Online financial news
More Jobs Lost, But Unemployment Rate Holds
There’s no relief from the jobs crisis – for everyday Americans or lawmakers facing the midterm elections.
The most rampant layoffs of teachers and other local government workers in nearly three decades more than offset weak hiring in the private sector in September, resulting in a net loss of 95,000 jobs. Unemployment remained stuck at 9.6 percent.
The jobless rate has been at or above 9.5 percent for a year and two months, the longest stretch since the Great Depression. The “underemployment” rate adds part-time workers who would rather work full time and jobless people who aren’t actively seeking work. It now exceeds 17 percent.
The glum economic picture came Friday in the Labor Department’s last monthly jobs report before the November election. Voter frustration over jobs threatens to cost Democrats control of the House and perhaps the Senate.
“We have to keep doing everything we can to accelerate this recovery,” President Barack Obama said. Read more…
Weak Jobs Report May Weigh On Markets – RTTNews Daily Market Analysis
() - The major U.S. index futures are pointing to a lower opening on Friday, with sentiment likely to be impacted by an employment report that showed a steep decline in payrolls. The private sector added less jobs than had been anticipated, while the unemployment rate remained unchanged. The weak numbers should lead to some selling from the overbought levels the markets are currently in.
U.S. stocks closed on a mixed note yet again on Thursday, with sentiment weighed down by nervousness ahead of Friday’s non-farm payrolls report and the weakening of the dollar. The major averages opened higher, but they surrendered their early gains, with the Dow Industrials and the S&P 500 languishing below the unchanged line for much of the session before closing modestly lower. The Nasdaq Composite Index showed more volatility, moving back and forth across the unchanged line before closing higher.
Eighteen of the thirty Dow components closed the session lower, with Alcoa (AA), JP Morgan (JPM), 3M Co.
The Coping Classes – the middle classes are under siege like never before
Earlier this week, a representative of Mumsnet charmingly buttonholed George Osborne at the Conservative Party conference, inviting him to engage in an online debate with the nation’s parents.
Presumably wise to the fact that he might face a greater challenge than larky requests to name his favourite biscuit, the Chancellor made his excuses and hurried off, leaving his aides to fudge the issue of whether he was prepared to be cyber-mauled by middle-class mothers incandescent with rage over the child benefit debacle.
As things stand, he might have been well advised to get his ordeal over and done with before the comprehensive spending review on October 20 lays bare the true – and almost certainly appalling – extent of the cuts the coping classes face.
Gain In Services Powers Stocks; Dow Up Nearly 200
Stocks surged to their highest level in five months Tuesday after a measure of the most important driver of the U.S. economy surged ahead in September, a hopeful sign for the country’s main source of employment.
A surprise move by the Bank of Japan to cut its key interest rate to virtually zero also lifted stocks worldwide. The dollar fell as investors shed defensive assets, and a gauge of U.S. stock market volatility fell.
The Institute for Supply Management reported that its index of business activity at U.S. service companies expanded again last month, and far faster than analysts were expecting. The ISM’s measure of service companies encompasses a wide range of industries including finance, health care and trade.
It was the ninth-straight month of expansion in service businesses, which have been growing at a slower pace in the U.S. relative to the much smaller manufacturing sector. Read more…
Do we need a commercial state run bank?
Despite the fact that the UK government, and indirectly UK taxpayers, have significant stakes in Royal Bank of Scotland, Lloyds bank, Northern Rock and the “bad bank” of Bradford and Bingley the UK government has no direct control over these operations. While on the surface these may seem like state-run banks they are effectively banks run at an arms length distance from the UK government – which owns all or has a significant stake in the companies in question. But is it now time for the introduction of a commercial state run bank?
There’s no doubt that various attempts to influence the UK banking arena with regards to liquidity in the mortgage market, small business arena and medium-sized business sector have ultimately fallen upon deaf ears. If the UK government was to introduce a state-controlled bank into the commercial sector this may well see UK banks sit up and take more notice of instructions from the Bank of England and the UK government in the future.
DFA Missionaries – Get Out of Debt and Serve
Uniting to Fight Debt and Serve
Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law. Romans 13:8
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Acknowledgements
There are several people who deserve a shout out for their contribution in helping me reach these decisions:
- My incredible, beautiful, and awesome wife Betsy.
- My encouraging, loving, and beautiful mother Kathy.
- Peter Anderson – for continued support and friendship.
- Adam Baker – for passionately pushing me to be great.
- Chris Guillebeau – for encouraging me to live a remarkable life. Get the book.
- Michael E. Gerber – f