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Bernanke's Bold Bailout Of The Banking Sector Has Also Hurt Specialty Retail & Employment, MBS Traders And Their Employer Banks

Reggie Middleton's picture




 

Bloomberg reports Jobless Claims in U.S. Rise for First Time in Five Weeks, as I ponder how all of those heretofore unemployed MBS traders that Bernanke tried to assist benefit the jobless claims number. As I explained last quarter, Bernanke's squandering of US resources for the benefit of the banking elite will have to be paid for by those who actually seek jobs in this country. The Bloomberg article is excerpted as follows:

The number of Americans filing first-time claims for unemployment insurance payments rose for the first time in five weeks, a sign further improvement in the labor market depends on faster economic growth.

Applications for jobless benefits increased by 17,000 to 361,000 in the week ended Dec. 15, Labor Department figures showed today. Economists forecast 360,000 claims, according to the Bloomberg survey median. 

The figures signal the expansion probably needs to proceed more quickly to encourage companies to hold the line on headcounts and step up hiring while Congress debates the nation’s budget and tax rates. The Federal Reserve said last week it intends to keep policy accommodative to invigorate the economy and help sustain a decline in joblessness.

“This number gets us back into the range we’ve been in really since the spring,” said Omair Sharif, a U.S. economist at RBS Securities Inc. in StamfordConnecticut, who forecast claims would rise to 360,000. “We’re not waiting to see much more improvement on the layoff side. We’re just waiting for the hiring side to get going.”

 ZeroHedge adds in as follows:

This week's data remains below the year's average, though not by much, and the trend of claims falling appears to have almost entirely stalled this year from the hope-driven moves of the previous two years.

 

  

Now, if you remember, Benjamin Bernanke was supposed to have aided unemployment by buying hundreds of billions of dollars of MBS securities, right? Yeah, I know.. WTF!!! Let's take a look at how that has worked out histoically...

 thumb image002 copy copy copy copy copythumb image002 copy copy copy copy copy

Not only has it not worked out well historically, but the unemployment numbers spiked as soon as Bernanke admitted the buying as can be referenced in the ZeroHedge chart above, and have not truly showed a trend of abatement since, but then again, one shouldn't expect such looking at the historical trend in my chart above. If you want to see a positive trend, look at the industry that was saddled with bullshit MBS to begin with...

image005 copy copyimage005 copy copy

And there you have it, MBS purchases by the hundreds of billions that likely drive bank shares through the roof as they are unsaddled of the bullshit which they schemed so hard to peddle in the first place as unemployment restarts its upward climb, devoid of the resources that Bernanke directed towards the banks. For those who don't remember how my rant on Bernanke selling out the working class for the banking class went down, reference the video on the topic below...

And on that note, here's a group of companies (yes, another group) that we expect to get banged by this not-so-stealth bank bailout. Chief among this group is an overpriced gem that is suffering spiking expenses, flat revenue and a sad macro outlooke, for subscribers only (click here to subscribe)... File Icon Specialty Note (Consumer Retail)

There will be several more reports to subscribers before the new year. Stay tuned...

See also:There will be several more reports to subscribers before the new year. Stay tuned...

What's The Best Way To Profit From Groupon's IPO?

I Suggest Groupon Offer Coupons To It's IPO Investors, They're Going To Need Them

What Does Groupon and The Matrix Have in Common?

BoomBustBlog subscription document icon Groupon Forensic Analysis & Valuation (923.04 kB 2011-06-16 10:34:36)

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Fri, 12/21/2012 - 02:19 | 3085924 Element
Element's picture

MONEY PRINTING =  chasing your tale until you disappear up your own freckle

 

but they knew that already ... it was never a solution from the beginning

Thu, 12/20/2012 - 20:29 | 3084798 rbg81
rbg81's picture

The stunning irony here is that the more that Bernake's policies increase the dysfunction & instability of the System, the louder the demands that he "do something" to solve it.  Of course, the fix will not be a fix, rather more of the same--which enable more Government spending and the resultant distortions that go along with it.  The demand are, of course, coming from the soliticians, their stoodges in the Media, and the Sheeple who bleat on command.  Paradoxically, interest rates will continue to go down to zero or even negative.  If the latter, then the Government will actually increase revenue by spending more.  Imagine that?  At that point, everyone will give up and go on the dole. Its so sad its funny. 

Thu, 12/20/2012 - 17:35 | 3084170 falak pema
falak pema's picture

Reggie welcome to the world of despotism. 

What Reaganomics established and then sowed we now reap. 

The world needs structural reset and it will be imposed from the top and brutally. According to the laws of the Oligarchy. Only a few life boats leave this ship. 

Spelling  error is not false, manipulated selling. That you do know. 

 

Thu, 12/20/2012 - 17:27 | 3084150 Boilermaker
Boilermaker's picture

AND....Commericial Real Estate is GOING TO CRASH!!!

You can get a few cherry picked and meaningless examples by buying my 'premium' content.

Step right up folks, and see something you've NEVER SEEN BEFORE!

Luv,

Reggie

Thu, 12/20/2012 - 17:10 | 3084114 lasvegaspersona
lasvegaspersona's picture

Reggie your spelling/ grammar errors are now spilling into the headlines of your articles...GET AN EDITOR or suffer the opinion of those who know better.

Thu, 12/20/2012 - 20:07 | 3084676 Melin
Melin's picture

I've offered.

Thu, 12/20/2012 - 17:07 | 3084108 Canadian Dirtlump
Canadian Dirtlump's picture

holy shit, the economy is so bad, instead of enjoying retirement Omar Sharif is now moonlighting as an economist? Talk about a dismal economy.

Thu, 12/20/2012 - 18:42 | 3084360 falak pema
falak pema's picture

he must have invested in Iceland.

Thu, 12/20/2012 - 16:55 | 3084063 vast-dom
vast-dom's picture

welcome to the ponzi game planet nuthouse. of course REAL unemployment = much greater spreads vs interest rate stomp insanity. this must end. thx reggie. 

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