Unemployment jumps to 9.7%

posted at 9:30 am on September 4, 2009 by Ed Morrissey

Consider this a part of Barack Obama’s August horribilis.  The White House desperately needed good news on the employment front after spending the last five weeks getting hammered by angry constituents in almost every Congressional district in the US, and especially after Joe Biden spent yesterday bragging about the economic policies of the administration.  Instead, unemployment hit a new high in August:

U.S. employers cut a fewer-than-expected 216,000 jobs in August, while the unemployment rate rose to a 26-year high, the government said on Friday in a report showing a still fragile labor market.

The Labor Department said the unemployment rate rose to 9.7 percent after dipping to 9.4 percent in July and the decline in payrolls was the smallest in a year. The department revised job losses for June and July to show 49,000 more jobs lost than previously reported.

ADP found more than 80,000 more job losses in its report yesterday, based on private-sector payrolls.  Maybe the government is hiring?  That seems to have stopped, too:

Manufacturing employment fell by 63,000, with a total of 2 million factory jobs lost since the start of the recession. Payrolls in construction industries dropped 65,000 after falling 73,000 in July.

The service-providing sector purged 80,000 workers in August, while the goods-producing industries shed 136,000 positions.

Education and health services continued to add jobs, with payrolls increasing 52,000 in August after rising 21,000 in July. Government employment fell 18,000 after slipping 28,000 in July.

The US still bleeds jobs across all sectors, and now unemployment has hit a new high.  July and June numbers also got adjusted upwards after the Obama administration used them to argue that they had turned the corner on the recession.  Retail numbers continue to drop, which means that hiring won’t commence for several months out yet.

Recall the argument made by Obama and his economic advisers when they demanded a $787 billion slush fund to “stimulate” the economy?  Recall this curve?

Now we’re here:

We’re still cresting, only far above what Christine Romer and Barack Obama used as a scare tactic to get the cash, and much farther above what they promised from their top-down economic policies.  It’s not getting better at all, despite Joe Biden’s blathering.  The problem is getting worse, and it will continue to worsen as government eats up capital that could have gone to job creation.


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Also, I am gold panning on the weekends. Hey I will have an ounce in about 5 more weeks unless the snow flies and the water freezes.

upinak on September 4, 2009 at 11:50 AM

missed that “nugget.” I’ve got to get away from the city!

JiangxiDad on September 4, 2009 at 11:58 AM

JiangxiDad on September 4, 2009 at 11:42 AM

Which is more reason to get your money the hell out of any bank that has accepted TARP funds. The guy that has a few thousand in CDs or savings is going to be last to get his money when these institutions go under (whether through a panicked bank run or through the “orderly collapse” the Fed seems to be orchestrating).

Karl Denninger has some interesting advice on the subject. Get your money out of the TARPed banks, place it in a local credit union that hasn’t exposed themselves too heavily to residential or commercial RE, and even be prepared to convert that to cash in a hurry.

Just PERSONAL opinion here, mind you. Cash and gold somewhere at home (you’re not getting any int. at the bank anyway.) Keep small amount only in bank.

Yep…checking at a local, safe credit union (that isn’t exposed heavily to commercial or residential RE). Cash, silver and gold coins in a safe right next to the shotgun. =)

Unfortunately I can’t do much with my 401(k), I took it out of stocks after I got a nice bump from the recent rally (ramped up my contributions right at the 666 S&P bottom and saw my account nearly double), but I’ve got it parked in MM at the moment, seems to be the safest of very limited options.

The people I really feel bad for are those that sold at the market lows last fall and are just now buying back in. There’s a huge pump n’ dump going on in stocks right now and I personally feel like we’re entering into the dump phase soon. Stocks are not following any kind of market fundamentals right now which tells me that it’s no place for long term investors.

TheMightyMonarch on September 4, 2009 at 11:59 AM

we figured wrong again

folks lets face it, Jethro just can’t cipher but he sure can lie.

bluegrass on September 4, 2009 at 12:01 PM

but I’ve got it parked in MM at the moment,

Yeah, I read Denninger too, and zerohedge is a must. I like to read Mish too. Lately I find http://goldversuspaper.blogspot.com/ really valuable.

I did the same, then had it in MM. But, I couldn’t get into a fed only MM, and not satisfied w/ safety of Prime MM funds, so now I create my own MM fund by putting it in 2 mos or less T-bills, and add and subtract as necessary. good luck with all this. It sucks big time. F-Obama.

JiangxiDad on September 4, 2009 at 12:06 PM

Stocks are not following any kind of market fundamentals right now which tells me that it’s no place for long term investors.

TheMightyMonarch on September 4, 2009 at 11:59 AM

That’s for damn sure. First time in my adult life I don’t own any stocks. These are very weird times!

JiangxiDad on September 4, 2009 at 12:07 PM

Safest place imo is very short US Treasury bills (3mos. or less). They are guaranteed to be paid back to you, even before FDIC claims,

JiangxiDad on September 4, 2009 at 11:40 AM

Just like GM’s secured bond holders were supposed to be paid back before anyone else??

Under this administration, what the law says, is irrelevant.
Who has the most political clout is all that matters.

MarkTheGreat on September 4, 2009 at 12:11 PM

Wait for Sept numbers, when summer jobs aren’t included – the real impact of this dismal failure will be felt, as if the country isn’t feeling it already…

I love how Bambi, Biden, Pelosi and every other moron is claiming “its all getting better”, while the macro numbers rise and people are off the “unemployment radar”, as in still unemployed, but not receiving or qualifying for benefits.

Odie1941 on September 4, 2009 at 12:14 PM

Just like GM’s secured bond holders were supposed to be paid back before anyone else??

Under this administration, what the law says, is irrelevant.
Who has the most political clout is all that matters.

MarkTheGreat on September 4, 2009 at 12:11 PM

Good point. The gov’t lies. It’s a fact. But let’s just say that Treasury bill/note/bond holders are supposed to be paid back before others (SS recipients, for ex.)and that there are foreign holders who would scream blue bloody murder if they didn’t get their money back. Short of keeping everything in gold, buried in the back yard, I can’t come up with a safer idea of how to preserve your savings.

JiangxiDad on September 4, 2009 at 12:18 PM

we figured wrong again

folks lets face it, Jethro just can’t cipher but he sure can lie.

bluegrass on September 4, 2009 at 12:01 PM

Naught + naught= Ozero

ICBM on September 4, 2009 at 12:18 PM

JiangxiDad on September 4, 2009 at 11:58 AM

it is nice living in a State where you can do quite a bit of stuff and profit off of it.

But trust me when I say… panning is hard freaking work! your arms go numb from rotating 10 lbs of dirt in a pan and water constantly flowing through it. My shoulder are still sore. But the rewards are great if you get a good amount of gold dust. I only got a few nuggets, but not enough to do anything with but melt.

upinak on September 4, 2009 at 12:22 PM

Jsangxi Dad, the problem with short term debt is that the yields are 0.1% per year–irrespective of whether it’s corporate or government–and inflation will pretty clearly be more than that (unless you are of the school that a deflation will occur). In fact, weren’t the yields on some T-bills negative at some point a few months ago? Negative yields aren’t good for preserving principal.

Jimbo3 on September 4, 2009 at 12:23 PM

Husband’s place of work has gone through three sets of layoffs. They’ve frozen pensions, cut hours, cut pay, quit matching 401k’s and have mandated unpaid furloughs. He now has to do the work of three people. We’re thankful that he’s still working but the stress level has gone through the roof. He’s trying to find work elsewhere but just try competing with hundreds more looking for the same job as opposed to dozens more.

Where I work, we’ve gone through one layoff, instituted voluntary furloughs and we are not getting any kind of raises. Again, I’m thankful to be working, but I had to watch close friends get laid off. I know of others out of work who are having an extremely tough time trying to find work. The job market is small and getting smaller.

Every time I see a car with an Obama sticker on it, I want to put a note on their windshield–”How’s that hope and change working out for you?”

I keep “hoping” for a “change” myself, but as long as Teh Won’s affecting policy, I don’t expect to see any for the better.

theotherone on September 4, 2009 at 12:25 PM

Oooops there goes another rubber tree,

Oooops there goes another rubber tree plant.

He’s got hiiiiiigh hopes.

He’s got hiiiiiigh hopes

As they use to say on the Mitch Miller show just follow the bouncing idiot

bluegrass on September 4, 2009 at 12:27 PM

theotherone on September 4, 2009 at 12:25 PM

Oh man. Good luck to both of you!

upinak on September 4, 2009 at 12:27 PM

This socialism just isn’t woring is it Jethro.

” No it ain’t Uncle Jed ”

weeeeeeeeeee doggies

bluegrass on September 4, 2009 at 12:32 PM

This means the actual unemployment rate is closing in on 18%.

They are getting us closer and closer to where they really want us to be-desperate enough to embrace Marxism.

Dave R. on September 4, 2009 at 12:33 PM

How highs the water Bama.

” ITS 6 FEET HIGH AND RISING ”

————————————————————

Just what do you think a stimulus is quoted Jethro

bluegrass on September 4, 2009 at 12:37 PM

They are getting us closer and closer to where they really want us to be-desperate enough to embrace Marxism.

Dave R. on September 4, 2009 at 12:33 PM

Not yet, they first have to get their hands on the wealth. They have Banks, auto companies, Fannie, Freddie (mortgages) and are after the next big pot of money. After Insurance Companies wealth is confiscated or destroyed and millions of jobs eliminated we will truely be at their mercy.
Forced communism!
and the way to destroy Insurance Copmpanies is through Government run healthcare.

Its’ not a government option they want its a government MONOPOLY!

Then they own Insurance Companies and the last brick in the wall is ENERGY! CAP and TAX?

dhunter on September 4, 2009 at 12:51 PM

Negative yields aren’t good for preserving principal.

Jimbo3 on September 4, 2009 at 12:23 PM

You’re right, but this current situation can’t possibly persist for long. Either interest rates will begin to skyrocket, or the currency will collapse and gold will be king. This is purely temporary and defensive. Guarding your savings will be a full-time job,and you’ve got to be nimble. next month, the advice could be completely different. It is an outrage that the gov’t is not providing people with the ability to calmly and securely plan for their retirements and other life’s plan. It is an epic failure, and most people will be unable to cope imo.

JiangxiDad on September 4, 2009 at 12:53 PM

dhunter on September 4, 2009 at 12:51 PM

Dude, literally from the book.

I wonder what Orwell would have said? Socialist and all… he has been spot on.

upinak on September 4, 2009 at 12:55 PM

This is in play and moving so fast I just wonder if its’ not timed to destroy the wealth creators and confiscate large amounts of wealth before Nov. 2010 so the next crisis, a total financial collapse, and resulting chaos will negate the electoral process, Martial Law.
Call me crazy but it worked for Pinnochio. Create a financial collapse, fool the people and McDumbass and waltz into the Whitehouse!

dhunter on September 4, 2009 at 12:56 PM

JiangxiDad on September 4, 2009 at 12:53 PM

you are correct. Gold and all precious metal will be ruling party. As well as gems.

upinak on September 4, 2009 at 12:59 PM

Oh man. Good luck to both of you!

upinak on September 4, 2009 at 12:27 PM

Thanks, upinak. It’s a struggle but our faith has been keeping us going. That, and being thankful that for now we *are* still collecting two paychecks.

theotherone on September 4, 2009 at 1:02 PM

It could be a long cold winter!

dhunter on September 4, 2009 at 10:10 AM

God I hope it isn’t again.
Those spring storms we had filled up my kitchen with baby calves.
I don’t know if I can take a winter/spring like we had again!

Badger40 on September 4, 2009 at 1:07 PM

Love the news today,still using the phrase “recovery” when reporting this. “Unemployement up to 9.7% to spite the ongoing recovery”. Should I assume that when unemployement hits 15% we’ve finally arrived at Obama’s version of recovery?

MichiganMatt on September 4, 2009 at 1:13 PM

Unemployment is actually at 16.8% people. Go to the BLS website and see for yourself.

And Biden is out telling people how great the stimulus is working. The unemployment numbers are really only the tip of the real problem. As people lose all their benefits and many have, where do they go? What happens next?

Anger at Bozo and the socialists will grow.

dogsoldier on September 4, 2009 at 1:19 PM

Badger40 on September 4, 2009 at 1:07 PM

I will take some of them! Yum…..

upinak on September 4, 2009 at 1:27 PM

JiangxiDad on September 4, 2009 at 12:18 PM

I’ve been paying off my debt, and helping my relatives do the same.

MarkTheGreat on September 4, 2009 at 1:32 PM

Should I assume that when unemployement hits 15% we’ve finally arrived at Obama’s version of recovery?

MichiganMatt on September 4, 2009 at 1:13 PM

Your username implies that you should know the answer to your own question. When unemployment hits 15% the US will finally be where Michigan has been for the last few years.

highhopes on September 4, 2009 at 1:36 PM

It is an outrage that the gov’t is not providing people with the ability to calmly and securely plan for their retirements and other life’s plan. It is an epic failure, and most people will be unable to cope imo.

JiangxiDad on September 4, 2009 at 12:53 PM

One of many outrages since 1/20/09

highhopes on September 4, 2009 at 1:38 PM

Those spring storms we had filled up my kitchen with baby calves.
I don’t know if I can take a winter/spring like we had again!

Badger40 on September 4, 2009 at 1:07 PM

Cry me a riva, now those little calves are fat and you can sell em and lay around all winter, oh I guess you can’t if your birthin em!

Ha! sold the father in laws cattle yard south of S. Falls this summer. In his last years he bought calves in spring and sold in fall no messin all winter!

dhunter on September 4, 2009 at 1:40 PM

It is an outrage that the gov’t is not providing people with the ability to calmly and securely plan for their retirements and other life’s plan. It is an epic failure, and most people will be unable to cope imo.

JiangxiDad on September 4, 2009 at 12:53 PM

The goberment is way out of control thus out of control markets. They keep messin with the rules!
Wanna bet that those of us who have saved, have not bought stuff we can’t afford, and have some money going into our retirement years will be means tested out of SSI so’s they can spread the wealth to 30 or so million illegals and lazy, porch sittin, quart drinkin, layin around, baby makers and otherwise irrsponsible adults who bought stuff they couldn’t pay for just to even the playin field and make us all poor and beholden to big goberment.
It may take a serious rebellion and I’M not talkin tea bags I’m talkin SECOND amendment.

dhunter on September 4, 2009 at 1:48 PM

highhopes
Yes. We’ve had our own mini-obama here in Michigan for 8 years. With the taxation and anti-corporate/pro-union mentallity, it was enough to get us to 15%. Keep in mind that in most of the state unemployement is around 8-10% with Flint, Detroit & Saginaw around 22% to 25%. All Democratic union strong hold communities.

On a personal note, I write commercial business insurance. With the economy in the tank, less business to insure, and companies closing, I’ve been advised by boss (father) to perhaps begin looking for work out of state (we don’t Michigan recovering for perhaps a decade). There is no certianty that even a well run and established agency can continue to support all of it’s employees. If health care goes through, that will kill roughly $3mil of business in our health & life department over the next several years. We are transitioning from a highly successful family business with 3 family members and 13 employees to a company fighting to survive with only 2 family members staying on and probably only 3 or 4 support staff. No one is safe.

MichiganMatt on September 4, 2009 at 1:48 PM

dhunter on September 4, 2009 at 1:40 PM

ummm you may wanna retract what you say.

She owns a very large farm with her hubby. Think about what you say concerning some… at least they are still trying to make it. That is respect for those who are still trying to produce what many of us take for granted.

upinak on September 4, 2009 at 1:49 PM

MichiganMatt on September 4, 2009 at 1:48 PM

Matt, do you live in detroit?

upinak on September 4, 2009 at 1:50 PM

***
A lot of posters above think that buying actual gold (not paper gold stocks) is a good idea to hedge against the upcoming inflation.
***
I’m not sure this will work. President Franklin Roosevelt outlawed private ownership of gold during the depression and forced all to turn it in for his paper money. He had to break the link between the metal and the money so he could crank up the printing presses and devalue the money.
***
This didn’t change until President Reagan changed the law and allowed us to have gold again. But President Obama (PBUH) will have to do the same thing FDR did when the hyperinflation caused by his wild spending kicks in.
***
Thirty years ago one of my co-workers and his Korean wife were prosecuted (persecuted!) by IRS because they used their money and bought and hid gold in their home. The wife knew how inflation and phony money rob people. They got robbed by IRS–confiscation of their gold–fined–and jailed.
***
Coming soon–keep your gold near your guns as the gubbamint tries to take both.
***
John Bibb
***

rocketman on September 4, 2009 at 2:00 PM

dhunter on September 4, 2009 at 1:40 PM
ummm you may wanna retract what you say.

She owns a very large farm with her hubby. Think about what you say concerning some… at least they are still trying to make it. That is respect for those who are still trying to produce what many of us take for granted.

upinak on September 4, 2009 at 1:49 PM

Hey I wasn’t dissin the farmers I is married to one (Farmers Daughter)
I was jokin about the fact thta my father in law in later years bought spring and sold fall so as to avoid winter.

Can’t do that when breedin em have to have cattle all year round and in the upper midwaest that is awfully hard, cold work. I know I have helped round up cattle that walked over fences on top of snow drifts. They can walk for miles!

My wording was poor no demeaning of the work they do was intended!
I apologise if it was taken that way!

dhunter on September 4, 2009 at 2:02 PM

I guess the US Peso isn’t going to 120 today

or ever for that matter. Down she blows……..

KentAllard on September 4, 2009 at 2:10 PM

dhunter on September 4, 2009 at 1:40 PM

Easier said than done. Still busy paying of an ex’s settlement on the mortgage. No relief in sight.
Prices just ain’t that great. Fuel too high. Recovering from 10 yrs of drought. Of course in this business it never ends.
*Sigh*
I was really hoping my stimulus was in the mail! Guess Obama needs it more than me.

upinak on September 4, 2009 at 1:49 PM

Thanks upinak. I know dhunter was being insensitive, but probably not malicious.
We who ranch for a living do it bcs we love the life. It is hard. My beef with it is seeing babies die.
That’s pretty hard sometimes. And this spring was really hard.
Lots of dead baby calves.
Most people don’t understand why we do it.
We do it bcs of the lifestyle & we do it bcs I personally don’t think everyone should have to eat a hamburger produced by one big Wal-mart-like company.
We small producers care more for the animal you eat than the big companies like Tyson.
You can bet on it.

Badger40 on September 4, 2009 at 2:10 PM

9.7 % unemployment……..number fudge.

KentAllard on September 4, 2009 at 2:14 PM

dhunter on September 4, 2009 at 1:40 PM

I know you didn’t mean any harm-but think on this:
you quit bcs evidently your heart wasn’t really in it.
Birthin’ the babies is not something we do-mama does it. We make sure she’s responsibly bred & ready to calve in the warmest weather possible. Spring isn’t always perfect.
Up here on the northern plains, responsible calving happens in late April-May.
And as far as sellin’ out.
We will fight tooth & nail for the priviledge to live this life-profit or not.
When you love it, it’s more than just a paycheck.

Badger40 on September 4, 2009 at 2:14 PM

dhunter on September 4, 2009 at 1:48 PM

That is the plan. For that reason, and others, they must be stopped, and trying to do that now takes precedence over other things I used to enjoy doing instead. I’m in it for the duration.

JiangxiDad on September 4, 2009 at 2:21 PM

Badger40 on September 4, 2009 at 2:14 PM

Believe me I understand and I intended no harm. We moved my inlaws off of a farm they loved and farmed for 57 years because he had cancer and she could not care for him or the place through the winter.
He loved that place more than any of us could imagine and even though she would have moved to town years ago he could not until he had to for her sake.
I will always be grateful for the honest living they did, the meat they provided and the examples they set for me, my kids and grandkids.
Best of luck to you the Alamanac is predicting a cold one!
My

dhunter on September 4, 2009 at 2:22 PM

Badger40 on September 4, 2009 at 2:10 PM

Email me. I am seriously thinking about buying a cow for slaughter for the family and for obvious reasons as meat up here is EXPENSIVE. But up here they want a freaking fortune for a cow to fatten and slaughter.

We should talk.

upinak on September 4, 2009 at 2:24 PM

dhunter on September 4, 2009 at 2:22 PM

sorry dh. I know that woman workes her bunz off. I figured you didn’t mean how it was said…. but I wanted to make sure.

upinak on September 4, 2009 at 2:25 PM

My

dhunter on September 4, 2009 at 2:22 PM

That is a sad scenario-one I see played out here a lot.
My husband’s grandmother had to be moved into town & she died a month later-heartbroken from leaving the ‘farm’.
I know I will be heartbroken if I ever have to leave for any reason. I would rather die.
That’s why my husband married me-bcs being out here means just as much to me as him.
I honestly can’t imagine being married to someone who wants to live in town.
A lot of farmers & ranchers around here get roped into moving to town by their spouses & end up hating it.
And I also see when the medical bills start piling up why many have to sell of the place.
It is such a crappy position to be in.
That’s why I teach-for the medical benefits.
Best to you & yours.

Badger40 on September 4, 2009 at 2:27 PM

We should talk.

upinak on September 4, 2009 at 2:24 PM

Got facebook? I had your email once. What was it again? I confess, I lost it in my address book when I changed emails!

Badger40 on September 4, 2009 at 2:28 PM

upinak on September 4, 2009 at 2:24 PM

And didn’t you say you make it to ND sometimes?
We could work something out if that’s true.
Real burger is so tasty!

Badger40 on September 4, 2009 at 2:30 PM

Got facebook? I had your email once. What was it again? I confess, I lost it in my address book when I changed emails!

Badger40 on September 4, 2009 at 2:28 PM

helpingpalin at g

upinak on September 4, 2009 at 2:36 PM

upinak on September 4, 2009 at 2:36 PM

Search that on Facebook?

Badger40 on September 4, 2009 at 2:39 PM

Search that on Facebook?

Badger40 on September 4, 2009 at 2:39 PM

not on facebook. Got to my website… on my name.

upinak on September 4, 2009 at 2:43 PM

upinak on September 4, 2009 at 2:43 PM

DUH. Gotcha.

Badger40 on September 4, 2009 at 2:44 PM

I think the interest rates will start going up in the next six months because I don’t think we’re in a deflation. I’m keeping all my money very short term, even with the paultry yields.

I don’t see the reported unemployment rate nationally getting above 11% though, and really do think we’ll see some improvements by next May if not earlier. It will be spotty. Texas will be one of the first large states to see some improvement in employment (a few states have already seen improvements).

Matt, I left the Detroit area for the Dallas area two years ago. If you’re in Detroit metro, you could consider Grand Rapids if you must stay in MI, but if you’re going to move, you probably should consider Texas. It’s good down here and I’m very concerned that the tax increases being explored will be the start of a death spiral for MI.

Jimbo3 on September 4, 2009 at 2:47 PM

It’s good down here and I’m very concerned that the tax increases being explored will be the start of a death spiral for MI.

Jimbo3 on September 4, 2009 at 2:47 PM

You have a interesting view for the future. Little whimsical for my taste.

As for Michigan.. the death spiral stated concerning Michigan. It was years ago that started. People there just thought it would blow off in a couple years. See how that is turning out?

upinak on September 4, 2009 at 2:53 PM

We’ll see, upinak. I’m seeing some recovery already in the Dallas area in both jobs and general economic conditions. I also think things have a way of changing for the better after points of great pessimism. I think there is a better than expected chance that the general economy could improve quicker than expected because of a need to replenish inventory after companies have cut so much. That could create a positive snowball effect. I hope I’m right.

Jimbo3 on September 4, 2009 at 3:33 PM

Canada actually had a net gain in employment last month. Maybe the Obama stimulus is helping them.

bw222 on September 4, 2009 at 3:51 PM

Jimbo3 on September 4, 2009 at 3:33 PM

In retrospect Jimbo… here is how I see it.

TX is like Alaska… huge oil and gas. It will bounce back due to that ONE area more so then other States.

Michigan can’t even freaking drill it’s natural gas. And if you tell me they can I want to see proof as I know for a fact they can not due to a few friends who live in the UP who own a oil exploration comp and do not even try to explore in that State. But go into Canada and such.

Michigan also has the highest tax per person, almost the same as California, in the union. I think these two States are running neck and neck.

Yet it was the people in detroit who voted back in Granholm…. when they KNEW it would get worse.

I feel for the people in MI. I understand why you left as well as thousands of others. But MI is dieing and has been due to poor judgement and lack of thining ahead. Lets hope the next go around for Gov, Senate, Legislature and such will make people swing to a different tune!

upinak on September 4, 2009 at 3:53 PM

This is bad. Very bad.

Terrye on September 4, 2009 at 4:13 PM

Oil and gas won’t necessarily help Texas. Houston and some of the mid-size cities are more dependent on oil and gas than San Antonio, DFW or El Paso and it’s my expectation that gas prices will not move up much until spring. I think the economic, social and regulatory climate in Texas for business in general will be what turns things around. I wouldn’t be at all surprised to see some companies move to Texas in the next six months–if you’re going to force your people to move to a lower cost area, now is the time to do it (before there’s any significant recovery in jobs).

Michigan’s had problems for years, but most people on the east side thought that the Big 3 would muddle their way through like they had done in the past. It was different this time.

I voted for Granholm because DeVos was too much of a social conservative for my tastes. I’m not sure that DeVos could have done much better, because these are long-standing structural issues in Michigan that are affecting their economy. Like the Big 3, Michigan governments over the last 30 years just kicked the can down the road a few years and hoped any economic explosions happened after they retired.

Jimbo3 on September 4, 2009 at 4:48 PM

Jimbo3 on September 4, 2009 at 4:48 PM

We in ND are also attracting a LOT of outsiders.
Our economy is doing quite well.
Our Gov has done an excellent job of keeping the business climate here attractive.
Our major problem is we don’t have enough workers.
A company in Bismarck actually had to close down bcs they couldn’t find enough people to employ.
My daughter for instance has little college (dropped out) but is driven & has a good work ethic.
She landed a technical software support phone job for $10/hr + full benefits.
Yeah she works nights, but for many, a job paying that much with no education is unheard of.
And our oil & gas industry-what can I say.
The only real bad thing that happened to us so far bcs of Obama was they put off building another coal gasification plant near Dickinson bcs they are worried about Cap & Trade. So they’re holding off.
All those jobs-they may never materialize bcs Obama was elected.
Disgusting.

Badger40 on September 4, 2009 at 4:54 PM

and it’s my expectation that gas prices will not move up much until spring.
Jimbo3 on September 4, 2009 at 4:48 PM

wrong.. they have increased in many states 15 cents in less then a week.

And admitting you voted for Granholm… before DeVos. Wow… you have some serious testicular gumption to admit that… as you said you moved away 2 years ago.

Bailing out you fellow MI’ers obviously didn’t matter to you. DeVos at least wasn’t going to raise taxes…. on tanning.

upinak on September 4, 2009 at 4:54 PM

Y’know, I just got a text message from my mother. She told me my dad, 61 years old, just got laid off from his machinists job. He’s devastated, what prospects does he have as a 61 yr old in this job market?

Meanwhile, the POTUS enjoys his 2nd vacation in two weeks while fathers who’ve raised kids, grandkids, sent sons off to war get laid off and have uncertainty about the next month.

Where’s the jobs
Where’s the JOBs
Where’s the JOBS ?

Where’s the RECOVERY?
Where’s the TRUTH?

Who are these people you have working for YOU?

Your job is next …. Your JOB IS NEXT Mr. ONE TERMER… Mr. Abbreviated One Termer that is.

ted c on September 4, 2009 at 4:54 PM

The only real bad thing that happened to us so far bcs of Obama was they put off building another coal gasification plant near Dickinson bcs they are worried about Cap & Trade. So they’re holding off.
All those jobs-they may never materialize bcs Obama was elected.
Disgusting.

Badger40 on September 4, 2009 at 4:54 PM

BP is closing the one up here in Kenai. People are mad at them. I can’t fault BP.. I CAN fault someone in an oval space though.

upinak on September 4, 2009 at 4:55 PM

ted c on September 4, 2009 at 4:54 PM

I am sorry to hear that Ted. I have the same fear with my mom losing her job. Even though she lives with me doesn’t mean ti makes it any easier.

upinak on September 4, 2009 at 4:56 PM

I’m seeing tons (relatively speaking) of Ohio, MI, Illinois, New Mexico and California license plates in the Dallas area. Alot of us are noticing this. We normally get Louisiana and Oklahoma plates, and maybe even some Kansas and Nebraska plates from time to time, because of the North Texas location but the increase in the “real out of staters” is noticeable.

I think I read that the two Dakotas and Idaho were the only states where employment increased last month.

I don’t think Cap and Trade is going to happen and I don’t think the public option will happen on healthcare, but I do think (and I want this) that there will be significant reform in the areas of pre-existing conditions and other things that did affect people’s ability to economically afford health insurance.

When some of the doom and goom stuff doesn’t happen, we might see a quicker recovery than people are expecting.

Let’s keep our fingers crossed and have a good weekend. Glad you and your daughter are doing well.

Jimbo3 on September 4, 2009 at 5:02 PM

Upinak, there were pushes to tax services for quite a number of years in Michigan. The Michigan business income tax structure was based on a manufacturing model, not a service model. As the manufacturing base shrunk, there was a sort of death spiral because the remaining manufacturers bore more and more of the burden. That contributed to the problem in Michigan.

Jimbo3 on September 4, 2009 at 5:05 PM

upinak on September 4, 2009 at 4:55 PM

Ugh. I don’t blame them, either.
If I could build one somewhere else without the looming BS of cap & trade- I would, too.
It is such utter crap we cannot use American resources outside our back door.
Scientifically there is no problem with using current technology to extract resources.
I guess if they were still strip mining with rapacious abandonment, I’d have a problem.
But for God’s sake it is such lunacy how they decide to shut down any kind of mining or energy project based on junk science.
I am so disgusted with the whole business of cap & trade I could puke.
I wonder what my senators are going to do with this one.

Badger40 on September 4, 2009 at 5:11 PM

“Less bad is not good” – V.P. Joe Biden

We are in serious trouble folks…

Seven Percent Solution on September 4, 2009 at 6:06 PM

This is very depressing, horrible news.

The Stimulus money should be given back to taxpayers, all talk of health care reform should stop, the President should keep quiet in front of Congress and schoolchildren.

Every ounce of energy should go to one thing: fixing this economy.

Why do I think that won’t happen? Why do I think the diversion tactics are just going to ramp up?

Grace_is_sufficient on September 4, 2009 at 6:55 PM

Wine_N_Dine:

Full employment rates have varied with time. Post 82 the full employment rate was considered 7%. Today it would be considered 5%. Post “O”pocalypse it will probably be revised upward — a great deal.

JangXiDad:

The US has been bankrupt 5 times in history if my memory serves me correctly. All were before Andrew Jackson when we were a small fish in a big economic pond.

Of course that is somewhat debatable for FDR basically drove the car over the cliff once Hoover jumped out. But, we ended up with half the residual economy of the world after WWII and John Maynard Keynes put us back in the driver’s seat. So, that situation doesn’t count. We’ve now squandered that blessing of having the preeminent currency in the world.

Insofar as negative rates or long term rates being lower than short term rates. Short term rates have to be lower than long term rates or you have a perpetual money making machine. You can borrow long term at low costs and lend short term at the higher rate. Investors will enter the market and bid the long term rates up to equal the short term rates very quickly if this occurs.

What US Investment bankers used to do in the lost decade of the 90′s (for Japan) was to borrow large sums from Japan (short term), hedge against currency fluctuations in the futures market, and then lend the money here long term by buying Treasuries. This massive expansions of derivatives made people a lot of arbitrage (riskless) profit. But, I believe, and someone correct me if I’m wrong, it encouraged people to create linear regression analysis models create further forms of derivative. A key element in this current mess. All derivative software should come with a warning: Do not hire kids from Ivy league schools and let them use real money to play with this software. Could cause worldwide economic collapse.

trollkiller on September 4, 2009 at 6:56 PM

Again, here’s why we will not see significant inflation, or hyperinflation:

1. Inflation hurts those who lend money and benefits those who owe money.

2. Banks lend money.

3. The banks own Congress and the regulatory agencies.

4. Therefore, significant inflation will not happen.

There are far more deflationary pressures building in this economy at the moment. We’re in a massive debt-based recession. The more debt we accumulate (both public and private), the more burdensome the debt service becomes. When the debt becomes unserviceable, it has to break one of two ways: Default on the debt or pay it down.

Default means money (in this case bad debt, of which there is a metric crap-ton of) is cleared out of the system. That’s deflationary. Paying the debt down means selling assets and/or potential capital being redirected to debt service. That’s also deflationary as it results in plummeting prices across the board.

The federal government policy not only seeks to prop up failed banks through taking on its bad debt, it also is attempting to pull forward consumer demand that was created in the first place by…guess what? DEBT!

The housing bubble was all about inflating home prices and making money cheap as hell to get. All those $100,000 HELOCs used to buy useless crap and put in expensive marble countertops are going to look pretty foolish when you get kicked out of your house and have nowhere to put all that useless crap you bought using your house as collateral.

Of course, the endgame is for the banks to get all the assets in the end. This is exactly what Bernake and Turbo Timmy are driving us towards. Their banker buddies get a nice fat federal backstop, financed by taxpayers and all the suckers buying up our debt, and a crap-ton of real estate to boot.

TheMightyMonarch on September 4, 2009 at 6:56 PM

Sorry, I looked into gold, and it looked like a bad plan.

Your choices are:

1) Buy “gold” but get a piece of paper promising someone else is holding your gold.

2) Get the gold yourself and keep it in your house.

The issues with #1 is obvious… how do you know they even have it. And the issues with #2 is that any sale will require an assay statement, that you’ll need to pay for, verifying the quality. There goes some profit right there.

And the problem with both. When the economy dies and Obama does a FDR re-run of the Presidential Executive Order 6102, AKA The Gold Confiscation Of April 5, 1933.

You sell your gold, to the Government, at its set price… or you pay a fine and go to jail for failing to do so.

But hey, maybe you trust someone to hold your gold; or your buyer will buy from you without an assay statement… and you trust Obama not to re-run an FDR precedent.

But I can’t say that I do.

gekkobear on September 4, 2009 at 6:56 PM

Oops meant to say you can borrow short term and lend long term on a money making machine. As always excuse the typos

trollkiller on September 4, 2009 at 7:08 PM

gekkobear on September 4, 2009 at 6:56 PM

The main reason I’m holding gold and silver (untraceable coins, not certs) is for a potential SHTF scenario. In a “sudden stop” event (as in a crashed dollar, bank closures and/or empty store shelves) I’m betting on physical gold and silver to be useful as a bartering tool. I don’t have a ton, just enough to potentially trade for essentials like groceries, medicine, and gas.

Also added to my emergency food store are a few barter items like soap, toothpaste, aspirin, and booze. Again, not a ton but enough to live on for a few months if we really need to.

As for Obama doing a repeat of the FDR gold theft, I don’t see that happening. No need to. FDR did it so that he could turn on the monetary spigot. Nixon finished off the gold standard. The federal government’s main concern is continuing the monetary game playing (through the Fed) with our fiat currency so that they can continue to deficit spend as long as possible.

If the bond market implodes (which it will if things continue on this path) Obama is going to have much more pressing concerns on his hands, like checks no longer getting cut to millions of SS/Medicare recipients and government employees. If he tries confiscating gold at that point he might need to start worrying about the torches and pitchforks marching to Washington.

TheMightyMonarch on September 4, 2009 at 7:20 PM

Invest in automatic weapons.

bluegrass on September 4, 2009 at 10:08 PM

Every time I see a car with an Obama sticker on it, I want to put a note on their windshield–”How’s that hope and change working out for you?”

theotherone on September 4, 2009 at 12:25 PM

..actually, you’re cutting into my new get-rich-quick scheme: selling “Moron on Board” bumper stickers to paste over the Obama/Biden bumper stickers you may see.

I fully expect to sell them to pranksters and to people who are pissed off that they got tricked by this pantload.

VoyskaPVO on September 5, 2009 at 3:35 AM

Canada actually had a net gain in employment last month. Maybe the Obama stimulus is helping them.

bw222 on September 4, 2009 at 3:51 PM

Read the fine print in those “jobs”. Almost all of them part time.

angryed on September 5, 2009 at 10:19 AM

That’s almost as bad as spending $1 Trillion and not finding the WMDs! Almost…

simplesimon on September 4, 2009 at 9:52 AM

Do you have any idea how big a trillion is ? It’s about the same number of times a$$hats like yourself yap about SH not having weapons of mass destruction.

cableguy615 on September 6, 2009 at 6:40 PM

Canada actually had a net gain in employment last month. Maybe the Obama stimulus is helping them.

bw222 on September 4, 2009 at 3:51 PM

I heard that too, (I am Canadian) 27,000 new private sector jobs. I was surprised. Thought may be your unem- er “fun”employed were coming here to work now.

cableguy615 on September 6, 2009 at 6:44 PM

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