JumpinJack
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https://www.thestreet.com/video/13666356/economy-adds-255-000-jobs-in-july-paving-way-for-near-term-fed-hike.htmlThe labor market is roaring. The economy added 255,000 jobs in July, beating estimates of 185,000. May's jobs numbers were revised to plus 24,000 from plus 11,000 jobs. June's number was updated to plus 292,000 positions from plus 287,000 positions. Average hourly earnings rose 0.3 percent, beating estimates of 0.1 percent. TheStreet's Scott Gamm and Moody's Analytics' chief capital markets economist John Lonski discuss what the report means for the Federal Reserve's looming rate hike.
Nasdaq tops year-old record, S&P 500 hits high, tooStocks jumped Friday, with the Nasdaq and S&P 500 passing all-time closing highs, after the government reported a better-than-expected 255,000 jobs were created in July.
https://www.thestreet.com/video/13666356/economy-adds-255-000-jobs-in-july-paving-way-for-near-term-fed-hike.html
Nasdaq tops year-old record, S&P 500 hits high, too
Not a bad comeback from the Great Recession that nearly drove the country, and the world, into the Second Great Depression. This is VERY helpful to retirement accounts, college savings accounts, and other accounts. This is good news. (Of course, what goes up, comes down. So best not to get too complacent.)
https://www.thestreet.com/video/13666356/economy-adds-255-000-jobs-in-july-paving-way-for-near-term-fed-hike.html
Nasdaq tops year-old record, S&P 500 hits high, too
Not a bad comeback from the Great Recession that nearly drove the country, and the world, into the Second Great Depression. This is VERY helpful to retirement accounts, college savings accounts, and other accounts. This is good news. (Of course, what goes up, comes down. So best not to get too complacent.)
Base pay raises next year for the rank-and-file will be 3% on average, according to a survey of 1,100 mostly large employers by professional services firm Towers Watson. Executives and managers are projected to receive about the same.
Which economists said it would be doomsday for the US economy.....links?Looks like the Brexit deal wasn't the end of the world, after all.
Which economists said it would be doomsday for the US economy.....links?
All of those economists focus mainly on the effects for Britain, the EU and finally the US......and none even hint that it spells doomsday for the US.
Morgan says US stock markets COULD see 7% declines....but the article doesn't spell out over what time period....and the article say further:
All of those economists focus mainly on the effects for Britain, the EU and finally the US......and none even hint that it spells doomsday for the US.
Phail.
Morgan says US stock markets COULD see 7% declines....but the article doesn't spell out over what time period....and the article say further:
Instead, it's more likely that U.S. stocks are just biding their time waiting for clarity on issues such as the ongoing corporate earnings recession, uneven economic data, ongoing pressure on Japanese and European banks from negative policy rates, and whether or not the Fed is serious about its two-quarter-point rate hike forecast for 2016.
Phail....again. No "doomsday" predictions.
Must be because Obama's term is about to end......
yes, you guess it. Sarcasm. Pure, unadulterated sarcasm. Delicious, spicy sarcasm. I love it.
We should be spending less and rates should be higher. That way we would be in better shape, when the next wave hits.
I see you're changing your argument now ,first it was Economist now it's liberals and yet you still can't post any liberals that made that prediction .fail againThe Libbos's predicted disaster. No disaster. I know you're all disappointed.
I see you're changing your argument now ,first it was Economist now it's liberals and yet you still can't post any liberals that made that prediction .fail again
.....and yer flip-flopping.....hard.....back to the "doomsday" prophesy....but yer fregettin what the context was....
https://www.thestreet.com/video/13666356/economy-adds-255-000-jobs-in-july-paving-way-for-near-term-fed-hike.html
Nasdaq tops year-old record, S&P 500 hits high, too
Not a bad comeback from the Great Recession that nearly drove the country, and the world, into the Second Great Depression. This is VERY helpful to retirement accounts, college savings accounts, and other accounts. This is good news. (Of course, what goes up, comes down. So best not to get too complacent.)
If there's one thing not to worry about, it's whether rates will rise. They will. They always do. And then they go down. And then they go up.
Rising rates will help those who are using savings accounts, and will help a lot of financial institutions. But it'll hurt the housing market and many other sectors. This is why the fed has held back so long. But it won't be long, now, I read.
It will also signal a tickup in inflation, which ironically will eat into the savings of the middle class.
But the fed will probably raise the rate just a fraction of a percent, keeping the effect to a minimum...is what I read.
However, remember how mortgages were packaged as investments and sold before the 2007-8 crash? (See movie "The Big Short") That's still being done, I believe.
Some mortgages that are adjustable rate mortgages will go up. So foreclosures will increase slightly, probably, when some people are caught not being able to pay their mortgages. Which will affect those mtge-backed securities mentioned above. But probably shouldn't be a big deal, since I believe they've been checking the loans now and getting credit scores and such.
I wonder if the cost of housing will go down a bit? Could be a good time to buy a house, for the person who is paying cash or doesn't care about the interest rate.
Oh, yes. The rates will rise. But they cannot be reduced much from present levels nor fiscal spending to be lifted much, if we run into a global downturn. We would be severely restricted in the tools available to buffering the external shock.
Japan is already in negative rates and the EU is strongly hinting at them (and already has negative deposit rates - yes, you have to pay banks to leave your money with many of them in Europe).
This latest, post-Brexit, stock market boom is (imo) an aberration. And since the Fed admits that they base interest rates on equities more then any other single thing - then if the market does fall again and go back to the stagnation that it has shown for the last few years, then rate hikes are off the table for a long time and negative interest rates are probably inevitable.
In fact, I predict that we will see negative interest rates (or a massive round of QE - or both) before we see 1% again.
All is fine till there is a crisis. Then it is better to have room to maneuver, which we have very little of at this point.
Oh, I agree.
But that is the corner the major central banks have painted themselves into.
That is why, imo, there have been no recessions since the Great Recession...central banks cannot handle them traditionally so they are doing EVERYTHING in their power to avoid them. If there is the slightest hint of a recession - they drop rates or throw QE at it or even (in Japan's case) directly buy stocks.
If the ignorant masses think that things are great because there have been no recessions for a while..they are mistaken. There have been no recessions for a while because central banks are doing EVERYTHING they can to stop them...desperately so.
Whereas in the past, they would just react to serious recessions/high inflation/deflation. Now they are ultra touchy to ANYTHING that looks bad (GDP, equities, inflation/deflation).
It's a VERY worrying trend, imo.
. And since the Fed admits that they base interest rates on equities more then any other single thing - then if the market does fall again and go back to the stagnation that it has shown for the last few years, then rate hikes are off the table for a long time and negative interest rates are probably inevitable.
er uh DA, can you please back up "the Fed admits that they base interest rates on equities more then any other single thing"? I'm pretty sure their mission is to keep inflation and unemployment low so it would be a big deal if they admitted that.
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