Thursday, October 1, 2009

U.S. Unemployed Stuck at Stupid; the New Abnormal Fear



Today's trailing weekly unemployment number remained stuck at failed policies.
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The U.S. economy cannot recover without job growth, and what makes anyone optimistic it will even get back to a zero weekly unemployment number from today's darkening depths of minus 551,000 jobs for week ended 9/26, prior was minus 534,000. This stubborn spike in unemployment remains a major hurdle for any fundamental stabilization and growth cycle to occur:
http://www.briefing.com/Investor/Public/Calendars/EconomicReleases/claims.htm
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With so many complicated parts at work in today's global economy, we do not envision U.S. unemployment percentage suddenly improving. Many economists agree creating good paying private sector jobs is difficult when the government insists it is part of the solution and continues to spend, spend, and spend.
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Government spending in light of an increasing unemployment percentage is very troubling. This Administration's fatter than butter budget deficit cannot be neutralized from a discouraged work force and falling tax revenues.
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Unemployment will continue to trend higher over President Obama's term if he doesn't tweak fiscal policies in favor of the private sector businessman and businesswoman. We do not feel it's impossible to fix; the private sector's potential needs to be unleashed through cutting back gov't spending and giving red blooded Americans tax breaks. "It's the people who created the federal gov't, and not the other way around". President Ronald Reagan.
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Chairman Bernanke's monetary efforts will not be a panacea for flawed fiscal policies that aim to redistribute America's wealth to the have-nots. We belive in a true free-market system, where losers and winners, IPO's and bankruptcies, troughs and peaks, booms, and busts, and fear and greed all are beautiful components in order for the U.S. economy to cycle and evolve. No Administration should attempt to harness entrepreurship, innovation, and jobs through bigger gov't type aspirations/programs.
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This administration's policies favor larger government at the expense of a struggling and now shrinking private sector. What do President Obama's economic advisors not understand about cutting back on spending and allowing the private sector to create jobs? We firmly believe more money in private hands would ignite entrepreneurship, research and development, and job creation.
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We find it sad most cable talking heads have stopped using the word bottom lately. We think this is exactly when the word should be hotly debated. Bottoms are never marked by smooth "V's" or "U's" without running into any unfortunate left field type events. Thus we believe the recent broad market run-up has been a gigantic technical hiccup and will not last. The fundamental underpinnings of the economy have only been addressed from a bigger gov't standpoint, and gov't has and never will be the solution to our problems.
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The changes Obama has set in motion will continue to devalue what we feel is this Administration's mini mouse dollar. We do not see a safe fundamental floor below in jobs or residential real estate, only a growing list of anti free-market policies bound to derail this impressive yet dangeous technical bounce.
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The new abnormal fear of unemployment being stuck at stupid is upon us. The promise to reign in an era of transparency and nonpartisanship is leaving more and more Americans with loose change and false hope.

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