More on our improving economy

[Son_of_Perdition]

I feel confident

The latest US employment data shows that 292,000 new jobs were created in December, while the unemployment rate held steady at just 5.0%. Sounds great, doesn’t it? Then again, those who were willing to dig into the dirty details came to a vastly different conclusion. David Stockman notes that, after taking into account the usual government statistical hocus pocus, only 11,000 new jobs were actually created. Even worse, there were just 8000 new manufacturing jobs created in America last month. Yes, just 8000 — with the hocus pocus — in a country with a population of 325 million people.

As financial analyst Dave Kranzler more aptly observes, unless you’re living in a fantasy world, “The (total jobs) number reported is not even remotely credible when put in the context of what’s happening to the U.S. economy.” Of course, a lack of well-paying jobs that can actually support a family is no doubt the reason why, despite being seven years into a so-called “recovery,” 93% of American counties still haven’t recovered from the last recession.

Obamacare is so expensive, fully one in three Americans are cutting spending on food, rent and other essentials just to afford the healthcare premiums. On the bright side, our broken healthcare system would be so much worse if the $2500 in annual healthcare savings promised to average American families by all those Obamacare advocates before it became the law of the land was actually a bald-faced lie. Oh wait …

Meanwhile, the US stock market had another rough week, capped off with big losses on Friday. The Dow is now back to levels not seen last August. For the week, the Dow was down another 2.4%, the S&P fell another 2.2%, and Nasdaq lost 2.7%. For the year, the stock markets are even worse: the Dow is down 8.2%, the S&P is off 8%, Dow Transports have plunged 10.9%, the Nasdaq has lost 10.4%, and the Russell 2000 has disappeared into the abyss, losing 11.3%.

In his State of the Union speech this week, President Obama insisted that, “Anyone claiming that America’s economy is in decline is peddling fiction.” But seriously, folks — if the American economy isn’t declining, then how do you explain WalMart’s decision to shutter 154 stores in the US? I’m sure Puerto Rico doesn’t think any talk of economic decline is fear mongering and lies. According to none other than US Treasury Secretary Jacob Lew, the American territory and so-called 51st state “is in the midst of an economic collapse.” Not a recession — economic collapse. --- Len Penzo

 

[Don M.]

Yup, about the Only positive in the last year is the Price of Gas...however, this comes at the expense of thousands of jobs in the oil industry. I think 2016 is going to be a Real "Roller Coaster" ride for the economy, and the way Wall Street is starting the year does not bode well for anyone with an IRA, etc. By the time the elections roll around in November, The Economy is going to be the Hot Button issue.

 

[Lethe200]

ALL healthcare is expensive. Had Nixon been able to push through his program of nationalized healthcare in the early '70's, people would not be held hostage by insurers and pharma companies as they are now. Most Americans have no idea that Medicare, in comparison to the private-pay system, is actually much more efficient with its dollars by almost any standard.

I have no skin in this game, as we have retiree medical benefits. Our plan costs $1100/month for a couple. That's $13,200/yr! We are very fortunate that most of it is employer-paid. Thank you, collective bargaining by unions.

The market is just barely in correction territory. What's the big deal? It goes up, goes down, goes up, goes down -- but the long-term trend is upwards. It's never a straight-line increase....never has been, never will be.

People who panic when the media screams "the sky is falling!" are like the ones who sold their equity assets in 2009 and then got to watch on the sidelines as sensible investors who stayed in, recaptured all their losses and saw their portfolios increase (again).

Wal-Mart is shuttering less profitable stores because their heavy rate of expansion was not sustainable. They have closed a lot of global stores over the years because they totally misread foreign cultures (go look up how they flopped in Germany). They vastly under-estimated the shift to on-line shopping. Literally, no one we know shops at Wal-Mart unless they have young kids, where it's okay to buy junk because the kids are going to get tired of the stuff and break it anyway.

But for everything else, it's Amazon. We adore them and so do Millennials and young Boomers. It is absolutely the best way to shop - not for the lowest prices, but for sheer efficiency. I decided to buy a bulk pak of small cell batteries at 10p last nite: logged on, did a search for the size, a one-click order and it arrives on Wed. Took me maybe...oh, 2 minutes? No driving, no asking uncertain sales clerks, no hunting down aisles, no waiting in check-out lines, no risk of dents in the parking lot.

I'm even shifting more and more of my grocery shopping to Amazon, because my otherwise-excellent supermarket wants to push its store brands. A few items like that I don't mind, but in general I buy the brands we prefer -- and if the store won't carry them then I'll have it delivered to my doorstep instead.

I haven't walked into a drugstore in years, except for an emergency stop for some cough drops because I ran out of them unexpectedly while we were off to a movie, and I didn't want to annoy other people by coughing away in that horrid 'dry tickle' stage.

Puerto Rico runs its economy like many Central and South American countries - inefficiently and corruptly. They are an example of nothing but the outmoded idea of colonialism. We should either make them a state or cut them free to be an independent nation.

The U.S. is not in the greatest of shape. But it's well above and beyond what is happening in China -- you want to look at imaginary financials, there's a good place to start -- along with the 25 yr fight to escape deflation in Japan. There's the issues with the EU that keep getting papered over but not really solved. Funny how (just before the refugee crisis hit the critical stage) the global markets became excited that the EU big five finally committed to increase spending the way the U.S. did in 2009/2010, to stimulate their economies and avoid deflation. It seems you can't deficit-cut your way out of a recession, after all.

Looking at the world as a whole can give a very different viewpoint than assembling random facts to fit a favored theory.

 

[Son_of_Perdition]

My area of expertise is obviously not in the financial world. I was quoting a blogger who mirrors my beliefs and take on the economy. I'm a political fence sitter & never take the opinions of even financially trained experts too serious. NO ONE & I mean no one has a real handle on the economy or world events, it's only their opinion, albeit some of it's based on events, polls & charts, but in the long run it's just a guess. It always brings to mind the comment the CEO of Compac computers made back in the 80's. He couldn't see any reason why any private citizen would need a PC in their house, luckily HP saw it differently & bought them out.

Walmart made a bad decision about our buying habits, but they have such deep pockets they can afford to vacate more big box stores adding to the already blight of vacant buildings & try to compete with Amazon's on line presence. My daughter was talking up 'Prime'. We looked up a few of our high usage items & found that we could beat Prime's prices going to Costco or watching the sales at Walmart. It's convenience people are willing to pay for. It's easier to grab a high calorie burger with carbo laden fries and down it with a sugar rushed Coke at McDonald's drive through than it is to shop for healthier ingredients & make it yourself at home. Convenience is the key.

I also do a lot of shopping on line, but I enjoy pushing my cart around CostCo, getting a little exercise, smelling the baked goods, sampling the little cups of yogurt instead of waiting impatiently for Fedex or UPS's deliveries. We buy from Schwans occasionally but easily beat their prices shopping locally. I used to buy a lot of clothes on line & my closet & Goodwill were the only beneficiary of those ventures, nothing ever seemed to fit. Or maybe because the manufactures were always outsourcing the work overseas where the seamstress' average height was 5' 0" weighed 110 lbs sopping wet & had trouble visualizing anyone who stood 6'2" weighing over 200 all of their adult life, played football & tossed the shot put for the track team.

 

[Lethe200]

Yes, but looking at your reply, you are basing your buying decisions on price. The difference is that I'm not. A few dollars here and there are not going to break my budget. I live in an area where traffic is horrendous and gas is expensive. Convenience, availability, and speed are primary in my shopping decisions.

You and I simply have different priorities. Neither is any more right or wrong than the other; they are just dissimilar. You sound like you lead a satisfying, financially successful life. So do I.

And just FYI, I don't ever "wait impatiently" for deliveries; there's no need to sign anything. I do have to be home when I have groceries delivered, but that's scheduled in a 1-hr or 2-hr window at most by me, so it's all at my convenience and not someone else's. Besides, still have to put the milk in the frig, even when it's delivered!