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Jobless Claims Fall Through The Floor

FYI: After trending slightly higher for the last few weeks, jobless claims absolutely cratered this week, falling to their lowest levels in over forty years!
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/jobless-claims-fall-through-the-floor/

Comments

  • edited July 2015
    maybe time to pull back more from stocks...when these articles come out, its scary, remind me of 2007 all over again
  • John....a reduction in initial jobless claims normally would be a positive. What are you specifically concerned about related to this?

    press
  • Press,

    Maybe a contrarian view..... Buy when there is blood in the streets and sell to the sounds of trumpets.

    Easier said than done, but it's certainly one approach.

    You could easily argue though that there is still plenty of worry for the market to climb on as well.
  • edited July 2015
    Not John … But, here is how I see it.

    Many of the under and unemployed are now so very desperate that they will take anything once their benefits expire. After all, if they don’t have enough earned income the government will provide some form of a subsidy. Now if the government causes an action to raise the minimum wage this lowers the subsidy the government has to pay out through increased wages while raising the cost of labor for business. This will in turn raise the cost of goods and services business provide. Simple stated, this is transferring some of the burden the government has been bearing in its social programs onto the backs of business.

    I was standing in line at the grocery store yesterday and saw a worker in a publically traded large utility’s workers uniform pay for some items with a food stamp card. Now here is a worker no doubt out working and trying to make a living and perhaps not being paid enough to be off of government assistance.

    Something is wrong here folks …

    With this, I am glad to see the employment numbers are improved. Perhaps the summer job numbers are starting to kick in and a revision will be forth coming as these jobs come to an end as we approach fall. For some folks out there having a job, any job, equals to being "Just Over Broke."

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