Morning Commentary
What another roller coaster ride in the market that’s mirrored by mixed signals from Greece? In the end, stocks rebounded to a certain degree, but for the most part, anxiety is still elevated. This is the most amazing economic-suicide mission I have ever witnessed and it’s being played out on the world stage.
So, now what…if there’s a “no” vote to austerity, how does Greece survive? Here’s a tweet I received yesterday. Sadly, it was meant in jest, but how will Greece survive if they go it alone?
Charles V Payne @cvpayne 21h21 hours agoQueens, NY
Well looks like Greece is going back to the Drachma but it will look different this time: The first unit just printed
In the Meantime…
The human toll has been immense; we are talking about one of the most – spirited, fun- loving nations on this planet; Greece has lost its spirit and will.
Take a look at these images from Vice.com:
Many of the people of Greece look broken and afraid, even the absence of young folks protesting in the streets tells a similar story.
We talk about the cautionary tale of Greece for America. Our mounting U.S. debt is on the same trajectory that brought Greece over the cliff and into the abyss of the unknown. We know the numbers and we have become somewhat immune to them. However, $18 trillion and counting is hard to ignore.
Moreover, it’s what’s driving the debt that is concerning. The ultimate welfare utopia is an expensive proposition.
Generous to a Fault? |
Recipients |
Cost |
Welfare |
11,400,000 |
$131.9 Billion |
Food Stamps |
41,700,000 |
$69.8 Billion |
There is still time to fix our situation, the question is do we have the will?
Today’s Session
For the month of June, 223,000 nonfarm payrolls were added to the market, quite lower than the 230,000 street estimate and the 235,000 ADP estimate. The amount of jobs added in May was revised lower to 254,000 from 280,000. It is anticipated that the soft numbers will delay the looming rate hike, but we have had quite a positive stream of data lately; the Feds will be on the fence. Sadly, the labor force participation rate fell 30 basis points to 62.6%. Job creation is not yet where it needs to be, but at least they are above 200,000 for now.
Comments |
spirited, fun- loving doesn't pay the bills. Maybe some colored lights on the Greek Paliment would help. Joe Brown on 7/2/2015 10:05:23 AM |
to quote Margaret thatcher, " the problem with socialism, is that you run out of other people's money to give away", still a tragedy in the making. roger allen on 7/2/2015 10:46:54 AM |
Mr. Payne, your figures about our being generous to a fault are shocking. No wonder we are in debt. This is good for no one. Margaret on 7/2/2015 11:18:17 AM |
Oh right...the U.S. debt problem derives from Welfare & Entitlement spending? Have you bothered to examine how much MORE is spent on the military-industrial-complex? Ted Shatz on 7/2/2015 11:41:27 AM |
I will take the under on the "will" to fix Bill jenkins on 7/2/2015 2:28:21 PM |
This month's jobs report is in, Rejoice! The Labor Department (“LD”) reports 223,000 jobs were added in June. The Bureau of Labor Statistics (“BLS”) reports the Unemployment Rate down 5.3% the lowest since May 2008 (good) and the Participation Rate down to 62.6% the lowest since October 2007 (bad). The BLS is the analysis arm of the LD. The LD reports job increases and decreases and the BLS analyzes labor data and provides the Unemployment Rate and Participation Rate. The underlying data is provided “Seasonally Adjusted” and “Unadjusted”, with the Seasonally Adjusted calculations reported to the public. Seasonal adjustment is a technique wherein the unadjusted data is increased or decreased to account for, in this case people graduating and starting to look for jobs, etc. The LD employment report and the month to month change in employed people embedded in the Unemployment Rate, rarely agree. The details for the seasonally adjusted changes from May to June: number employed decreased 56,000, the number unemployed decreased 375,000 the number leaving the labor force increased 640,000, which includes 208,000 added to the work force. One way to look at the total employment statistics picture is to compare two periods where the Unemployment Rate was the same. The Unemployment Rate in May 2008 was 5.4%, similar to June 2015. In May 2008 the Participation Rate was 66.1%. If the participation rate was 66.1% in June 2015, which requires moving people from Not in the Workforce to Unemployed, the Unemployment Rate would jump to 10.2%. In other words, a 3.5% decline in the Participation Rate results in a 5.0% decline in the Unemployment Rate. All of the employment number come straight from www.bls.gov. President Obama supporters enthusiastically report that the Unemployment Rate is at the lowest rate in seven years. The truth is, the Unemployment Rate was driven down more by people leaving the workforce than by finding jobs. As I always say when pundits spew out statistics, the devil is in the details. Chris Reinhardt on 7/2/2015 3:21:48 PM |
The truth is that modern Economics has been designed to completely hide the monetary system that hovers above the economy. It assumes money is just a medium of exchange floating through the economy to facilitate a free market and generate wealth. At times that has been true, but today it’s probably the biggest lie of modern history. The world has morphed over the past 40 or 50 years from capitalism to corporatism aka crony capitalism. All money comes from debt. Let me say that again. ALL MONEY COMES FROM DEBT. This means in order for governments, businesses, and people to have the liquidity necessary to live, they must agree to sign over a claim on their assets to banks. As the banking system inflates over time passing out credit, which makes everyone feel good with more digits in their accounts, it gathers claims on all the assets in the system for its private capital holders. We call it the "free market" but actually it is corporatism at its highest. We call it "free market" thanks to the propaganda and fraud of neoclassical economics. It completely ignores the truth of our monetary system, the math behind it, and the eventual collapse that will result from it. Greece is giving us a glimpse, but it is only a mild pre-game warm-up compared to what’s coming. The world will rue the day it was ever seduced into accepting usury and the illusion of prosperity driven by nothing but debt. We always talk about the 18 trillion debt that the Federal government is in. It goes a lot deeper than that. Total debt in the USA (Federal, State, Local government plus all corporate / business plus all consumer / personal) exceeds 58 trillion. Total debt of the world is about 225 trillion. Since perpetual ever increasing debt is intrinsic to the monetary system we use and most of the world uses, mathematics alone says there will be a massive crash. Kevin Zimmerman on 7/2/2015 3:27:13 PM |
Tweet |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
3/12/2024 9:25 AM | ROTATION IN FULL SWING |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|