Another economic nosedive

http://www.charlotteobserver.com/2010/06/05/1479060/stocks-nosedive-after-jobs-data.html
Stocks nosedive after jobs data
Market closes under 10,000 on report of sagging U.S. job growth, more euro angst. By Christine Hauser and Matthew Saltmarsh New York Times Posted: Saturday, Jun. 05, 2010
Concerns about the strength of the economic recovery in the United States and new worries about the debt crisis in Europe sent stocks sharply lower on Friday, with all the major indexes declining more than 3percent.
The markets were sent skidding after the Labor Department's report on job growth in May fell short of expectations. While the economy added 431,000 jobs, more than 90 percent of the new jobs were in government - and most of them were temporary positions to help conduct the 2010 census.
The Dow Jones industrial average closed below 10,000 for the third time this year, ending at 9,931.22, down 324.06, or 3.2 percent. It was the Dow's lowest close in almost four months. The euro also continued its decline, dropping to less than $1.20 on concerns about the fiscal troubles in Europe.
While the markets have been bedeviled for weeks by worries over debt problems in Spain, Portugal and Greece, the boundaries of the problem shifted to Hungary after its government sent worrying signals about its finances. Investors fled the country's assets, and the euro slipped to $1.1992 in afternoon trading in London, its lowest level since March 2006.
The currency was down from $1.2162 late Thursday, dented by the comments from Hungary and from France, where Prime Minister Franois Fillon told a news conference, according to a text released by his office, that he only sees "good news in the parity between the euro and dollar" and that he was not concerned by its decline.
"The jobless number and the payrolls are having a big impact on the market, as well as the problems over in the euro zone," said Dan Faretta, senior market strategist for LaSalle Futures Group. "They are having issues of it spreading to other countries, and that brings about a lot of worries for investors."
Few private-sector jobs
Employers added only 41,000 private-sector jobs in May. Those job gains were limited mostly to the health care, mining and manufacturing sectors. What had been a return to construction hiring proved short-lived, as the sector shed jobs again.
While federal employment was up sharply because of the temporary hiring, state and local governments shed 22,000 jobs in May, and that may be a preview of things to come.
Private-sector hiring, which exceeded 218,000 jobs in April, fell dramatically in May, and the recent stock-market slump seems to reflect a growing view that the U.S. economy, while improving, won't grow fast enough this year to knock down the jobless rate and move sharply into an expansion phase.
The nation's unemployment rate fell to 9.7 percent from 9.9 percent. The Charlotte region's jobless rate dropped to 11.1 percent in April from 12.1 percent the month before.
The national jobless rate is expected to go back up over 10 percent later this year as the economic recovery convinces more Americans to resume looking for work - and be counted as unemployed rather than out of the work force.
Read more: http://www.charlotteobserver.com/2010/06/05/1479060/stocks-nosedive-after-jobs-data.html#ixzz0pxbBvXLb
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On Sat, 05 Jun 2010 00:12:48 -0700, Gunner Asch

==========distro pruned to amc & rcm
Gunner: your concern appears to be fully justified.
IMNSHO the problem is that the situation does not seem to have become abruptly worse, although there may indeed be some sort of trigger point or tipping point, but rather the majority of people are becoming consciously aware of the drastic systemic changes that have occurred in the North American and European economies/societies/cultures, i.e. "Hey -- the Emperor is butt naked!"
The astute and terse observation by the Greek playwright Euripides several thousand years ago, "Those whom the gods would destroy they first make proud {or powerful}" appear to offer as much insight as to what has gone and is going wrong as any modern analysis.
A major consideration is the fact that in many cases *WHAT* the money was spent for is at least as, if not more important, than *HOW MUCH* money was spent, for an individual, a company, a corporation or a nation. Moreover, the failure/omission to spend money, for example on upgrading/maintaining machinery, tools, products, skills, infrastructure, or even basic preventative health care can also be disastrous at all levels from the individual to the nation in the long-term.
We as a society appear to have generally squandered our patrimony and good fortune, and many of our nominally "American" corporations are actively exporting not only the jobs, but also the expertise/methodology that has traditionally given the U.S. its competitive advantage and the ability to offset its higher standard of living/labor costs. The U.S. government does not have "clean hands" in that they continue the tax deductions for "investments" by American corporations in foreign countries and subsidies for job/technology export. This is true for not only the more mature industries such as automotive, but also the vaunted "knowledge based" industries that are supposed to "save" the US economy. For example:
http://news.yahoo.com/s/ap/20100531/ap_on_bi_ge/lt_brazil_general_motors http://www.detnews.com/article/20100531/AUTO01/5310371/1361/General-Motors-to-invest -$385-million-in-Brazilian-plant http://www.google.com/hostednews/ap/article/ALeqM5iSgI5gvVXQtZCmvsi20PLDDMUIPAD9G221L80 <snip> GM Brazil announces new investment of $386M (AP) - 3 hours ago RIO DE JANEIRO - The Brazilian subsidiary of General Motors Co. plans to spend $386 million to develop and produce a new model of Chevrolet. A company statement issued Monday does not give details on the new model to be built at the GM assembly plant in Sao Caetano do Sul. ==>The announcement comes two months after GM announced its Brazil operation would invest $780 million to increase output and produce two other new models.<=<snip>
and
http://news.yahoo.com/s/afp/20100603/tc_afp/taiwanitshowmicrosoft Microsoft sets up new research centre in Taiwan 47 mins ago TAIPEI (AFP) - US software giant Microsoft inaugurated a research centre in Taiwan Thursday focused on cloud computing, a new technology attracting significant interest among the island's high-tech firms. Cloud computing refers to applications or data storage hosted online by technology firms instead of being installed and maintained on users' machines. The opening of the centre was a "milestone... in the era of cloud computing", said Steven Guggenheimer, a Microsoft vice president, at Computex Taipei, Asia's largest IT trade fair. Microsoft Corp declined to say how much it would invest in the centre, or how many people would be employed there. The company says it plans to spend 9.5 billion US dollars in research and development projects in 2010, a considerable portion of which will go to cloud-computing technologies. <snip>
We appear to have killed the goose that laid the golden eggs
-- Unka George (George McDuffee) .............................. The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953).
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"F. George McDuffee" wrote:

>http://www.charlotteobserver.com/2010/06/05/1479060/stocks-nosedive-after-jobs-data.html
http://www.detnews.com/article/20100531/AUTO01/5310371/1361/General-Motors-to-invest -$385-million-in-Brazilian-plant
http://www.google.com/hostednews/ap/article/ALeqM5iSgI5gvVXQtZCmvsi20PLDDMUIPAD9G221L80
Cloud computing? What a joke. Just like Apple's claim that people will stop using desktop computers.
--
Anyone wanting to run for any political office in the US should have to
have a DD214, and a honorable discharge.
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wrote:

I'm not commenting on whether it's a good thing or not (as I really don't know...yet) but cloud computing is bigger than you might think. I do know that it's something I deal with on a daily basis as part of my work. There is a world beyond your home computer, beyond your desktop and beyond your machine shop.
Here are a few companies who are working in the cloud (or have their heads in the clouds, if you prefer): http://www.google.com/apps/intl/en/business/customers.html
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On Sat, 05 Jun 2010 15:14:23 -0400, "Michael A. Terrell"
<snip>

<snip> =====This may well be the case, but...
Even assuming "cloud computing" is the biggest grift since beanie babies, it is still the Taiwan Computer Science and Information Technology graduates that are getting the jobs, not U.S. citizens, and they pay taxes in Taiwan, not the U.S. Additionally, the physical plant is not located in the U.S. thus facility/infrastructure construction generated no domestic U.S. activity, and the real estate and other taxes are not paid to a U.S. jurisdiction. The economic multipliers are all in Taiwan.
Of even greater concern is that these types of operations tend to be "incubators" where the ideas for new products/services/businesses are hatched. These "start-ups" will of course now grow in Taiwan, not the U.S.
I have badgered my Congressmen for information on just how much U.S. taxpayer money is being used to establish these competitors, albeit "owned" by nominally American Corporations, either in the form of business expense deductions, investment tax credits, or even direct subsidies such as loan guarantees, but have been unable to get a response. Another concern is how is tax evasion through "transfer pricing" to be controlled, and how will the transnational corporations be forced to repatriate their profits to the U.S. for taxation and/or stockholder dividend distribution.
One of the major reasons for the huge and increasing deficits in U.S. and other governmental budgets and retirement/entitlement plans is that the economic assumptions on which these programs were based have largely been rendered non-operational by the ever-increasing export of high skill/high wage [i.e. high tax paying] jobs, the export of high economic multiplier sectors of the economy, i.e. manufacturing, and mushrooming corporate tax avoidance/evasion by the transnational absentee owners. The GMC and MicroSoft articles were just two specific examples.
--

-- Unka George (George McDuffee)
..............................
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Warning -- thread drift...
On Sat, 05 Jun 2010 15:14:23 -0400, "Michael A. Terrell"

========If cloud computing is of interest to you see http://www.networkworld.com/community/node/62125 <snip> Microsoft, of course, is still the largest software company in the world with a large installed base and acknowledges that it can't hold onto its installed software license business model any longer. But with a string of recent setbacks -- Apple surpassing Microsoft in market capitalization; Google replacing Windows on its computers with Chrome -- it needs some good news and TechEd needs to deliver.
--

-- Unka George (George McDuffee)
..............................
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On Jun 5, 3:00pm, F. George McDuffee <gmcduf...@mcduffee- associates.us> wrote:

Gunner's concern extends no further than his rabid rooting for America to fail under the Obama (or any other Democratic) administration. And he calls himself a patriot.
The rest of this discussion boils down to the simple fact that the world economy is a house of cards and a hall of mirrors all rolled into one.
People listen to the bits and pieces of words that they think they understand coming from economists who think they know something (and are usually apologetic a year or so later when history has proven them wrong). The people then go to their stockbrokers and order them to buy or sell based on this information of no substance. And THAT is what drives the stock market.
The truly scary part is that it's not only the little guys who act on wild speculation, but it's the big players - the fund managers who control billions of dollars. All these people know how to do is guess, No matter which way they go, however, the huge piles of money that they move have an effect on the market. Just look at the result of a misplaced decimal point a couple of months ago. Wild swings in the market due, not to global events, not to financial activities, not due to a disappointing (or optimistic, take your choice) jobs report, but due to a glitch in someone's software that allowed a wild trade to get into the system.
But again, Gunner has no concern here other than his belief that your financial ruin under the present administration is, somehow, a good thing for him.
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On Sat, 5 Jun 2010 13:56:17 -0700 (PDT), rangerssuck

==========I must not be getting all of Gunner's posts.
If the governments at various levels and/or major financial corporations are going to go bankrupt, it is better to have this occur sooner rather than later, as there will be more "stuff" to salvage. Continued digging simply makes the hole deeper. -- Unka George (George McDuffee) .............................. The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953).
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On Sun, 06 Jun 2010 11:50:47 -0500, F. George McDuffee

Im not sure which part of the universe SucksRangers is posting from..but the posts he evidently getting...dont appear to be from me. Or he has over done the coke again..shrug.
Gunner
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On Sat, 05 Jun 2010 14:00:57 -0500, F. George McDuffee

Amen. If anyone should be worried about stocks sinking, it's gummy. Any worse and he'll have to roll up his portfolio and use it to fend off the younger dumpster divers. Plus, it could get hard for him to thieve wifi if the neighbor can't afford a connection. And without gummer's market newsletter investors will really be f%cked!
Wayne
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wrote:

I'm still waiting for you to tell us about a single original thought that you have had...bashing Gunner isn't very original, just popular.
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Buerste wrote:

Not really. Like clubbing baby seals, it gets boring.
--
John R. Carroll



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What are you doing with all the energy stirred up in you by all those clubbings?
Such coverage has been replaced by oil clad animals these days.
I need to get away from it, all that people are talking about.
So I will be passing through NOVA in a couple of weeks. Then I'm doing a roadtrip to Maine. I want to sit in an inner tube on the river & soak in the sun & honeysuckle!!! but all the water reminds me of what is happening due south of here so northerly vacations are a better escape I guess.
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wrote:

You mean, original thoughts like repeating the words "libtard" and "cheese check" over and over again? Physician, heal thyself.
Wayne

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wrote:

I respond thus to "Teabagger" and such. I only respond in kind, so what ever insults I fling are reactive, not proactive...unlike most leftists. Does the term "leftist" bother you? I can't seem to remember, have you ever had a rational, respectful discussion with somebody that disagrees with you?
And, I see you avoided the question.
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wrote:

I have my toes crossed , my legs crossed, my fingers crossed and my eyes crossed, good luck, good luck, good luck. I like original ideas.
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wrote:

will you break martial bad on the muthas? I know G will because he is planning the grand cull
Sheep? Not you!
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Planning? Moi? Hardly. No more than a reporter plans the events to which he/she reports on.
Im an Observer. Hardly a planner or even a participant in the upcoming events.
Ever hear of a guy named Thomas Jefferson?
http://www.theatlantic.com/past/issues/96oct/obrien/blood.htm ......Wonderful is the effect of impudent & persevering lying. The British ministry have so long hired their gazetteers to repeat and model into every form lies about our being in anarchy, that the world has at length believed them, the English nation has believed them, the ministers themselves have come to believe them, & what is more wonderful, we have believed them ourselves. Yet where does this anarchy exist? Where did it ever exist, except in the single instance of Massachusetts? And can history produce an instance of rebellion so honourably conducted? I say nothing of it's motives. They were founded in ignorance, not wickedness. God forbid we should ever be 20 years without such a rebellion. The people cannot be all, & always well informed. The part which is wrong will be discontented in proportion to the importance of the facts they misconceive. If they remain quiet under such misconceptions it is a lethargy, the forerunner of death to the public liberty. We have had 13. states independent 11. years. There has been one rebellion. That comes to one rebellion in a century & a half for each state. What country before ever existed a century & a half without a rebellion? & what country can preserve it's liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to facts, pardon & pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots & tyrants. It is it's natural manure. .......
Change the term British to Leftwinger...shrug
Gunner
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On Sun, 27 Jun 2010 09:53:59 -0700, Gunner Asch

=========BANZI - BANZI - BANZI KAMIKAZIE ALERT!!!!
for sound effect ... http://new.wavlist.com/soundfx/019/bath-flush4.wav
Update on situation in California 01 July 2010. Be sure to scan the comments.
http://www.sacbee.com/2010/07/01/2864148/schwarzenegger-orders-minimum.html?commentSort=TimeStampAscending&pageNum=2&mi_pluck_action=page_nav#Comments_Container Schwarzenegger orders minimum wage for state workers Share By Jon Ortiz snipped-for-privacy@sacbee.com Published: Thursday, Jul. 1, 2010 - 4:37 pm Last Modified: Thursday, Jul. 1, 2010 - 5:01 pm
The Schwarzenegger administration today ordered State Controller John Chiang to reduce state worker pay for July to the federal minimum allowed by law -- $7.25 an hour for most state workers.
Read more: http://www.sacbee.com/2010/07/01/2864148/schwarzenegger-orders-minimum.html?commentSort=TimeStampAscending&pageNum=2&mi_pluck_action=page_nav#Comments_Container#ixzz0sUGq4acE <snip>
Hard to believe this guy is a Republican and not an Al Qaeda agent...
--

-- Unka George (George McDuffee)
..............................
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On Sat, 05 Jun 2010 00:12:48 -0700, Gunner Asch

<snip> ======Not to worry!!! The US has the finest regulators that money can buy, so we can all get rich in the market..... http://news.yahoo.com/s/nm/20100611/bs_nm/us_sec_getco
-- Unka George (George McDuffee) .............................. The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953).
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