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David Stockman's Non-Recovery Part 2: The Crash Of Breadwinners And The 'Born-Again' Jobs Scam

Tyler Durden's picture




 

After exposing the faux prosperity of the immediate post-2009 "wholly unnatural" recovery and explaining the precarious foundation of the Bernanke Bubble, David Stockman's new book 'The Great Deformation' delves deeper (in Part 2 of this 5-part series) into the dismal internals of the jobs numbers and only the utterly politicized calculation of the “unemployment rate” that disguises the jobless nature of the rebound. To be sure, the Fed’s Wall Street shills breathlessly reported the improved jobs “print” every month, picking and choosing starting and ending points and using continuously revised and seasonally maladjusted data to support that illusion. Yet the fundamentals with respect to breadwinner jobs could not be obfuscated.

 

Via David Stockman's book The Great Deformation,

The Wall Street meltdown of September 2008 accelerated the recessionary forces already in motion, causing a total job loss of 7.3 million between the December 2007 peak and the end of the recession in June 2009. That the Fed’s bubble finance had camouflaged the failing internals of the American economy then became starkly apparent. Nearly three-fourths of this reduction was accounted for by the above mentioned loss of 5.6 million breadwinner jobs; that is, nearly 8 percent of their pre-recession total. That devastating hit left the nation with only 66.2 million prime jobs and set the clock back to the level of early 1998. This is an astonishing fact: before any of the Greenspan-Bernanke maneuvers to coddle Wall Street and pump up the wealth effects elixir—that is, the 1998 LTCM bailout, the 2001–2003 rate-cutting panic, the August 2007 Bernanke Put, and the Fed’s post-Lehman tripling of its balance sheet - there were more breadwinner jobs than there are today. Since the BlackBerry Panic the Fed has relentlessly pumped freshly minted cash into the bank accounts of the twenty-one government bond dealers. Not surprisingly, therefore, there has been a jarringly divergent outcome between Wall Street and Main Street.

By September 2012, the S&P 500 was up by 115 percent from its recession lows and had recovered all of its losses from the peak of the second Greenspan bubble. By contrast, only 200,000 of the 5.6 million lost breadwinner jobs had been recovered by that same point in time. To be sure, the Fed’s Wall Street shills breathlessly reported the improved jobs “print” every month, picking and choosing starting and ending points and using continuously revised and seasonally maladjusted data to support that illusion. Yet the fundamentals with respect to breadwinner jobs could not be obfuscated.

On the eve of the 2012 election, for example, there were 18.3 million jobs in the goods-producing sectors: manufacturing, mining, and construction. These core sectors of the productive economy had taken a beating during the Great Recession, shedding 3.5 million jobs, or 15 percent. Yet after three and a half years of so-called recovery, the jobs count in the goods-producing sectors had not rebounded in the slightest; it had actually declined slightly from the 18.5 million jobs recorded at the end of the recession in June 2009.

Likewise, there were 7.8 million jobs in finance, insurance, and real estate, meaning virtually no gain from the 7.7 million jobs at the end of the recession. As to lawyers, accountants, engineers, architects, and computer designers, there was no pick-up there, either: the 5 million jobs counted by the BLS in September 2012 barely exceeded the 4.8 million recorded in June 2009; and in the information industries—publishing, broadcasting, telecommunications, motion pictures, and music—the data had slightly deteriorated, with the 2.8 million jobs posted in June 2009 slipping to 2.6 million in the month before the 2012 election.

Similarly, the 10 million jobs in transportation and wholesale distribution in September 2012 had changed hardly a tad from June 2009. Finally, the other heavy-duty category of breadwinner jobs—that is, government employment (outside of education) where average compensation exceeds $65,000 annually—had actually gone south. The 11 million of these high-paying jobs on the eve of the 2012 election had shrunk by more than 4 percent since the recession ended in June 2009.

In short, after forty months of “recovery” there was virtually no change in every category of breadwinner jobs that had been slammed by the Great Recession.

THE “BORN AGAIN” JOBS SCAM

These data are extremely important. They belie the sunny paint-by-numbers jobs picture peddled by the Fed to distract the public from the fact that monetary policy is all about fueling the speculative urges of Wall Street, not the economic health of Main Street. This obfuscation is especially true with respect to the aforementioned headline gain of 3 million jobs. Never told is the fact that the majority of these, as indicated above, were part-time jobs in bars, restaurants, retail emporiums, and temporary employment agencies.

That fully 55 percent of the rebound has been in low-paying, part-time jobs not only illuminates the phony nature of the Fed’s so-called recovery, but it also comes with a news flash; namely, every one of these 1.6 million new part-time “jobs” had already been “created” once before. During the second Greenspan bubble the part-time job count had risen from 34.7 million in early 2000 to 37.2 million in December 2007. In still another episode of Charlie Brown and Lucy, however, the football had been moved backward during the Great Recession. By June 2009, in fact, the part-time job count had tumbled all the way back to its turn of the century starting point at 34.7 million.

What happened by election eve of 2012, therefore, was nothing more than a partial retracement. At that point the BLS reported 36.4 million part-time jobs, meaning that after three and a half years of “recovery” just 60 percent of the gain from the 2000–2007 bubble had been recouped. These were self-evidently “born again” jobs, but in a display of astounding cynicism the Bernanke Fed claimed to be meeting its statutory mandate to promote maximum employment.

The larger truth is that when these job rebirths are set aside there isn’t much left. The part-time job sector has gained an average of just 11,000 authentically new jobs per month during the twelve years between early 2000 and September 2012, thereby contributing hardly a drop in the bucket relative to the working-age population growth at 150,000 per month.

In fact, this “born again” syndrome actually applies to the entire non-farm payroll, and the modest rebound it has registered since the recession officially ended in June 2009. As shown by the data, the Greenspan-Bernanke policy was the monetary equivalent of a Billy Graham crusade: the same jobs got “saved” over and over.

Thus, there had been 130.8 million total jobs in January 2000, and this figure had reached 138.0 million by the December 2007 peak. The Great Recession sent the jobs count tumbling all the way back to the starting point, actually dipping slightly lower to 130.6 million by June 2009. Then, after forty months of “recovery,” the BLS reported 133.5 million nonfarm payroll jobs for September 2012. The Bernanke bubble had thus “recreated” only 40 percent of the jobs that had been “created” by the Greenspan bubble the first time around.

That the Bernanke bubble policies have not recouped even half of the total payroll gains that the Fed had already previously counted is still another testament to the sham nature of the “recovery.” When the Fed’s pump-and-dump cycling of the macro-economy is set aside, it becomes starkly evident that the American economy has been nearly bereft of sustained job growth. For the entire twelve-year period since early 2000, it has generated a net gain of only 18,000 jobs per month, a figure that is just one eighth of the labor force growth rate.

The reason for this anemic figure on total payroll growth is that the great expanse of the nation’s economy outside of the HES complex has been a jobs disaster area. Alongside the rounding-error growth in the part-time sector, the 66.4 million breadwinner jobs in September 2012 represented a drastic shrinkage from the approximate 72 million jobs in that category recorded in January 2000. This was the smoking gun: the prime breadwinner jobs market has been shrinking by a net of 35,000 jobs per month for more than twelve years!

Indeed, the tiny gain of 5,000 breadwinner jobs per month since June 2009 means that it would take 90 years to recoup the 5.6 million such jobs lost during the recession; that is, it would take until the twenty-second century to get back to the job count that existed at the end of the twentieth century! The absurdity of it surely puts paid to the notion that a conventional business recovery is underway.

Indeed, it is only the utterly politicized calculation of the “unemployment rate” that disguises the jobless nature of the rebound. Upward of 8 million working-age Americans were no longer classified as being in the labor force due to purely arbitrary counting rules. In fact, the unemployment rate on the eve of the 2012 election would have posted at about 13 percent based on the same labor force participation rate as January 2000, and would have clocked closer to 20 percent if further adjusted for the drastic shift from full-time to part-time employment.

 

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Tue, 06/18/2013 - 22:20 | 3670208 Spitzer
Spitzer's picture

Im not even mad

Tue, 06/18/2013 - 23:28 | 3670348 saunhi
saunhi's picture

If you see the corporate campuses our so-called business leaders have built in Hydrabad and Bangalore-

then you know where they spent the various stimulus that was supposed to help Americans (jobs for our workers and a future for our students).

Think about that when you do business with our telecoms, payroll, benefits, and other offshorerers-

that bypass our citizens because they have a few basic rights.

The biggest lie of all is saying there are no U.S. technologists from CalTech, PennState, MIT-

when there are many who get the degree, have the skills, but are bypassed because of U.S. citizen rights.

Tue, 06/18/2013 - 23:29 | 3670353 Thomas
Thomas's picture

I'm about half way through the book, must confess that it is mostly review (being a ZH junkie). I must also confess that I have put myself on suicide watch. As David presents it in its totality, I just wanna slice my wrists.

Wed, 06/19/2013 - 00:03 | 3670414 prains
prains's picture

just finishing up a book called the new depression and have this book next in the stack to read, so what you're saying is this is a bad time to quit drinking?

Wed, 06/19/2013 - 01:14 | 3670493 CrazyCooter
Wed, 06/19/2013 - 03:51 | 3670583 MisterMousePotato
MisterMousePotato's picture

From the article: "That devastating hit left the nation with only 66.2 million prime jobs... "

Even worse, of those, 20 to 30 million are government jobs.

In short, there are about 40 million people supporting 300 million people in this country.

And...

It is only going to get worse.

Wed, 06/19/2013 - 10:12 | 3671200 prains
prains's picture

++LOL

Wed, 06/19/2013 - 10:29 | 3671245 ejmoosa
ejmoosa's picture

I'm 3/4 through the book myself.

 

It is painful for several reasons.  One is that the blame for all this crosses both political parties. Because of that you cannot get anyone's attention in these parties to address the issues. That's reason enough to cleave the Republican Party in two and start a new one with Cruz and Paul.

Anotther is that it has pointed out the biggest lie I was told as I grew up.  That we had free markets and capitalism in the US.  We have never had true capitalism, in my lifetime.

Instead, we have had one fearless leader after another trying to tweak the system to pull just a bit more consumption from the future to the present, while never considering how to replace that future consumption demand that no longer exists.

We could have been in such a different place today than we are, which leaves me sympathetic to your last statement.

 

Wed, 06/19/2013 - 20:55 | 3673755 monad
monad's picture

Kill the right person. At least first.

Wed, 06/19/2013 - 09:15 | 3670958 saveUSsavers
saveUSsavers's picture

This chart of corporate profit-labor's share tells it all, nobody has the balls to talk about it.

Wed, 06/19/2013 - 00:19 | 3670437 Midasking
Midasking's picture

Is this really news?  Do we need charts, stats, and graphs to understand there has never been a recovery?  Just walk down the street and talk to some people. The only way to have a recovery is to have less spending, more savings, less regulation, and a monetary system not based on fantasy.  http://tinyurl.com/mem7o7x

Wed, 06/19/2013 - 07:31 | 3670714 Headbanger
Headbanger's picture

Walk down the srtreet and talk to some people?  Yeah right.  They're all a bunch of la la landers who get angry if you point out the obvious economic obliteration going on now.The  sheeple WANT to believe CNBS and The Chosen One that all is well cause they can't take the truth.

Tue, 06/18/2013 - 22:21 | 3670211 km4
km4's picture

good facts in piece but the smoke and mirrors calculation of the “unemployment rate” really exposes the Obama smoke and mirrors hope and change bullshit ! 

Indeed, it is only the utterly politicized calculation of the “unemployment rate” that disguises the jobless nature of the reboundUpward of 8 million working-age Americans were no longer classified as being in the labor force due to purely arbitrary counting rules. In fact, the unemployment rate on the eve of the 2012 election would have posted at about 13 percent based on the same labor force participation rate as January 2000, and would have clocked closer to 20 percent if further adjusted for the drastic shift from full-time to part-time employment.

Wed, 06/19/2013 - 10:32 | 3671260 ejmoosa
ejmoosa's picture

One must always keep the carrot close enough to the ass to keep him thinking the goal is achievable.  When the ass keels over and dies, that's the opportunity to start a NWO.

 

"We, the people" are playing the role of the ass.

Tue, 06/18/2013 - 22:23 | 3670216 JJ McApe
JJ McApe's picture

All the pigs salivating at the trough waiting for another feeding from the Ben…While main street is struggling to make ends meet with 2 jobs just to put a roof over their head and food on the table.

Tue, 06/18/2013 - 22:50 | 3670278 mofreedom
mofreedom's picture

every rise and bow to the leader of the slack, barack husein obama....crickets...free osama fones...hurumph, yeay!!!@

Tue, 06/18/2013 - 23:20 | 3670333 potlatch
potlatch's picture

I was speaking with a part-time paramedic (is there any other kind?) a couple days ago.  He is working three.  I did not inquire into his other two jobs, but suffice it to say, he was genuinely overstressed, emotionally taxed by the non-stop nature of his work life.

 

And he is a skilled individual.  Skills require respect.  Asking a skilled worker to juggle three disparate and usually catch-as-catch-can "jobs" is to risrespect the skill, and to invite burn out, mistakes, and dare I say it, a deep sense of wonder, "Why did I even try?"

 

Easier to just stop, and go on the dole.  That is what he said he thinks, all too often. 

 

We do not need to worry about the so-called "job creators" leaving us; we need to worry about the hard and skilled workers. 

Wed, 06/19/2013 - 00:26 | 3670442 otto skorzeny
otto skorzeny's picture

He should come to IL- those fuckers in the bigger towns knock down 6 figures. Unfortunately the people in private industry with skills no longer have jobs to pay taxes to support our first responding heroes and that is why IL is dead ass broke.

Tue, 06/18/2013 - 22:23 | 3670220 spinone
spinone's picture

IT and automation makes many jobs unnecessary.  Add in offshoring and economic contraction, and the jobs picture is depressing.

Tue, 06/18/2013 - 22:30 | 3670241 otto skorzeny
otto skorzeny's picture

and yet the cocksuckers in DC leave the immigration floodgates wide open. anyone that does not see the endgame of sparking a civil war along racial lines here in the US is a fool. stack ammo bitchez- you're going to need it.

Tue, 06/18/2013 - 22:55 | 3670291 Oldwood
Oldwood's picture

We must leave the borders open. Americans are not willing to pay the wages that Americans demand so we need low wage nonAmericans to do those jobs. Until we can import Chinese illegals, we are stuck with Hispanics.

Government policies are directly responsible for facilitating this disaster but WE are responsible for carrying out the actual deed. We have insisted on unrestricted, untaxed cheap foreign goods why stupidly believing we could still have good paying jobs, simply because lying populist politicians told us we could. All we had to do was tax rich people, tax US businesses who could defer those taxes to their US customers and have minimum wage laws and union contracts that completely ignored prevailing world wages. All we had to do is absolutely ignore reality while pretending to compete in a worldwide free trade environment. Perfect.

Wed, 06/19/2013 - 07:42 | 3670740 overmedicatedun...
overmedicatedundersexed's picture

oldwood, once again you post WE are responsible we insisted on free trade..lol, if you did insist on the tax the rich and business, and cheap foreign goods..go shoot yourself, I did not, I voted for people who stated they would stop the free trade crap, every election others got in, (as if my vote never got counted, I got your game diebold), the ave american never had a choice in the movement of jobs and the off shoring of business..I take NO BLAME.

you only serve those that would want America to say --":It was our fault our leaders did what we wanted"..THE BIG LIE. you serve your masters well..

Wed, 06/19/2013 - 08:21 | 3670814 Oldwood
Oldwood's picture

So WE are not Americans? We as an American economy did not dispense with our jobs by buying cheap foreign crap. You can partition yourself off from us fellow Americans but unless you know something I don't you are part of this mess. If you want to believe that it is the fault of some evil overlords and WE the People, have no responsibility in this, then you are the problem. To insist it is all someone else's fault leaves us exactly where we are at and will never be resolved. If you think it is a problem of leadership you ultimately are a statist because you are deferring your responsibilty to them. Society's problems are determined by society's choices. I have resisted buying imports and I have resisted hiring illegals, even in a time when it is nearly impossible, but yet I understand that as a people, WE caused this. Stop being so defensive and try to identify the problem. There will be those who will always offer you the good deal, the "to good to be true" deal, and there will always be people who will go for it. If you think we can eliminate the confidence men or the idiots, you are mistaken. These people offer objective lessons in life and hopefully most will learn. But if you believe that our jobs would have left this country if WE as Americans had refused to buy imported goods, regardless of how good a deal they were, are are seriously deluded. Business is not evil, but it can be uncaring because ultimately all it cares about is profit. It doesn't care what sex or color you are or if you are legal or not. Business cares about profit and if you will buy it they will sell it to you, even if it kills you. Jobs have left our shores because WE refuse to pay the wages that Americans demand. And to cap it off, due to OUR apparent hatred of protectionism have chosen to levy taxes on US companies that Americans must pay through higher prices, while also ensuring that these same companies are put into a competitive disadvantage internationally. Yes, I voted against theis crap as well, but as an American, WE have chosen our path, and given our unwillingness to do whatis required to fix this, will continue on the path to hell. We will continue to scream about healthcare costs and yet do nothing to actually fix the problem. Ultimately we will end up offshoring thatas well. We will end up in Mexico or India getting hip replacements or cancer treatment because US prices are too high, and then proceed to complain about the loss of American jobs. Pure idiocy.

Wed, 06/19/2013 - 08:40 | 3670849 overmedicatedun...
overmedicatedundersexed's picture

Oldwood we agree on much more than we disagree..you however, never wear a tinfoil hat..the elites exsist, they determine policy at the FED and other multinational co's, McCain came from dead last to win the GOP primaries, out of no ware..that is an example of the power of the elites, voting machines now cannot verify your vote seconds after you cast it, and it gets counted in SPAIN no less. Wake up on the issue of who controls what. Having read ZH you must at some point understand this is a plan, and your not part of it.

Wed, 06/19/2013 - 09:50 | 3671124 Oldwood
Oldwood's picture

But you are missing my point. Regardless of the laws these people pass, it is still up to our choices as individuals as to what to buy and who to hire. The borders have been wide open for thirty years at least. Texas is overun with illegals yet I have made the choice to hire none of them. I'm not so delusional to think that my choices by themselves will change anything but if everyone acted in their long term interests instead of short term dreaming, things would be different. Hitler was an evil SOB yet he could have dome nothing without the willing participation of the German people. We can have free trade laws but as individuals we could have chosen to not buy foreign made TVs, cars and phones. We can have open borders but no one is forcing you to buy a house built by illegals, and just because the builder doesn't have it pasted on the front of the house doesn't mean you shouldn't ask or look into it. We, as a country, have turned our back on our own long term self interest by convincing ourselves that none of it matters. We have become obsessed by a fatalism that leads us to believe it will all end soon enough, so what the hell, have a good time. Who cares if you can pay your bills. And all those fools out there working two jobs to pay their bills are the stupid ones. How long can any society last with this attitude? We are behaving like drug addicted people who will do whatever it takes to get the next fix without one worry about tomorrow. Nothing else matters but the high from a new TV, car, phone or house, and who gives a damn if it can be payed for? We are fooling ourselves to believe we will be saved by the proper leadership. Yes it would be far better than what we have, but the reason we have the leaders we have is because that is seemingly what we want. We want hopium. We want people who will lie to us and tell to just keep on doing what we have been doing and everything will be OK. This is why these things happen in cycles. We have to get or ass crushed from time to time to make us into true believers, but after a generation or two we forget, and there are plenty of people out there to help us forget, cause that is where the easy money and power reside. It is still our choice.

Wed, 06/19/2013 - 08:52 | 3670884 acetinker
acetinker's picture

While I mostly agree w/you, you're thinking too hard.  It's real simple.  We're all on the same train, and it's not headed for anyplace that any one of us wants to go.  The train never stops.  You can't get off.  Neither can anyone else.

What can you do?  My advice is to start drinking heavily, and try to enjoy the scenery.  Why?  'Cause Democracy sucks, that's why.  Enjoy the ride, if you can.

Wed, 06/19/2013 - 10:00 | 3671157 Oldwood
Oldwood's picture

We have always had democracy in one form or another. The majority always wins out. The issue is how you can educate or manipulate that majority into acting in a specific way. If they can be made to believe that the only path to security is through a totalitarian state, then that is what you will have. If they can be convinced that the only path to wealth is by stealing it from someone else, then it will be stolen. If they can be convinced that we can have cheap imports and full employment with high paying wages then they have no problem with the government doing whatever it must to provide that. Sheep have a democracy. They go what ever direction they want, obviously being herded, but also in the belief that what ever direction they go, it is in their best interest to go there. Granted they might see the error in their beliefs once faced with the squeeze shoot in the kill pen, but hey, they thought they were doing the right thing! The hard choices are the ones that define us and while I will be the first to admit that at this point all choices suck, it is total capitulation to accept it and coast through becasue that is exactly what has got us here and now. And it can always get worse.

Tue, 06/18/2013 - 23:18 | 3670327 Handful of Dust
Handful of Dust's picture

I, for one, am grateful to the Bernank. He made it possible for my son, fresh out of college with a $48,500/year job as a history teacher to buy a $868,000 house with zero down and 30 years to pay and all title/closing fees paid for by the very generous builder's lender. Gee, they're swell people!

 

Where do I send the 'Thank You' note......

Tue, 06/18/2013 - 23:33 | 3670360 disabledvet
disabledvet's picture

send it straight to Pennsylvania Avenue. "that's where you'll find your hope and change." incredible. the same economic team that created this mess was kept on...which if you're Wall Street is As Good as it Gets. Listen..."no good news" David Stockman can't have it both ways. The Bush years jobs recovery was AWESOME...whereas the current one totally sucks. My is the market rallying so ferociously? Because there really is no pressure on wages, benefits or hiring PERIOD. Nor is there any outrage coming from any political quarter about "changing any of this." Simply put the "de unionization" of the USA is just accepted wisdom now...even here of all places. Guess what folks! Those Unions created those wages and benefits in the first place! So sure...of course...off to Wall Street we go. Why? "Because of all the Government programs that have been promised" that's why. You think taxes on consumption are going to finance those things? ridiculous. of course not. "that will be the banks, massive financial firms and Wall Street traders." just like the last time. And to top it all off the War Machine is backing this thing hook, line and sink her. I've tried everything i can think of to see an alternative to this reality (besides betting against it of course)...but the facts are the facts. "TPTB have won." ALL commodities are now rolling over. the dollar is as weak as ever. inflation is in fact fall into DEflation. i really think the current yield on the ten year is about as good as you're going to get here for a while. am i saying going long zero coupon thirty years here? we'll see what happens tomorrow.

Tue, 06/18/2013 - 23:45 | 3670386 Bay of Pigs
Bay of Pigs's picture

Why would your kid buy an $868K house in this environment? 

Wed, 06/19/2013 - 00:05 | 3670416 Handful of Dust
Handful of Dust's picture

He was suckered into it like hundreds of thousands of others. He has to learn the hard way I guess...despite my best efforts to show him my own cemetery of mistakes. His attitude i svery prevalent with his age group; namely, if it doesn't work out (which i feel is about 99% probable), he says, "I'll just walk away." Talking to his co-graduates one night, I was surprised they were shocked at my "ultra-conservative" attitude.

 

As Freddie Kruger says at the end of one of his gory films when a bunch of kids kill him...."Kids."

 

 

Wed, 06/19/2013 - 00:32 | 3670447 otto skorzeny
otto skorzeny's picture

But someone has to pay for him walking away and it is dumb fucks in the middle class like me that live with an antiquated notion of living within your means. my fucking rage at people like your son and others with his mindset is all-consuming.

Wed, 06/19/2013 - 00:29 | 3670443 otto skorzeny
otto skorzeny's picture

are you fucking kidding me- if my kid took out that kind of loan for a house I would cull him from my herd.

Wed, 06/19/2013 - 04:05 | 3670588 MisterMousePotato
MisterMousePotato's picture

You didn't read. He's a teacher. One of the annointed. Look up Timothy Bouman. A high school teacher in Illinois. Just an ordinary high school teacher. Who makes $650k a year. (Probably an example of pension spiking, but so what?) I'd guess Mr. Bouman could afford a million dollar house. And another in Aruba, too, if he fancied. Etc.

Wed, 06/19/2013 - 04:02 | 3670587 MisterMousePotato
MisterMousePotato's picture

"History teacher," eh? One of the annointed. Instant multimillionaire. Why not buy a million dollar house?

I mean, sure, some of the more insightful and frugal individuals on this forum might squeeze a little more lasting value from a million bucks, but what the hell. One thing's for sure: His income is never gonna go down.

The State will come and divest every penny from every one of us who are not in the club to make sure that the salaries, perks, and benis keep flowing to the annointed. Hell, I'd lend him a million bucks regardless of my feelings about the value of his collateral.

Wed, 06/19/2013 - 06:36 | 3670649 Go Tribe
Go Tribe's picture

You obviously did not have "the talk" with your son. You know, the one about how bubbles are born and the dangers of being fucked by Bernanke.

Tue, 06/18/2013 - 22:50 | 3670277 Judge Crater
Judge Crater's picture

News reports indicate that Michael Hastings just died  in a car crash early Tuesday in the Hancock Park neighborhood of Los Angeles.  

Hastings won a 2010 George Polk Award for magazine reporting for his Rolling Stone cover story "The Runaway General."

His story was credited with ending Gen. Stanley McChrystal's career after it revealed the military's candid criticisms of the Obama administration.  Hastings quoted McChrystal and his aides mocking Obama administration officials, including Vice President Joe Biden, over their war policies.

Read more: http://www.foxnews.com/us/2013/06/18/award-winning-journalist-michael-hastings-dies-in-car-accident-at-33/#ixzz2Wct8tNFE

Unlike Stockman, Hastings' story on the contempt the military had for Obama really changed things.  The question conspiracy buffs will have now is how do you die in a car accident in a congested Los Angeles neighborhood.  Was there foul play?  Nope, the LAPD knows better than to look too hard.   

Tue, 06/18/2013 - 22:53 | 3670284 otto skorzeny
otto skorzeny's picture

it might interfere w/ LAPD shaking down dope dealers.

Tue, 06/18/2013 - 23:27 | 3670347 LetThemEatRand
LetThemEatRand's picture

Hastings should have moved to HK.

Wed, 06/19/2013 - 11:37 | 3671536 monad
monad's picture

Cell phone marker for a drone strike? Or traditional car bomb?

Mercedes Benz don't burn like that. The LAPD like to burn their crime scenes. So does the BATF.

Tue, 06/18/2013 - 22:59 | 3670298 Judge Crater
Judge Crater's picture

The crash occurred at about 4:25 a.m. in Hollywood near North Highland and Melrose avenues, just north of the Wilshire Country Club. A vehicle crossed the median, slammed into a tree and burst into flames, No said. The male driver, believed to be the car's only occupant, was pronounced dead at the scene. No said he did not know the make and model of the vehicle.  USA Today

 

Unlike in movies, cars usually don't burst into flames after an accident.  Gas tanks in cars are built to not leak now, unlike cars like the Ford Crown Victoria of yesteryear, with its bad rear gas tank filler design or the even earlier Ford Pinto.  Those flames would burn away any DNA or fingerprint evidence.  R.I.P. Michael Hastings

Tue, 06/18/2013 - 23:10 | 3670312 otto skorzeny
otto skorzeny's picture

Thanks- The Operators is now at the top of my reading list

Tue, 06/18/2013 - 23:03 | 3670301 Seasmoke
Seasmoke's picture

Insurance is going to duck people up badly in 2014

July is my renewal for car health and home insurance. Home went up almost 40% and blaming state due to Sandy claims. Health in insurance up $35 a week/1600 a year.  Car only up $200 feels like a winner. THESE ARE JUST ONE YEAR INCREASES !!! Good Luck .

Tue, 06/18/2013 - 23:16 | 3670324 Oldwood
Oldwood's picture

Ever notice that it is always the domesticly owned businesses that we find difficult to afford. Maybe the Chinese will start selling insurance. Maybe they can sell a health insurance plan that works like a reverse mortgage where they cover your healthcare costs until you die and then they can sell your body parts. No chance of conflicting interests there!

Tue, 06/18/2013 - 23:38 | 3670368 Handful of Dust
Handful of Dust's picture

Yeah, my small business health insurance policy shot up 68% over the last 4 years. I called each time they raised it and the lady seems shocked I called about it asking for an explanation since I have had no claims. They always saythe same thing, 'it's to pay for Obamacare."

 

Soon, I'll have to go bare....no health insurance and pray while I eat lots of veggies.

Wed, 06/19/2013 - 00:30 | 3670446 AGuy
AGuy's picture

Opt for a higher deductable, especially of you rarely or never make any claims.

 

Wed, 06/19/2013 - 04:13 | 3670593 Hubbs
Hubbs's picture

Higher deductible? Hmmff. Golden Rule, a subsidiary of United Health (The biggest health insurer I think) jacked my wife's (age 37 )and daughter age 9 and healthy with no claims and a $5,000 deductible, up 49.7% this year. And btw, I am a physician and I sure haven't seen any increases in my payments....only heresay that the "cost increases of health care are going to moderate". What f..ing BS!

Wed, 06/19/2013 - 02:38 | 3670555 ebworthen
ebworthen's picture

And yet they collected premiums year after year after year in your state without big claims.

But suddenly, they need 40% more.  Why?  Because they were gambling your premiums in the stock market casino or bought municipal bonds from Detroit?

Fucking scam insurance is.

Wed, 06/19/2013 - 10:18 | 3671214 Oldwood
Oldwood's picture

On one hand I have a hard time trashing the insurance companies if their profit margins are not out of line with other businesses. But on the other hand, insurance is like every other collectivist ponzi scheme where they are going to redistribute wealth from a healthy person to a sick one and sell their services through the use of fear. Like our government, the inherent failure of the concept only creates problems that only they are left to remedy, and effectively causes them to become larger and more destructive to their stated cause. As with government, when you take funds from one group to give to another you create an imbalance in demand and supply that cannot be sustained. Insurance when taken to the scale it is currently at, as with behemoth government, will fail. You can't fix it. If you want people to be productive you have to not only create incentives for them to work but there also has to be costs in failing to do so. A safety net creates an oversupply of high wire walkers. When the safety net is nation wide you end up with what we have today. Lots of people engaged in stupid risks that afford no real benefit while others are happily selling them the wire to walk. We all just want cheap healthcare and TVs and good paying jobs. How could that go wrong?

Wed, 06/19/2013 - 00:29 | 3670444 Future Jim
Future Jim's picture

Where does Stockman get his BLS breadwinner data? I have not yet found any metric compiled by the BLS for the number of jobs that pay at least 40k. 

Wed, 06/19/2013 - 00:36 | 3670451 Yen Cross
Yen Cross's picture

  If it, walks talks acts like DUCK, it must be a DUCK, I'm on my phone, so I'm sorry for any gramitical errors.

Wed, 06/19/2013 - 03:21 | 3670574 mt paul
mt paul's picture

mmmmmmmm

duck...

Wed, 06/19/2013 - 05:38 | 3670622 negative rates
negative rates's picture

If it walks like a duck, looks like a duck, and quacks like a duck. It's probably a duck.

Wed, 06/19/2013 - 01:02 | 3670477 starman
starman's picture

anyone noticed the number of road workers every fckng mile?! Thats where they get their jobs numbers. 

Wed, 06/19/2013 - 02:35 | 3670553 ebworthen
ebworthen's picture

I can verify that my breadwinner job was vaporized and hasn't re-materialized despite my education, talent, abilities, and efforts.

Wed, 06/19/2013 - 03:20 | 3670573 mt paul
mt paul's picture

let them

eat pie...

Wed, 06/19/2013 - 06:42 | 3670652 sbenard
sbenard's picture

I finished reading this book two weeks ago. For me, this "no breadwinner jobs" chapter was perhaps the most eye-popping of the book.

Wed, 06/19/2013 - 07:38 | 3670733 Disenchanted
Disenchanted's picture

All your bread are been rehypothecated...

Wed, 06/19/2013 - 07:41 | 3670739 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

No worries, we have SNAP cards, disability, and now OB care.

And computers and robots. The peeps can relax.

Wed, 06/19/2013 - 08:18 | 3670808 therearetoomany...
therearetoomanyidiots's picture

"From the article: "That devastating hit left the nation with only 66.2 million prime jobs... " 

Even worse, of those, 20 to 30 million are government jobs.

In short, there are about 40 million people supporting 300 million people in this country.

And...

It is only going to get worse."   (taken from MisterMousePotato comment below)

 

WHICH MEANS...OBAMA WAS RIGHT!  THE RICH NEED TO PAY A LITTLE MORE. 

Wed, 06/19/2013 - 08:25 | 3670827 MrBoompi
MrBoompi's picture

Telling the truth would mean putting propagandists out of business, and you know that would lead to higher unemployment!

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