Is this a Joke? (Wall St.)


The headline reads “Stocks plunge after US hiring dries up in August;” apparently the people who do the hiring and job creating needed to wait for the government’s report that they hadn’t created jobs or hired anyone, and then their stocks fell. 

Seems like if these numbers, stock prices, are fiction to begin with, just stop releasing reports.

http://finance.yahoo.com/news/Stocks-plunge-after-US-hiring-apf-251010017.html

“Stocks are sinking after an awful report on the job market in August.

The government said early Friday that no new jobs were created last month. It was the worst jobs report in 11 months. The unemployment rate held steady at 9.1 percent. It has been above 9 percent in all but two months since May 2009.

Overseas markets followed U.S. stocks lower. They already had fallen on reports that talks about Greece’s shaky finances were breaking down.

At 11:45 a.m., the Dow Jones industrial average was down 160 points, or 1.4 percent, at 11,334. The Standard & Poor’s 500 index fell 19, or 1.6 percent, to 1,186. The Nasdaq composite index fell 37, or 1.4 percent, to 2,510.

All 30 stocks in the Dow fell.”

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One thought on “Is this a Joke? (Wall St.)

  1. Business won’t pick up until companies hire more people. Companies won’t hire more people until business picks up. That’s the recessionary spiral. Such cycles usually last about 10 years without intervention.

    Keynesian economic theory says that the government should then step in and borrow money to build something “even pyramids” just to create jobs. The new hires buy stuff, which helps businesses who then need to hire more people to keep up with increased demand, which helps more businesses because the new employees are now spending more money, leading to a spiral of growth, and so much new tax revenue (without raising taxes) that it can pay off that initial stimulus and then some.

    However, the 2009 stimulus didn’t work. Instead of using it to hire people we just gave money to a few big companies, who saved it or paid debts with it, or bonus’d it to people who did the same. Most companies already have enough or too many employees given the current economic climate. For a stimulus to work, it needs to change that economic climate by creating jobs directly. You don’t just hand Wall Street a few hundred billion dollars, or send every taxpayer a check for $250 and think that that’s going to somehow create jobs in any meaningful or lasting way.

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