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Unemployment as a Lagging Indicator: Not This Time

Although I have reached a similar conclusion, I disagree with the reasoning presented here. We have always had new people entering the workforce/seeking jobs. Whether they are absorbed into the workforce depends on whether there is growth, not on whether the economy recovers.

The key difference now is that those who lost their jobs with this economic crisis will not necessarily find comparable jobs once the economic deterioration stops. Many of the lost jobs are being/will be off-shored, unless of course the government takes measures to discourage off-shoring of jobs. Otherwise, unemployment will stay high, and there will be no economic recovery to the pre-crisis levels. The question that remains is whether the job loss rate will diminish and the economy will reach a plateau at a lower than the pre-crisis level, or whether the high unemployment that will prevail for a long time will have a negative spiraling effect on the economy.

As the Dollar Continues to Collapse, Where Will You Put Your Money?

I believe inflation will be world wide and most currencies will be susceptible. I would stay invested in equities that produce goods and commodities in order to keep up with inflation.

Outsourcing Grows as a Business Strategy

American businessmen may go and set up shop wherever they please. But if they want to sell to the US, they should be faced with restrictions/tariffs. Any business that wants to sell to the US should either create jobs in the US or pay higher taxes/tariffs. That is the only way a business incorporated in the US will contribute to the US economy.


On May 18 05:01 PM SouthernCEO wrote:

> As a business man I can say that until we stop raising taxes on business
> and stop with all of the red tape then jobs will go overseas. Businesses
> will go where they are treated best. It just costs too much to do
> business in the US for many industries. Go buy an American made TV,
> radio, shirt, pair of shoes, etc. Sure we can make that stuff but
> we can't do it at a profit.

Outsourcing Grows as a Business Strategy

Outsourcing will not stop by itself. The US government must take measure to discourage it; otherwise, jobs will continue to be moved overseas. This will cause fundamental errosion of the earning power of Americans, as more and more Americans will be losing employment, and the tax burden of those remaining employed will increase. Ultimately, the earning power of the US dollar will diminish as the US will lose its ability to produce exports (by abandoning its manufacturing to the Asian countries), which it needs in order to pay for the goods it will be importing. A service economy, which is what the US is becoming, cannot maintain its standard of living.

Finding a Golden Nugget in Tessera's Conference Call

Please give the location of the OUII report you cited on Tessera’s ‘326 and ‘419 patents.

Thanks in advance.

Bernanke Seems Clueless About the Real State of the Economy

I don't understand the gloom here? The stimulus plan was just approved. The US post office has not even had a chance to deliver the first checks.

The Tipping Point: Stimulus Needs Credibility

This country will keep going through crises like the technology and the real estate bubles until it is able to resume exports and keep jobs at home. To avoid protectionist measures, it is important for the American workforce to be competitive. This requires superior and more relevant education for the youth, alleviating employers of the burden of healthcare costs, and eliminating tax credits from job creation abroad.

Before we get there, however, we must overcome the current crisis, which is to a large extent due to the absence/failure of regulation. The stimulus package, plus much more, is needed in order to get out of the deflationary spiral in which we find ourselves right now. See Krugman's piece www.nytimes.com/2009/0...

Good Politics Is Often Bad Economics - Why the Stimulus Plan Won't Work

This piece is based on erroneous political ideology than the measures it denounces. For instance, I don't see how giving tax breaks to those who have jobs will create any more jobs than extending unemployment benefits. Those who have jobs will probably save the additional income for a rainy day, just in case..., while those without an income will spend it on necessities. Spending stimulates the economy and that creates jobs. Saving does not.

I am fed up listening to hollow arguments in favor of tax cuts.

Bernanke's Fall from Grace

Are you people awake when you write advice columns?

First to Bounce Back - Cramer's Lightning Round (10/21/08)

I expect oil prices to drop further during the recession, which is expected to last for another 6 mos at least. Natural gas prices will follow that trend, and so will the UPL stock price. I wonder how long would one have to wait to make a profit if buying at today's price.

Or do you see UPL appreciating while oil prices drop?