You read it wrong. Wall Street likes a just-about-right amount of unemployment. Too much unemployment threatens the stability of the system. But... inevitably the longed for just-about-right amount of unemployment leads to destabilizingly high unemployment.
On Fri, Nov 7, 2008 at 11:56 AM, Jayson Funke <[EMAIL PROTECTED]> wrote: > >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 > -- Sandwichman _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
