U.S. employment data remained on the weak side in August. At the same time, revisions to prior data, as well as slightly-stronger-than-expected new information regarding manufacturing, consumer confidence, and retail sales, has lessened talk of another downturn—the infamous double dip—in coming months. The American economy suffered a net loss of 54,000 jobs in August, less [...]
Archive of entries posted in the year 2010
No Confidence
Note the direction of U.S. economic growth during the past few quarters as identified in the quarterly growth chart—from a solid 5.0% real (after inflation) annual rate late last year, to a still respectable 3.7% pace during the winter, to an anemic 1.6% annual rate in the quarter just ended… Observe that the revised 1.6% [...]
Bubble Bonds
One investment “rule of thumb” that has traditionally developed is smaller investors are usually late to the game…and thus expose themselves to higher levels of risk when a market bubble leaks, bleeds, or bursts. Such a time could easily be approaching in regard to the purchase or continuing ownership of bonds. Tens of thousands of [...]
..flation Investing
What’s it gonna be? Inflation or Deflation? Argument #1…Inflation Let me think now…inflation is going to be a huge problem in coming years. Did you see the incredible $1,400,000,000,000 federal budget deficit last year, with the same, or higher, budget deficit this year? Did you see a similar budget deficit projection for next year? Have [...]
Job Somber
U.S. employment news was disappointing again in July. American business leaders simply remain wary of Washington’s anti-business stance and rhetoric…and prefer to enhance earnings through cost-cutting investments in technology and finding more creative ways to maximize current employment levels. The American economy lost 131,000 net jobs in July, about 70,000 worse than expected. The loss [...]
An Economic Chat
During the past 35 years of writing a weekly economic, financial, and (sometimes) political newsletter, I have periodically tried to present information in an unusual format so as to make “the dismal science” less intimidating and more interesting. Over the years, we have occasionally run a discussion between two old friends—Mrs. Smith and Mr. Jones—regarding [...]
“Obamacare” Comparisons
Supporters of America’s move toward a government-controlled health care system frequently make reference to similar “successful” programs in other nations. A glimpse at three such national programs seems timely… Canada A recent Reuters headline noted, “Soaring Costs Force Canada to Reassess Health Model.” The article notes that with pressure from an aging population and the [...]
A Parent’s Letter to My Children in School
To my children and grandchildren… With your focus on education, I often find myself thinking about how much the world has changed since I was in your shoes. The world is now a much “smaller” place—people of all cultures can communicate and travel with ease. You face great challenges today…just as I did…just as my [...]
Disincentives…an Update
Our Tea Leaf issue dated January 27, 2010 reviewed a handful of the major disincentives emanating from Washington DC that were currently sending shock waves through American businesses…and very likely to stifle solid levels of U.S. job creation in coming months and years. Job creation has been substandard during the past six months, with seemingly [...]
Job Sluggish
Another reasonably dismal employment report… The American economy suffered the net loss of 125,000 jobs in June, largely matching forecasting economists’ expectations. The loss was totally tied to the termination of 225,000 temporary Census jobs. Private businesses—the more critical component of U.S. employment reports as Census hiring & layoffs muddy the job picture during 2010’s [...]
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