I read with amusement an article titled "No jobs for the unemployed" by Catherine Holohan in an MSN Money article posted today concerning unemployment. (you can read it here at:
http://blogs.moneycentral.msn.com/topstocks/archive/2009/07/07/no-jobs-for-the-unemployed.aspx ) The reason I find it amusing is this is exactly what I have been saying for more than 6 weeks since I started my blog. While unemployment is no laughing matter the article further strengthens my convictions that the Guru's, Corporate CEO's and elected officials just don't get it.
http://blogs.moneycentral.msn.com/topstocks/archive/2009/07/07/no-jobs-for-the-unemployed.aspx ) The reason I find it amusing is this is exactly what I have been saying for more than 6 weeks since I started my blog. While unemployment is no laughing matter the article further strengthens my convictions that the Guru's, Corporate CEO's and elected officials just don't get it.
Ms. Holahan's closing statements while ringing true are a little late in the game. Below is the excerpt:
"Until hiring recovers sufficiently to absorb more of the unemployed, consumer spending will likely remain depressed. That, in turn, will put a severe damper on any future recovery. Consumer spending accounts for 70% of all economic activity. And, needless to say, employees without paychecks can't spend them"
So it begs the question where was everybody 2-3-4 months ago? I said then as I say now, there will be no stabilization of housing or anything else until the jobs market plays out. I wonder if billionaire Sam Zell is just now beginning to figure this out as well? I'm betting in the coming days and weeks ahead the pundits will now be changing their tune, but again what took so long? Did they not see this through their rose colored glasses or is it that hard to look down from their corner office in the Ivory Tower?
MSN Money even listed one "expert" a few weeks back (wish I could remember the article) that touted Target Stores stock over Wal-mart because as consumers were becoming more confident they viewed Target as more upscale? How rediculous is that? He was betting on Target to be the stronger buy? Laughable (unless you are the sucker that followed him).
My point is, it is the consumer who needs the bail out and stimulus. We drive the engine that is GDP not the financial institutions, auto makers, or government services.
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