I think that it's a mug's game to present after-the-fact explanations of stock market fluctuations, especially day-to-day ups and downs. There are always about five different but equally reasonable _ex post_ explanations for the same events. The problem is that collectively, the "Market" is fundamentally irrational (even though individual gamblers -- oops, I mean "investors" -- may be economically rational).
On Fri, Nov 7, 2008 at 12:18 PM, Sandwichman <[EMAIL PROTECTED]> wrote: > 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 > -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
