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Meet America's Second Largest Employer: A Temp Agency

Tyler Durden's picture





 

Despite the mainstream media's inability to see things as they are - as opposed to how they hope them to be for fear of exposing the status quo for the illusion that it really is - the subject of 'job quality' in this recovery-less recovery has never been far from our thoughts since 2010. David Stockman has often discussed the loss of 'bread-winner' jobs and in fact not only are there a record number of Americans with temporary jobs (28 million or one-in-ten non-farm workers) but behind Wal-Mart (itself arguably a somewhat part-time employer), the Washington Examiner reports, that the second largest employer in America is Kelly Services - a temporary work provider. The company, started in 1946, serves 99% of the Fortune 100 and had revenues of $5.5bn in 2012 (though even this burgeoning growth area is struggling in the last quarter).

This is Kelly Services...

And while fees collected are soaring, meaning more and more workers are part-time...

It's been a good run but even Kelly Services is seeing growth slow...

Don't worry though as modest job gaines are expected to continue in the US (and Asia-Pac will lead the growth apparently - even as China steps on the brake and the RBA fears recession)...

 

As The Examiner concludes, echoing our and Mr. Stockman's previous thoughts, it's a sad state of affairs for our country that the recovery, or lack thereof, is being fueled by a shift from full-time to part-time work.

 


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Tue, 07/09/2013 - 11:13 | Link to Comment Doubleguns
Doubleguns's picture

Obama delaying Obamacare should explain it all. 

Tue, 07/09/2013 - 11:21 | Link to Comment Spider
Spider's picture

LOL - and when this 'recovery' works its way into the stock market, there will be a huge drop.  But gold should do quite well as QE is INCREASED (taper my butt!) so you better buy your gold before COMEX runs out and the price rockets

http://seekingalpha.com/article/1537442-comex-registered-gold-inventories-have-never-been-lower

Tue, 07/09/2013 - 11:26 | Link to Comment WarriorClass
WarriorClass's picture

Remember Ted Kenedy's remarks on the Immigration Reform Act of 1965?

Now we learn that the GOPs immigration policy was devised by the communist party.  Who needs Democrats anymore?

http://americandictators.blogspot.com/2013/07/teddy-kennedys-promises-fl...

 

Tue, 07/09/2013 - 11:38 | Link to Comment Richard Chesler
Richard Chesler's picture

I hear Kelly pays great benefits.

Tue, 07/09/2013 - 12:11 | Link to Comment James_Cole
James_Cole's picture

* Every * recovery after recession in the past 80 yrs has been 'fueled' by part-time work. It's disengenuous to pretend this is a new phenomenon.

The unfortunate thing is the decent jobs have been shipped out since the 70's leaving little job growth outside of crap options.

Not an accident though, everyone should know by now this is an intended + expected consequence of neoliberalism.

Tue, 07/09/2013 - 13:58 | Link to Comment Hohum
Hohum's picture

James_Cole,

You're right.  But isn't it a capitalist's wet dream?  Just in time inventory and just in time employees.

Tue, 07/09/2013 - 12:13 | Link to Comment franzpick
franzpick's picture

Parts is parts.

Tue, 07/09/2013 - 11:23 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Obamacare won't help, but this started a long time before Obamacare was a gleam in Obama's sociopathic eye.   This is the result of wage arbitrage caused largely by globalization and the rise of mega-companies like Wal-Mart who basically pay a few people a lot of money and everyone else jack shit, while simultaneously destroying local small businesses that were once the backbone of the middle class.  

Tue, 07/09/2013 - 11:26 | Link to Comment McMolotov
McMolotov's picture

We'll all have to settle for a few part-time jobs earning barely enough to scrape by before all is said and done. The fun is only just beginning.

Would you like some Extra Big-Ass Fries with your wage slavery?

Tue, 07/09/2013 - 11:34 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

You're an unfit parent

Tue, 07/09/2013 - 11:44 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

In 1970 one breadwinner could take care of a family. 

2013... Both parents working as temps can barely scrape by, never mind make their debt service payments (feudalism, any one)

War was declared on the white, middle class male.  And its time we acknowledge as much.  The question is why?  Who wanted that?

Tue, 07/09/2013 - 13:03 | Link to Comment James_Cole
James_Cole's picture

War was declared on the white, middle class male.  And its time we acknowledge as much.  The question is why?  Who wanted that?

It's always been a war waged by the rich against everyone else. White folks were generally treated better than their minority counterparts in the US but not anymore. Maybe because .gov no longer needs to cater so much to the white vote?

US business interests have long exported poverty in order to create 'labour flexibility' in the rest of the world. The last 30 years of compliant population and captured .gov have made it possible at home now too. 

What goes around comes around. 

Tue, 07/09/2013 - 13:07 | Link to Comment Dingleberry
Dingleberry's picture

To answer your question honestly, it was two things. I know. I grew up watching it.

First was rampant consumerism. In the old days that you speak of, the house was small, and there was one car in the driveway. And one TV. Those same houses today wouldn'e even be considered a garage.

Second was feminism. The women were told that they needed a career, use their brains and stop being oppressed at home. So they drank the Kool-aid. And are now on anti-depressants and valiums. Family destruction naturally followed. Now everyone is on meds and miserable.

There are your answers. 

Tue, 07/09/2013 - 13:25 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Yes it was all "feminism's" fault.  It must be nice to do whatever you want in life while if you happen to be born a woman society is going limit your choices (in the name of the "family" of course).  The valium and anti-depressents started in the 50s, you moron, when they stay at home mom was still the norm.  And families were often just as screwed up then, they just didn't talk about it.  The whole "perfect nuclear family" scenario was the aberation born out of good jobs and some material comfort.  Everyone contributing to the struggle to survive is much more the norm - be it hunting/gathering, working the farm or now - two temps jobs just to make rent.

Tue, 07/09/2013 - 14:46 | Link to Comment Dingleberry
Dingleberry's picture

Denial is very powerful. The only cure is reality. Welcome to it.

Feminism (like any other "ism") was a tool used to get everyone off the economic bench. It was sold as "freedom" or "choice". 

It turned out to be anything but. Obviously you do not know professional women. Many, if not most, would love to work on their own terms like part time, if at all. But that wouldn't be "work" now would it?

BTW, a quarter of white women are on psych meds and rising fast. That only started in the last two decades.  Wonder what happened?

But I should know better than to argue with fools.

Now go take your meds, and your kids to therapy.

Tue, 07/09/2013 - 15:35 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

I am not in denial.  And I happen to be a professional woman who works with many other professional women, none of whom want to work part time "if at all".  And I am definitely not on meds or in therapy so take your preconceptions and shove them up your ass.  "Dingleberry" what an appropriate name - you are definitely like the little pieces of shit that clings to a dog's fur. 

Tue, 07/09/2013 - 20:45 | Link to Comment Dingleberry
Dingleberry's picture

your ex(s) have my sympathy. And you may want to get that anger checked out.

Tue, 07/09/2013 - 17:33 | Link to Comment Edelweiss
Edelweiss's picture

 A big +1 on the consumerism.  Quite a few years ago, I told my wife I was tired of working extra to buy shit that really didn't matter to me.  We've since changed course.  No more overtime, no new loans, and living below our means is the new norm.  I think we both sleep better knowing we have a nice savings balance, and fewer worries.  As for the feminism, to me it's a sort of partial feminism.  I work in an area dominated by women, and have a front row seat.  My experience has been that women fully expect equal pay/benefits/consideration, except when a work assignment involves heavy lifting, or dealing with difficult, sometimes violent people.  My female coworkers are happy to step back if confrontation is likely, or occuring.  If you don't step immediately to the challenge, they typically will attempt to use shame, or guilt to get the desired result.  At those times, they are very comfortable with traditional roles.  Funny how that works.  As for seeing lots of miserable women who tell me they would be content to stay at home?  I can attest to that. 

Tue, 07/09/2013 - 13:11 | Link to Comment spine001
spine001's picture

Wage equalization. Nobody in particular is driving this except natural forces of evolution. You find similar dynamics at play in many closed biological system as the number of organisms, us, grows with finite resources. At some point previous barriers like geographical or physical or artificial, like frontiers start to inexorably break, this is called enthropy, no matter what you do it goes always up. Once barriers start to break how can you force a worker in China to make less in terms of energy for the same amount of work than a worker in the USA or Monaco? Only war could accomplish that. Funny, the same behaviour occurs in nature when species compete. Do I need to tell you who survives? The weak? The kind? The loving? The considerate? Or those who provide critical value to survival? Be it force, knowledge, servives, food, security, etc. Sad but true. Interesting, in nature individual bacteria are programmed to self sacrifice to help the survival of the colony, they do that to be able to pass critical genetic traits that will allow the surviving ones to remain alive.

Tue, 07/09/2013 - 13:18 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

And not everyone else?  Really?  EVERYONE is getting screwed at this point that isn't a part of TPTB but the "white middle class male" seems to think he is the specifically targeted.  Memo to Herd Redirection - the white middle class male is only the last person to notice this reality as he previously had it better than most others.  You are not that special.  Welcome to just being another member of the herd.

Tue, 07/09/2013 - 14:37 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

LOL, thanks for your perspective.  Last person to notice, or the last victim to be targeted?

White middle class males were relatively wealthy, well-educated, well-armed...  They were the biggest obstacle to elite domination in 1970 and the issue has since been addressed.  Divide and conquer.  By sex, by race, by religion, red vs blue, white vs black vs latino.  When the purchasing power of food stamps is reduced, who will the news blame?

 

Tue, 07/09/2013 - 15:46 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

I agree with your point about divide and conquer but I think you have too much faith in your own kind.  I am not sure white males were ever a major obstacle to elite dominance as too many of them fell into the divide and conquer strategy willingly as anyone else.  And being "well-armed" has had very little effect on the overall slide to fascism.  Unfortunately too many of the pro-gun crowd has been completely on board with other destructions of liberties (war on drugs, search and seizure, ect.) that I they have not been the friends of liberty that they claim.   I consider myself pro-gun but do not neccessarily trust many so-called "allies".

The "last person to notice or last victim to be targeted" is a valid question, though.  Thanks for the thoughtful reply as opposed to being a self-righteous ass like Dingleberry.

Tue, 07/09/2013 - 12:18 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Anyone that brings a kid up today in the US Corpratocracy is an unfit parent.

Tue, 07/09/2013 - 13:12 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Your kids will now be placed in the custody of Carl's Jr. (or Wal-mart or Bank of America or JPM).  What better way to complete the transition to full blown fascism!

Tue, 07/09/2013 - 11:28 | Link to Comment Shizzmoney
Shizzmoney's picture

Right.  Temp agencies soared during Romney's time here in MA, and their businesses got everything from tax breaks to health care concessions (thanks, Heritage/RomneyCare...which was the model for Obamacare).  Temp employment boomed as a result (especially since MA has alot of high labor cost tech workers).

Tue, 07/09/2013 - 11:35 | Link to Comment prains
prains's picture

The con game of using your home value as an ATM is dead, debt as income is dead, there's no more shell games to trick the average worker into thinking there's a future. The only thing holding them back is their own stupidity. Once the dawn of recognition rises, it'll be red skies.

Tue, 07/09/2013 - 11:42 | Link to Comment kridkrid
kridkrid's picture

^^^^ This. Anything else that we bitch about is a byproduct of what prains describes here. Debt money requires infinate growth using finite resources. Humanity is in a vice grip.

Tue, 07/09/2013 - 11:48 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Did they ever think the debt could be repayed, or did they first want the entire world pledged as collateral to them, and then repayment be damned?

All I know is, possession of 100% of the Earth is going to be mighty tough for the 0.1% to hold on to, possession being 9/10ths of the law, and all.

Tue, 07/09/2013 - 11:57 | Link to Comment HowardBeale
HowardBeale's picture

"...going to be mighty tough...to hold on to..."

 

They don't get that, as they are literally perceiving this as a game--Monopoly, for example. They're living in golden cocoons, and the first glimplse they will get that there is anything in existence other than themselves will be when the chain saw of righteous rebellion buzzes through their existence...

Tue, 07/09/2013 - 12:26 | Link to Comment franzpick
franzpick's picture

Mortgagees changed things several years ago; now, repossession is 9/10ths of the law.

Tue, 07/09/2013 - 12:34 | Link to Comment Dingleberry
Dingleberry's picture

Why ya'll bitching?

Socialism=unemployment.

You smart bitchez know this.

We tried to turn Detroit into Sweden.

We got Somalia instead.

 

Tue, 07/09/2013 - 20:56 | Link to Comment Vendetta
Vendetta's picture

+1000 for the truth

Tue, 07/09/2013 - 11:22 | Link to Comment WarriorClass
WarriorClass's picture

The GOP's immigration policy explains it the best - it was devised by the communist party.

http://americandictators.blogspot.com/2013/07/legal-immigration-and-immi...

 

Tue, 07/09/2013 - 11:50 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

"The American gun-owning, freedom-loving middle-class was the biggest obstacle to One-World-Government-equally-distributed-misery plans of the international bankster cartel. It was no accident that American wages started stagnating in 1970 and have decreased ever since"

bullseye

Tue, 07/09/2013 - 14:08 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Not.  It is no accident but it does not stem from any "One-World-Government-equally-distrubuted-misery"  conspiracy bullshit.  Let me infuse a dose of reality here:

ATTENTION "Persecuted" Middle-Class White Males:  Your comfortable existence has never been the norm.  You were only admitted to "The Club" of relative priviledge by virtue of a time of relative plenty spurred on by the Enlightment, the Industrial Revolution, agricultural surplus, and technology.  At the tail end of this wave, some (mostly) white educated women were granted access to "The Club" as well.  The good times are beginning to end.  Your membership to "The Club" was only temporary is now that scarcity is returning is now being rescinded (this includes the women too).  You, however, have bought into the propaganda that the REAL members of "The Club" have sold you and blame your falling status on those below you, as if they had any real power.  Your owners appreciate this.  While you are kept busy being angry and resentful they can continue to horde more of the increasingly limited resources for themselves and you, being consumed with your own resentment, are not doing something productive like working towards a better future.  Win-win for them!  But go ahead and continue your blame circle jerk...

Tue, 07/09/2013 - 14:41 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Saying immigration policies have hurt America's middle class is different from saying "They took rrrrr jobs!"

The immigration policies were implemented by who? 

BTW, you are really really defensive.

Tue, 07/09/2013 - 15:36 | Link to Comment IdiocracyIsAlre...
IdiocracyIsAlreadyHere's picture

Where did I mention anything about immigration?

Tue, 07/09/2013 - 11:35 | Link to Comment Bad Attitude
Bad Attitude's picture

The MSM won't report anything that portrays Dear Leader in a negative light. I'm surprised we've heard any negative press about Obamacare, but I'm sure the Republicans are somehow to blame for its problems. Obamacare is supposed to solve all the nation's ills and lead us Forward!

Tue, 07/09/2013 - 13:38 | Link to Comment bonderøven-farm ass
bonderøven-farm ass's picture

Can't bitch about something you don't understand.  Has ANYONE read that piece of shit legislation yet?

 

Tue, 07/09/2013 - 11:54 | Link to Comment arnogn143
arnogn143's picture

 A long time troll here but FWIW, this claim has been refuted by Kelly on their intranet.

Tue, 07/09/2013 - 12:29 | Link to Comment Dingleberry
Dingleberry's picture

Most temps that I know are youngsters, single moms or older folks that fucked up their lives making stupid decisions.

Now more are going to be joining the rolls due to Obammy care.

These groups voted for Obammy en mass.

I LOVE it.

Tue, 07/09/2013 - 14:01 | Link to Comment PTR
PTR's picture

Roughly half to 2/3 of the programmers/software support for where I work are "contractors," which is totally a money saving move by not having to pay insurance, 401k, etc.  And we're Fortune 500 and global.

Competent people and all.  And most of them ARE the parents.

Tue, 07/09/2013 - 14:31 | Link to Comment Dingleberry
Dingleberry's picture

I worked at a couple of temp agencies when I was younger, and have family that did so. Most were not programmers or software types. Think potheads. Think drop outs. Think people born into crappy circumstances and not ever getting away form them. Think people doing idiotic things and now needing a job.

That's what I saw. Recently.

Tue, 07/09/2013 - 11:14 | Link to Comment Bill Brasky
Bill Brasky's picture

I should start my own temp agency. I will call it Labor Pimps!

Tue, 07/09/2013 - 12:01 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Your business model could be trading beer and wine for SNAP cards, which could then be converted to cash using any number of launder means, ala the big banksters.

Tue, 07/09/2013 - 11:15 | Link to Comment sbenard
sbenard's picture

Who needs jobs? We have PRINTED prosperity now!

Tue, 07/09/2013 - 11:15 | Link to Comment km4
Tue, 07/09/2013 - 11:22 | Link to Comment Cursive
Cursive's picture

@km4

Was just thinking how sad it would be, as a man, to think of oneself as a "Kelly Girl."  USSA!  USSA!  What a country!

Tue, 07/09/2013 - 11:20 | Link to Comment gjp
gjp's picture

Doesn't matter until it does.  Who needs even a temp job, we've got the wealth effect.  Stocks up, bonds up, dollar up.  USA, USA, USA!  Reality, eat our dust!  All hail King Ben!

Tue, 07/09/2013 - 11:15 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

Hey Tylers...

how you gonna let "Kujow and La Sangna" call u out on this shit and let it slide?????

just sayin..........

Tue, 07/09/2013 - 11:24 | Link to Comment Cursive
Cursive's picture

@Kaiser Sousa

It's a non-event.  One has to have credibility before one begins "calling out" others.

Tue, 07/09/2013 - 12:01 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

i know man...just ribbing'em...

appears at some uptight asses lack a sense of humor...

no worries....

Tue, 07/09/2013 - 12:23 | Link to Comment Cursive
Cursive's picture

@Kaiser Sousa

Yeah, not worthy of junking, but some people are easily offended.

Tue, 07/09/2013 - 11:17 | Link to Comment McMolotov
McMolotov's picture

This country has not only jumped the shark, it has circled back around to do multiple flips over the shark.

Tue, 07/09/2013 - 11:24 | Link to Comment HowardBeale
HowardBeale's picture

One can only imagine that TPsychpathicPTB (TP2TB) have full intention of beginning a massive war to avoid the inevitable results of this 4-year theft. As they take the averages higher without any concern for how blatantly absurd the rise is in the the context of world-wide reality, it seems the time for "an event" is very near. Hard to imagine what the even is going to be, but it's easy to imagine it happening--soon!

Tue, 07/09/2013 - 11:36 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Would be nice to have advanced warning on the event so you can short yourself to riches...

Tue, 07/09/2013 - 11:55 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Pigs get slaughtered.  If you want to join the insiders in the Billionaires Club, go right ahead.  Your soul, for their insider info.

Tue, 07/09/2013 - 11:35 | Link to Comment kridkrid
kridkrid's picture

You actually killed the metaphor. The scene you describe would have kept Happy Days on the air for another season or two. But I get your point.

Tue, 07/09/2013 - 11:38 | Link to Comment prains
prains's picture

I'd say after jumping the shark the "boat" has circled back and is now driving back and forth over it, prop killing it. Death by a thousand cuts

Tue, 07/09/2013 - 11:43 | Link to Comment pods
pods's picture

Yep, but the Fonz looked way cooler doing it!

pods

Tue, 07/09/2013 - 12:02 | Link to Comment prains
prains's picture

Phonzi is driving the boat now

Tue, 07/09/2013 - 11:18 | Link to Comment ekm
ekm's picture

Nobody will expand business if interest rates are zero and negative.

It actually leads to businesses shutting down or shrinking

 

By the very concept of money,  REAL interest rates must be ACCEPTABLY positive,

I'd say a minimum of 3% overnight rate is mandatory

Tue, 07/09/2013 - 11:29 | Link to Comment ekm
ekm's picture

As long as real rates are negative, economy will keep shrinking and unemployment will get higher and higher and higher

Tue, 07/09/2013 - 11:35 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

Don't be ridiculous, ekm. Obummer is making sure that, by the next election, there will be minimal unemployment.

 

They'll only be 40% of the population working but, get real, who gives a f*ck??

Tue, 07/09/2013 - 11:37 | Link to Comment fonzannoon
fonzannoon's picture

makes no sense ekm when you keep tying it to the economy. If you raise rates you take the legs out of real estate, and real estate has made up the only component of growth in GDP.

Raise rates and economy contracts and unemployment goes higher.

Tue, 07/09/2013 - 11:44 | Link to Comment prains
prains's picture

the corpse is being kept alive on a 85 billion dollar a month ventilator, the eyes are dialated and unresponsive, minimal brain activity and no pain response. Doc, what do we do??????

Tue, 07/09/2013 - 11:49 | Link to Comment ekm
ekm's picture

No more collateral left, even fake one like USTs.

Remember, 85b/month (though no one knows how much) removes the same amount of collateral.

 

This is a collateral based system. If collateral scarce, system goes for a reset like in 2008.

We're almost there.

Tue, 07/09/2013 - 12:00 | Link to Comment prains
prains's picture

exactly ekm, collateral, what's the collateral being used at 85b/month? freedom fries, that's all that's left. when those run out it'll be like trying to resus the patient but there's no juice for the paddles. But "Guns R US" has hedged itself nicely with hollowpoints. Should make for a particularily gruesome "uprising"

Tue, 07/09/2013 - 12:09 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Yes exactly according to Basel rules Treasuries and cash are interchangeable as high quality paper collateral so monetizing debt doesn't add any new high quality collateral to the bank's balance sheets. You are just switching the over value of paper collateral from one to the other not increasing it and not only that they are increasing leverage on the same collateral moreso than they could do otherwise without turning Treasuries and MBS securities into fungible cash. The banks and in turn the who finance system is fucked once hyperleverage collapses.

Tue, 07/09/2013 - 12:10 | Link to Comment prains
prains's picture

yes, supersized freedom fries, because they are two in the same, just an idea

Tue, 07/09/2013 - 12:19 | Link to Comment Dewey Cheatum Howe
Dewey Cheatum Howe's picture

If I am seeing the bigger picture correctly the scam is really a giant Markov Chain with the FED as black hole in it and the primary dealers just conduits all draining into that black hole to speed up the process of hoovering all HQC within the chain into a few small hands before they collapse it. Only way to not get fucked is to not be in the chain or force a collapse before that happens. Once the outside HQC dries up the basic mathematics concerning probabilities says this is inevitable, it is race against time which type of collapse happens first. If anything the FED monetizing debt and buying treasuries and MBS securities is just skewing the transition probabilities higher in the primary dealers favor in the Markov Chain.

Tue, 07/09/2013 - 12:28 | Link to Comment fonzannoon
fonzannoon's picture

That is basically what I am trying to illustrate. Throw the economy out the window. This has nothing to do with the economy.

Tue, 07/09/2013 - 12:39 | Link to Comment kridkrid
kridkrid's picture

It has a little bit to do with the economy in that there is one while they extend the time between now and collapse... but nothing at all to do with strengthening the economy in any way. Finite collateral supporting infinitely growing debt... until it all collapses. As Gob Blueth might say, It's the final countdown.

Tue, 07/09/2013 - 12:06 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

If banks have to 3% interest on either their debt, or to their depositors (what do you know, the banks view them as one and the same, welcome to fractional reserve banking) they will have to lend out their reserves.

As soon as that happens, boom.  Game over.  Open the floodgates.  The currency is toast.  Lets start naming all the things they will lend you money for,  student loans, credit cards, mortgage financing, CRE, they will lend to companies that all of a sudden want to do M&A, they will lend even to the US government!   Lets hope I'm wrong.

Tue, 07/09/2013 - 12:09 | Link to Comment HowardBeale
HowardBeale's picture

And the more the Fed owns, the less the pension funds own; and that means that everyday the Fed buys, the pension funds move closer to infinite-underfunded-cy...

Makes one wonder if this whole charade is not actually a right wing attack on unions, thus enabling the final blow to labor, and an ultimate repatriation of manufacturing, though to a country whose workers are now subject to World-Wide Wage Equilibrium (W3E), working for pennies per hour...

Tue, 07/09/2013 - 11:47 | Link to Comment ekm
ekm's picture

A house is NOT an investment. A house is simply a place to eat, shit, have sex, raise kids etc. It is an expense.

 

Propaganda has convinced almost everybody that high housing prices are good.

 

Only in modern economics ........high prices are.......a good thing. Propaganda.

Low prices are a good thing, low housing prices are a good thing..........unless the house gets leveraged.......that's why propaganda about high prices are good.

Tue, 07/09/2013 - 11:52 | Link to Comment fonzannoon
fonzannoon's picture

I don't care about the price, and I never said it was an investment.

 You seem to disregard wages completely. If you take real estate out, construction spending stops, jobs are lost. Home improvement stops. Jobs are lost etc etc etc.

Just because home prices drop does not mean they become more affordable. It just puts more people out of work, tanking the economy even more. It's a vicious cycle.

Hence QE until we croak.

Tue, 07/09/2013 - 11:56 | Link to Comment ekm
ekm's picture

Same logic different conclusion.

 

Lower price - banks collapse - people can buy them since they become affordable - economy gets better

 

Side effect: Bank/finance unemployment

Tue, 07/09/2013 - 11:59 | Link to Comment fonzannoon
fonzannoon's picture

what people are you talking about? You realize we are having this conversation on a thread about America becoming a part time employment country with no benefits.

Tue, 07/09/2013 - 12:02 | Link to Comment kridkrid
kridkrid's picture

It is truly remarkable. pods and I were writing about this topic last week; The implicit belief that a little inflation is good and deflation is the thing to be feared above all else. Propaganda, pure and simple. It's more concrete in the discussion around housing prices, but it's the same thing. And it does all flow from the idea I commented on above... debt money. Money loaned into existence with interest attached where the system can't account for both principle and interest. More debt/money must be loaned into existence in order to roll it forward... FOREVER. Finite collateral to support and ever increasing debt load... until it all collapses.

Tue, 07/09/2013 - 12:53 | Link to Comment post turtle saver
post turtle saver's picture

+1 gazillion to ekm, nailed it

Tue, 07/09/2013 - 21:50 | Link to Comment Vendetta
Vendetta's picture

ekm is on a roll with the truth

Tue, 07/09/2013 - 11:52 | Link to Comment ekm
ekm's picture

The only thing that a rate hike will do is to cause immense unemployment in the financial industry and reduction of unemployment anywhere else.

 

Tue, 07/09/2013 - 11:57 | Link to Comment fonzannoon
fonzannoon's picture

disagree completely. A rate hike will bring employment back to the financial industry, and unemployment to many other industries.

Wall street has been dumping people for years now, especially in fixed income. They are begging for volatility.

Actually, let me take that back. Interest rates moving up is one thing. A rate hike sets off an avalanche that hits everyone and everything.

 

Tue, 07/09/2013 - 12:00 | Link to Comment ekm
ekm's picture

Correction:

Big leveraged banks will suffer from rate hikes due to interest rate swaps imploding

 

Small and medium banks will be fine.

There are 3000 banks in USA

Tue, 07/09/2013 - 12:03 | Link to Comment fonzannoon
fonzannoon's picture

What do you think the deposits are in the top 20 banks vs the bottom 2,980?

Again, agree with your logic, just arrive at a different conclusion.

Tue, 07/09/2013 - 12:39 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Allow me to interject with my two cents:

Gold, bitchez!

That is all.

Tue, 07/09/2013 - 12:07 | Link to Comment Winston Churchill
Winston Churchill's picture

What about the half quadrillion in IR swaps ?

Sure the interest rate will go up,over Bens dead body.

Metaphoricaly, and literally.

Tue, 07/09/2013 - 12:12 | Link to Comment fonzannoon
fonzannoon's picture

Under more normalized circumstances I would be inclined to agree with much of this. But last I checked, 2008 did not end up with employment going down and affordability going up.

For those extremely extremely few people with cash and PM's outside the system....sure. But that is not representative of the economy.

Tue, 07/09/2013 - 12:38 | Link to Comment ekm
ekm's picture

Actually it did when oil was $35/barrell due to the collapse, economy rebounded

Tue, 07/09/2013 - 12:50 | Link to Comment fonzannoon
fonzannoon's picture

It rebounded the minute it was announced banks and depositor's would be bailed out.

Tue, 07/09/2013 - 12:54 | Link to Comment ekm
ekm's picture

bailout does not get a machinery going, oil does

 

bailout kept the weak hands still in the game eating up the strong hands

Tue, 07/09/2013 - 15:59 | Link to Comment DR
DR's picture

Agreed! There is too much financial capacity with nothing to do but stay zombie by riding the yield curve, a.k.a Japanese banking system.

Tue, 07/09/2013 - 15:57 | Link to Comment DR
DR's picture

WTH, free cost of money is great for business profits. Why do you think the SP500 is doing so well with earnings despite low revenue growth?

 

 

Tue, 07/09/2013 - 11:20 | Link to Comment salimmk
salimmk's picture

I'm glad I'm not a Kelly Girl anymore. I'd rather be unemployed unless I really needed the money, but then that would make me a slave 

Tue, 07/09/2013 - 11:22 | Link to Comment kralizec
kralizec's picture

Not to worry...throw something shiny out!

Tue, 07/09/2013 - 11:32 | Link to Comment buzzsaw99
buzzsaw99's picture

Lavorgna the deutsche bag approves of this message. [/BULLISH!] buy bank stawks! squawk, yes, this is my real hair!

Tue, 07/09/2013 - 11:24 | Link to Comment Shizzmoney
Shizzmoney's picture

The sad part is corporate types and "educated" professors and economists will usher in this trend as a "good thing for markets" and "add flexibility for labor in a tough economy".

It's shit like this that makes me root for a huge asteroid to slam into Frankfurt or New York City.

Tue, 07/09/2013 - 11:38 | Link to Comment docj
docj's picture

Only because "their boy" is in the White House, shizz.

Remember when Ronnie Raygun was around? There were endless stories about McJobs and all that.

But yeah, I agree that it is long time for a visit from the Sweet Meteor of Death.

Tue, 07/09/2013 - 12:03 | Link to Comment Shizzmoney
Shizzmoney's picture

Gil Heron Scott - "Like a 'B' Movie"

Listening to the lyrics from the early 80s makes shit eerie as the same shit going on today

http://www.youtube.com/watch?v=sLtRHN7fsgY

Tue, 07/09/2013 - 12:35 | Link to Comment Tinky
Tinky's picture

Anyone who reflexively dismisses Rap music should be required to listen to this.

The irony is that many Rap-haters probably love George Carlin. Baby, bathwater, etc.

Interesting connection between the two artists: Carlin once remarked I think the warning labels on alcoholic beverages are too bland. They should be more vivid. Here is one I would suggest: "Alcohol will turn you into the same asshole your father was.

Years earlier, Heron wrote and performed this classic:


http://www.youtube.com/watch?v=upKsTCKYm4E

Wed, 07/10/2013 - 17:45 | Link to Comment Fuckin Floyd
Fuckin Floyd's picture

Or Foggy Bottom with a joint session of Congress in place.

Wed, 07/10/2013 - 17:48 | Link to Comment Fuckin Floyd
Fuckin Floyd's picture

Or Foggy Bottom with a joint session of Congress in place.

Tue, 07/09/2013 - 11:29 | Link to Comment Shell Game
Shell Game's picture

Nope. The largest Temp Agency is the USSA Government - where a 'temporary' Constitution, temporary Liberty and temporary Private Property are given a short leash...

Tue, 07/09/2013 - 11:51 | Link to Comment Bold Eagle
Bold Eagle's picture

So true. It's also the largest employer.

Tue, 07/09/2013 - 11:29 | Link to Comment docj
docj's picture

NY Times? Boston Globe? Washington Post? NAH - they're all too busy tongue-cleaning King Putt's, uh, golf balls to notice the reality that Recovery Summer 4.0 is doing about as well as is The Lone Ranger at the box office.

Tue, 07/09/2013 - 11:33 | Link to Comment ebworthen
ebworthen's picture

Kelly would not be raising their placement fees by 14.7% if they didn't know that the corporatocracy was abjectly desperate to hire part-time temp. workers to avoid making any commitment whatsoever to American Citizens.

Tapeworm economy forward!

Tue, 07/09/2013 - 12:14 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

So placement fees are going up, does that mean the base wage for the temps is going up too?  Green shoots?

Right, its not like they would exploit the temp's value added?  Right?  /s

Tue, 07/09/2013 - 14:30 | Link to Comment DeadFinks
DeadFinks's picture

It means kickbacks to the politicians whose policies pave the way for this shit go up.

Tue, 07/09/2013 - 11:37 | Link to Comment XitSam
XitSam's picture

I thought the US Government was the largest employer, then Walmart. Makes Kelly third.

Tue, 07/09/2013 - 11:47 | Link to Comment prains
prains's picture

Actually I think if you break it down "Guns R Us" Manufacturing Inc is the biggest employer based on budget allocation.

Tue, 07/09/2013 - 11:40 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Who needs a job when you can have food stamps, welfare, section-8 housing, and an Obamaphone.

Tue, 07/09/2013 - 11:56 | Link to Comment Shizzmoney
Shizzmoney's picture

You sell this as if people enjoy life on the dole while making millions.

The rise of the use of social safety nets should be worrysome.  Because whe nthey are overused, then they get cut, slashed, and eliminated.

But maybe that is what we need.  A few windows broken, some cities on fire, and a politican or corporate type offed.  It'd sure make me feel better.

Tue, 07/09/2013 - 11:40 | Link to Comment Seasmoke
Seasmoke's picture

It's your patriotic duty to have 4 jobs.

Tue, 07/09/2013 - 11:44 | Link to Comment DeadFred
DeadFred's picture

Looked all through the infographic and couldn't find their bread-n-butter operation, Kelly's TempGF Escort Service (Wall Street Division).

Tue, 07/09/2013 - 11:45 | Link to Comment ZeroFreedom
ZeroFreedom's picture

One thing is nobody in the DC or States are addressing the underlying regulator and tax code issues that make perm hiring so expensive and costly. Once or if they address these issues then maybe we would have a shift back. Politicians have messed things up with mandates and regulation that make temp agencies the new employee of choice.

Then again we are all on our own.

 

Tue, 07/09/2013 - 12:15 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Oh yeah, I am sure its some bureaucratic oversight, not a planned assault on the middle class, for the benefit of the 1%...  Call me cynical.

Tue, 07/09/2013 - 11:49 | Link to Comment The Proletariat
The Proletariat's picture

Are two part time jobs considered a full time job equivalent in the .gov statistics? 

Tue, 07/09/2013 - 12:08 | Link to Comment edifice
edifice's picture

No, it's considered doubly-employed and, thusly, you are considered wealthy.

Tue, 07/09/2013 - 11:57 | Link to Comment sschu
sschu's picture

Any company looking to hire people, especially low to medium skill people, needs to be using a staffing company right now.  The cost and risk of hiring your own employees at that level is just outrageous.

The legal risk alone for hiring people dwarfs the extra cost that a staffing company entails. 

We are from the government and are here to help.

sschu

Tue, 07/09/2013 - 11:58 | Link to Comment Fuku Ben
Fuku Ben's picture

TA's and check cashing stores

Vile scourges feeding off of the working poor and partners of corporate enslavement

Their spokespeople beg to differ

Tue, 07/09/2013 - 12:04 | Link to Comment Shizzmoney
Shizzmoney's picture

Low-wage jobs now pay even less, NELP report:

LOL-COVERY 2013!!!1111

Tue, 07/09/2013 - 12:06 | Link to Comment uncle reggie
uncle reggie's picture

Despite the mainstream media's inability to see things as they are - .....

The mainstream media's job is not to see things as they are. Their job is to make people believe things that support the power structure. Period.

Tue, 07/09/2013 - 12:15 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Capitalism running rampant. 

Costs are the enemy. 

Employees are costs. 

Employees are the enemy.

 

US Beancounter Capitalism is starting to eat its own children.

Tue, 07/09/2013 - 12:30 | Link to Comment dolph9
dolph9's picture

I'm part time by choice.

I realized they wanted me to work full time for little pay and no benefits while the bankers and the welfare queens do nothing.  And as a reward you can watch your country turn into a multicultural cesspool as it invites the whole world in for the "American Dream" of working for a collapsing empire.

Fuck em.

Tue, 07/09/2013 - 15:37 | Link to Comment DR
DR's picture

Part time in the regulated economy + part time in the shadow economy=fulltime.

Tue, 07/09/2013 - 12:35 | Link to Comment foodstampbarry
foodstampbarry's picture

50% of the population still believes paradise is just around the corner with Obama. When the money tap get's turned off, that's when the SHTF. I'm armed to the teeth, knowing this day is not too far off.

Tue, 07/09/2013 - 13:39 | Link to Comment MonsterBox
MonsterBox's picture

Like a Zimmerman "Innocent" verdict?

Tue, 07/09/2013 - 15:35 | Link to Comment DR
DR's picture

Japan holds a glimpse into the future of the US...

 

http://en.wikipedia.org/wiki/Haken-giri

 

"Between 2000 and 2007, the number of regular employees in Japan declined by about 1.9 million, while the number of nonregular workers increased by about 4.5 million. By 2008, short-term contract and temporary staffing workers had increased from a small percentage to more than 30% of the Japanese labor force.[5]"

 

Temporary employees don't take out 30 year mortgages or commit to 20+ years of raising children so your birthrate declines and long term economic growth turns to decay....

Tue, 07/09/2013 - 16:48 | Link to Comment Psquared
Psquared's picture

I'm a contract lawyer which for most people means I am a coder. I review documents for a living. I work about 10-11 months out of the year, but my time off is rarely planned. I have limited benefits. (no health insurance right now) Not really the way I envisioned my life 10 years ago. I recently worked a project with over 100 other attorneys in the same situation. Yet law schools are busting at the seams.

Tue, 07/09/2013 - 16:53 | Link to Comment Psquared
Psquared's picture

I keep wondering if we adopted a single payor medical insurance system like Canada (not a nationalized, government run system like Europe) if it would help unemployment. We spend almost 20% of our GDP on healthcare while the rest of the developed world spends about half of that. We don't even have the best health care in the world. If employers didn't have to provide health insurance maybe they would hire more workers.

Tue, 07/09/2013 - 17:41 | Link to Comment fiatmasochist
fiatmasochist's picture

Rock on all travel nurses!

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