Friday, September 4, 2009
Since when does Wall Street care?
Does Wall Street really care about unemployment? The answer is no. When did Wall Street really care? Wasn't it after Lehman, Bear, and AIG imploded, and when Goldman and Morgan Stanley were on the ropes?
That's when they cared. When it affected them. And then Secretary Paulson went crying to Pelosi, on their behalf.
Because the world was only coming to an end, if they lost their job.
Not if you lost yours!
They could care less about the unemployment numbers now, because companies have adapted to it. Come on, we have over 9 million people working part time that want full time work! We have a U-6 rate of 16.8%. Does Wall Street care?
Not one iota, because employment is an expense.
And the only time they worry about employment is when they are about to get sacked. And then, they write about the coming Great Depression.
Because then, that expense is a cost they can quantify. Because its only quantified when it affects them!
But now that they have been bailed out by Main Street, Wall Street doesn't care one bit--and don't think otherwise.
Since when has Wall Street been altruistic?
Look at this Bloomberg story today:
U.S. Recovery Leaving Workers Jobless May Stoke Company Profits
Sept. 4 (Bloomberg) -- Employers kept Americans’ working hours near a record low in August, indicating that economic growth is poised to reward companies with added profits while postponing any recovery in the job market.
So throw that idea of altruism out of your head!
Wall Street will only sell stocks, when the job losses affect them. When it affects Main Street, it doesn't matter.
And that's why we go higher.
Because Wall Street has already gotten their bail-out.
And Main Street isn't.
Posted by Palmoni at 11:11 PM