Comments on: CHART OF THE DAY: MARGINS AND EMPLOYMENT http://pragcap.com/chart-of-the-day-margins-and-employment Thu, 24 May 2012 18:49:10 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: jack http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10795 jack Wed, 20 Jan 2010 01:55:35 +0000 http://pragcap.com/?p=15232#comment-10795 The chart is mostly useless information. There are many variables that attribute to profitability and unemployment. One barely affects the other. Supply and demand is a much bigger factor, so is investment results, capital expenditures, credit-rating, taxes, C.E.O. role, Wall St., world economy, regional economy, politics, war, peace, etc.,etc. Please don't make a mountain out of a mole hill. The chart is mostly useless information. There are many variables that attribute to profitability and unemployment. One barely affects the other. Supply and demand is a much bigger factor, so is investment results, capital expenditures, credit-rating, taxes, C.E.O. role, Wall St., world economy, regional economy, politics, war, peace, etc.,etc. Please don’t make a mountain out of a mole hill.

]]> By: Uformula http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10781 Uformula Tue, 19 Jan 2010 05:57:59 +0000 http://pragcap.com/?p=15232#comment-10781 Interesting to note that the type of recession that this is not covered by the graph. No credit, no home ATM, no demand, no rehiring en masse. Interesting to note that the type of recession that this is not covered by the graph. No credit, no home ATM, no demand, no rehiring en masse.

]]> By: joji d pogi http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10767 joji d pogi Mon, 18 Jan 2010 09:06:32 +0000 http://pragcap.com/?p=15232#comment-10767 You got it right, but enemployment always lag the recovery, byt how long is still a guess. During the past recession, unemployment rate lagged recovery by different time frames. But one thing I find more like is that there will be a recovery in unemployment rather than corporate income or confidence going down again You got it right, but enemployment always lag the recovery, byt how long is still a guess. During the past recession, unemployment rate lagged recovery by different time frames. But one thing I find more like is that there will be a recovery in unemployment rather than corporate income or confidence going down again

]]> By: netimp http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10761 netimp Sun, 17 Jan 2010 17:39:02 +0000 http://pragcap.com/?p=15232#comment-10761 Some valid points here, but what's holding back hiring is uncertainty of pending federal regulation, taxes etc. Hard to plan hiring & capex when you don't know what it'll cost. Some valid points here, but what’s holding back hiring is uncertainty of pending federal regulation, taxes etc. Hard to plan hiring & capex when you don’t know what it’ll cost.

]]> By: boatman http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10751 boatman Sat, 16 Jan 2010 16:18:34 +0000 http://pragcap.com/?p=15232#comment-10751 i feel like i wrote that myself jason. not a word out of place son. i feel like i wrote that myself jason.

not a word out of place son.

]]> By: jason http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10750 jason Sat, 16 Jan 2010 13:08:09 +0000 http://pragcap.com/?p=15232#comment-10750 Irresponsible government practices (forcing banks to lend money to buy houses to people who would have never qualified for mortgages under normal lending conditions under the pretext of fairness), greed (mortage broker/bankers qualifying anyone with a pulse for a mortgage, in order to collect mortgage origination fees), and out of control consumerism (people buying things they can’t afford, from houses to cars, and blowing up a huge credit bubble) brought us here. Now the president is talking about leving taxes on large financial institutions that used TARP, but conveniently excludes from it Fannie Mae, Freddie Mack, AIG, GM, GMAC, et al The mortgage/housing crisis has not hit bottom yet and a two new crisis, these created by the current economic policies, loom in the horizon: 1 – The possibility of a severe devaluation of the US dollar within the next 12-18 months as a result of the ballooning debt and the indiscriminate printing of dollars by those in charge; This may bring about some degree of hyper-inflation. 2 – Consumer/personal debt defaults, which will further weaken the purchasing power of an already decimated consumer. At the rate we’re going, it doesn’t matter how much money the banks have to lend, if nobody qualifies for loans. Unless, of course, the government forces banks to lend money to non-qualifying consumers, as it did with housing before, exacerbating the consumer debt bubble/crisis even further. Technical indicators (charts) try to extrapolate things that happened in the past in an attempt to predict what may happen in the future, but I believe everything that happened between 1929 and 2007 can be excluded as a precedent, for this is a totally different crisis, in a totally different environment, affected by circumstances we have not seen since the 1929 – 1930s crisis. In the current climate of extreme economic uncertainty, when nobody knows what radical anti-business, anti-capitalist measures the current administration may decide to decree overnight, most small business are hunkering down and trying to merely survive, and the last thing in a small business owner’s mind (I was one of those until recently) is to borrow money to expand, or hire more people. That is not going to change until/unless the current climate changes. The public sector can only create so many jobs (most of them fictitious, anyway) for so long. The private sector has to be the one grabbing the baton and taking us out of this disaster but, as things stand, this isn’t going to happen anytime soon so it is reasonable to expect unemployment to remain very high for quite some time to come. I think the most important thing to do at this time is to stop tinkering with Capitalism, stop misusing TARP as a slush-fund, do not increase taxes, and fight corruption at all levels. As someone quoted on TV recently: “we have all the regulations we need, we just need capable and ethical regulators to enforce the existing regulations”. I also thing we need to vote-out of office 100% of the Democrats, and 90% of the Republicans in both legislative bodies, and populate them with new blood, with people that have not been corrupted by Washington’s frame of mind yet and, from now on, impose limits on the number of times an elected official can be reelected. We already have term limits for the President, why not do the same with Senators and Representatives. Recent polls have shown people’s confidence in Congress to be consistently under 20%. It's time for REAL change. Irresponsible government practices (forcing banks to lend money to buy houses to people who would have never qualified for mortgages under normal lending conditions under the pretext of fairness), greed (mortage broker/bankers qualifying anyone with a pulse for a mortgage, in order to collect mortgage origination fees), and out of control consumerism (people buying things they can’t afford, from houses to cars, and blowing up a huge credit bubble) brought us here.

Now the president is talking about leving taxes on large financial institutions that used TARP, but conveniently excludes from it Fannie Mae, Freddie Mack, AIG, GM, GMAC, et al

The mortgage/housing crisis has not hit bottom yet and a two new crisis, these created by the current economic policies, loom in the horizon:

1 – The possibility of a severe devaluation of the US dollar within the next 12-18 months as a result of the ballooning debt and the indiscriminate printing of dollars by those in charge; This may bring about some degree of hyper-inflation.

2 – Consumer/personal debt defaults, which will further weaken the purchasing power of an already decimated consumer. At the rate we’re going, it doesn’t matter how much money the banks have to lend, if nobody qualifies for loans. Unless, of course, the government forces banks to lend money to non-qualifying consumers, as it did with housing before, exacerbating the consumer debt bubble/crisis even further.

Technical indicators (charts) try to extrapolate things that happened in the past in an attempt to predict what may happen in the future, but I believe everything that happened between 1929 and 2007 can be excluded as a precedent, for this is a totally different crisis, in a totally different environment, affected by circumstances we have not seen since the 1929 – 1930s crisis.

In the current climate of extreme economic uncertainty, when nobody knows what radical anti-business, anti-capitalist measures the current administration may decide to decree overnight, most small business are hunkering down and trying to merely survive, and the last thing in a small business owner’s mind (I was one of those until recently) is to borrow money to expand, or hire more people. That is not going to change until/unless the current climate changes. The public sector can only create so many jobs (most of them fictitious, anyway) for so long. The private sector has to be the one grabbing the baton and taking us out of this disaster but, as things stand, this isn’t going to happen anytime soon so it is reasonable to expect unemployment to remain very high for quite some time to come.

I think the most important thing to do at this time is to stop tinkering with Capitalism, stop misusing TARP as a slush-fund, do not increase taxes, and fight corruption at all levels. As someone quoted on TV recently: “we have all the regulations we need, we just need capable and ethical regulators to enforce the existing regulations”.

I also thing we need to vote-out of office 100% of the Democrats, and 90% of the Republicans in both legislative bodies, and populate them with new blood, with people that have not been corrupted by Washington’s frame of mind yet and, from now on, impose limits on the number of times an elected official can be reelected. We already have term limits for the President, why not do the same with Senators and Representatives. Recent polls have shown people’s confidence in Congress to be consistently under 20%. It’s time for REAL change.

]]> By: Leo Olson http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10749 Leo Olson Sat, 16 Jan 2010 05:19:46 +0000 http://pragcap.com/?p=15232#comment-10749 Hello TPC, I'll take it you are management speaking. Please consider that from me this is not about you, or me, or any us. I don't feel either of us intends something personal to come of this. I see addressing pollution anywhere to be a meaningful aspect. Pollution is not only in our drinking water, genetically modified crops, chemtrials, politics, banking, etc.. It is also in language. Tyrants and tyrant wannabes foster confusion and deceit and debasement, as in mainstream media, academia, entertainment, etc. To take our minds off the important struggle, elites vs targeted people, they give us false paradigms, like left vs. right, religion vs. science, blacks vs whites, etc. Dividing to conquer is a theme of theirs. They like us misunderstanding matters. An us weakened is an us easier to rob. Not only of trillions, but of freedoms. They feed us figures of speech which accustom us to accept inaccuracies and confusions, like giving us euphemisms to better accept their harms. My hope is that you will be a help in warding off assaults, that go even to our thinking processes. The concepts on your website still have me thinking I'm not talking down to you. Or that language use is irrelevant to topic. Recalling your seeing me as guest, I do not intend to reply to what closing comment you might make on this. Regards, Leo Hello TPC,
I’ll take it you are management speaking. Please consider that from me this is not about you, or me, or any us. I don’t feel either of us intends something personal to come of this. I see addressing pollution anywhere to be a meaningful aspect. Pollution is not only in our drinking water, genetically modified crops, chemtrials, politics, banking, etc.. It is also in language. Tyrants and tyrant wannabes foster confusion and deceit and debasement, as in mainstream media, academia, entertainment, etc. To take our minds off the important struggle, elites vs targeted people, they give us false paradigms, like left vs. right, religion vs. science, blacks vs whites, etc. Dividing to conquer is a theme of theirs. They like us misunderstanding matters. An us weakened is an us easier to rob. Not only of trillions, but of freedoms. They feed us figures of speech which accustom us to accept inaccuracies and confusions, like giving us euphemisms to better accept their harms.
My hope is that you will be a help in warding off assaults, that go even to our thinking processes. The concepts on your website still have me thinking I’m not talking down to you. Or that language use is irrelevant to topic.
Recalling your seeing me as guest, I do not intend to reply to what closing comment you might make on this.
Regards, Leo

]]> By: EmilyP http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10742 EmilyP Sat, 16 Jan 2010 01:36:48 +0000 http://pragcap.com/?p=15232#comment-10742 You don't want clarity. You just want to see how smart you can look when you use big words and make demands of others. You don’t want clarity. You just want to see how smart you can look when you use big words and make demands of others.

]]> By: TPC http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10741 TPC Sat, 16 Jan 2010 01:32:50 +0000 http://pragcap.com/?p=15232#comment-10741 Leo, please don't try to make yourself sound more intelligent than others here. You made a condescending and useless comment. Anyone versed in financial terminology understands what an improvement in unemployment means. You're talking yourself in circles. If you have something meaningful to add then by all means be my guest, but indirectly attacking others is futile - even though you seem to think you haven't done so. Leo, please don’t try to make yourself sound more intelligent than others here. You made a condescending and useless comment. Anyone versed in financial terminology understands what an improvement in unemployment means. You’re talking yourself in circles.

If you have something meaningful to add then by all means be my guest, but indirectly attacking others is futile – even though you seem to think you haven’t done so.

]]> By: Leo Olson http://pragcap.com/chart-of-the-day-margins-and-employment/comment-page-1#comment-10740 Leo Olson Sat, 16 Jan 2010 01:23:02 +0000 http://pragcap.com/?p=15232#comment-10740 note to EmilyP: To want clarity of understanding is to want clarity of communication, is to want ambiguity eliminated, other than in some purposes, like poetry. Words carry associations, implications, that are not always included in dictionary definitions. Hatred is inside the hater. Harms the hater, not the hated. I do not hate you. In this I wish as well for you as for myself. note to EmilyP: To want clarity of understanding is to want clarity of communication, is to want ambiguity eliminated, other than in some purposes, like poetry. Words carry associations, implications, that are not always included in dictionary definitions. Hatred is inside the hater. Harms the hater, not the hated. I do not hate you. In this I wish as well for you as for myself.

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