BLS

Just Stop It!

The posse of fools in the Eccles Building is so petrified of a stock market hissy fit that it has more or less created a Wall Street doomsday machine.

Why The 'Flyover States' Are Hurting - Bubble Finance Is Strictly For The Bicoastal Elites

The broadest measure of the stock market has risen by 125% since 1999. The real median family income has fallen by 7%. Stated differently, the bicoastal elites who own most of the nation’s financial assets or who feed off the financial system and a debt-swollen central state in Washington, believe themselves to be in the pink of prosperity. They do not understand, of course, that this is all a giant bubble which at length will burst in spectacular fashion, causing their own unearned windfalls to shrink in the process. In the meanwhile, they may come to understand that the flyover zone of America has been left behind. The main street insurgency fueling Donald Trump’s shocking rise to the top of the Presidential race proves that much in spades.

'Transitory' Excuses Destroyed As Mainstream Wakes Up To Crashing Yield Curve

The US Treasury yield curve is flattening again, with parts finally in 2016 surpassing the bearishness exhibited to start 2015. The mainstream is just now starting to notice likely because unlike last year there are no longer credible excuses to simply wish it away. “Transitory” is not a word you find much anymore, replaced instead by reluctant and forced acknowledgement that there is real economic peril here. Bearishness in the yield curve is not something new, however, only the notice of it.

A Nation Of Housing 'Haves' & 'Have-Nots'

Everyone who follows the statistics of rising income and wealth inequality knows we're becoming a nation of haves and have-nots. What's not being discussed is the role of housing.

Another Headline Head Fake - The Consumer Can't Save The U.S. Economy

At the end of the day, the seasonally maladjusted data for April retail sales amounts to no more than a swiggle in the larger trend. To wit, consumption spending financed by the growth of transfer payments and household borrowing is coming up hard against Peak Debt, while tepid growth in wage and salary income remains hostage to a domestic economy plagued with structural barriers to growth, an aging business cycle and a gathering global recession from which it is not remotely decoupled. So contrary to Reuters and its Keynesian quote standbys, it is not true that “the demise of the U.S. consumer have been greatly exaggerated”. Actually, it can be hardly exaggerated enough.

David Stockman Warns "Get Out Of The Casino!"

Forget the "wall of worry," former Reagan OMB Director David Stockman warns a shocked CNBC anchorette that "the frogs are in the boiling water again on Wall Street...and they don't have enough sense to get out." The last 600 days of range-bound trading marks the top he explains adding that "we have reached the cyclical top in both GDP and earnings," which leaves a market trading at extremely expensive levels - "why would you stay in?" Stockman believes that the world economy is heading into a "deep and lasting deflationary recession." There is no evidence that America is immune, he adds, warning of the potential for 40% downside and just 2% upside in stocks...

Drug Prices Soar Most In The 21st Century

While the 1998 Viagra "spike" came and went, in recent years, pharmaceutical preparation, i.e., drug prices have been soaring higher with every passing year, and according to today's PPI report, at the wholesale level, drug prices in April surged by 9.6% over the past year, the biggest increase since 1982 when excluding the Viagra outlier, and certainly the most in the 21st century.

The Frogs Are Boiling Again - Why Wall Street Stays In The Pot

Wall Street’s cockeyed faith that another stock market bailout is on the way rests on the idea of a post-election return to fiscal stimulus - since even the casino punters now see that the jig is up on ZIRP, NIRP and QE. Here’s the problem. When General (Paul) Ryan gets together in the oval office with either Hillbama or the Donald next February the budget projections will already be deep in trillion dollar deficits under current policy. Therefore what will get stimulated, if anything, is a colossal political firestorm over who bankrupted the nation. There will not be another fiscal stimulus this go round. This time the frogs of Wall Street will be left to boil.

Job Openings Back To All Time Highs: Yellen's "Favorite Labor Indicator" Says Its Time To Hike

When last Friday's disappointing payrolls report hit, which saw just 160K jobs added in April, stocks initially tumbled only to surge as the case of a June rate hike was quickly taken off the table. Not only that, but according to Fed Fund futures as of this moment, the Fed won't hike until some time in early 2017. However, one look at the latest JOLTS data, admittedly Janet Yellen's favorite jobs indicator, paints a very different picture.

China Trade And The Inevitability Of Systemic Reset

The reset is the answer, not the problem. Delaying the answer only elongates the pain of the problem. Under the direction of orthodox economics (the fusion of Keynes and monetarism) the world’s “stimulus” apparatus is making a bad situation worse by (at best) dragging it out far longer than maybe it would have under more traditional business cycle conditions. Belief in the power of “stimulus” to make it happen prevents awareness of what is, again, really a paradigm shift that will not be altered. What we are analyzing, then, is not what awaits but how long it takes to get there and the huge, growing costs to delay what looks only inevitable.

Trumped! Why It Happened And What Comes Next, Part 3 - The Jobs Deal

Donald Trump’s patented phrase “we aren’t winning anymore” lies beneath the tidal wave of anti-establishment sentiment propelling his campaign and, to some considerable degree, that of Bernie Sanders, too. What’s winning is Washington, Wall Street and the bicoastal elites. But most of America’s vast flyover zone has been left behind. Thus, the bottom 90% of families have no more real net worth today than they had 30 years ago and earn lower real household incomes and wages than they did 25 years ago. Needless to say, the lack of good jobs lies at the bottom of the wealth and income drought on main street, and this week’s April jobs report provided still another reminder.

President Obama Explains What The "Fiction-Peddling" BLS Got Wrong - Live Feed

Grab your popcorn. Having proclaimed his greatest achievement during his presidency as "saving the world from another Great Depression," we wonder what President Obama will have to say today when he discusses the economy. Following the decline in corporate profits, a manufacturing sector in recession, an auto industry which is shuttering production, minimum wage state job losses rising, and an equity market that is unable to make new highs, what cynical, skeptical, "fiction-peddlers" will he blame today's dismal jobs data on?