The State of the Economy Thread - “Falling inflation, rising growth give U.S. the world’s best recovery”

[Jumbo]

2 hours ago, Supernatural24 said:

wut? lol

 

you're not far from a ban

 

best figure out where you're going wrong 

[Sacks 'n' Stuff]

Btw, I shorted the market for a ****load of money two months ago. When it collapses, free lambos for everybody on here that I like.

[RedskinsFan44]

56 minutes ago, twa said:

 

plans on shutting the door till a cure/vaccine, bit late for that here judging from the antibody surveys

They shut down travel from China a day after we did (don't tell Don, he's really proud of his foresight).

[skinfan2k]

5 minutes ago, Sacks 'n' Stuff said:

Btw, I shorted the market for a ****load of money two months ago. When it collapses, free lambos for everybody on here that I like.

There are tons of stocks to play on a daily basis for their .25-1 dollar gains and losses if you play it with volume.  I'm reviewing tons of bio stocks. 

[RedskinsFan44]

I find it heartwarming that investors made a crapload of money over the last couple of weeks while 30 million successfully applied for unemployment insurance and probably millions more are on hold. And really, no offense because I look out for my family first too but it's really f'd up that the market went up like it did when, IMO, its about to hit new lows as reality sets in.

[TheGreatBuzz]

33 minutes ago, Sacks 'n' Stuff said:

Btw, I shorted the market for a ****load of money two months ago. When it collapses, free lambos for everybody on here that I like.

 

So no free lambos?

[PleaseBlitz]

 

https://www.washingtonpost.com/business/2020/05/06/adp-payrolls-jobs-coronavirus/

 

U.S. companies shed 20.2 million jobs from their payrolls in April as the coronavirus pandemic brought the economy to a standstill and shuttered most of the country’s businesses, according to new data Wednesday from ADP Research Institute.

 

April’s staggering job losses are the worst in the report’s history, which began in 2002. The month’s job losses were more than twice those lost in the Great Recession, Ahu Yildirmaz, co-head of the ADP Research Institute, said in a news release.

 

Despite the jaw-dropping number, these losses do not fully represent the economic carnage of the pandemic, ADP said. The report uses data only through the 12th of the month, in keeping with the Bureau of Labor Statistics. More than 8 million Americans filed for unemployment in the weeks that followed.

 

“Private payroll jobs are evaporating at a rate not seen since the Great Depression, and if the 20.2 million newly unemployed don’t quickly regain their jobs as the states start to open back up, then indeed it will be the second coming of the Great Depression,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in comments emailed to The Post Wednesday.

[FanboyOf91]

 

[mistertim]

I'm really going to need them to define "flexible" for me.

[Larry]

47 minutes ago, mistertim said:

I'm really going to need them to define "flexible" for me.

 

Not in the mood for bats from China?

[LD0506]

Well there's flexible and then there's "flexible", yanno?

 

 

[Kosher Ham]

I wouldn't mind seeing every mall in America shut down. I prefer the small business owner anyway. 

 

One could dream about a small town type of feeling. 

 

Ain't gonna happen, but it would be nice to relive certain aspects of the old days. 

[Cooked Crack]

 

 

[Barry.Randolphe]

US: Record unemployment numbers released that rival the Great Depression.

DJI: up 350 points!

 

Edited May 8, 2020 by Barry.Randolphe

[hail2skins]

22 minutes ago, Barry.Randolphe said:

US: Record unemployment numbers released that rival the Great Depression.

DJI: up 350 points!

Yeah, I'm having a tough time deciphering the stock market. I felt it was overvalued even before the virus hit. Seems like its been hanging around that 24K area more or less for a few weeks now.  It seems like this is being driven a lot by the tech stocks. I guess if you're a long way from retirement, its good to still be aggressive. However, for those close to retirement, or who just want to try and time things, probably isn't too bad to be a bit defensively postured right now....still invested some in stocks, but anticipating a drop perhaps down to 20-21K, and then get a little more aggressive again. 

[Larry]

29 minutes ago, Barry.Randolphe said:

US: Record unemployment numbers released that rival the Great Depression.

DJI: up 350 points!

 

One possible explanation:  

 

Yes!  This means we can really cut the wages of the employees we have left!

[No Excuses]

1 hour ago, Barry.Randolphe said:

US: Record unemployment numbers released that rival the Great Depression.

DJI: up 350 points! 

 

This is thanks to the Fed which basically bailed out corporations that didn't want to keep employees on payroll. This is all temporary and eventually the lack of productivity and output will catch up, but it was without a doubt a completely gross transfer of wealth.

 

If anyone wants to understand why the stock market is going up, this is why:

 

https://www.chicagotribune.com/coronavirus/ct-nw-coronavirus-boeing-fed-bailout-20200504-2has6gghmnfsnj5mvjjpaa6xye-story.html

 

Quote

The Fed’s decision to use its near limitless balance sheet to purchase corporate bonds eased liquidity so much that it was a game changer for the company, according to people with knowledge of the matter who asked not to be identified because they weren’t authorized to speak publicly.

Ultimately, it allowed Boeing to raise $25 billion from private investors and withdraw its request for a government rescue, avoiding the restrictions that would have certainly been imposed.

 

Boeing’s decision underscores the extent the Fed’s policies rebuilt confidence in credit markets even though the central bank has yet to spend a single dollar on its corporate debt program.

 

“Many companies that would’ve had to come to the Fed have now been able to finance themselves privately since we announced the initial term sheet on these facilities,” Fed Chairman Jerome Powell said during a press conference April 29, before Boeing’s bond sale. “There’s a tremendous amount of financing going on, and that’s a good thing.”

 

Edited May 8, 2020 by No Excuses

[TradeTheBeal!]

It’s not hard to figure out...The job losses are seen as temporary and short-term.

 

Might be a bit optimistic, tho.

[skinfan2k]

You do realize that the stock market is just getting pumped with more and more money.  Why would i want to continue to invest at a bank when i can get a better return in the market? Also, most of the jobs being lost during this crisis are on the bottom of the pay scale.  

[Warhead36]

There are two economies

[Cooked Crack]

 

[GoCommiesGo]

Holy crap, that’s astounding. 

[EmirOfShmo]

41 minutes ago, Cooked Crack said:

 

 

39 minutes ago, GoSkinsGo said:

Holy crap, that’s astounding. 

The one good thing here: IF they can get state unemployment they will also get the $600/wk PUA payment. I know that's a big IF but they would be making more at home than actually working. 

[mistertim]

On 5/8/2020 at 7:35 PM, Warhead36 said:

There are two economies

 

I think a lot of it really does come back to this. The working class and corporate/investor class are now so far removed from each other in terms of wealth and power that the working class losing half of their jobs hardly even has an immediate impact on the other class, especially when the corporate class can pretty much depend on bailouts to offset the loss of labor. It won't last though. The propping up of those corps and of the credit market itself can only last for so long.

[FanboyOf91]