

Combine those two groups and most economists generally figure it should be around 5% of the population. Less than 5% unemployment usually triggers wage inflation, in fact.

[Dog Gone]

The stock market would love it. U.S. employers would love it. U.S. workers would love it.

But US consumers would hate it.

[Southack]

"The other possibility is that the Chinese let the yuan float some, but we raise interest rates. This would cover their spread since they're dumping a good portion of their dollars back into U.S. bonds. (They're now our third largest creditor)."

To truly let the Yuan float the Chinese would have to buy fewer U.S. Treasuries (currently they buy about $150 million in our notes **per day** to keep our Dollar propped up).

[Severa]

$2.79 is also the going rate here in Brunswick, Maine.

[durasell]

Less than 5% unemployment usually triggers wage inflation, in fact.



Not if "real wages" are either flat or declining as we transition into a service economy. Is the programmer working at Wal-Mart employed? Yep. Will his employment likely trigger inflation? Nope.

[Pukin Dog]

San Diego county has the highest gas prices in the nation AND the world record Largemouth Bass, baby! We pay gladly for the honor of living here.

[Southack]

"But US consumers would hate it."

Only a little bit. China's quality in their products has really slipped over the past two years. Sure, consumers will moan about the price of anything...but if quality improves due to using other, non-Chinese, suppliers then consumers will actually turn out happier.

[roaddog727]

"Well, my Hummer fill up yesterday cost me $88, so be happy."

Hopefully you have hummer1 (I take it not diesel) not one of those lame hummer 2's or worse yet, one of those mamby-pamby hummer 3's.

If I were to have one, it would most certainly be a 1. You can sling a hammock in the back and sleep very comfortably whist enjoying one's hunting/fishing/skiing expedition.

[durasell]

I think something is up. Remember,Schumer Graham went to China last month all fired up and came back pretty docile.

[jude24]

There will always be, however, some small portion of society with outdated skills ("who moved my cheese") or a general lack of desire to work.

I didn't know computer programmers were "outdated skills." I didn't know manufacturing was "outdated skils."

The economy is okay - but let's not pretend that the stock market or unemployment percentage is the end-all. As Reagan always said, "We can do better."

[Southack]

"Not if "real wages" are either flat or declining as we transition into a service economy. Is the programmer working at Wal-Mart employed? Yep. Will his employment likely trigger inflation? Nope."

Well, one thing that you have to keep in mind is that some people will always be over-employed. For instance, if a laid-off programmer only truly has the skills to be a Wal-Mart greeter, then she really shouldn't have been a programmer in the first place, and was no doubt a drain on whatever group had employed her before.

That sort of thing happens. Some small percentage of society will always have jobs that they don't deserve (based on skill level) and pay that they will never be able to duplicate if they lose said position.

But that's a very small segment of society (but one that no doubt makes a lot noise/complaints when they find that they aren't needed any longer).

[Daus]

Nope, premium only.

Ouch... I feel your pain. Premium was $3.09 at my last fill up.

But I ain't getting rid of the X5. :)

[in hoc signo vinces]

That's some mighty bad math... :-)

[durasell]

My point was that wages aren't rising -- as they historically did -- with the employment rate. So, no inflation. At least not yet. Higher energy prices may trigger inflation...

[misterrob]

A hummer for $88????

[Osage Orange]

AND the world record Largemouth Bass, baby

Si', El Capitan!!

[Pukin Dog]

Sorry, but its an H2, highly customized. Nothing lame about it. I use my other truck to tow my boat, the Hummer is just for show and go.

[Southack]

"I think something is up. Remember,Schumer Graham went to China last month all fired up and came back pretty docile."

The market thinks that something is up. The Senators' trip to China. China's Hu's visit to the U.S. now, etc.