The insanity continues. A few days ago...
Dave over at the Golden Truth had mentioned that some very big, national retailers were shutting down and closing stores. Today I found this article on Yahoo. http://finance.yahoo.com/news/eight-retailers-that-will-close-the-most-stores-173320796.html?page=1
So just how many more people will become unemployed as a result of this? It's hard to tell for sure but...
This is how the new math works.
These eight chains will report higher earnings as a result of leaning out their structures. Quarterly results are bound to improve. Another 200,000 workers will be unemployed, paying substantially lower taxes, and receiving unemployment. This of course is all bullish for the stock market.
Decades ago, it was pretty much understood that employment had always been a lagging economic indicator. Markets predicted future economic health and as businesses expanded their operations, employment picked up and eventually peaked at the top of the business cycle. That is no longer true.
Employment gains have been part time, poorly paid, with no benefits. This of course is good for corporate interests because they don't have to pay employees squat.
Last night I was giggling as I watched a Kyle Bass interview. He compared our stock market to Zimbabwe. Zimbabwe's market has been the best performing market of the decade. Trouble is, a giant portfolio in Zimbabwe is worth about 3 hard boiled eggs anywhere else. They've had a tough time hiding their inflation, perhaps they should have consulted the professionals in America. Expect Dow 15,000 by July.