Stock gains don’t make up for continued sluggishness in economy, job market
The Dow Jones Industrial Average today briefly touched the 14000 mark, before falling slightly. As I write, it’s hovering right around that level, the first time it’s done so since late 2007. The broader S&P 500 is at a five-year high, about 3 percent off its all-time peak in October 2007. The Nasdaq is at a 10-year high, though it’s significantly lower than its tech-bubble peak. In all, though, these major indices finally are back to roughly where they were before the housing crash and Great Recession (as long as we don’t adjust them for inflation, that is).
Yet, earlier today, the Bureau of Labor Statistics announced the unemployment rate had ticked upward to 7.9 percent even though more people had stopped looking for work than found a job. At January’s rate of job growth (157,000 net jobs created), it would take until at least 2025 to regain pre-recession employment levels. At the rate for all of 2012 (an upwardly revised 181,000), it would take “only” until 2022, a decade and a half after employment peaked.
And yesterday, the Commerce Department said the economy shrank in the fourth quarter of 2012, the first negative quarter since mid-2009. The economy is an estimated 14 percent smaller than it would have been if it had grown since 2008 at the long-term average of 3.1 percent a year. That’s some $2.25 trillion of economic production that never came into existence.
The reason for continued market advances in the face of sluggish economic news might be summarized by this quote from the Wall Street Journal:
“Any not-bad news is helping this market,” said Jonathan Corpina, senior managing partner at Meridian Equity Partners, a New York brokerage. “If we get great news, good news, or okay news, it’s still going to make our screens green.”
“Not-bad” is not exactly indicative of a boom. If this quarter were to repeat last quarter’s performance, the above numbers are where the Obama Recovery would have left us: barely back to zero for investors, still well below it for job-seekers and economic growth.
This is the reality wrought by the primary economic policy of the past four years — trying to jump-start the private sector via government spending and monetary expansion. All the spending and expansion hasn’t translated into robust private-sector growth. Four years later, there’s little reason to believe a boom is just around the corner.
– By Kyle Wingfield
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557 comments Add your comment
indigo
February 2nd, 2013
3:08 pm
Rafe – 2:03
I found your favorite website.
http://www.wnd.com/2011/10/355409/
md
February 2nd, 2013
3:29 pm
“Krugman wrote of “a whole intellectual industry, mainly operating out of right-wing think tanks, devoted to propagating the idea that FDR actually made the Depression worse….”
Thanks for the chuckle……if one can’t see the irony in that little tid bit…..
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
4:18 pm
JDW: It was the part where Duhbya just sorta kinda forgot to arrange funding that was and remains the problem…
———-
Medicare part D is just as “funded” as Obozo’s failed stimulus.
Why hasn’t your messiah done anything to fix it? Hell, he made it more expensive than it was under Bush.
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
4:21 pm
Yeah, FDR was so brave, taking us to war after Pearl Harbor. That was totally unexpected. Can I get a “duh”? Ranks right up there with Obozo’s brave decision to actually take out Osama once we knew where he was.
CC
February 2nd, 2013
4:36 pm
LBB:
Must you use the words “brave” and “Obozo” in the same sentence even sarcastically?
Aesop's Fables and other Lib Economic Theories
February 2nd, 2013
4:41 pm
So why hasn’t Menendez resigned or been forced out yet? Why isn’t the lamestream media 24/7, like they would do with some Repug pervert? Do they condone sex trade slavery with 14 year old girls? Or does the losing of a Senate seat cause them to overlook the sexual abuse of children?
Sick, sick, sick. But what else do we expect from them?
Michael H. Smith
February 2nd, 2013
4:51 pm
Ah Marxist MarkV, (Mr. income equality) is in a tizzy AGAIN cause his quest to push social democracy upon us is being shown for what it is. Oh and Mr. income equality can’t stand someone else making a copy and paste to this blog. That is not your exclusive right Mr. income equality!
We conservatives know exactly what you Marxists mean by redistribution and as this article points out the flaw a.k.a. the boogieman a.k.a. “the evil” that more times than not produces less wealth not more, which it causes via confiscation and redistribution in the name of achieving social justice and income equality.
Whine on MarkV, the same GREED you Marxists claim to abhor as the unfair monster of capitalism is the same exact boogieman that shall forever be the fallacy of redistribution – from each according to their ability, to each according to their need. Whether applied in developed or developing countries.
Oh and get use to me posting anything I want within Kyle’s acceptance. This blog is not your property to redistribute, yet comrade.
Michael H. Smith
February 2nd, 2013
5:12 pm
Don’t you love these democrat Socialist economists who whole heartedly believe that government is the spender of last resort?
Government produces nothing of real value and can only confiscate future wealth to spend in the last resort. As Thomas Sowell pointed out in the snippet I posted, when that happens people produce less wealth or none at all, until the entire economy collapses.
Without the right to retain the greater portion of ones wealth that they acquire through individual liberty in the pursuit of their economic happiness they have every GREEDY reason not to produce a single red copper for confiscation and redistribution.
MarkV
February 2nd, 2013
5:23 pm
Michael H. Smith @ 4:51 pm
Here we go again. MHS with his stupid name-calling, his inane accusations of “pushing social democracy,” his total lack of rational thought (“Mr. income equality can’t stand someone else making a copy and paste to this blog” – can anybody surpass this idiocy?). MHS gets reliably outraged when anybody points out the stupidity of his writing. What he cannot do is to produce an argument that would suggest a functioning brain.
And one last point, MHS: Since it is the communists, Marxists and socialists who call the others “comrade,” you are putting yourself in their ranks.
Rafe Hollister preparing for an Obamanist America
February 2nd, 2013
5:30 pm
indigo
Thanks for the link. Good article about Government tyranny, surprise. Don’t go there much, occasionally, WND is kinda like CBS for the right wing. Not quite as far out there as MSN-BS, but on the fringe. I just noticed that Star Parker’s column is a regular post there, so I’ll be going back more frequently to see what Ms Parker’s take on things are, she has a unique perspective being a conservative black female.
CC
February 2nd, 2013
5:48 pm
Rafe:
“conservative black female”
Now, you know those three words don’t go together, don’t you?
indigo
February 2nd, 2013
6:04 pm
Barry – 4:21
FDR could have caved in and negotiated an appeasment settlement with the Japaneese. He then could have cut an appeasment deal, like Chamberlan, with Hitler.
Obama took a big risk ordering our Seals to take out Obama. If Pakistan had known we were comming, it would have been very messy and much American blood would have spilled.
Try to get your facts from sources other than Rush, The NRA, Republicans and your fundamentalist pastor.
Rafe Hollister preparing for an Obamanist America
February 2nd, 2013
6:09 pm
CC
She got smart! From welfare mom to self sufficient, responsible, contributing member of society. The antithesis of Julia.
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
6:23 pm
indigo: Obama took a big risk ordering our Seals to take out Obama.
——————–
A big risk for who? Chickenhawk Obozo? They had to pull him off the golf course and sit him in the corner so he could watch what the adults were doing.
Hopeful
February 2nd, 2013
6:28 pm
I put stock in this guy and he ended up being not cool
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
6:34 pm
indigo: “Try to get your facts from sources other than…”
——————–
Progs apparently don’t understand the definition of the word “facts”.
indigo: Another unfortunate victim of public schooling.
CC
February 2nd, 2013
6:46 pm
Rafe:
What I meant was that libs/dims/progs believe if they are conservative, they aren’t black! They haven’t stayed on the plantation and are Aunt Toms! To the libs, to be black is to remain dependent, allow the libs to think for you and redistribute other people’s money to you. They are not allowed to become independent thinkers, achieve and prosper.
Rafe Hollister preparing for an Obamanist America
February 2nd, 2013
6:52 pm
CC
I know what you are saying, for conservatives she is a role model for girls, for libs she is a sell-out.
Rafe Hollister preparing for an Obamanist America
February 2nd, 2013
6:53 pm
CC
But, I like her, and don’t give a rat’s rear end what anyone else thinks about her observations.
indigo
February 2nd, 2013
7:04 pm
Barry
Carter launched a rescue mission during the Iran hostage crisis. It failed miserabely and was a definite factor in his being one term.
The same thing could have happened during the Bin Laden mission. If it had, I doubt that Obama would have been re-elected.
Understand? Or do I have to draw you a picture?
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
7:06 pm
How very brave of Obozo–he put politics on the line while our SEALS put their lives on the line. Yep, he’s just like the SEALs. Not.
indigo
February 2nd, 2013
8:27 pm
Barry
Did you expect Obama to personally lead the mission?
Your mindless charges show cons won’t give Obama credit for anything.
Politico
February 2nd, 2013
9:18 pm
Lil Barry calling someone a chicken hawk
Oh the irony
CC
February 2nd, 2013
9:35 pm
Indigo:
“Your mindless charges show cons won’t give Obama credit for anything.”
China still gives him credit . . . at the expense of our children, grandchildren and great-grandchildren.
@@
February 2nd, 2013
9:56 pm
Obama took a big risk ordering our Seals to take out Obama. If Pakistan had known we were comming, it would have been very messy and much American blood would have spilled.
He invaded a sovereign country is what he did.
When Bush did it, he was threatened with impeachment and called a war criminal by the anti-war left.
In the mind of a left-winger, Bush could do no right and Obama can do no wrong.
Weird.
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
10:00 pm
indigo: Did you expect Obama to personally lead the mission?
——–
No, Einstein, I was mocking your assertion of Obozo’s incredible bravery for having done the obvious. You really did go to public schools, didn’t you?
Lil' Barry Bailout - OBAMAPHONE!!!
February 2nd, 2013
10:04 pm
Surely Obozo should be awarded his Junior SEAL pin. He can put it next to his Nobel–another of his awards for having done nothing.
indigo
February 3rd, 2013
8:14 am
Barry – 10:04 “you reall did go to public schools, didn’t your”
Yes.
And your inane posts here show you really are a Christian Academy homeschooler.
indigo
February 3rd, 2013
8:18 am
@@ -9:56
The raid into Pakistan took about one hour. Only Bin Laden and a few others in his household were killed.
The raid into Iraq kept our troops there for over EIGHT years. Thousands and thousands of people were killed.
By calling Pakistan and Iraq equal, you give a whole new definition to the word “wierd”.
But then, you are a wierdo.
bluecoat
February 3rd, 2013
8:22 am
Again today most post from one (election lost, hurt crying little brat who did not get his way) poor baby.
Johnny boy says
February 3rd, 2013
8:26 am
To most of the comments and the authors of them:
STOP IT, STOP IT !
iS LIFE TREATING YOU SO BAD THAT ALL YOU CAN DO IS WHINE ?
Now, listen up. This is the day that the Lord has made, let us rejoice and
Johnny boy says
February 3rd, 2013
8:26 am
be GLAD IN IT !!!!
bluecoat
February 3rd, 2013
8:35 am
John Boy do your shouting in church.Snake handling too.
@@
February 3rd, 2013
9:09 am
indigo:
Technically speaking, Obama violated international law, not that I have a problem with what he did, but the fact remains….
An observation, nothing more. There are no limits to the left’s hypocrisy. I’m amused by it is all.
@@
February 3rd, 2013
9:17 am
indigo:
We went into Afghanistan to get Bin Laden….why are we still there?
Jes wundrin’.
schnirt
Steve
February 3rd, 2013
9:40 am
Whenever I read these threads I hope that most of you stay on your meds and your caretaker keeps you locked inside your homes.
Lil' Barry Bailout - OBAMAPHONE!!!
February 3rd, 2013
9:51 am
bluecoat: Again today most post from one (election lost, hurt crying little brat who did not get his way) poor baby.
—————————–
What did indigo ever do to you, bluecoat?
indigo
February 3rd, 2013
10:16 am
@@ – “why are we still there”
That’s a darn good question.
I wish I had a darn good answer.
If it had been up to me, we NEVER would have gone into either Iraq or Afghanistan.
Oh, well. The Military-Industrial-Complex must maintain it’s profits.
Rafe Hollister preparing for an Obamanist America
February 3rd, 2013
10:20 am
Steve, how do you like this set of judges on American Idol?
indigo
February 3rd, 2013
10:58 am
According to today’s paper, American Business is pushing the Govt. to allow up to 300,000 skilled immigrants into the Country.
It’s cheaper to hire these young, foreign workers than it is to hire older, unemployed American ones.
Sociopathic predatory American capitalism at it’s best.
Lil' Barry Bailout - OBAMAPHONE!!!
February 3rd, 2013
10:59 am
How many people do you employ, indigo?
indigo
February 3rd, 2013
11:06 am
Barry
I employ as many as you.
In other words, that question is a non sequitur.
Lil' Barry Bailout - OBAMAPHONE!!!
February 3rd, 2013
11:10 am
So since you don’t employ any Americans, you must be a “sociopathic predatory capitalist” too, eh?
Tiberius - pulling the tail of the left AND right
February 3rd, 2013
11:19 am
President Incompetent risks reelection while putting real brave American lives at real risk.
No even close to an equivalent use of the word.
The deification of Obama continues unabated with the error prone Indigo.
indigo
February 3rd, 2013
11:29 am
Barry “so, since you don’t employ any Americans, you must be a sociopathic predatory capitalist”
Barry, in all honesty, that makes no sense whatsoeve.
Predatory capitalists is American Business that DOES employ as many foreign workers as they can get to come to AMERICA.
Tiberius - pulling the tail of the left AND right
February 3rd, 2013
11:34 am
Indigo’s use of liberal slogan words is like reading AmVet without all the vitriol.
Still useless and repetitive, though.
And just as inaccurate.
Lil' Barry Bailout - OBAMAPHONE!!!
February 3rd, 2013
11:38 am
Why do you, who employ zero Americans, think it’s any of your business who American companies hire? It’s business, not charity. If company managers can get workers to do the same job for less, they would be stupid not to, and they would also be negligent in their duty to the owners not to.
I’m curious…where were your shoes manufactured?
Tiberius - pulling the tail of the left AND right
February 3rd, 2013
11:47 am
Both fiscal control (the left) and social control (the right) are detrimental to freedom and society as a whole, nut fiscal control, especially when practiced by people who have barely worked a day in their lives ands who mostly would run any business into the ground, is far more destructive to society
indigo
February 3rd, 2013
12:00 pm
Barry
Why is it any of my business?
Because I am an American citizen and companies who put profit before partiotism are HURTING my country.
I am not helped, and neither are you, by huge numbers of Americans being unemployed.
That “it’s business, not charity” is the fodder for a great deal of social trouble.
md
February 3rd, 2013
12:05 pm
“Oh, well. The Military-Industrial-Complex must maintain it’s profits.”
Why is it this is always the bad gov’t spending when the left keeps telling us we need gov’t spending to create jobs?
Some of you may not remember the job losses and local economy wrecking that occurred during Brac, but it wasn’t pretty. Be careful what you wish for…….