Posts Tagged ‘Jobs’

If I were running for president, I’d promise to fix everything.

Seriously.

How would I do it?

I would mandate natural gas… the energy alternative that we have about 100 years worth in the U.S.

That would allow me to promise — and deliver — everything:

(1)  More money in consumer’s pockets:  Natural gas is cheaper than black oil… by about 1/3 to 2/3rds to consumers.  But anyone that reads this blog knows that the price of energy goes well beyond simply what we spend on energy for our cars… it affects the price of everything.  Lower energy price is the greatest — and most effective — stimulus in the world

(2)  Jobs:  A new/updated infrastructure would be necessary… as would new/updated vehicles.  Someone has to build all that stuff

(3)  More corporate profits:  More jobs and more money in people’s pockets mean more spending.  Cheaper energy also means less input costs.  Economy improves.  Stocks rise… and so does everyone’s 401K plans

(4)  Health:  Pollution is — literally — choking the world… just look at the rise of breathing-related illnesses like asthma over the last few decades… but unlike dirty fossil fuels, natural gas burns clean

(5)  Environment:  No more ugly, toxic oil spills… let’s make the Gulf disaster our last

(6)  Smaller military:  Reducing our dependence on foreign oil means less “geopolitical” conflicts… as in, if we didn’t need oil, how much would we really care about the Middle East?

(7)  More money in Uncle Sam’s pockets without raising taxes:  All those new jobs create tax revenues.  Also would require less spending on entitlement, health, and military programs.  Bottomline is a dramatically improving national bottomline

(8)  Oh, yeah, an extra $1 trillion per year — money that we usually send out of the country each year, mostly to countries that hate us — is kept in America

Now that’s the candidate I would vote for!

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Tomorrow is a hugely anticipated jobs report.

From a stock market perspective — NOT the perspective of someone out of work and desperate to provide for loved ones, which is certainly a tragic situation — the jobs report really doesn’t matter.

Our economy is now highly tuned for about 10% unemployment… meaning, corporations are doing just fine selling to the 90 out of 95 people who are employed (remember that the definition of “full employment” is 5% unemployed).

But are these employed people spending?

Check the price of oil… as long as oil is behaving itself — and it has — then the employed people will have more money in there pockets to save and spend… which means that what drives the market — earnings and outlook — should be ok.

Regarding tomorrow, after the last few weeks of carnage, investors are expecting a mediocre or poor jobs report.  So that’s already factored in.

If the jobs report surprises to the upside, then we should see a big, opening market spike, followed by a sell-off given the run-up over the last few days.  Buy the rumor, sell the news kinda stuff.

In both cases, once the dust settles, we’ll meander higher in anticipation of good earnings and outlook… all contingent on, of course, nothing falling down and breaking in Europe for at least a couple of weeks…

… which, in a couple of weeks, you just know something will fall down and break in Europe.

Has anyone talking about job creation actually run a company?

Finally someone got it right.  From Citi’s Tobias Levkovitch:

     “…it is terribly difficult to convince employers to add workers they don’t need.”

Duh to everyone who thinks otherwise.

Average duration of unemployment has skyrocketed.

After dramatically increasing the amount of time someone can receive unemployment benefits a few years ago… seriously… what did everyone expect would happen?

Geez.

Duh.