I watch the unemployment weekly status report every Thursday at 8:30 AM, because it provides a very good indication of current economic conditions. But, this morning I was tied up doing something else, so I missed it. Sometime later, I clicked on my TV and noticed that all three stock markets were rising rapidly by significant amounts, and naturally assumed that employment must have risen sharply.
A little while later, I finally saw the actual data and was surprised to see that not only had the number of unemployed actually gone up, the rolling average for the past period was higher, as well. In all, exactly the opposite of what I'd expected.
Somewhat confused, I tuned in to a business station and listened to several experts opinions on the market rise. The consensus of these pundits was that high unemployment was not only not a disappointment, it was very much expected. It was also assumed by them that the debt debate would continue and that there was no way, except by some mistake, that Congress and the White House would ever correct the situation intelligently. That's because they believe most, if not all, politicians are truly stupid.
Consequently, major investors and business operators will continue to horde cash, refuse to expand in the United States, and do everything they can to prevent government from ripping them off any further than absolutely necessary. Aside from that, however, they are buying stock at the moment because they believe many securities are under-priced, particularly those of entities who do significant business overseas, especially in China.
In conclusion, the consensus was that businesses and markets will continue to correct themselves, despite government's continual intervention and that, in time, all will work out well for commercial enterprises. So, I guess what it all boils down to is something I keep writing about. As every day goes by, government means less and less to those who produce, and the times getting ever closer to when politicos will wind up broke and talking only to themselves.
That's it for today folks.
Adios
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