Archive - Nov 11, 2009 - Story

A startling observation out of David Rosenberg is that with the current unemployment number (whatever it may be: 10.2%, 17.5%, 90%), even assuming an end to workforce outflows, there is a buffer equivalent to almost 11 million people, consisting of increased worker productivity and massive newly-created temporary positions, that can be drawn upon before even one person of those laid off recently, has to be rehired. This is disastrous for the Obama administration, especially at a time when it is actively speculating on Stimulus #2 in order to spur any kind of job creation ahead of mid-term elections.

• Goerge Soros: A new world architecture (Project Syndicate)
• Under attack, Fed chief studies politics (NYT)
• The real threat to Fed independence (WSJ)
• Bank of England to keep the heroin IV drip: King says BOE has "open mind" on more bond purchases (Bloomberg)
• Yet somehow, global confidence dips as policy makers begin exit strategies (Bloomberg)
• Hypocrite (lecteur) Geithner yaps about strong dollar policy, glances nervously at gold ticker every 15 seconds (FT, Reuters)
• Greatest trade ever: Paulson's $15 billion (Newsweek)

Gold hits another all time high of $1,117.82 an ounce. At this point the Fed must decide if the opportunity cost of the equity bubble and a few more S&P points is worth destabilizing the entire monetary system. Knowing the Chairman's M.O., the answer is an unequivocal yes, especially if it involves destroying the dollar's value

• Asian stocks, currencies rise on Japan, China economic data; gold advances.
• China's industrial production output grew 16.1% in October, its fastest pace in more than a year.
• Job openings in U.S. remain close to record-lows
• Oil prices fell $79 a barrel in Asia amid rising U.S. oil inventories and a weaker dollar
• Swiss rules to tie bonuses to profit will apply only to the nation’s 12 largest banks
• Unfilled positions climb to most since June as US companies delay hiring.
• USDA trimmed its production forecast and raised its price outlook for crops.
• Adobe to cut about 680 full-time positions or about 9% of its total work force.