Friday, September 23, 2011

Harder than Hitting 400

In baseball 400

is a legendary batting average and depending on the quality of the softball league you play in, it can be a pretty good number as well. This week despite the Fed shifting $400 billion from short-term Treasuries into long-term Treasuries in an effort to boost lending and spur the economy, it wasn't enough to just meet expectations as U.S. stocks dipped almost 400 points. Investors have been racked by growing fears that the economy is headed for another recession and once the Fed made the announcement, the anticipation was gone, and people began to look at a deeper level what it means when the Fed doesn't have any monetary tools to make a big difference in the economy.

The Fed's latest stimulus plan is designed to push down long-term borrowing cost for U.S. consumers and businesses. However, it is very surprising that the Fed is also targeting the very long end of the Treasury curve since there is no direct economic benefit for doing so, and banks also get hurt as falling yields in long-dated Treasury's compress their profit margins, which will hinder job growth, having the opposite affect than what is needed to help revitalize the labor market,"

Simple Translation : Bad - fucking really bad

The recession has only slowed down a bit and is back. We need jobs. Not only is the stock market riding major waves of instability, the job market has been sinking further with each passing month. The U.S. Labor Department issued its weekly jobless claims data ahead of the opening bell. The number of unemployed filing for first time benefits in the latest week fell from the prior week but still came in at a higher-than-expected 423,000. The number of foreclosures and bankruptcy filings have hit all time highs in the last few years, and many people, like me, are focused on treading water as the government promises to help turn the economy around. President Obama’s American Job Act bill, which outlines ways to help boost the economy through the improvement of the job market.

encourages businesses to hire more employees and increase wages of current employees in exchange for certain tax credits. The bill is facing tough criticism from both political parties, the question being how the bill will be paid for? After a rough budget and debt debate just one month ago, both parties are worried about taking on new debt for the sake of attempting to boost the economy. However, President Obama insists, “Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans — including many who sit here tonight. And everything in this bill will be paid for. Everything.”

Getting this to pass will be harder than hitting 400, but something has to be done, b/c we can't take another 400 dip in the market and unemployment anymore. Let's Go Congress


  1. Japan tried stimulus package after stimulus package. 12 in all. Their market went from 37k to 7k (80%) drop. You can't stimulate a massive deflationary environment without job creation, etc. It's old. Leave it alone. Let things fail and start over. Stimulus now is a band aid on a massive open wound. Creates nothing but stagflation. We don't need that. Good write up Ricky.

  2. Nothing will change until we stop the out of control spending of Obama and the Liberals. Yes Bush was a big spender and increased the National Debt by 1/2 trillion dollars in 8 years. But instead of trying to fix the problem President Obama ended up increasing the debt by close to 5 trillion dollars in just 2 1/2 years. In fact the debt under President Obama is greater in 2 1/2 years than the ENTIRE debt that every President accumulated from Washington to Bush COMBINED. Even with the recession like numbers and high unemployment the Federal workers and unions are living like kings while the hard working taxpayers live like peasants worrying about their future and the future of their children. Read this's symptomatic of what the Federal Gov't thinks about the taxpayers.

  3. I tried the web link in the previous post and it wasn't connecting. So I cut and pasted it into google and it was fine. Can't believe we're getting ripped off like that. Also can't believe it didn't make the network news or The N.Y. Times. I guess what they say about media bias is true.

  4. I live in South Beach. I have no idea what you are talking about!