My answer ….yes….. you bet your sweet bippy it is.
But I am sure that there will be those that do not agree with my assessment…..
Let me point to the stock markets during these trying times….over 30 million Americans are unemployed and yet the stock markets are still going great guns…..
The stock market is doing fine, even though everything else is definitely not.
Earlier in the coronavirus crisis, Wall Street had a meltdown. Stocks plunged amid fears of the disease’s spread and its potential impact on the global economy, sometimes to the point that trading was halted altogether to rein in the chaos. But in recent weeks, the market has been doing okay. It’s not at the record highs it was in mid-February, but it’s not bad — the S&P 500 is hovering around where it was last fall. And given the state of the world — a deadly global pandemic with no end in sight, 30 million Americans recently out of jobs, an economy that’s fallen off of a cliff — a relatively rosy stock market is particularly perplexing.
Sure, the stock market isn’t the economy, but right now, it seems particularly divorced from what’s happening on the ground. “The gap between markets and economic data has never been larger,” wrote Matt King, global head of credit strategy at Citigroup, in a recent note.
The latest reports on the economy are grim…..
The Dow Jones Industrial Average surged more than 300 points at opening Friday, while the S&P 500 and Nasdaq continued to steadily climb from a low point in late March, when states across the country were imposing economic shutdowns.
The Dow also increased by 250 points right after the Labor Department released its May jobs report Friday, which showed an official unemployment rate of 14.7%, the highest since the Great Depression. Economists estimate that including people who lost their jobs in the last two weeks and people who have not filed for unemployment, the actual unemployment rate is likely higher than 20%.
I agree that it is time for the economy to be more reflective of society….granted the markets are NOT the economy…but those thieves need reining in….
Even Trump’s lackeys are not painting a rosy picture for this Summer…..
The US economy is in rough shape, and things are going to get worse. That was the dire prediction from not one but two of the White House’s top economic advisers Sunday, per the Washington Post:
- “The reported numbers are probably going to get worse before they get better,” Treasury Secretary Steven Mnuchin said on Fox News Sunday. “I think you’re going to have a very, very bad second quarter.” Asked by host Chris Wallace whether the nation’s unemployment rate was “close to 25% at this point, which is Great Depression neighborhood,” Mnuchin replied, “Chris, we could be.”
- “To get unemployment rates like the ones that we’re about to see … which I think will climb up towards 20% by next month, you have to really go back to the Great Depression to see that,” said White House economic adviser Kevin Hassett on CBS’ Face the Nation. He predicted the rate will be “north of 20%” by next month, and added that “nobody knows” when the jobless will be able to go back to work.
- But it wasn’t all dire; Mnuchin predicted the job market could start to improve by September. The situation we’re in, he noted, “is no fault of American business, it is no fault of American workers, it is the fault of a virus.” And Vox notes that on ABC’s This Week, Larry Kudlow, director of the Trump administration’s National Economic Council, said that of the latest unemployment numbers, “80% of it was furloughs and temporary layoffs,” which “suggests strongly that the cord between the worker and the business is still intact.”
This economy is driven by greed, pride, gluttony and vanity….we need an economy that benefits everyone not the wealthy few.
To prove that point I point to the recent report that 20.5 million Americans are unemployed…..and that same day there was a market rally…..
The clearest illustration of that came on Friday, when the government reported that 20.5 million people lost their jobs in April. It marked a period of unfathomable pain across the country not seen since the Great Depression. Also on Friday, the stock market rallied.
The S&P 500 is now up 30% from its lows in mid-March and back to where it was last October, when the outlook for 2020 corporate earnings looked sunshiny. Companies have sold record amounts of debt in recent weeks for investment-grade companies. Junk bonds, historically dodgy during an economic swoon, have roared back.
Now you tell me who benefits the most from this system?
Count out the workers….and the nation……
I Read, I Write, You Know
“lego ergo scribo”