Author Topic: Misery Index: The Obama Depression - "Private sector doing just Fine"  (Read 153225 times)

Soul Crusher

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Re: Misery Index: The Great Obama Depression
« Reply #375 on: July 29, 2011, 10:00:05 AM »
New Balance struggles as last major athletic shoe brand still manufacturing in U.S.
The Washington Post ^ | Thursday, July 28, 2011 | Peter Whoriskey





The last major athletic shoe brand manufacturing in the United States is watching closely as the Obama administration negotiates a free-trade agreement with Vietnam and seven other countries, and it is unclear whether the company can stand up to a flood of shoes from overseas.

NORRIDGEWOCK, Maine — At the factory here owned by New Balance, the last major athletic shoe brand to manufacture footwear in the United States, even workers on the shop floor recognize that in purely economic terms, the operation doesn’t make sense.

The company could make far more money if, like Nike and Adidas, it shifted virtually all of these jobs to low-wage countries.

So employees try working each shift to make it up. Conversations on the shop floor are sparse at best, and the tasks at each work station have been stripped of waste and precisely timed. Workers cut leather for a pair of shoes in 88 seconds, handle precise stitching in 37 seconds and glue soles to uppers even faster.

“The company already could make more money by going overseas, and they know it,” said Scott Boulette, 35, a burly team leader who has his son’s name tattooed in Gothic letters down his left forearm. “So we hustle.”

Now, however, comes what may be an insurmountable challenge. The Obama administration is negotiating a free-trade agreement with Vietnam and seven other countries, and it is unclear whether the plant can stand up to a flood of shoes from that country, already one of the leading exporters of footwear to the United States.

“We are deeply concerned by the inclusion of Vietnam in a potential free-trade agreement,” said Rob DeMartini, president and chief executive of New Balance.


(Excerpt) Read more at washingtonpost.com ...


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Re: Misery Index: The Great Obama Depression
« Reply #376 on: July 29, 2011, 11:22:08 AM »
Medical-device manufacturer to lay off 1400 in the US
Hot Air ^ | 7/29/11 | Ed Morrissey





In March 2010, Nancy Pelosi warned us that we had to pass ObamaCare to “find out what’s in it.” What is in it is jobs for China. What’s not in it is jobs for Americans, as the Boston Globe reports today (via NewsAlert):


Boston Scientific Corp. said yesterday that it plans to eliminate 1,200 to 1,400 jobs worldwide during the next 2 1/2 years to free money for new investments, the Natick medical device maker’s second major round of cuts since last year.

The company would not say how many jobs will be lost in Massachusetts, where fewer than 2,000 of its 25,000 employees are based. In February 2010, Boston Scientific said it would pare 1,300 jobs worldwide, but similarly did not say where.

Yesterday’s move, a day after Boston Scientific disclosed it was investing $150 million and hiring 1,000 people in China, raised fears that the company will gradually shift more work to foreign sites with less government oversight and lower costs than the United States.

Massachusetts state Senator James Elridge (D-Acton) reacted … predictably:

“My sense is, sadly, that like many other American companies, they are shedding jobs in Massachusetts and adding jobs overseas,’’ Eldridge said. “And this is a company making greater profits, so it’s even more outrageous.’’

Yes, that’s what happens when the American government makes it more expensive to do business in the US.


(Excerpt) Read more at hotair.com ...

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Re: Misery Index: The Great Obama Depression
« Reply #377 on: July 29, 2011, 11:56:18 AM »
Economy grinds to halt as consumers pull back
CNN Money ^ | 7/29/2011 | Annalyn Censky




NEW YORK (CNNMoney) -- Consumers all but shut their wallets in the second quarter, causing the U.S. economy to grow at a tepid pace.

To make matters worse, growth in the first quarter was much slower than initially thought, according to new government figures released Friday.

"It's quite worrisome as the economy remains at stall speed in the second quarter," said Sal Guatieri, senior economist with BMO Capital Markets. "If that continues, then it would raise the risks of a double dip."

Gross domestic product, the broadest measure of the nation's economic health, rose at an annual rate of 1.3% in the second quarter, the Commerce Department said.

While that's an increase from the revised 0.4% growth rate in the first three months of the year, it is hardly good news. The government originally reported that the economy grew at a 1.9% annualized rate in the first quarter.

The growth in the second quarter was also below the 1.8% increase expected by economists surveyed by CNNMoney.


(Excerpt) Read more at money.cnn.com ...

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Re: Misery Index: The Great Obama Depression
« Reply #378 on: July 29, 2011, 12:38:28 PM »
Improving Mexican economy draws undocumented immigrants home from California
smagagnini@sacbee.com
Published Thursday, Jul. 28, 2011


http://www.sacbee.com/2011/07/28/v-print/3799513/improving-mexican-economy-draws.html



There are fewer undocumented immigrants in California – and the Sacramento region – because many are now finding the American dream south of the border.

"It's now easier to buy homes on credit, find a job and access higher education in Mexico," Sacramento's Mexican consul general, Carlos González Gutiérrez, said Wednesday. "We have become a middle-class country."

Mexico's unemployment rate is now 4.9 percent, compared with 9.4 percent joblessness in the United States.

An estimated 300,000 undocumented immigrants have left California since 2008, though the remaining 2.6 million still make up 7 percent of the population and 9 percent of the labor force, according to the Public Policy Institute of California.

Among metropolitan areas with more than 1 million residents, Sacramento County ranks among the lowest, with an unauthorized population of 4.6 percent of its 1.4 million residents in 2008, according to Laura Hill, a demographer with the PPIC.

The Sacramento region, suffering from 12.3 percent unemployment and the construction bust, may have triggered a large exodus of undocumented immigrants, González Gutiérrez said.

The best-paid jobs for undocumented migrants are in the building industry, "and because of the severe crisis in the construction business here, their first response has been to move into the service industry," González Gutiérrez said. "But that has its limits. Then, they move to other areas in the U.S. to find better jobs – or back to Mexico."

Hill said it's hard to know whether the benefit of having fewer undocumented migrants outweighs the cost to employers and taxpayers.

California may have to provide less free education to the children of undocumented immigrants and less emergency medical care, she said, but it will also get less tax revenue.

In 2008, at least 836,100 undocumented immigrants filed U.S. tax returns in California using individual tax identification numbers known as ITINS, said Hill, who conducted the tax survey.

Based on those tax returns, the study found there were 65,000 undocumented immigrants in Sacramento County that year, far fewer than in many other big counties.

Sacramento's undocumented population ranked 10th in the state that year, behind Los Angeles, Orange, San Diego, Santa Clara, San Bernardino, Riverside, Alameda, Contra Costa and Ventura.

There were an estimated 12,000 undocumented immigrants in Yolo County; 9,000 in the Sutter-Yuba area; and 8,000 in Placer County.

An analysis of local ZIP codes showed that Sacramento (95815, 95823, 95824), West Sacramento (95605), Clarksburg (95612), Esparto (95627), Guinda (95637), Knights Landing (95645), Winters (95694) and Woodland (95776) each had an undocumented population of 10 percent to 15 percent.

Yolo County relies heavily on migrant workers to grow and harvest crops.

"People in construction are now turning to agriculture; it's the start of the tomato season so the harvesters will be jump-started pretty soon," said Woodland Mayor Art Pimentel, whose 55,000 residents are 48 percent Latino, some of them undocumented.

Some aren't sticking around for the upcoming tomato harvest, said Sylvina Frausto, secretary of Holy Rosary Church in Woodland. "Some have a small parcel in Mexico. They own their own home there, so instead of renting here they go back to their small business there."

Many raise animals, run grocery stores or sell fruits and goods on street corners.

"They're going back home because they can't get medical help or government assistance anymore," Frausto said, "And when it's getting so difficult for them to find a job without proper documentation, it's pushing them away."

Anita Barnes, director of La Familia Counseling Center on Franklin Boulevard in Sacramento, said she recently spoke to a high school graduate who had lost his job in a restaurant and was thinking of going back to Mexico.

"He came over with his mom, who was in the process of losing her restaurant job," Barnes said. "It's frightening, especially for the children. They feel this is their country, they don't know anything else, and they find they can't get driver's licenses or jobs."

As its economy rebounds, Mexico "is becoming a better option than it was in the past, but you still have to find a job and reconnect," Barnes said.

While the weakened U.S. economy, rising deportations and tougher border enforcement have led to fewer undocumented migrants, changes in Mexico are playing a significant role, González Gutiérrez said.

Mexico's average standard of living – including health, education and per capita income – is now higher than those in Russia, China and India, according to the United Nations.

Mexico's growing middle class "reduces the appetites to come because there are simply many more options" at home, González Gutiérrez said. "Most people who decided to migrate already have a job in Mexico and tend to be the most ambitious and attracted to the income gap between the U.S. and Mexico."

Mexico's economy is growing at 4 percent to 5 percent, benefiting from low inflation, exports and a strong banking system, the consul said.

Mexico's birthrate is also declining sharply. "As a natural consequence of us transforming from a rural to an urban society, we are running out of Mexicans to export," González Gutiérrez said. "Our society's growing at a rate of 2.1 children per woman – in the 1970s it was more than five."

Once the U.S. economy recovers, the flow of migrants moving north "may go up again, although most likely they will not reach the peak levels we saw in the first half of the decade," González Gutiérrez said.

WORKSHOP TODAY

U.S. Citizenship and Immigration Services will host a free information session in Spanish at 650 Capitol Mall, second floor, from 5:30 to 7:30 p.m. today on how to avoid scams. Immigrants who can't come in person or access the workshop online can call (800) 857-4862 and provide the pass code SERVICIO when asked for a password.

• For more information, visit www.uscis.gov/enlace.


© Copyright The Sacramento Bee. All rights reserved.

 
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Call The Bee's Stephen Magagnini, (916) 321-1072.

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Maybe Obama's Depression does have one bright spot. 

Soul Crusher

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Re: Misery Index: The Great Obama Depression
« Reply #379 on: July 29, 2011, 07:15:54 PM »
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Spending Has Collapsed, The Economy Is Next
SHTF Plan ^ | 7-29-2011 | Mab Slavo
Posted on July 29, 2011 9:24:01 PM EDT by blam

Spending Has Collapsed, The Economy Is Next

Mac Slavo
July 29th, 2011
SHTFplan.com

We’ve been warning about it since the beginning of this crisis – that consumers are simply not interested in spending money they don’t have. In the first quarter of 2011 the government attempted to convince us that the economy was growing at a slow, but steady, rate of 1.8%. This was used as evidence the economic recovery had taken hold.

President Obama and his administration specifically told us that a depression had been avoided:

We can safely say that we are no longer facing the potential collapse of our financial system and we’ve avoided the depression many feared.

President Barrack Obama – December 9, 2009

But today’s growth domestic product revisions suggest otherwise.

That 1.8% that convinced the average uninformed American economic activity had increased was nothing but a fabrication – a bold faced lie – and that’s official. The government revised that number to 0.4% – a significant difference. They were only off by about 75%.

Today, the government released it’s second quarter GDP numbers, and as was predicted in many alternative media circles, it’s a clear indication that things are turning for the worse. Karl Denninger weighs in:


Sorry guys, the clock has rung. It’s not ringing any more, it has rung and the spring-powered alarm has run out.



There is no recovery to speak of.

Four years into this the policies of the government and Fed have failed.

It gets worse:

“The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 3.2 percent in the second quarter, compared with an increase of 4.0 percent in the first Excluding food and energy prices, the price index for gross domestic purchases increased 2.6 percent in the second quarter, compared with an increase of 2.4 percent in the first.” (source: US Dept. of Commerce)

Your standard of living is being shredded.

“Real personal consumption expenditures increased 0.1 percent in the second quarter, comparedwith an increase of 2.1 percent in the first.” (source: US Dept. of Commerce)

Spending has effectively collapsed.

This puts into stark relief the reality of the government deficit spending – it is doing nothing more than covering up an economic Depression, and the so-called “exit plan” – that private consumption, investment and borrowing will “take the baton back” is not working.

Some analysts – those who are either in the tank for the government or are completely ignorant to the real facts – will claim that while the second quarter GDP is low, it’s still positive, which suggests there’s still growth.

As we have pointed out in several reports previously, this is simply not the case once you factor in price inflation and monetary easing:

Note that they have the CPI at 10%. If we use that to convert nominal GDP to actual GDP, then we get big negative economic growth. In other words, the reported GDP growth is just price increases.

Source: Global GDP Growth Numbers are Fictitious, Fail to Account For Inflation

If it wasn’t clear up until today, it should be now. Nothing the government tells us can be trusted. They will say anything and do anything to avoid panic. But despite their “best” efforts they cannot stop the inevitable. Rest assured, panic is coming.

TOPICS: Politics; Click to Add Topic
KEYWORDS: budget; cwii; debt; economy; gdp; government; growth; Click to Add Keyword


Fury

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Re: Misery Index: The Great Obama Depression
« Reply #380 on: July 29, 2011, 07:17:30 PM »
Will the liberal cries of "Bush's fault" drown out the hunger pains coming from the stomachs of tens of millions of starving Americans? I doubt it.  :-\

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Re: Misery Index: The Great Obama Depression
« Reply #381 on: July 29, 2011, 07:20:37 PM »
Will the liberal cries of "Bush's fault" drown out the hunger pains coming from the stomachs of tens of millions of starving Americans? I doubt it.  :-\

The problem is that we are living through bushs' third term.  The worst of bush got a jolt w Obama x 100.

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Re: Misery Index: The Great Obama Depression
« Reply #382 on: July 29, 2011, 07:22:19 PM »
The problem is that we are living through bushs' third term.  The worst of bush got a jolt w Obama x 100.

100 is a bit of an understatement. In 2.5 years Obama has knocked off over 2/3 of what Bush spent in 8 (and that's even factoring in the 2 years of profligate spending courtesy of Piglosi/Dingy Reid).

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Re: Misery Index: The Great Obama Depression
« Reply #383 on: July 30, 2011, 04:40:35 AM »
http://www.nytimes.com/2011/07/30/nyregion/new-york-moves-to-stop-foraging-in-citys-parks.html?_r=1&pagewanted=print


Ha ha ha.     Now people are foraging NYC parks for food animals and waterfowl.   


Trickle up poverty. 

Soul Crusher

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Re: Misery Index: The Great Obama Depression
« Reply #384 on: July 30, 2011, 11:46:37 AM »
Merck - 13,000 , HSBC - 10,000 , RIM - 2,000. Serious Layoff Problem
   
Advertisements [?]

 
Edited on Fri Jul-29-11 02:48 PM by OverDone
Source: WSJ

Merck reported a second-quarter profit increase in line with analysts’ expectations, affirmed its revenue guidance for the full year and said it would cut as many as 13,000 additional jobs by the end of 2015



Read more: http://blogs.wsj.com/health/2011/07/29/a-m-vitals-merck... /


Has anyone been paying attention, to the now serious unemployment problem we have here. Just recently we have had a huge up spike in listing. Here are some links below

http://www.dailyjobcuts.com


http://blogs.wsj.com/health/2011/07/29/a-m-vitals-merck... /
http://abcnews.go.com/Business/wireStory?id=14177984
http://finance.yahoo.com/news/HSBC-may-cut-more-than-10...


And theses are just some of the large ones.

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Re: Misery Index: The Great Obama Depression
« Reply #385 on: August 01, 2011, 03:48:16 AM »
Skip to comments.

Homeless hell in America's Midwest
http://www.dailymail.co.uk/news/article-2020265/Homeless-hell-Americas-Midwest-thousands-middle-class-families-forced-bunker-mattresses-economic-crisis-bites.html ^
Posted on August 1, 2011 6:24:31 AM EDT by kcvl

Thousands of middle-class U.S. families are being forced to sleep on floors in public buildings because so many have lost their homes and jobs in the economic crisis.

These shelters were once the preserve of drug addicts and alcoholics but now normal Americans are having to bed down in halls and corridors as they have no other place to go.

An investigation has also found many from the Midwest are spending their benefits to stay in motels for up to ten days a month to avoid having every night on mattresses surrounded by dozens of strangers. 

Experts say that these middle-class people are from 'the boom suburbs that have now gone bust'. 

(Excerpt) Read more at dailymail.co.uk ...

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Re: Misery Index: The Great Obama Depression
« Reply #386 on: August 01, 2011, 03:50:08 AM »
I thought poor homeless people were just leaches who dosnt want to work ???

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Re: Misery Index: The Great Obama Depression
« Reply #387 on: August 01, 2011, 05:09:21 AM »
HSBC Eliminating 30,000 Jobs
WSJ ^


HSBC announces plans to eliminate 30,000 jobs by 2013.

(Excerpt) Read more at wsj.com ...

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Re: Misery Index: The Great Obama Depression
« Reply #388 on: August 01, 2011, 07:30:10 AM »
HUGE MISS ON ISM: Manufacturing Index Collapses To 50.9 (DJIA Plunges)
TBI ^ | 8-1-2011 | Joe Weisenthal




HUGE MISS ON ISM: Manufacturing Index Collapses To 50.9

Joe Weisenthal
Aug. 1, 2011, 9:55 AM


The number: Huge miss. July ISM came in at just 50.9 vs. estimates of 54.5. It's also well below 55.3.

The prices paid index plunged from 68 to 59.0.

According to Bloomberg, it's the lowest since July 2009.

Stocks are in the red.

Bad news for the economy.

Original post: Given the run of weak data, this will be a closely-watched one..

July ISM (a survey of manufacturing) is expected to come in at 54.5 vs. 55.3 last month.

The "whisper" is probably lower.

Stocks are up, but have came way below earlier highs.

The number is out at 10:00 AM. We'll have it here LIVE.


(Excerpt) Read more at businessinsider.com ...


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Re: Misery Index: The Great Obama Depression
« Reply #389 on: August 01, 2011, 11:06:25 AM »
Source: Bloomberg



U.S. auto sales have stalled, casting doubt on a rebound this year as persistent unemployment and tighter lending deter buyers.

Light-vehicle deliveries in July, to be released tomorrow, may have run at an 11.8 million seasonally adjusted annual rate, the average estimate of 12 analysts surveyed by Bloomberg. That would trail the 12.5 million rate in the first half.

The auto industry may lose 1.5 million in projected sales in 2011, according to consultant AlixPartners LLP. The economy isn’t picking up as fast as anticipated, and the drag may continue beyond this year, AlixPartners said. That may put a return to average annual sales of 16.8 million vehicles from 2000 to 2007 out of reach. Unemployment reached the highest level this year in June.

“This curve of unemployment looks like it’s got a lot of legs,” Mark Wakefield, an AlixPartners director in Southfield, Michigan, said in a telephone interview. “This is one of the first recent cycles where demand is not going to go back above its prior peak, because there are just so many structural things that are different this time around.”

MORE...

Read more: http://www.bloomberg.com/news/2011-08-01/auto-sales-sta...

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Re: Misery Index: The Great Obama Depression
« Reply #390 on: August 02, 2011, 09:28:59 AM »
..Americans cut spending for first time in 20 months

By MARTIN CRUTSINGER - AP Economics Writer | AP – 45 mins ago


....tweet106ShareEmailPr int......Related Content.

...In this June 23, 2011 photo, Billy Garlin, left, a sales and leasing consultant at …

....WASHINGTON (AP) — Americans cut their spending in June for the first time in nearly two years after seeing their incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and barely growing.

Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009.

Some of the decline was the result of food and energy prices moderating after sharp increases earlier this year. When excluding spending on those items, consumer spending was flat.

Still, consumers also cut back on big-ticket items, such as cars and appliances, which help drive growth.

Incomes rose 0.1 percent, the smallest gain since September. Many people are also pocketing more of their paychecks. The personal savings rate rose to 5.4 percent of after-tax incomes, the highest level since August 2010.

The data confirmed last week's report that showed the economy expanded at an annual rate of just 1.3 percent in the spring after only 0.4 percent growth in the first three months of the year. It also highlighted that consumer spending softened at the end of the April-June quarter, which could mean the sluggish economy is worsening.

Stocks fell after the report was released. The Dow Jones industrial average dropped more than 100 points in morning trading. Broader indexes also declined.

"The recent run of weak economic news has made us more concerned that any rebound will be more modest than previously looked likely," said Paul Dales, senior U.S. economist at Capital Economics.

High gas prices and unemployment have squeezed household budgets this spring. Many Americans are cutting back on purchases of cars, furniture, appliances and electronics. Consumer spending is closely watched because it accounts for 70 percent of economic activity.

Employers have responded by reducing hiring. The economy added just 18,000 net jobs in June, the fewest in nine months. The unemployment rate rose to 9.2 percent, the highest level this year.

The government issues its July employment report on Friday.

Businesses are creating fewer jobs despite reporting strong earnings and sitting on large cash reserves.

"What worries me is that businesses are deriving their strong earnings growth through productivity gains, limited wage increases and foreign activities," said Joel Naroff of Naroff Economic Advisors. "While that may be good for an individual firm, when most companies do that, income gains become so limited that spending and ultimately growth fades. That is the problem we are now facing."

The biggest drop in spending occurred in such items as food and gasoline. Spending on such non-durable goods fell 5.5 percent, reflecting price declines after spikes early this year. An inflation gauge tied to consumer spending dropped 0.2 percent in June, the biggest one-month decline since September 2009. Outside of food and energy, prices were up 0.1 percent.

Still, spending on durable goods, such as autos, also fell in June 1.1 percent. One reason for the decline may be the shortage of popular car models in showrooms. Supply chain disruptions caused by the March earthquake in Japan have limited production of auto and electronic parts.

Many analysts are still hopeful that growth will rebound in the second half of the year. They expect auto production and sales to pick up once supply chain disruptions ease.

But the turnaround may not come for a while. Manufacturers had their weakest growth in two years in July, according to the Institute for Supply Management.

And gas prices remain high, even after coming down from their peak of nearly $4 a gallon in early May. The average price for a gallon was $3.70 on Tuesday — 14 cents higher than a month ago and almost a dollar more than the same month last year.

Some economists have begun to trim their forecasts for the second half of the year. Dales and his colleagues at Capital Economics have cut their outlook for second half growth to 2 percent, down from a previous forecast of 2.5 percent growth in the second half of this year.

..

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Re: Misery Index: The Great Obama Depression
« Reply #391 on: August 02, 2011, 11:58:30 AM »
Stocks drop as economic worries resurface (DJIA drops below 12K)
CNN Money ^ | 8/2/2011 | Ken Sweet




NEW YORK (CNNMoney) -- U.S. stocks declined sharply Tuesday, as another disappointing economic report did little to calm investors' fears over the pace of the recovery.

The Dow Jones industrial average (INDU) sank 151 points, or 1.3%; the S&P 500 (SPX) was down 19 points, or 1.5%; and the Nasdaq Composite (COMP) was down 38 points, or 0.8%.

The Dow is on pace for a eighth straight day of declines, the first since October 2008 -- when the financial system was in the depths of the 2008 crisis. The S&P 500 has broken through several key technical resistance points as well, including the index's closely-watched 200-day moving average.

Stocks were weighed down by a consumer spending report showing Americans continued to pull back in June. The Commerce Department said personal incomes edged up 0.1%, while spending slipped 0.2%. Economists were expecting income and spending to rise 0.1%.


(Excerpt) Read more at money.cnn.com ...

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Re: Misery Index: The Great Obama Depression
« Reply #392 on: August 02, 2011, 01:46:16 PM »
Dow Logs 8-Day Loss, S&P Negative for Year
Published: Tuesday, 2 Aug 2011 | 4:20 PM ET Text Size By: JeeYeon Park
CNBC.com Writer



Stocks sold off sharply to end at session lows Tuesday with the Dow down for an eighth day amid economic worries and even after President Obama signed a bill to avoid a debt default.


Major U.S. Indexes.DJIA11866.62-265.87-2.19%.NCOMP2669.24-75.37-2.75%0.SPX1254.05-32.89-2.56%0

The Dow Jones Industrial Average plunged 265.87 points, or 2.19 percent, to end below the psychologically-important 12,000 mark at 11,866.62. The last time the blue-chip index declined for eight-consecutive days was in October 2008.

All 30 Dow stocks ended lower, with Pfizer [PFE  18.14    -0.87  (-4.58%)   ] and GE [GE  17.21    -0.76  (-4.23%)   ] leading the biggest laggards.

The S&P 500 plummeted 32.89 points, or 2.56 percent, to close at 1,254.05, slipping into negative territory for the year. 

The tech-heavy Nasdaq tumbled 75.37 points, or 2.75 percent, to finish at 2,669.24. The S&P 500 and Nasdaq are both below their 200-day moving averages.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, gained above 24.

All 10 key S&P sectors tumbled, led by consumer discretionary and industrials.

Volume was better than usual with the consolidated tape of the NYSE at 5.1 billion shares, while 1.25 billion shares changed hands on the floor.


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Just hours before a deadline to avert a debt default, President Obama signed a bill that raises the $14.3 trillion debt ceiling and sets in motion a plan to reduce U.S. deficits over 10 years. Obama said the bill was a "first step" toward ensuring the U.S. lives within its means but that more was needed to rebuild the economy.

Meanwhile, rating agency Fitch said while the risk of a sovereign default is "extremely low," the government still has more work to do to maintain its credit rating.

“I’m not so sure that the debt deal is well received or if it’s what everyone wanted,” said Steven Carl, head equity trader at Williams Capital Group. “[Traders have] more of a macro view to see if anything happens overseas.”

In Europe, the spreads for Spanish and Italian 10-year bonds dropped, pushing yields up to a new record high amid worries that slowing economic growth will hamper efforts to tame the nations’ debt loads. 



"There's no way for [Spain and Italy] to sustain their debt," said Dave Rovelli, managing director of equity trading at Canaccord Genuity. "All the banks in Europe own each others' debt...It wasn't so bad when it was Greece and Portugal, but now you're getting Italy and Spain."

Industrials have tumbled in recent weeks amid worries over a slowing global economy, sending the sector into correction mode. Companies including GE [GE  17.21    -0.76  (-4.23%)   ], Deere [DE  76.82    -1.90  (-2.41%)   ], Ingersoll Rand [IR  35.22    -2.05  (-5.5%)   ] have sank almost 20 percent from their highs in April/May.

Gold surged above $1,645 an ounce—its ninth record high this year amid growing fears about the euro zone debt crisis in addition to the gloomy outlook for the U.S. economy. Gold miners were among the only sectors in the black led by firms including Newmont Mining [NEM  56.13    0.80  (+1.45%)   ] and Anglogold [AU  43.29    1.02  (+2.41%)   ].

Wal-Mart [WMT  51.68    -0.94  (-1.79%)   ] declined after Jefferies cut its rating on the big-box retailer to "hold" from "buy."

Poll: Are You Buying Walmart Amid Downgrades?
Meanwhile, automakers including Ford [F  11.85    -0.50  (-4.05%)   ] and GM [GM  27.05    -1.02  (-3.63%)   ] posted July sales in line with expectations. Meanwhile, Toyota [TM  81.29    -0.48  (-0.59%)   ] sales plunged 23 percent, as the Japanese automaker struggles to recover after the earthquake. Toyota also posted its first earnings loss in two years as production was hammered.

Also among earnings, Pfizer [PFE  18.14    -0.87  (-4.58%)   ] reported profit and sales that edged expectations, but were still lower due to generic competition.

Archer Daniels Midland [ADM  28.60    -1.88  (-6.17%)   ] slipped after the agricultural processor said earnings declined as a sharp jump in income tax expenses dragged on results.

Coach [COH  61.03    -4.26  (-6.52%)   ] tumbled after the handbag maker said margins declined. Meanwhile, Jefferies raised its price target on the firm to $60 from $54.

Ctrip.com [CTRP  40.06    -4.92  (-10.94%)   ] plunged to lead the Nasdaq 100 laggards after the Chinese travel agency reported lighter-than-expected revenue, while profit came in line with estimates.

CBS [CBS  26.28    -1.00  (-3.67%)   ] is expected to report earnings after-the-bell. Evercore Partners boosted its price target to $31 from $28.

Among European banks, Barclays [BCS  14.02    -0.33  (-2.3%)   ] slipped after the bank said profits fell and announced it is cutting about 3,000 jobs this year. This comes after HSBC  [HBC  49.30    -0.36  (-0.72%)   ] also said it would be cutting up to 30,000 jobs worldwide.

On the economic front, consumer spending unexpectedly slid in June to post the first decline since September 2009, according to the Commerce Department, suggesting growth could remain tepid in the third quarter. The disappointing news follows a weak manufacturing report in the previous session.

The government's key monthly jobs report for July is expected Friday and will be closely watched by investors.

European shares hit their lowest close in 11 months amid concerns over weak global growth and concerns over the euro zone debt crisis.

Coming Up This Week:

WEDNESDAY: Weekly mortgage apps, Challenger job-cut report, ADP employment report, factory orders, ISM non-mfg index, oil inventories; Earnings from Comcast, MasterCard

THURSDAY: Weekly jobless claims, money supply, chain-store sales; Earnings from GM, AIG, Kraft, Sunoco
FRIDAY: Employment situation, consumer credit; Earnings from P&G


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Re: Misery Index: The Great Obama Depression
« Reply #393 on: August 03, 2011, 05:51:24 AM »
"Sudden And Unexpected" Burst Of Downsizing Causes Layoffs To Explode Nearly 60% In July
TBI ^ | Joe Weisenthal




"Sudden And Unexpected" Burst Of Downsizing Causes Layoffs To Explode Nearly 60% In July

Joe Weisenthal
Aug. 3, 2011, 7:32 AM

July was a HUGE month for layoffs according to a survey from Challenger.

The announcement is here:

A sudden and unexpected burst in private-sector downsizing pushed the number of announced job cuts to a 16-month high of 66,414 in July, according the latest report on downsizing activity released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The 66,414 job cuts last month were up 60 percent from the previous month, when employers announced plans to shed 41,432 workers. The July figure was 59 percent higher than the 41,676 layoffs recorded in July 2010. It was the largest monthly total since March 2010, when 67,611 job cuts were announced by the nation’s employers.

The July job-cut surge was dominated by a flurry of large layoffs by a handful of private-sector employers, including Merck & Co., Borders, Cisco Systems, Lockheed Martin and Boston Scientific. The job cuts from these five companies alone accounted for 38,100 or 57 percent of the July total.

Here's a look at month-by-month totals:




Next up: The ADP report comes out at 8:15.


(Excerpt) Read more at businessinsider.com ...


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Re: Misery Index: The Great Obama Depression
« Reply #394 on: August 03, 2011, 07:52:10 AM »
Job Cuts Surge 59% In July 2011, Highest Since March 2010 As Hiring Intentions Plunge
Zero Hedge ^ | 08/03/2011 | Tyler Durden


Wednesday, August 03, 2011 10:51:36 AM



Those looking for an optimistic early look of this Friday's NFP (nobody cares about the ADP any longer) should probably avoid the Challenger lay off data just released. As Bloomberg summarizes, U.S. planned firings up 59% Y/y in July to 66,414, led by pharma, retail; largest number in 16 months. The number includes Merck’s plan to cut ~13k jobs. This 3rd consecutive increase; “seems to provide additional evidence” recovery has stalled, according to CEO John A. Challenger. New Jersey (where MRK is based) led states, with 13,330 cuts, followed by Michigan. Employers also announced plans to hire 10,706 after prior month’s 15,498: this is just barely better than the lowest number this year printed in May when just 10,248 businesses announced intention to hire, and well off the 72,581 highs in February. Bottom line: subzero NFP print coming?


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Re: Misery Index: The Great Obama Depression
« Reply #395 on: August 03, 2011, 10:19:50 AM »
Forget Recession, Think Depression
Townhall.com ^ | August 3, 2011 | Bill Tatro




I’m not sure how the math works, and once again it seems I’m lost in political definitions.

No, I’m not talking about raising the debt ceiling by $10 trillion over ten years, reducing it to $7 trillion (maybe?), and then having a kumbaya moment about responsibility.

Rather, I’m referring to Sir Isaac Newton’s laws regarding a body in motion remaining in motion unless acted upon by an external force.

I’ve talked to businessmen, laborers, housewives, and even teenagers, and they all say the same thing about our current economy.

“I sure hope it gets better soon, but it really looks like things are only getting worse.”

These words are also being echoed by statisticians who measure such things. The most recent ISM report shows that manufacturing has come to a standstill, thus discarding the term “soft patch” in favor of the newest global buzzwords: “global slowdown.”

Housing, as represented by Case-Shiller, continues its decline to what seems to be a bottomless pit. Unemployment continues to accelerate as the next rounds of layoffs, from Cisco to HSBC, are announced with no relief in sight.

The European Union is imploding as CDS spreads tell the tale of a strategy in crisis. Finally, the charade in Washington, D.C. …well, enough said. Everything seems to be getting worse, and the facts bear this conclusion.

Let’s examine the trend, in Newton’s law.

Third quarter 2010 GDP revised downward from 2.6% to 2.5%. Fourth quarter 2010 GDP changed from 3.1% to 2.3%, and first quarter 2011 GDP adjusted from 1.9% to 0.4%.

So the revised numbers show that each quarter was worse than the last, now a body in slower motion.

However, what confuses me is the most recent 2011 GDP report for the second quarter, which was reported at 1.3%.

While most economists were shocked, exclaiming this was a very low number, I was shocked it was that high.

What could have happened to make the GDP 225% better in the second quarter than in the first quarter of this year? Absolutely nothing, and that’s where revision comes into play over the next several months.

Look for the second quarter of 2011 to be revised down, down, down. If not ultimately adjusted to a negative number, it will be very close. This sets the stage for a collapsing third and fourth quarter of this year.

Everyone is worried about the double-dip, and some even think recession. If we only get away with a recession, we’ll be lucky.

I, think Newton has it right.

This “body” (economy) has much more painful “motion” in its future before we ever see improvement.

Recession can be followed by depression, and I believe a depression is inevitable.


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Re: Misery Index: The Great Obama Depression
« Reply #396 on: August 03, 2011, 10:23:44 AM »
US Less Than 3 Years Away From Being Greece: Walker
CNBC ^ | 8/2/11 | Jeff Cox




The US is only a few years away from reaching the same debt levels that pushed Greece to the brink of ruin, former comptroller general and head of the Comeback America Initiative David Walker said.

As the ratio of its debt to gross national product eclipsed 100 percent and surged toward 150 percent, Greece has twice in the last two years nearly defaulted on its debt. Only successive bailout packages from the European Union and International Monetary Fund prevented catastrophe


(Excerpt) Read more at cnbc.com ...

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Re: Misery Index: The Great Obama Depression
« Reply #397 on: August 03, 2011, 10:41:26 AM »
Unemployment rose in nearly all US cities
AP via Yahoo! News ^ | August 3, 2011




WASHINGTON (AP) -- Unemployment rose in more than 90 percent of U.S. cities in June, mirroring a national slowdown in hiring.

The Labor Department says the unemployment rate rose in 345 large metro areas. It dropped in 20 cities and was unchanged in seven. That's worse than May, when the rate rose in only 210 cities and a sharp reversal from April, when unemployment actually fell in nearly all metro areas.


(Excerpt) Read more at finance.yahoo.com ...


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Re: Misery Index: The Great Obama Depression
« Reply #398 on: August 03, 2011, 03:45:48 PM »
Analysis: Obama, Bernanke out of ammo to boost jobs, growth

U.S. avoids default but fails to dispel economy fears

Tue, Aug 2 2011Analysis & OpinionDebt deal puts off tax decisions for another day



 President Barack Obama meets with Chairman of the Federal Reserve Ben Bernanke in the Oval Office of the White House in Washington, June 29, 2010.

Credit: Reuters/Larry Downing

By Alister Bull and Jonathan Spicer

WASHINGTON/NEW YORK | Wed Aug 3, 2011 5:07pm EDT

WASHINGTON/NEW YORK (Reuters) - The United States has a jobs problem and there's not a lot President Barack Obama or Federal Reserve Chairman Ben Bernanke can do about it.

In the face of rising risks of a recession that could imperil his re-election chances next year, Democrat Obama wants Congress to extend a payroll tax cut and emergency unemployment benefits that are due to expire in December.

But the Republican-controlled House of Representatives is emboldened by budget concessions it made Obama swallow to lift the country's debt limit this week and he has little political leverage to win significant fresh spending to aid growth.

"Obama does not have much presidential persuasion left. He is running out of capital," said James Thurber, of American University's Center for Congressional and Presidential Studies.

Obama's political opponents have been openly scornful of the impact of two previous stimulus packages, which were accompanied by extraordinary measures by the Federal Reserve to kick-start the U.S. economy.

"It seems we've thrown everything at it. We've had QE1 and QE2, Stimulus 1 and Stimulus 2, and the unemployment rate is still 9.2 percent," said John Makin, an economist at the American Enterprise Institute in Washington. "Maybe there are just not many options here at this point," he said.

World stock markets shuddered after disappointing U.S. growth and manufacturing numbers and investors rushed to buy long-dated U.S. Treasury bonds in a move that suggests deep concerns about the economic outlook.

Data on Friday is expected to confirm the U.S. unemployment rate remained stuck at 9.2 percent in July.

Lawrence Summers, a top Obama adviser until last year, wrote in a Reuters column on Tuesday the odds of another U.S. recession were 1 in 3. Goldman Sachs has said a slight tick up in the unemployment rate could provide a strong recession signal.

HARD-WON COMPROMISE

Obama signed a hard-won compromise on Tuesday to raise the $14.3 trillion U.S. debt limit in return for measures that will reduce deficits by at least $2.1 trillion over 10 years.

Joel Prakken of the forecasting firm Macroeconomic Advisers estimates an extension of the payroll tax cut could add about 0.25 percentage points to U.S. growth next year.

Republicans fought hard to cut spending but are open to tax cuts, and the White House expects bipartisan support when Obama advances the idea in the coming months.

But analysts are skeptical it will make much difference for an economy that is having trouble gaining traction.

"A major option is extending the payroll tax cut. We did that in December, and the economy grew at a 0.6 percent annual rate over the first half of the year," said Makin.

But the economic benefit of extending the payroll tax cut will be curbed by the government spending cuts agreed to Obama, and a weak economy will make hitting deficit-reduction targets that much more difficult.

JPMorgan's Michael Feroli estimates fiscal policy will subtract about 1-3/4 percentage points from growth next year as spending cuts kick in, if the earlier payroll tax cut and unemployment insurance extensions expire on schedule.

"Given that GDP growth has been 1.6 percent over the past four quarters when fiscal policy has been much less of a drag, this doesn't bode well for next year," he said.

JPMorgan has cut its first half 2012 growth forecast to 2 percent from 2.5 pct due to fiscal drag.

Bernanke also seems to have few options at his disposal.

The Fed is not expected to announce an extension of its so-called quantitative easing, or QE, measures to stimulate economic activity at a policy meeting on Tuesday, despite the sense of gloom descending on the economy.

If push comes to shove, the Fed would likely look to cement its promise of keeping in place a loose monetary policy for a long period. It might even consider shifting the composition of its Treasury note holdings toward longer maturities, an option Bernanke has raised as a way to give the economy some relief.

"Someone should do something. Given that the Congress has declared itself unwilling to provide support for the economy, the Fed will feel pressure to try to do what it can," said Barry Eichengreen, an economics professor at the University of California, Berkeley.

NO GAME-CHANGER

However, the Fed's options hardly add up to a game-changing play to dramatically improve the U.S. outlook.

"Everyone is really looking to the Fed to support the economy, and I think (Bernanke) would realize that you could only do so much with monetary policy," said Mike Knebel at Portland, Oregon-based Ferguson Wellman Capital Management.

The Fed's scope for more easing of monetary policy has been narrowed by a rise in core inflation, which bottomed at 0.9 percent in December but has since hit 1.3 percent.

As Obama signed the debt deal, which averted a devastating default and reduced the risk to the country's AAA credit rating, he promised more ideas to boost hiring soon.

The White House declined to say what he had in mind or when he would lay out suggestions. But Treasury Secretary Timothy Geithner said in an opinion piece in the Washington Post that Congress could make space to fund a payroll tax cut extension by "locking in" long-term budget savings.

With lawmakers out of town for a summer recess, no major initiative is likely before September, although Obama does plan a Midwestern bus tour from August 15 to August 17 to talk up jobs.

When it comes, the odds favor small steps that allow Obama to show he is taking action, without disturbing investors.

"There is a good case to be made for additional stimulus, but given our fiscal situation it has to be targeted to create more jobs," said Karen Dynan, a scholar at the Brookings Institution in Washington.

(Additional reporting by Ann Saphir in Chicago and Tim Reid in Washington; Writing by Alister Bull; editing by Vicki Allen and Christopher Wilson)


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Re: Misery Index: The Great Obama Depression
« Reply #399 on: August 04, 2011, 05:57:40 AM »
Unemployment aid applications tick down to 400K
AP ^ | August 4, 2011 | Christopher S. Rugaber





WASHINGTON (AP) -- The number of people seeking unemployment benefits dipped last week, a sign the job market may be improving slowly.

The Labor Department says that applications for unemployment benefits edged down 1,000 to a seasonally adjusted 400,000. That's the lowest level in four months. The previous week's figure was revised upward from 398,000 to 401,000.

(Excerpt) Read more at hosted.ap.org ...