Stocks slammed by jobs reportPosted: July 3, 2009
CNN money writes about DOW loosing over 200 points due to worse than expected jobs report. The President comments that the figures are… "sobering".
I’ve written on this issue a number of times. The number one enemy of a recovery is UNEMPLOYMENT. Now you can argue that unemployment is the results of a number of other factors and those need to be fixed before unemployment can be reduced. The reality is that it is not about the lack of lending… no one is buying. People are not buying, because they are saving… because they are either unemployed or waiting to be unemployed.
Health care reform is important, but why are we not looking at the funds that have been allocated for the Recovery Act. I recently looked at a visualization of stimulus spending from the New York Times (http://online.wsj.com/public/resources/documents/info-STIMULUS0903.html). There are so many line items across so many states that I am just wondering what portion of those funds are being used, what their employment effect is and how much waste there is? How much of the infrastructure spending will leave something behind that will make us more competitive in the years to come? We will have the most modern network of emergency shelters in the world, which will require maintenance and but will not generate a single dime after they have been built. Where are high speed rail lines, the next generation high-speed wireless networks, the new nuclear power stations, the national e-government platforms, etc. These are all initiatives that will make the nation more efficient and more competitive for years to come. They will also generate jobs today and put money back in the pockets of consumers? Where are the bold initiatives that will shape the nation for generations?