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I will admit that Finn was correct when he said worker productivity is up, but he has wrong is the reason why I'm responding.
Worker productivity is up because workers are needing to work more and receive less because companies have laid off workers. While he pretends this is a positive, its a HUGE negative.
An example: A business has 10 employees, lays 4 of them off leaving 6 left. OF COURSE the productivity for the 6 left would be up, they are doing the work of 10 people
People like you have been saying that all along. When the DOW was in 6000 range they said it will hit 2000. All the areas you mention as negatives are actually showing signs of stabilization, and that's why people are investing.
- We are losing less and less to unemployment every month, so the trend suggestes we will soon be adding jobs, not losing,
- the housing market has bottomed out and is already picking up in some areas
- consumer spending is stabilizing,
- the economy expanded by 3.5%,
- worker productivity has skyrocketed
The problem is -- where was all that money that supposedly was lost during Bush's last few months? When the housing bubble burst, supposedly the stock market fell because the wealth was suddenly gone.
Now it's back? People really had that money all along and now they're putting it all back?
Or if under Bush the economy really was destroyed and so much wealth was lost, what replaced the housing bubble to suddenly grow so much new wealth so quickly?
The stock market is WAY overinflated. It'll be interesting to see how long they can manage to keep it artificially pumped.
Lets compare this though to the currency in circulation..
Do you see the comparison? The stock value is up, currency is up, but the net "increase" is actually a decrease once you look at the value of that dollar adjusted.
I make a living trading stocks, and they are not over inflated, they are properly priced. What has changed though is the dollar is devalued so the "high" average actually is normal when adjusted.
What many dont realise is that the government went and bailed out these business and these companies are using this cheap money to make more in the market. GS who received a bailout just profited $3,000,000,000 in the last quarter and over 98% of their stock trades were profitable trades while the government continue to pump money into the market.
Plus -- the bailed out CEO's -- the same ones who lost all that money now have billions of future tax dollars to invest for themselves. They are still getting their $8 million annual bonuses even if they're laying off many of the workers.
It's going to hurt when the taxpayers start getting the bill for all the spending that's being done. It won't hurt the very rich, they'll still have plenty of government dollars to invest but it's not them that has to pay the stimulus bills.
Plus -- the bailed out CEO's -- the same ones who lost all that money now have billions of future tax dollars to invest for themselves. They are still getting their $8 million annual bonuses even if they're laying off many of the workers.
It's going to hurt when the taxpayers start getting the bill for all the spending that's being done. It won't hurt the very rich, they'll still have plenty of government dollars to invest but it's not them that has to pay the stimulus bills.
Without turning this into a "CEO" thread, understand that if your the CEO of GS, and you just created a $3,000,000,000 profit in the last quarter, why would you not be entitled to a bonus? Its $3 BILLION dollars. As an investor you dont care if the profits were done on the taxpayers back because they provided cheap capital, you care about the fact that the CEO was able to obtain that cheap capital and return the profits to you..
In my opinion, stocks should really only be about 50% to 60% of where they are right now.
Sounds like you didn't get the memo: The market couldn't care less about your opinion.
And who cares why the market is up or if it's over valued? Do you realize you can make high 6 and even 7 figures never even thinking about those things? Do you realize those who you think are dumb don't care about this stuff because up or down they're going to keep banking coin? Do you realize no one with half a brain cares about value? Do you realize over 50% of all the action everyday isn't even done by human beings. What exactly do you think the market is anyway, a way to fund your retirement or something?
Without turning this into a "CEO" thread, understand that if your the CEO of GS, and you just created a $3,000,000,000 profit in the last quarter, why would you not be entitled to a bonus? Its $3 BILLION dollars. As an investor you dont care if the profits were done on the taxpayers back because they provided cheap capital, you care about the fact that the CEO was able to obtain that cheap capital and return the profits to you..
The CEO's get a $8,000,000 bonus even when they have driven their corporations into the ground. The stock holders can be losing money, the stocks can be dropping, employees can be laid off right and left and the CEO's get their big money regardless.
Just like the big banks that lost so much money handing out money right and left irresponsibly to people who could never repay it. Those CEOs made out very well.
Last edited by Ibginnie; 11-14-2009 at 10:34 AM..
Reason: edited quoted post
The CEO's get a $8,000,000 bonus even when they have driven their corporations into the ground. The stock holders can be losing money, the stocks can be dropping, employees can be laid off right and left and the CEO's get their big money regardless.
Just like the big banks that lost so much money handing out money right and left irresponsibly to people who could never repay it. Those CEOs made out very well.
And as long as the investors dont mind paying them, why does it matter what they are paid?
Some companies are setup to actually lose money for YEARS before turning a profit. Many Pharmacy companies for example. The fact that they arent profitable mean nothing. The only time the "public" has a right to bitc.. is when its your money..
I will admit that Finn was correct when he said worker productivity is up, but he has wrong is the reason why I'm responding.
Worker productivity is up because workers are needing to work more and receive less because companies have laid off workers. While he pretends this is a positive, its a HUGE negative.
An example: A business has 10 employees, lays 4 of them off leaving 6 left. OF COURSE the productivity for the 6 left would be up, they are doing the work of 10 people
Actually, PGHQUEST..........
I figured EXACTLY this but chose not to bother and mention it, since I "might not" have been correct in my assumptions.
But, it makes sense since I continue to hear from several people (who are fortunate enough to still have "stable" employment for the time being)....just how OVERWORKED they all are.
But most of them are quite happy to still have a job.....despite working longer hours.
Yep....the result of downsizing......BECAUSE of a recession "they" say is over....and its now a recovery.
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One person is now doing the work that 2 or 3 other people WERE doing, not so long ago.
YES.....I agree.
It IS a HUGE negative....despite productivity figures.
Lets compare this though to the currency in circulation..
Do you see the comparison? The stock value is up, currency is up, but the net "increase" is actually a negative once you look at the value of that dollar adjusted.
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