Thursday, August 26, 2010

Bad Omens and gas bags

The DOW sank below 10,000 today and that could be the threshold of perception that finally catches peoples attention but then again maybe not, since Americans barely notice that they own the only occupied house on the block. Nationwide, one in ten of your neighbors are at risk of foreclosure but if you live in a factory town that number is really closer to ten in ten as corporations continue to fire workers by the thousands.

New unemployment claims were down, so things are better, right? Well of course not, we still have far too many claims each week to think we aren’t really losing hundreds of thousands of jobs each month no matter that the government statistics say we are gaining a few jobs.

A total of 302,000 people were added to extended unemployment just last week and that’s about the same number as the previous week.  This was net increase, people falling off at 99 weeks are no longer counted but act as a plus for the unemployment statistics. Starving, homeless people are a plus, welcome to the Libertarian Paradise of America. Democrats should be screaming about this but if they do, they get no face time on corporate media and they want to get re-elected.

More than 40,000 factories have closed in just the last ten years from outsourcing and another 90,000 factories on the verge of closing. As part of Obama’s new leaner government they propose to cut the budget by closing the tiny unit at the Bureau Labor Statistics that keeps track of outsourcing. It’s the new normal so why keep track off it? It’s as silly as counting homeless people, just step over them or run them out of town as more and more cities are doing.

The stimulus was supposed to keep things going through the election but that’s looking iffy. Republicans are hoping for things to go really bad before then and they may just get their wish. The latest scare story that maybe responsible for the today’s market sag is the Hindenburg Omen, a complicated formula for timing market crashes. The problem is that even in hindsight it’s only been right 25% of the time, but like lightning jumping from the zeppelin to the landing tower there might be something to it. Wear your asbestos underwear just in case.

Of course we are riding on a bubble economy that might as well be a highly flammable cloth bag filled with hydrogen. You don’t really need any omens to predict it will be a fiery end. You see the Zepplin Hindenburg was built from highly flammable material, the hydrogen gas wasn’t really the issue. The same way the economy is fundamentally flawed, the stock market bubble isn’t really an issue, it just makes for a bigger fireball. Oh the humanity!


Andrea said...

The Market was up today. I think that means that Monday it will drop big-time; those who haven't got out of the market will take the opportunity to do so.

But hey, I'm no economist.

Anonymous said...

Libertarian Paradise? We are very far from that. We have a welfare/nanny/bailout/big govt. paradise.

prairie2 said...

nanny state? More like molested by your crazy Uncle Sam...