Someone Call the Whambulance

By iamned - Last updated: Friday, May 8, 2009 - Save & Share - 5 Comments

Non-farm payrolls and other economic indicators are Friday morning

8:30 Non-farm payrolls
10:00 Wholesale Inventories
1:00 PM Fed’s Lacker speaks on economic recovery

None of these will have a negative impact on stocks tomorrow, just as I was right yesterday about the stress tests being a dud. Unless the updated unemployment rate is god awful (10% or higher) the market will brush it off.

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A recent article titled Thursday’s Unemployment Figures: What About Continuing Claims? written by seeking alpha contributor Karl Denninger brought tears to my eyes…from laughter.

he writes..


..Ah. So the number the market “liked” was down 10,750, but the truth is that 133,000 more people lost their jobs than found one last week. That’s very bad news; those are real people who can’t pay their bills and are unable to find a new job to replace the one they lost…

Someone call the whambulance ASAP.We got an acute case of crybaby-itis.

g

When you try to merge economics with sociology you wind up with sentimental, welfare, humanistic drivel, as opposed to objective economic analysis.

The job loss isn’t such a big deal because the free market will smooth out the edges, and the majority of jobs being shed are inefficient, redundant manufacturing based ones. This is why the potential closure of GM has had no negative impact on the stock market. Outsourcing, automation, and insourcing of manufacturing jobs provide a more profitable alternative than expensive American labor.

The author also fails to realize that unlike Germany or France the United States isn’t a welfare state. People who can’t pay their mortgages will have to relocate to a smaller, more affordable residence. The unemployed could try to relearn new skills or become entrepreneurs by creating services that people want, instead of whining for a handout…boo hoo hoo can’t pay mortgage..boo hoo hoo lost me job…pleaaaaase give me a handout Obama

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5 Responses to “Someone Call the Whambulance”

Comment from Kevin
Time May 8, 2009 at 3:53 pm

Thats some raw stuff there ned - tell em’ how it is!

Comment from Ray Antoky
Time May 8, 2009 at 6:37 pm

Hey Cetin when are you gonna be wrong?
You are the STAR of seeking Alpha. All those thumbs down must mean something!
Ray

Comment from iamned blogger
Time May 8, 2009 at 8:27 pm

There is too much bearishness on the internet investment communities. I’s not just seeking alpha, but everywhere else, too. I don’t understand the rationale of these people. Why are they so negative? Why don’t they understand that the US economy is still fundamentally strong? All this doom and gloom has gotten to their head and impaired rational judgment.

Comment from Lee Lucas
Time May 9, 2009 at 12:45 pm

Maybe because these bloggers see that the stock market failed to predict the catastrophe that occurred last fall, yet we are all now giving the “market” the ability to predict the coming recovery 6 months in advance. I guess the “market” can only see good things in advance, although i remain heartened that every downturn in the US economy has been followed by an upturn, and this appears to be happening again. Possibly the doom and gloom represents a sober view of the health of the finance industry( not any particular bank or government entity, but the industry) that is at best currently insolvent, or even a growing realization that whatever the form of a recovery from our current situation will almost certainly be accompanied by alot of things we dont necessarily want to happen, like inflation, or worse yet stagflation, or the continued bail out of, say, Fannie?Freddie..Do you realize weve already thrown $400 Billiion dollars at them, and losses are still accelerating? The thought that all this future debt “doesnt matter” ( according to this blogs author) , appears rather shortsited..

Comment from fabian hug
Time May 15, 2009 at 4:36 am

All this is well, 20% unemployment is no big deal since when you take any group (be it mechanics, lawyers, pilots, whatever) you have at least 20% of this group that is not at its place.
What pisses me off is that the biggest cry baby are the corporations. Why don’t you also bash at these incompetents that are bailed out with my money. We should have now 25% unemployment but we shouldn’t have to look at the BofA, AIG or C signs when we troll along the streets of this beautiful country.
The free market is not at play here. The real money is passed along those who are connected but those who need it to open a business that people could use will not see it. That’s the fundamental problem. If you bail out the bonus of the banks’ executive, you have to bail out the stupid who can’t pay back his mortgage. This is endless and it will not end well.

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