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Initial Claims Surge Far Higher Than Consensus, 1.2 Million Americans Have Dropped Off Extended Benefits Claim In Past Year

Tyler Durden's picture




 

After taking a quick detour into pseudo-positive economic data, the BLS sends us right back into the depression, with an initial jobless claims number of 417, far higher than consensus of 405K (in fact higher than the highest number in the forecast range), and higher than last week's upwardly revised 412K. Naturally, the BLS is there to provide a justification for the spike, with 8500 jobs apparently "lost" due to the Verizon strike: "Special Factor: As a result of a labor dispute between Communications Workers of America and Verizon Communications, at least 12,500 initial claims were filed in the week ending 8/13/2011 and at least 8,500 initial claims were filed in the week ending 8/20/2011." In other news this is week 20 out of 20 with one or two exceptions of 400K+ prints. And to think that the August NFP number is due in just one week. In other news, continuing claims came below expectations of 3700K at 3641K, a number that will be revised higher as was last week's from 3702K to 3721K. The collapse in extended benefits, as the 99 week cliff claims more and more, means that 20K people fewer collected post Continuing Claims benefits, with those on EUC and extended benefits down from 5.8 million a year ago to 3.6 million: this is 1.2 million Americans that no longer can collect anything from Uncle Sam.

 

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Thu, 08/25/2011 - 08:41 | 1598676 DefiantSurf
DefiantSurf's picture

Growth you can believe in!

 

Thu, 08/25/2011 - 08:45 | 1598698 Crumbles
Crumbles's picture

Right, G R O W T H 

in

Food Stamps and Tent Cities.

Depression2 - bring it on !

Thu, 08/25/2011 - 08:45 | 1598700 EscapeKey
EscapeKey's picture

Indeed. DJIA futures still green.

"It could have been worse".

Thu, 08/25/2011 - 09:16 | 1598865 MFL8240
MFL8240's picture

Isnt it fun watching the charade on Wall Street?  Gives me a laugh a minute.  Shrotly (after Jackson (A) hole has anounced more confetti) the news will turn positive and the clowns will be out talking aout the "recovery"!lol

Fri, 08/26/2011 - 19:49 | 1606169 Mentaliusanything
Mentaliusanything's picture

With 1,200.000 angry, hungry, disposessed and armed people No country thus opposed could stand.

I Fear Yes, It could have been worse - all they need is a leader ammo and arms then you have a revolution that would make the French one look like playtime with small children. 

Thu, 08/25/2011 - 08:50 | 1598704 HelluvaEngineer
HelluvaEngineer's picture

...and futures say "Duuhh?"

Does Wall St know that Labor Day is still over a week away, or did they already head out to the Hamptons with coke and hookers?

Thu, 08/25/2011 - 08:51 | 1598726 cossack55
cossack55's picture

Irene.

Thu, 08/25/2011 - 08:53 | 1598737 HelluvaEngineer
HelluvaEngineer's picture

Only a few of the hookers are named Irene.

Thu, 08/25/2011 - 12:17 | 1599286 TruthInSunshine
TruthInSunshine's picture

 

 

 

 

If you said 22%, you are WAY CLOSER to reality than the BLS, and in agreement with a growing chorus of statisticians and economists:

The Jobless Effect: Is the Real Unemployment Rate 16.5%, 22%, or ?

Raghavan Mayur, president at TechnoMetrica Market Intelligence, follows unemployment data closely. So, when his survey for May revealed that 28% of the 1,000-odd households surveyed reported that at least one member was looking for a full-time job, he was flummoxed.

"Our numbers are always very accurate, so I was surprised at the discrepancy with the government's numbers," says Mayur, whose firm owns the TIPP polling unit, a polling partner for Investors' Business Daily and Christian Science Monitor. After all, the headline number shows the U.S. unemployment rate today is 9.5%, with a total of 14.6 million jobless people.

However, Mayur's polls continued to find much worse figures. The June poll turned up 27.8% of households with at least one member who's unemployed and looking for a job, while the latest poll conducted in the second week of July showed 28.6% in that situation. That translates to an unemployment rate of over 22%, says Mayur, who has started questioning the accuracy of the Labor Department's jobless numbers.

Thu, 08/25/2011 - 08:55 | 1598748 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

That's why I'm long The Soylent Corporation.

 

NASDAQ symbol: PEPL

 

http://www.rachelaaron.net/soylent/soygreen.html

Thu, 08/25/2011 - 08:56 | 1598756 slaughterer
slaughterer's picture

Perfect negative trend to justify QE3.  Falls completely inside Fed dual mandate.    More free money being released from the helicopter tomorrow to save the unemployed. 

Thu, 08/25/2011 - 11:34 | 1599768 ElvisDog
ElvisDog's picture

Oh, come on. Are you being sarcastic? There has been enough representation of QE2 as a handout to the bankers in the blogosphere and even MSM, that any attempt to implement QE3 will add fuel to the fire of public resentment against the Fed and bankers in general. At least give Bernanke credit for not being stupid and realizing that fact. I will be very surprised if there is any concrete announcement of QE3 tomorrow. Bernanke may try to jawbone the market with BS about "extended time" and "ready to take additional measures" but that will be all.

Thu, 08/25/2011 - 08:41 | 1598677 tmosley
tmosley's picture

But, but, but, we were supposed to be entering a new boom :(

Thu, 08/25/2011 - 08:42 | 1598680 HelluvaEngineer
HelluvaEngineer's picture

I'm a bit hungover this morning.  Help me out.  This is bullish, right?  Is Apple a buy here?

Thu, 08/25/2011 - 08:49 | 1598715 the mad hatter
the mad hatter's picture

the reaction is bullish. all the people expecting further declines are going to get squeezed. Hedge funds made more downside bets in the recent rout than they did during Lehman!

 

http://www.zerohedge.com/news/downside-hedge-fund-bets-sp500-highest-2008

Thu, 08/25/2011 - 11:37 | 1599784 ElvisDog
ElvisDog's picture

The medium- to long-term reaction will not be bullish. One of the true-isms (in my opinion) about investing is that cashflow always wins eventually. Companies can do whatever accounting tricks they want to make their earnings seem better, but people out of work, people falling off extended benefits, people taking $10/hour jobs instead of their former $50/hour job, all of that hurts their cashflow which lowers their spending profile. And because the recession/depression is global companies won't be able to count on their foreign operations to pick up the slack.

Thu, 08/25/2011 - 11:28 | 1599737 Ratscam
Ratscam's picture

not apple, NFLX and BAC are a buy these days

Thu, 08/25/2011 - 08:44 | 1598682 DefiantSurf
DefiantSurf's picture

Tip of the iceberg, next week will be much higher, this week will be revised over 420k

 

Thu, 08/25/2011 - 08:42 | 1598683 bam_son
bam_son's picture

to be revised to 420

Thu, 08/25/2011 - 08:42 | 1598686 props2009
props2009's picture

All the charts on Apple

http://capital3x.com/?cat=4

 

Apple trade is initiated. Time is perfect as Steve jobs steps out!

Thu, 08/25/2011 - 08:44 | 1598691 Gibu The Great
Gibu The Great's picture

I believe NFP next Friday will be quite messy.

Thu, 08/25/2011 - 08:44 | 1598692 j0nx
j0nx's picture

Who out there really can get 99 weeks? Out of all the people I know that were unemployed for extended time, ALL of them could only get the initial 6 months and after that they were dropped. 99 weeks is a f'ng myth.

Thu, 08/25/2011 - 08:57 | 1598757 serndipity
serndipity's picture

The length of time UI applies, varys by state, depending on it's unemployment rate.

Recall that in states, where the unemplyment rate is higher than 8.2%,  folks still get 99 weeks.

Thu, 08/25/2011 - 09:38 | 1599055 carlnpa
carlnpa's picture

You are wrong on both counts!  Why are you spreading the corporate/gov misinformation?

 Not 8.2%, the rate is 9.7%.

http://unemployedworkers.org/sites/unemployedworkers/index.php/site/faq_extended_benefits

Thu, 08/25/2011 - 09:49 | 1599121 serndipity
serndipity's picture

carlnpa - Man....you are so misinformed.

States that have established a three-month average below 8.0 percent automatically trigger off a portion of the EB program.

http://www.mass.gov/?pageID=elwdpressrelease&L=1&L0=Home&sid=Elwd&b=pres...

Thu, 08/25/2011 - 10:13 | 1599270 carlnpa
carlnpa's picture

It varies by state, for Pennsylvania to provide EB, the state law requires that EB be funded 100% by the federal government. That 100% funding expired at the beginning of June, so Pennsylvania discontinued EB.

If the 100% federal funding is reinstated by the legislation currently being debated in the Senate (HR 4213), Pennsylvania may reinstate payment of EB at that time.

http://www.city-data.com/forum/unemployment/1008983-eb-pa-ended-euc-empl...

http://www.workforcesecurity.doleta.gov/unemploy/euc_trigger/2011/euc_08...

All states are eligible for up to 34 weeks of First and Second Tier benefits.
47 states are eligible for up to 13 weeks of Third Tier benefits as of August 21, 2011.
25 states are eligible for up to 6 weeks of Fourth Tier benefits as of August 21, 2011.
IUR reflects 13-week period ending August 6, 2011.
TUR reflects avg. seasonally adjusted TUR for 3-month period ending July, 2011.

34+13+6= 53 weeks max EB

Thu, 08/25/2011 - 09:42 | 1599081 midtowng
midtowng's picture

those on EUC and extended benefits down from 5.8 million a year ago to 3.6 million: this is 1.2 million Americans that no longer can collect anything from Uncle Sam.

Tyle also makes a simple math error: 5.8 - 3.6 = 2.2 not 1.2

In a couple months, extended benefits will be in the scrap heap and forgotten. But unemployment will still be above 9%.

Thu, 08/25/2011 - 08:44 | 1598693 John Law Lives
John Law Lives's picture

It makes you wonder WHY the BLS felt the need to reference the Verizon worker strike.  I guess they have been given the memo to spin their own data to calm the masses.

100% FUBAR.

 

Thu, 08/25/2011 - 08:50 | 1598722 rubearish10
rubearish10's picture

I'm confused. If they knew the VZ claims were there, why wouldn't the expectations be? 

Thu, 08/25/2011 - 09:04 | 1598782 Id fight Gandhi
Id fight Gandhi's picture

The Verizon sound is pure fuckingg bullshit. And when does the bls ever claim a specific company like that?

Thu, 08/25/2011 - 08:45 | 1598694 101 years and c...
101 years and counting's picture

in all seriousness, why would people who VOLUNTARILY (union workers on strike) not go to work be able to claim UE insurance?? 

Thu, 08/25/2011 - 09:05 | 1598787 Confused
Confused's picture

They can't. You have to file for UE, and get approved, and its delayed by a week or more.

 

Jokes about the approval aside, I believe they actually check with your employer.

Thu, 08/25/2011 - 10:31 | 1599392 JohnG
JohnG's picture

They do check, and try to find a reason to justify refusal, i.e. "Fired for cause."

Don't know about other states, but bere in Ga., if I fire someone for say, theft, they will be refused.  The former employee will also be arrested and prosecuted when I file a complaint with proof, usually video. I'll send 'em to jail in addition to losing thier job.

Thu, 08/25/2011 - 09:19 | 1598897 Old Poor Richard
Old Poor Richard's picture

Striking workers CANNOT make claims for unemployment benefits, because they're not unemployed yet.  Duh.  That's why some unions have a fund that pays strike pay, so people don't lose their houses, etc.

Astonishing that this suggestion was made.

ON THE OTHER HAND, the strikers were getting pretty violent around here--could be those newly unemployed were collateral damage--non-Verizon people laid off because businesses nearby Verizon offices had to shut their doors due to the bedlam.  Or because their phone and internet were killed due to striker sabotage.  My wife's employer took a huge hit because their phones went down.  They had ONE line to the outside world, the analog fax line, even their interbusiness/intercom was dead.

 

Thu, 08/25/2011 - 09:29 | 1598986 serndipity
serndipity's picture

Why not try?

In my state (MA), an individual gets $650 / week and a family of 4 would collect $1,200 / week.

Plus either your COBRA payments would be covered or be put on a Blue Cross PPO.

Thu, 08/25/2011 - 10:05 | 1599226 LawsofPhysics
LawsofPhysics's picture

Crap.  Please stop posting information like this.  These numbers are more than what I pay some of my better technicians.  Very demotivating, I may have to block the ZH site now.

Thu, 08/25/2011 - 08:45 | 1598696 alexwest
alexwest's picture

excuse me i dont get it

#

result of a labor dispute between Communications Workers of America and Verizon Communications, at least 12,500 initial claims were filed

##

 

i heard it was strike, so nobody was fired.. or if they were fired , what fuck is dispute about?

any clues?

 

alx

Thu, 08/25/2011 - 08:47 | 1598707 Gibu The Great
Gibu The Great's picture

VZ wanted the unions to shoulder more of the health care burden, so they went on strike. 

Thu, 08/25/2011 - 09:13 | 1598841 Surly Bear
Surly Bear's picture

They wanted folks on the legacy side of the business to also work on the wireless side. The union did not agree. Private sector unions are fine, if that is what you want, but in this economy, FUCK YOU if you walk off a job.

Thu, 08/25/2011 - 08:45 | 1598697 dwdollar
dwdollar's picture

This hurricane will be one hell of an excuse for fall's data, if it strikes.

Thu, 08/25/2011 - 08:53 | 1598736 Gibu The Great
Gibu The Great's picture

It will be chugging along the East Coast this weekend.  I am absolutely sure they will milk it as an excuse for upcoming data. 

Thu, 08/25/2011 - 08:46 | 1598702 Sean7k
Sean7k's picture

Operation Twist, playing the bond curve via the reverse repo and voila! 30 trillion in play money. All that's left is to start writing the checks. Now, let's see, JPM to buy BOA or extend benefits? Why not both? Woohoo, "I've got money, I've got good times, I've got my girl, who could ask for anything more...".

Thu, 08/25/2011 - 08:47 | 1598705 digitlman
digitlman's picture

Green shoots!

Thu, 08/25/2011 - 08:50 | 1598723 Crumbles
Thu, 08/25/2011 - 08:49 | 1598706 serndipity
serndipity's picture

Since when could one walk off a job and collect unemployment benefits?

Thu, 08/25/2011 - 09:05 | 1598792 Id fight Gandhi
Id fight Gandhi's picture

They can't. Does anyone do anything at the bls?

Thu, 08/25/2011 - 09:07 | 1598805 goldfish1
goldfish1's picture

when they change the terms of your employment

Thu, 08/25/2011 - 09:28 | 1598982 Byte Me
Byte Me's picture

Greece??

Thu, 08/25/2011 - 08:47 | 1598709 Gmpx
Gmpx's picture

Consumer cannot work. Need jobs - drop consumer rights.

Thu, 08/25/2011 - 08:49 | 1598714 carlnpa
carlnpa's picture

99 weeks was a myth for most.

The economy, according to the Feds, has improved so much, in so many states, that extended benefits claims have been suspended as of June 2011.  This was the reason that the unemployment numbers have been manipulated and screwed with, to give a rationale for suspending EB programs.

Most current recipients are now done at 65-70 weeks of benefits. 

You can watch the numbers increase in the food stamp programs.

Thu, 08/25/2011 - 08:49 | 1598716 Racer
Racer's picture

QEeasy money doing a lot of nothing for people want jobs.

 

Thu, 08/25/2011 - 10:04 | 1599220 goldfish1
goldfish1's picture

QE lining other people's pockets.

Thu, 08/25/2011 - 08:50 | 1598719 PaperBear
PaperBear's picture

Thanks to the paper silver sellers I went and bought some more physical silver today at $39/oz.

WOOHOO.

Thu, 08/25/2011 - 08:52 | 1598734 Crumbles
Crumbles's picture

Whaaa -

Is this The Fucking Dip I'm supposed to buy ???

/sarc

Thu, 08/25/2011 - 08:58 | 1598763 slaughterer
slaughterer's picture

We will work hard on giving you a lower price on silver and gold next week as well. 

Thu, 08/25/2011 - 08:51 | 1598724 Archimedes
Archimedes's picture

A couple of weeks ago an article came out saying that 2.6 million will fall off of the extended unemployment benefits. Since I have only seen small numbers dropping off doesn't that mean that from here on out we are going to get really big numbers of people dropping off? According to my math that is something like 600K a month from September thru December. Or am I missing something?

Thu, 08/25/2011 - 09:02 | 1598774 DefiantSurf
DefiantSurf's picture

Direct correlation can be found by checking the weekly additions to foodstamps

 

 

Thu, 08/25/2011 - 09:03 | 1598778 carlnpa
carlnpa's picture

I believe the drop off numbers are going to be impressive for the next two months (sept/oct).

This will cause the U-3 rate to drop even further, we'll have 5% by fall.

Problem solved, except for the torches and pitchforks thing.

Thu, 08/25/2011 - 08:52 | 1598731 WoodMizer
WoodMizer's picture

This is what happens when Washington focuses on job creation.

I wish they would get back to fudging numbers full time; it gives me more time to pratice for the ThunderDome.

Thu, 08/25/2011 - 20:36 | 1602261 StychoKiller
StychoKiller's picture

Yo, FYI:  ALL 14 episodes of "Max Headroom" on one DVD @ http://www.shoutfactory.com/browse/336/max_headroom.aspx#axzz1W5gi5pso

Get you some!

Thu, 08/25/2011 - 08:53 | 1598735 Sucks_to_be_Smart
Sucks_to_be_Smart's picture

5.8 - 3.6 = 2.2 million?  was there a typo or did we do the math wrong?  2.2 million is a lot more of an impact than 1.2... just saying.  need clarification

 

Thu, 08/25/2011 - 09:07 | 1598795 Bob
Bob's picture

I was scanning to see if anybody had noticed this error.  WTF?

Thu, 08/25/2011 - 09:07 | 1598798 r101958
r101958's picture

Thanks. I was just about to post this as well. Maybe nobody else read all the way to the end of the article?

Thu, 08/25/2011 - 09:08 | 1598812 Bob
Bob's picture

Either that or private education ain't all it's cracked up to be.

Thu, 08/25/2011 - 09:08 | 1598807 Havana White
Havana White's picture

Tyler... isn't it 2.2?

Thu, 08/25/2011 - 08:54 | 1598743 TzaristBondHolder
TzaristBondHolder's picture

http://www.bloomberg.com/news/2011-08-25/first-time-jobless-claims-in-u-s-increase-propelled-by-verizon-dispute.html

 

Unexpected increase.......with FAA workers and Postal service a month ago......   unexpected?

Thu, 08/25/2011 - 08:54 | 1598745 Moneyswirth
Moneyswirth's picture

Let them eat iJunk

Thu, 08/25/2011 - 08:54 | 1598746 The Piker
The Piker's picture

The Bureau of Lamentable Spin has spoken

Thu, 08/25/2011 - 08:55 | 1598751 sudzee
sudzee's picture

This is good for the country, yes? Productivity is going thru the roof. Fewer and fewer workers needed to produce things. Me thinks its a self-fulfilling spiral down to the corporate goal of having no employees but huge margins, thus incredible profit. S&P to 10,000 for sure.

Thu, 08/25/2011 - 08:57 | 1598758 Ausperity
Ausperity's picture

The American focus on jobs is the truest sign that its population has been subdued and conditioned into servility.  We used to be a country driven by the entrepreneurial spirit.  Today, having legislated small businesses out of competition, the true impoverishment of America is almost complete.  Most will have been reduced to peasantry (with guns, though, so slightly better off than the Eurotrash). Maybe that means we can finally hit bottom.

 

I gotta get back to my job...

 

Thu, 08/25/2011 - 09:00 | 1598760 vast-dom
vast-dom's picture

1.2M American's freed to become potential RIOTERS.

(And that's just the official number; multiply by 2 and then add another 30% to that.)

How long until their stomachs start making funny noises and we need to cue night of living dead muzak?

 

Wlecome to Thunderdome.

Thu, 08/25/2011 - 09:03 | 1598776 WoodMizer
WoodMizer's picture

My only concern is that the all the underemployed masses will side with their captors.

Tihs could rapidly escalate into generational or socio-economic civil war.

Thu, 08/25/2011 - 09:12 | 1598831 Bob
Bob's picture

It is a socio-economic war that seems bound to escalate--unless the upper middle class realigns politically away from the criminal oligarch class.   

Thu, 08/25/2011 - 09:55 | 1599159 Ausperity
Ausperity's picture

unfortunately, they will be the bagholders...

Thu, 08/25/2011 - 13:33 | 1600463 Bob
Bob's picture

You'd think they would be smarter than that . . . adjust their game, now that sucking ass of the oligarchy doesn't promise the future it once did. 

But they won't change their game. 

They bring it on themselves.  Which is sad for (almost) everybody. 

Thu, 08/25/2011 - 09:01 | 1598770 youngman
youngman's picture

"the BLS sends us right back into the depression"...no this stat will be ignored....Greece bonds..ignored...no economic news is taken seriously.....I don´t know what we are flying on....strange

Thu, 08/25/2011 - 09:04 | 1598784 PulauHantu29
PulauHantu29's picture

There is serious unemployment at most levels. My 26 y.o. lawyer friend applied for a job at a law firm....he said there were over 500 lawyers applying for ONE JOB!

 

Every level is hurting.....if The Bernank does no QE3 of significance we may see a massive market crash. Sad.

Thu, 08/25/2011 - 09:10 | 1598827 DefiantSurf
DefiantSurf's picture

Sad but necessary, all good ponzi schemes must come to end, the best ones are the ones where nobody goes to prison

 

Thu, 08/25/2011 - 09:21 | 1598788 EvlTheCat
EvlTheCat's picture

this is 1.2 million Americans that no longer can collect anything from Uncle Sam.

You're fucking kidding right?  Falling off the ass end of unemployment is just the start of collecting things from Uncle Sam.

http://www.benefits.gov/

Thu, 08/25/2011 - 09:06 | 1598794 TzaristBondHolder
TzaristBondHolder's picture

How will these 1.2 million survive?  Falling off unemployment benefits does not mean they got rich...........

Thu, 08/25/2011 - 09:11 | 1598834 DefiantSurf
DefiantSurf's picture

How the hell did you think we got to 46m on foodstamps in just two years?

Thu, 08/25/2011 - 09:29 | 1598987 Moneyswirth
Moneyswirth's picture

Wait, it doesn't???  

/sarc

Thu, 08/25/2011 - 11:48 | 1599838 ElvisDog
ElvisDog's picture

Well, if they are only-child orphans with no friends and no religious affiliation they probably will starve. Otherwise, throughout history, one would rely on one's friends, family, or church to help out until they got back on their feet. It's only in the last 50 years that we have come to expect the government to be our nanny.

Thu, 08/25/2011 - 09:09 | 1598813 TiredofIgnorance
TiredofIgnorance's picture

Woo-Who !! Great news, huh?

 

Let's get more regulations from Ostumbles to choke off even more J-O-B-S.

Thu, 08/25/2011 - 09:11 | 1598835 Old Poor Richard
Old Poor Richard's picture

That's 1.2 million people who will finally start beating the streets.

1.2 million families formerly living on superwelfare: far greater benefits than ordinary welfare, with none of the emotional abuse, with no proof of genuine need.  But Superwelfare was a huge mistake because it did not discriminate based on need.  Gov't should have extended only until 26 weeks, then transitioned families to public assistance.  It's not my intent to blame the victims here--losing my job would be disastrous for me just as it was for most of these 1.2 million.  But the superwelfare was hush money to keep the hoi polloi calm while the banksters looted the US treasury, spending all our tax money, then spending more freshly printed money--giving none of it to employers or local banks which are the backbone of the economy.

Obama and the rest of the welfare statists have royally fucked up this "recovery" by giving all the money to the banks, none to companies that hire.  Have continued to push unilateral and unbalanced "free" trade.  They're not Austrian school or Chicago school economists, they're bankster tools using "free market" as a throw-away smoke screen to distract from the outrageous looting of America.

Thu, 08/25/2011 - 09:32 | 1599012 EvlTheCat
EvlTheCat's picture

Glad to see at least one of the people who didn't take the time to read your statement went back and read it again.

Thu, 08/25/2011 - 12:32 | 1600059 jmc8888
jmc8888's picture

It's not hush money.  What people receive is but a pittance...and no you can't call it 'super welfare'.  'Super Welfare' would mean getting MORE than regular welfare...and because you use 'super' it SHOULD mean, it's ALOT more.

Sorry, extended time, does not equate SUPER welfare.

 

You're looking at it from a very wrong angle, people need this money to live.  They NEED it.  Fuck everything else, they NEED it.

 

People getting welfare, still are pissed off.  Throwing people to the wolves, is not the answer to force change.  People need to get that out of their fucking heads.  Wanna case study? Look at Somalia.  Do you see those in the camps revolting? 

I understand you 'feel' that people need to have 'pain' more in order to 'fight back'.  But that's just bullshit.  Pleasure vs. Pain? THat's bullshit.  That fucked up perspective....ALWAYS forgets REASON.

REASON!

Besides, Austrian school is fucked up.  Keynesian's are fucked up.  ALL MONETARY SCHOOLS ARE FUCKED UP AND INHERENTLY ANTI-AMERICAN.  THAT"S A FACT!

 

The AMERICAN way, is what HAMILTON set up.  Not what monarchy fucktards used to confuse the debate , which is foreign ideology by the way.

 

What we need is Glass-Steagall

Not throwing people to the wolves, in order so that they feel 'pain', under the false assumption that they'll force change.  In reality, you'll just be starving people, and shit won't change.  Between now and when enough 'suffering' happens to force mobs of people (which is the WRONG way to approach things btw), an incomprehensible amount would need to be absolutely crushed and thrown into the gutter.  It would take years. 

Use REASON instead.  Glass-Steagall

Because a mob, after years of needless bullshit, is even LESS likely to get Glass-Steagall passed.  Much more likely to be a stupid french revolution, instead of an American revolution.  Not to mention a new dark age.

 

Quit the bullshitting.  It's not 'super welfare'.  Bringing people 'pain' is the wrong approach to bring 'change'.  You're metrics are all WRONG, just like the Keynesians...at how many people's expense?

Quit the monetary bullshit.

Use reason instead of throwing people to the fucking wolves for DOGMA!

Glass-Steagall

Thu, 08/25/2011 - 09:12 | 1598837 MFL8240
MFL8240's picture

Good for another 150 Dow points.  No consumers is the new normal in the US eCONomy!

Thu, 08/25/2011 - 09:16 | 1598860 snowball777
snowball777's picture

In completely on-topic, unrelated, anecdotal news, my dad, who has been out of work for more than a year despite looking hard and doing interviews the entire time, just started a new gig on Monday.  Only 34,673,299 to go!

Thu, 08/25/2011 - 09:16 | 1598867 freethinker4now
freethinker4now's picture

Get those printing presses warmed up ya hear!

Thu, 08/25/2011 - 09:21 | 1598914 urbanelf
urbanelf's picture

Short chateaubriand.  Long cat food.

Thu, 08/25/2011 - 09:21 | 1598915 digalert
digalert's picture

 

Funny

I've had CNBS on for half an hour and they haven't mentioned UE. The latest report must not fit their agenda. They have had time to defend the banksters and Berkshire while gleefully bashing gold.

Thu, 08/25/2011 - 09:24 | 1598941 Zymurguy
Zymurguy's picture

12K claims due to Verizon strike, eh?  That's probably about how much these numbers will be reivised up next week thus completely negating that idiotic speculation.

I simply can't take reading/watching the govt. run propaganda from the large dis-information bureaus and longer.

Thu, 08/25/2011 - 09:49 | 1599124 Hedge Hunter
Hedge Hunter's picture

Transitory job losses. Move along, nothing to see here....

Thu, 08/25/2011 - 09:52 | 1599137 topcallingtroll
topcallingtroll's picture

THE faster we push people off the unemployment rolls the sooner they will take that shitty job they dont want, and the sooner the employment market can clear.

Excessive unemployment benefits cause barriers to labor flows.

Thu, 08/25/2011 - 10:13 | 1599277 goldfish1
goldfish1's picture

the sooner they will take that shitty job they dont want

Certainly, that was the point of the globalist masters. Cheap labor for the slave masters.

Thu, 08/25/2011 - 10:25 | 1599356 JMT
JMT's picture

RE: There is serious unemployment at most levels. My 26 y.o. lawyer friend applied for a job at a law firm....he said there were over 500 lawyers applying for ONE JOB!

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Usually those are contrived reasons why you didn't get a call back or didn't get hired.  They say 'oh we got 100, 500 (pick a number) applications/resumes for this position when in reality maybe they got between 5-10.. 

 

And if doesn't mean most of those 500 were currently unemployed.  Besides many 26 year olds have this huge entitilement mentality which mostly comes from having mommy & daddy pay for everything from college tuition to that $130 a month Iphone plan (with unlimited upgrades)

Thu, 08/25/2011 - 10:53 | 1599531 krispkritter
krispkritter's picture

Great comment, modified: "This country is going to hell in a handbasket because no one can afford to drive there..."

Thu, 08/25/2011 - 11:45 | 1599830 Libertarian777
Libertarian777's picture

it's 1.2 million welfare recipients 'created or saved' to you bitchez

Thu, 08/25/2011 - 12:21 | 1599988 Blakbeard
Blakbeard's picture

If you are on strike, you do not qualify for unemployment benefits, regardless as to whether you voted for or against the strike.   Not in the US anyhow. 

Thu, 08/25/2011 - 15:24 | 1601114 Caveman93
Caveman93's picture

They can now apply for Welfare and food stamps. It's all good.

Thu, 08/25/2011 - 22:01 | 1602240 butchtrucks
butchtrucks's picture

The multi-national I work for has just told a bunch of its accountants their jobs are being moved to India - starting next month.   A whole department being axed including folks in their 30s and 40s with mortgages, kids at private schools etc.   They thought they had secure,  well paying jobs,  supporting their middle-class lifestyles - and then BAM!

The corporation is doing great.  Just announed excellent 2nd quarter results,  with reduced labor costs being a big factor.

It's obvious that US corporations are really taking advantage of this ongoing crisis to swing for the fences by offshoring every job that can be offshored (and that is most) in order to improve the bottom line.

And to be honest - who can blame them?   These corporations are not charities - they are not there to support unsustainable American middle-class lifestyles. 

In this case I am reliably informed that the average accountant was pulling in a salary in excess of 150 K plus benefits - whereas their counterparts in India will be on less than 15 K - with few benefits.  Do the math.

It is undeniable that a great global rebalancing is taking place.  The US middle class needs to face the fact  they are now competing in a global marketplace.  Until they are prepared to accept drastically reduced wages and conditions their jobs are NEVER coming back.

Within 10 years time I expect to see the standard of living of most Americans reduced to the level of the Indian and Chinese workers we are competing with.  It's going to be a long painful process - but a necessary one.

When I start to see snotty nosed children of previously middle class US families picking through piles of garbage on the outskirts of town,  looking for scraps of food (similar to what I saw in Bangalore and Hyderabad last year) that will be a good sign for me.  I will know the healing has begun.  Jobs will finally start to come back to America.  It won't be the kind of America they we grew up with - but that America is gone for good anyway.  Deal with it.

 

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