Wednesday Open Thread
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14 comments:
The laughing at great cost to my posterior continues unabated...
Gasoline was up another nickel yesterday, which puts it up $.20 in one week - since election day.
The only news I hear about gasoline relates to the absolute bogus inflation numbers the government released yesterday, which had everyone in a lather.
According to the Institute of Economic Reality, a one-man Kitsap based thinktank, the PHI (Poulsbo Hydrocarbon Index) is up 8.77% in one week, which is 456% annualized.
At this rate, $3.00 gas should be back by the first week of December.
Stay tuned for further developments.
When I heard yesterday's inflation numbers discussed, it was how the CORE rate (energy and food) were down big time.
The biggest contributer to the declining prices was the temporary cratering of oil prices.
On the way up, oil and food were stripped out of the calculus, thus hiding the grotesque inflation that everyone can see with their own two eyes.
I don't buy any gov't econ number. They are political, not realistic.
Click here for more info.
I'm not saying the housing ATM isn't weighing on the consumer - it obviously is.
I'm just saying the gov't inflation numbers are a joke - just like their unemployment numbers.
There is no goldilocks.
Asssuming that supply stays constant, or does not decline in step, prices will decline.
Econ 102: What happens when the FED prints money in a reckless manner within a declining economy?
State's jobless rate dives in October; payrolls swell
Washington state's two main employment gauges did something in October they haven't done for several months: move in sync, painting a relatively unambiguous picture of a healthy job market.
The state's unemployment rate dropped half a percentage point, to 4.8 percent, and nonfarm payrolls rose by 10,700 jobs. Both figures, adjusted to account for seasonal variations in the job market, indicate a strong, stable economy.
Payroll gains were widespread through most industrial categories. The aircraft industry gained 700 jobs in October to lead the manufacturing sector.
Retailers added 2,200 jobs as they geared up for holiday shoppers, led by food and beverage stores, clothiers and home-and-garden stores.
Construction added 1,500 jobs, despite concerns the slowing housing market would weaken what has been a key jobs engine. But real estate and rental leasing lost 100 jobs, one of the few weak spots in October's report.
What is it going to take for people to hit the exits?
The day after I capitulate...
synthetik,
Agreed. I have been trying to figure out what is going on with this market for a while now and it has left me speechless. I thought Bernake was supposed to be extremely inflation wary but yet he has been holding rates steady. The FED is losing credibility IMHO.
Something has got to give..... Soon.
Cost of production is rising and productivity is decreasing.
The last I heard, about a month ago, the opposite was the case. Where did Peter get that tidbit?
ECON 102: The FED's hands may be tied from here on out. Since housing prices have recently had an unprecedented run-up, due in no small part to the credit expansion, any drastic tightening of the money supply could cause major damage in housing. The Fed is already wringing its hands over the housing slump.
If stagflation gets a foothold, some pretty creative monetary policy will be needed to prop everything up.
Pugethouse,
I agree. However, creative monetary policy is what put is in this position.
It would have been easier to just let the '98/99 recession to occur. No tech bubble, no housing bubble, no credit bubble.
We would have likely been much better off.
Interesting: 6,500 of the 10,700 jobs added in October were either in "local government," "food and beverage stores," or "specialty-trade contractors" (granite countertop installers?)
What a vibrant and robust economy we have....
Meshugy is a troll. He cherry picks data from articles and then never responds when called out.
Peter,
Thanks for propping me up in my laziness. I wasn't surprized to see that productivity gains have stagnated, but I doubt they will be going down. There are too many ceo's out there looking for recognition by throwing out support staff and cutting services (a' la McGavick).
In any case, I'm more-or-less in the same camp as redmondjp on the interpretation. Recent productivity gains have the rather nasty smell of gutted pensions and 3rd-world outsourcing. I can't say I find anything positive about increased productivity. In the US, our only successful manufacturing bases are prescription drugs and pesticides banned in other countries.
It would have been easier to just let the '98/99 recession to occur. No tech bubble, no housing bubble, no credit bubble.
We would have likely been much better off.
I'm not sure I agree. The rats may have all run to commodities and utilities, instead of housing. One Enron is enough, thanks. Unemployment would likely be much higher with entreprenieurial investment crippled.
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