Wall St. likes a streamlined work force.
From the accounting view of that question: Jobs are expenses and expenses cut into margin, thus decreasing profits. Increased profits mean that the stock price increases.
it was a crime against humanity when GWB was president. it must be okay now.
Down today!
Here’s what those people who are always screaming “tax the corporations more! They can afford it!” don’t understand.
Almost every corporation can find someone to cut to save their profits. More than likely, it’ll include those with a sense of entitlement vs. those with the work ethic.
“Why Stocks Are Surging as Jobs Disappear (Dow is up, Jobs are down, what gives ?)”
*********************
And nobody is suspicious....
No wonder a pvunk like hussein can rise to stardom!
Simple really, a company is not just going to bend over and say ‘oh well, I guess we’ll fail’. No, they modify their business plan to work within the conditions they play. They streamline workforces, reduce expenses, and change product focus.
If you owned a video store, for example, and the market started crashing, you wouldn’t just bend over and take it? You would look for ways to save money. You would possibly change price structures to meet the customer’s economic circumstances, etc. You would still look for a way to make a profit.
This is one of the reasons why I’m not a complete doomer on the future of the economy. As long as there are still sectors that big brother doesn’t get his nose in much more, and they can attempt to make a profit, they will modify behavior in order to maintain profitability.
Part of it is inflation, but it is mostly that investors do not have any other place to go to try to make money with the kind of liquidity that the stock market has.
There is no “real” value in the stock prices. They are vulnerable to a deep crash. I’m about ready to move my 401K to safer ground.
A not-so-Merry Christmas is on the horizon.
There will be lots of breast beating and face reddening before it’s over. But no one at this point will be very surprised.
Uhhhh, because the government printed up and doled out trillions of dollars from the taxpayer's treasury to Wall Street after they were absurdly permitted to call themselves "banks".
By December 2008 I think there was a general fear that there the potential for an historic collapse of the U.S. and world economic system. That was a reasonable fear that was, IMHO, promoted by the media and the incoming Obama Administration in order to provide a basis for the pork-laden Stimulus Bill. By January my personal view and I think the financial markets view was that it was going to be bad but that the sky was, in fact, not falling. The Stock market had fallen too far and too fast. So a correction was inevitable. If you recognized that fact in that time-frame and acted on that belief you made out like a bandit. I suspect many of Obama's closest friends did so.
With the wage czar deciding what people can earn, expect some of our most ambitious people to seek their fortunes in freer markets around the world. The next Bill Gates has probably made up his mind, “not here.”
These short-term gains in profit are only that. As we are given more of the poison that got us here in the first place [higher taxes, more regulations, bigger government], the long-term effects will be felt.
The Obama administration and its sycophants in the media can try to spin this and hope that hope will keep it going, but the current stock upsurge is unsustainable. Certainly it will not last when the mid-term elections come next year.
1. Large corporations do fine under national socialism. Lots of big companies made lots of money under the Nazis. It’s the start ups and small companies that cannot prosper.
2. Stocks are not going up; the dollar is going down.
This jump in the Dow will be short lived. There are too many indicators that the economy is in bad shape
Of course, Business Socialism, thru bailouts and other programs, have only temporarily helped stocks. They will go down again, and it will be ugly
When over 2/3 of the economy is consumer-spending, and 10% of consumers have no income....the thing will collapse.
Main Street is hurting, regardless of what the liberals on Wall Street, and their syncophants, think
Stocks are rising because a lot of people are gambling, hoping to make back some of the money they’ve lost since the Dow went south from 14,000.
People who have been in the market for the past few months have done well. But, trankly, the market looks pretty toppish to me right now.
http://stockcharts.com/h-sc/ui?s=QQQQ&p=D&yr=0&mn=4&dy=0&id=p24903662436
This is the “sucker’s rally” that is designed to pull in money from the little guys so that the big guys can take it off the table.
In the most simple explanation supply/demand curves for many businesses shifted where sales dropped and therefore earnings dropped. Employers trimmed their payrolls to decrease their expenses and started showing increased earnings therefore the value of the stockmarket rises.
I suspect that in this horrible job market, productivity (among those still working) is way up.
How’s that hopey changy thingy working for Obama’s hometown Chicago Democrat voters?
October 16, 2009
By FRANCINE KNOWLES Business Reporter / fknowles@suntimes.com
The state’s unemployment rate jumped to 10.5 percent in September, the highest level in 26 years, and up from 10 percent in August and from 6.7 percent in September 2008, the Illinois Department of Employment Security said today.
The average over the past three months increased .1 percent to 10.3 percent, the highest level since December 1983.
The state’s rate continued to exceed the nation’s 9.8 percent rate.
The state lost 14,200 jobs during the month, the 20th consecutive monthly loss, and the state’s job total stood at 5,634,700, its lowest level since December 1995, the agency said. Over the year, the state has lost 306,900 jobs.
Trade and transportation shed 5,600 jobs since August and 58,200 over the year. Manufacturing lost 3,500 jobs over the month and 80,700 over the year, the biggest over-the-year drop. The second biggest over they year decline was in professional and business services, which has lost 69,500 jobs, including 2,700 lost over the month. Educational and health services shed 4,400 jobs over the month and 12,300 over the year.
The only sectors to report gains over the month were government, which added 4,600 jobs, other services, which added 2,100 and mining, which added 100.