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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsRobert Reich: Why the Lousy Jobs Report Boosted Wall Street
.......(snip).......
(1) The Fed will now continue to keep interest rates low. Yes, it has announced its intention of tapering off its so-called quantitative easing by buying fewer long-term bonds in the months ahead. But it will likely slow down the tapering. Instead of going down to $55 billion a month of bond-buying by April, it will stay at around $60 billion to $70 billion.
(2) The slowdown in the Feds tapering will continue to make buying shares of stock a better deal than buying bonds thereby pushing investors toward the stock market.
.......(snip).......
(4) With the job situation so poor, most workers will be so desperate to keep their jobs, or land one, that they will work for even less. This will keep profits high, make balance sheets look good, fuel higher stock prices.
But whats bad for Main Street and good for Wall Street in the short term is bad for both in the long term. The American economy is at a crawl. Median household incomes are dropping. The American middle class doesnt have the purchasing power to keep the economy going. And as companies focus ever more on short-term share prices at the expense of long-term growth, were in for years of sluggish performance. ....................(more)
The complete piece is at: http://www.truthdig.com/report/item/why_the_lousy_jobs_report_boosted_wall_street_20140210
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Robert Reich: Why the Lousy Jobs Report Boosted Wall Street (Original Post)
marmar
Feb 2014
OP
Key: "But what’s bad for Main Street and good for Wall Street in the short term is bad for both...
laundry_queen
Feb 2014
#1
(4) With the job situation so poor, most workers will be so desperate to keep their jobs, or land on
leftyohiolib
Feb 2014
#2
laundry_queen
(8,646 posts)1. Key: "But what’s bad for Main Street and good for Wall Street in the short term is bad for both...
in the long term."
Absolutely. And it's shocking to me that Wall Street doesn't realize this. Clearly, business schools aren't doing their job.
leftyohiolib
(5,917 posts)2. (4) With the job situation so poor, most workers will be so desperate to keep their jobs, or land on
one, that they will work for even less. down down down we go. that's a good little worker bee, work for less before you know you'll have nothing but the plus side is you'll drag everyone down with you