October 2010

ISM Non-Manufacturing September 2010 Index - 53.2%

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The ISM Non-manufacturing report for September 2010 is out. The overall index increased to 53.2%, 1.7 points higher than August's 51.5%. This report is also referred to as the services index, or service sector index. While the press is all gaga over this report, once again we know why a picture is worth a thousand words, NMI is not breaking any records here for the last two years.

Trade & Stupid Pet Tricks

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computer-dog.jpgShock of all shocks, the only ones who don't get U.S. trade policy is hurting American workers along with the economy are journalists & pundits.

"In the latest Wall Street Journal/NBC News poll, more than half of those surveyed, 53%, said free-trade agreements have hurt the U.S. That is up from 46% three years ago and 32% in 1999.

Even Americans most likely to be winners from trade—upper-income, well-educated professionals, whose jobs are less likely to go overseas and whose industries are often buoyed by demand from international markets—are increasingly skeptical."

Evidence journalists are oblivious is the last paragraph. Why denial kicks in is beyond me. Don't they see the statistics and realize the jobs most targeted for offshore outsourcing are the advanced R&D, professional ones? I guess the entire occupational areas of Science, Technology, Engineering and Mathematics don't count.

83% of blue-collar workers agreed that outsourcing of manufacturing to foreign countries with lower wages was a reason the U.S. economy was struggling and more people weren't being hired; no other factor was so often cited for current economic ills. Among professionals and managers, the sentiment was even stronger: 95% of them blamed outsourcing.

Show me the title! Strategic Defaults and the Homeowners Revenge

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By Numerian Posted by Michael Collins

If strategic defaults spread in part because of this new uncertainty over foreclosure and who has the title to the home, the banks and the mortgage backed securities market would be put in a dreadful position. The day in and day out cash flow expected from millions of mortgage principal and interest payments would be impacted far more than it is already, with the banks unable to access their collateral to stanch the bleeding. Insolvencies among the banks and the investors holding mortgage securities would certainly rise. Numerian

Poverty & Income Inequality Rise - Census American Community Survey

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America sits on it's hands. We might get a few personal stories or faux paus empathetic comments from reporters on the never ending poverty, increasing homelessness, suicides and economic mayhem. In terms of any real action, we get diversion, such as wading into issues which have nothing to do with getting people back to work, which is a national crisis.

In the midst of a damning set of statistics from the Census Bureau, which goes by America with a yawn, Europe raises hell and takes to the streets in protest over austerity. Austerity is code speak to screw the middle classes and poor by dismantling social safety nets and job security.

Tens of thousands of people marched through Brussels on Wednesday in a day of protests across Europe against government austerity measures, which unions say will slow economic recovery and punish the poor.

Up to 5,000 protesters also marched in Warsaw, Spanish unions staged a general strike and trade unions called protests in 11 other capitals to oppose measures such as spending cuts and pension and labor market reforms.

Unions said they achieved their goal of bringing 100,000 people onto the streets of Brussels, but police put the figure at 56,000 and said 218 people were detained for minor offences.

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