Job numbers DOUBLE but the Stock Market is DOWN
(00:00.854)
All right, I don’t know, I’m gonna timestamp, what about 12.40 here in the afternoon and the markets are down. Oh, we were down over 500 points, I don’t know about 450 now, why? Well, private sector jobs numbers, ADP numbers came out, 497,000 jobs in June, double the expectations, double.
Put this all together. Okay, if you go on the business websites right now, you’re gonna see, you got it, the stock photography that they’ve got. They’ve got their market down, you know, photos in a file somewhere. They got some trader being like, oh, the humanity grabbing their head because of market sound. It’s such a load of bunk. It’s not funny. Anyway, if you were, I’m gonna try to explain this for you. If you were a,
An alien, space alien that never came down here talking about UFOs and you never took an economics class. Never took an economics class. And again, you’re learning about how the world works here. And you see that jobs numbers were double what they expected them to be. More people going to work in the private sector.
and you’d say to yourself, why is that bad? Why are the markets reacting in such a way? Well, again, Watchdog on Wall Street, Markowski Investments economic theory thinks that they’re full of crap. It’s stupid. The Fed has been raising rates now for over a year and they did it pretty darn quickly.
how has that worked out for the overall jobs market? Yeah, we’re being told by them, the logic and reason. Like I said, pretend you’re a space alien, you don’t know any of this Phillips curve stuff. There you haven’t been listening to these fools, these economists on TV that, oh yeah, I need the jobs. We need the jobs market to break. We need unemployment to go up. How would unemployment going up and putting people out of work?
on the unemployment line, how does that benefit the country as a whole? Well, you know, Mr. McCarthy, it’s because wages are too high. It’s wage inflation, and that’s making inflation hot right now. Horseshit, okay? It’s not wage inflation. Not to mention the fact that Americans have stopped quitting their jobs. The rate at which workers are voluntarily leaving their employers is approaching pre-pandemic levels.
They’re not leaving their jobs and going and looking for higher wages at this point in time, which means they’ve peaked. So again, we’ll take that a little bit further. So you want people to lose their jobs. So there’s that many more, I don’t know, openings or I does, none of it makes any sense. Never did. And it shouldn’t to you, the Federal Reserve and their rates.
They, you think that they’re gonna, they’re gonna bring inflation down by putting people out of work? Oh, I know we got the minutes yesterday and they’re gonna be slowing the pace. We think we’ve got more increases, but we’re gonna slow the pace. Listen, man, Jay Powell, and we’ve talked about this before, is completely, completely unwilling, unwilling to do what is necessary, which is take…
Take Washington, D.C., take Congress, take the administration to task for ridiculous spending. Because that’s the issue, it’s a deficit spending. And that’s not going away. And quite frankly, I think the Fed, I think they honestly know it. I mean, I find it hard to believe that they’re that dumb. The amount of money that is in the pipeline for all of these government programs that both Democrats and Republicans signed off on. Oh yeah.
A lot of it hasn’t even been spent yet. Hasn’t even been spent. That’s gonna flood into the system as well. Inflation is sticky. Damn right it’s sticky. I don’t foresee it really coming down to that greater degree. 2% target that Powell has? How? We continue to have more and more regulations that are piled on. More and more government spending.
deficit spending. You go back to Paul Volcker, for crying out loud. Paul Volcker called out Congress. This is a guy who had to deal with double digit inflation. And basically, he make a long story short, he told Congress, unless you get deficit spending under control, there’s really not that much that I’m going to be able to do. Jay Powell is completely unwilling to say that. And one of the members of the Fed, well, was
supposed to be a member of the Federal Reserve, didn’t get approved because she thinks differently. Big fan of Judy Shelton. She has no problem saying it. This is the issue that’s at hand. People, again, when you’re able to, people are able to find work and get a job, that’s a great thing. There’s nothing worse than not being able, for people not being able to find work. And we still have, we still have a lot of job openings in this country.
that need to be filled in, an amazing amount of job openings. So again, you can listen to the conventional wisdom and the wizards of smart and think that they’ve got some sort of handle on this. And they know all and seal, but they obviously do not. Now, when it comes to higher interest rates,
I think the 10 year went above 4%. I think it is above 4% right now, two years above 5%. And there’s big concerns about that and the markets. Can be honest with everybody.
(06:36.482)
Markets have raced to the roof and gone through very stellar periods when rates were much higher than they are now. Just the facts.
That’s just the facts. So yeah, do I think this is a short term fluctuation in regards to what’s going on? Yeah, I do. Could it continue on a downward spiral for a period of time? Absolutely. Okay, this is why I don’t time the markets. I can’t tell you what’s gonna happen over the short term. What I can tell you is that the Fed is not breaking the back of inflation anytime soon, nor I’m also gonna tell you as well that
in order to break the back of inflation, you do not need to put millions of people out of work. Yeah, and this is where, on like I said, a rare occasion, okay? You know, it’s like one of those hell freezing over moments where I see eye to eye with, believe it or not, Elizabeth Warren. Watchdog on wallstreet.com.
