Quote:
Originally Posted by davew
I may not be an economist, but isn't it harder to have monthly job creation when 4% unemployment than 10% unemployment? or is there no correlation at all?
|
yeah, well I am. Not a cop, fireman or work with horses. Actually went to college and got the degree. Not a "political person" either, straight facts. Heres the thing. When its full employment and growth is slowing......wages must rise. That's part of the "pessimism" on next year. You gotta have 3% growth just to keep up with the money this govt pisses away. And the job market will demand higher wages. That lowers corporate profits. Mike is also right, the data is way more important then what political clowns spout. There are already some crying to print more money with these bogus interest rates and trade wars there could eventually be a bout of inflation. If wages stay stagnant like they have for decades that just adds to the growth problem. Wages will rise some.
There are already several billionaire investors that are way better than I am saying the market could take a 20% hit and one that says this "debt Bubble" could be the worst recession in his lifetime...hes 76 years old. Its not Obamas fault or Trumps fault...its the way its the way the Fed and the Govt have been doing things for years. Things get built up bigger or longer than they should be...then the dam bursts. Although Trumps tariff deals just make the situation worse. The minute he tweeted hes the "Tariff Man" the market responded. They don't want it. Our trade deficit just jumped to a 10 year high. So, he, and all the political clowns that say, "Business Man gonna fix the trade deficit with tariffs"......are full of crap. That was disproved like 300 years ago. We were the first country that went full bore with somewhat open markets and have reaped the benefits.
Right now, the folks on top are looking at, growth slowing, wages rising and the interest on the debt ballooning. Not a bright year ahead, maybe. Cause its a little like the weather. The way the economy is firing with all the activity and employment maybe growth will just slow a little bit. Then all of this will be kicked down the road for a while. But every thing in my gut, from the way I've observed and learned over the years. Tells me that the status quo of debt, printing and winging it to get by, will be paid for heavily some day. To make it simple.....you give your kid a credit card with an unlimited spending cap. How does that not get ugly some day?
Like every drop before. It crashes or recedes. Regular folk lose jobs. Unemployment expands exponentially. Demand falls through the floor and it takes years to recover. People don't want facts.....the facts and reality are scary. They almost would rather deny it. That's sort of what this Democrat vs. Republican crap is all about. Both sides have been pissing a trillion a year away.....a freaking trillion! Even when times were good! There will be a day of recompense! History has proved many a time that you cant print money your problems away!
