Alstrynomics Business Lesson 103
If people are still losing their jobs.....conditions are getting WORSE...regardless of the rate.
Occasionally I watch CNBS while shaving. It is incredible the nonsense these guys put out there sometimes. There is an older guy and decent looking brunette in the morning as the market opens. When I heard the guy try to convince viewers that the rate of job losses are slowing and somehow implying that things are nearing a bottom, I almost had to break out laughing at how rediculous the statement.
Remember, a person approaching death in a hosptal is also nearing a bottom. Absent resurrection or reincarnation, it is a bottom that most rarely recover from.
If a person is losing blood, regardless of the rate, there is blood loss. As more and more blood is lost, the closer that person gets being critical and cardiac arrest....or dead. The analogy applies to the economy as well. As more and more Americans suffer NET job losses, unemployment keeps rising. If the trend continues, at some point, so few are working that they can't support the burden of the unemployed and the economy basically shuts down.
What should concern you is that job losses continue. The economy is getting closer and closer to being critical. The fact that NET 500K lost their jobs this month versus 600K last month does NOT make anything any better...in fact it is much worse....500K worse. That is 500K not paying taxes and 500K more collecting unemployment.
If there are NET job losses...conditions are getting worse...at 500K...MUCH WORSE....not better...regardless of the fact that it may have been a bit less than last month.