Unemployment

Tyler Durden's picture

Portugal’s Financial Situation Summarized In One Graph





The graph shows that the true wealth generators of the economy continue to struggle, and now face the prospect of having to pay for the snowballing government debts in the not so distant future. With limited access to funds and rising taxes and costs (with the notable exception of labor, which has its own circular implications), how can they generate enough growth to restore the country’s finances? Bond yields better stay at historical lows indeed.

 
Tyler Durden's picture

Unintended Consequences Of Obama's Student Loan Policies





President Obama’s populist, class-warring, shut-out-the-legislature, ignore-the-long-term-consequences romp through every corner of life turned to the education sector. Problems with student loan programs are deep-rooted – thanks mostly to the government’s domination of the market – and were only worsened by Obama’s actions this week. In a better world, policymakers would take a cold, hard look at the effects of federally-funded student loan programs, including the good and the bad. Here are a few such observations that you’re unlikely to hear from your president...

 
Tyler Durden's picture

Exorbitant Cost Of Pseudo-Educating America: The Next Two-Trillion Dollar Bubble





“Go and get educated, you weakly fools, learn to compete; it’s a tough world out there.” And with that push by the Knightly Elite, Americans by the millions have entered a path offering them skills or greater opportunity, instead of taking the alternate route to an almost guaranteed permanent welfare. In their obsequious tradition of creating self-serving opportunities and promoting waste, legislators have allowed the creation of a field of uncontrolled helter-skelter, unqualified schools (new or existing) offering shelter to mostly unemployed or unemployable men and women wearing student uniforms. Yet, as this throw-away part of society gets “educated” there are none-to-few jobs waiting for them. These “money advances,” appear as the only way to subsist. For now... we’ll just wait until this bubble bursts.

 
Tyler Durden's picture

Paul Volcker Slams The Fed: "The Kind Of Stuff That You’re Being Taught At Princeton Disturbs Me"





"The responsibility of any central bank is price stability. I was at the helm at that time. Price stability is two percent inflation, which we can’t closely control anyway. They ought to make sure that they are making policies that are convincing to the public and to the markets that they’re not going to tolerate inflation... The responsibility of the government is to have a stable currency. This kind of stuff that you’re being taught at Princeton disturbs me. Your teachers must be telling you that if you’ve got expected inflation, then everybody adjusts and then it’s OK. Is that what they’re telling you? Where did the question come from?"

 
Tyler Durden's picture

19 Reasons To Laugh When Anyone Tells You That The Economy Is In Good Shape





Have you heard the one about the “economic recovery” in the United States? It’s quite funny, but it is not actually true. Every day, the establishment media points to the fact that global stock markets have soared to unprecedented heights as evidence that the economy is improving. But just because a bunch of wealthy people have gotten temporarily even richer on paper does not mean that the real economy is in good shape. In fact, as you will see below, things just continue to get even tougher for the poor and the middle class.

 
Phoenix Capital Research's picture

THREE Charts That Prove We’re in a Depression and That the Federal Reserve and Washington Are Wasting Money





The reality is that what’s happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift.

 
 
Tyler Durden's picture

Obama Popularity Plunges To New Low: "No Longer Likeable Enough"





A stunning 64% of Americans say the country is on the wrong track as President Obama's recent actions (too numerous to list) have sent his approval rating plunging to a mere 44% - the lowest (according to a Bloomberg poll) since his Presidency began. Under the surface the picture is even more worrisome as "in the past, Obama’s likeability has stayed ahead of perceptions of job performance," as his 'charm' saved him from his apparent ineptitude, but now, "it appears he is no longer likeable enough."

 
StalingradandPoorski's picture

"For many the Bull is short for Bullshit."





New All time highs almost every single day, yet market volumes have literally collapsed. On any given day, you would see an average of 2M eminis (S&P Futures, spoos) trade, and now we are seeing barely 1M trade, sometimes even lower. This has left everyone, including big banks, who are now being forced to lay off traders amid the slowdown, asking the same question: WTF is going on?

 
Tyler Durden's picture

An Earlier End To QE?





The FOMC should (and might) accelerate the pace of QE reductions to $15 billion on Wednesday (June 18th). Furthermore, at its meeting on July 30th, the FOMC could – and should -announce a similar-sized reduction for the subsequent two months. Hence, the Fed would not have to wait until its September 17th meeting to announce the final leg. QE would then end two months earlier at the end of August rather than the end of October as markets currently expect. Such a path would generally afford the FOMC more freedoms, particularly at the September17th press conference meeting. There are of plenty of reasons to justify such a move...

 
Tyler Durden's picture

Sharp USDJPY Overnight Sell Off Pushes US Equity Futures Into The Red





Yesterday's market action was perfectly predictable, and as we forecast, it followed the move of the USDJPY almost to a tick, which with the help of a last minute VIX smash (just when will the CFTC finally look at the "banging the close" in the VIX by the NY Fed?) pushed the DJIA to a new record high, courtesy of the overnight USDJPY selling which in turn allowed all day buying of the key carry pair. Fast forward to today when once again we have a replica of the set up: a big overnight dump in USDJPY has sent the dollar-yen to just over 102.000. And since Nomura has a green light by the BOJ to lift every USDJPY offer south of 102.000 we expect the USDJPY to once again rebound and push what right now is a weak equity futures session (-8) well above current levels. Unless, of course, central banks finally are starting to shift their policy, realizing that they may have lost control to the upside since algos no longer care about warnings that "volatility is too low", knowing full well the same Fed will come and bail them out on even the tiniest downtick. Which begs the question: is a big Fed-mandated shakeout coming? Could the coming FOMC announcement be just the right time and place for the Fed to surprise the market out of its "complacency" and whip out an unexpected hawk out of its sleeve?

 
Tyler Durden's picture

Two Thirds Of Gen X Households Have Less Wealth Than Their Parents Did At The Same Age





Just how badly is Generation X doing? Bad enough to turn around the entire concept of middle-class prosperity in America - one where every next generation should do better than the preceding one - on its head. "Only one-third of Generation X households had more wealth than their parents held at the same age, even though most earn more, The Pew Charitable Trusts found." And there, in a nutshell, is your so-called recovery: two thirds of an entire generation - one which is in its prime working years - doing worse than the one before them!

 
Tyler Durden's picture

Hiring In The US Remains Far Below Pre-Recession Levels





As the chart below shows, while the US may have, somehow, recouped all of its post-recession job losses as was widely trumpeted everywhere on Friday, it sure didn't achieve this courtesy of a vibrant hiring labor market. In fact, as the chart below show, while the US may have recovere its annualized job change number, per the non-farm payrolls survey, of just about 2.4 million, or about 200K per month, the pace of US hiring is still just about half of where it should be based on the pre-recession trends.

 
Tyler Durden's picture

Obama Unveils Student Loan Debt Bubble Bailout





"The challenges of managing student loan debt can lead some borrowers to fall behind on their loan payments and in some cases even default on their debt obligation," notes the always astute White House... and so it's time to do something about that... by bailing the bad debtors out with US taxpayers money. As we have been vociferously warning, not only has the student loan debt bubble expanded massively (as the easiest credit substitute for real-world working and unemployment) but delinquencies on the 'easily available' credit is soaring with "consequences such as a damaged credit rating, losing their tax refund, or garnished wages." Consequences, as we have been taught now, are not acceptable for this administration and so President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans.

 
Tyler Durden's picture

The US Labor Market In One Chart (According To The Fed)





Having spent the last few years blowing away the importance of the unemployment rate propaganda as participation rates have now become mainstream media discussion points, we were not surprised when the Fed admitted that it uses a "dashboard" of various employment measures (even if the world watches payrolls data as if there life depended upon it). As The Fed's Jim Bullard shows in his latest presentation, there are 13 variables the Fed follows. As the following chart shows, the surge in temporary help services hardly supports the great news that Friday's jobs data appeared to be (given stock market reactions).

 
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