Out of Tune Thursday!
Don’t look now, but that grand economist Rod Stewart said it best: “Every Picture Tells a Story, Don’t It?“
Why, if George Thorogood (corrected) offered econometric models, this would be Bad to the Bone.
To quote from the press release this morning:
“CHICAGO, June 6, 2019 – U.S.-based employers announced plans to cut 58,577 jobs from their payrolls in May, up 46% from the 40,023 cuts announced in April, according to a report released Thursday from global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.
May’s cuts are up 86% from the same month last year, when 31,517 cuts were announced. So far this year, employers have announced 289,010 job cuts, 39% higher than the 207,977 cuts announced in the same period last year.
“The Tech sector announced the highest number of job cuts last month. Large Tech firms are finding they need to move workers through the pipeline in order to become more agile. In fact, we’ve seen a number of Tech and Telecom companies offering buyouts to older workers over the last year,” said Andrew Challenger, Vice President of Challenger, Gray & Christmas, Inc.
Companies in the Technology sector announced 12,635 job cuts in May, bringing the year-todate total to 18,568, 342% higher than the 4,205 announced through this point last year. Telecom companies announced the second-highest number of cuts in May with 6,751, 60% of the 11,202 total cuts announced for the year.
Tech companies, however, are not the biggest job cutters in 2019. Retailers continue to lead all sectors with 50,243 cuts, 2,167 of which were announced in May. Retail cuts are down 28% over last year, when 69,316 were announced. “
“What does the Fed have to do with this?”
Ah, Iron Butterfly! Ure point exactly!
When people are all strung-out on prescription-uppers, they tend to look (in their delirium) at how everything is “Glass Half Full!” Invasion from Mexico, evolving trade war, democrats STILL trying to impeach of imprison the elected president…all good, right?
When the Fed Boss comes out and says something like “Well….er….we MAY lower rates….” the shills in the financial press simply repeat the common misunderstanding which, in the current example is the epic-fail to ask the only good news-worthy question on the Planet:
“Why would Jerry Power LOWER rates?”
- Does he juss luv crony capitalists so much that the Fed wants to cut ’em a break? Nope.
- Does he think this will juice the economy and increase capital formation and we can all continue on the road to Nirvana? Smells like teen spirits to us…
- Gentle Ben’s Lower For Longer (L4L) rate idea would be a safe experiment for the class?
- Well, how about a chicken in every pot, or something?
OK…here’s a wild-ass thought – one in keeping with the past public hints of “bad things to come” offered those paying attention by past Fed Bosses when the brick wall was looming.
Let me do some math for you: Wednesday’s ADP report said job growth fell to just 27,000 in May. And now we see cuts up 58,577.
Wanna know how I skated through grad school? Asking obvious shit like this. (“Well, Dr. Dalton if we only added 27-thou and then we drop almost 58-thou, does that mean we’re going into a recession? Yeah…4.0 in grad school…but that’s not the oink here.)
The main oink is that in the ADP numbers, businesses with less than 50 emps were down 52K while Big Biz was up 68K…the story about “new business formation seems to have been run over out in the street,”if’n you was to ask.” Most people are too dumb to ask…they sponge up the lib media hype while the strong hands unload into the weak (you) and it’s a centuries-long game wherre workers lose every round.
The way we’ve got this figured, like we called “Turnaround Tuesday” this could turn into a turnaround Thursday, ‘ceptin this time it will be a doggie downer if we have it right. No warranty and doesn’t include destination fees or tax, or license.
We never offer investment advice since the Answer is Blowing in the Wind. There’s a whiff of stock yard about, though.
In keeping with our theory that the market is a casino, we are eyeing an armload of Texas All-In levered goodies because I’m serious…there’s only one reason we could think of that would cause the Fed would lower from here. And we have hopes that when other deep-thinkers notice the brick wall ahead, we’ll make some “Dirty Money, love come down, eh Diddy?
The ECB is trying to be cool and sit out the delusion: ECB Extends Forward Guidance, Will Keep Rates Unchanged Until First Half Of 2020, Announces TLTRO Terms. LOL, if WE go down, THEY go down…don’t kid Ure self.
Sobriety arriving about 90-minutes into today’s session? All For the love of money, brothers and sisters.
So much for being the world’s leading financial blog-jock. We now return you to the routine stupidity that entertains…
Elsewise and Elsewhere
Think this can support a further rally? CoreLogic Reports the Negative Equity Share Fell to 4.1% in the First Quarter of 2019.
New Trade Figures have just popped:
And sure, there’s a pop in productivity, but if I’m reading this right, you may not be getting the bennies because labor costs are down…: Down with Humans, Up with Machines!
Meanwhile, this sure as hell won’t help: China warns of “serious harm” as Taiwan confirms U.S. arms request. (Back to music, then, shall we?)
Computers discriminate? Well, we had to ask since reading in Fortune how The Rise of A.I. Threatens to Leave Women Behind: Broadsheet.
Worst Headlines of the Day
(Hand me the envelope…thanks) CNN! for Marcia Cross says her anal cancer is linked to husband’s throat cancer. TMI or ratings desperation?
What? Another envelope?
Runner up Award? Fox for Bikini model poses for glamour shot while in labor, is accused of staging photo. 9-months to stage, perhaps?
Guest Rap Sunday?
We have some really good things in our “comments” section – so much so that we will be adding a “subscribe to comments” tool here, shortly.
In the meantime, occurs to me that we aren’t posting anything on Sundays, so why not open it up to guest commentary and discussion…sort like First Monday deep-think stuff, but without the webtronicacentric focus.
Speaking of First Monday do take the time to read Testing popular news discourse on the “echo chamber” effect: Does political polarisation occur among those relying on social media as their primary politics news source?
If you don’t know the answer is “Hell Yes!” you ain’t paying ‘tention… Social Media is a floating beer hall putsch. Sig Social…Sig Social….
Take your meds now, quote us on your next talk-show call-in, and we’ll have moron the morrow…