>From the article: "We are in the midst of a global financial crisis, and tight credit markets have made it harder for businesses to borrow the money they need to meet their payrolls, grow and create new jobs," Mr. Bush said in a statement. "It will take time for these measures to have their full impact on an economy in which many Americans are struggling."
Payroll deductions equal less squeeze on corporate profits and can lead to higher stock prices. Good for Wall Street. Job layoffs add to the reserve army of labor and help manage wages. Good for corporate profits - especially when consumer spending is down as a result of declining wages and increased layoffs. Corporate profits have to come from somewhere. Good for Wall Street when stocks go up. That's how I read it. Jayson -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Doug Henwood Sent: Friday, November 07, 2008 1:41 PM To: Progressive Economics Subject: Re: [Pen-l] Wall Street Higher After Jobs Report On Nov 7, 2008, at 1:19 PM, Jayson Funke wrote: > And the class crunch on labor wages intensifies as Wall St. > acknowledges > and approves... Uh, no, that's not the reason stocks are up. They've been down hard lately, and it's just a bounce. Wall Street does not welcome an employment implosion at this point. It will be hell on demand, will damage profits, and could cause serious political problems. Doug _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
