Reacting to a mildly favorable jobs report,Bill Gross of PIMCO said the unemployment we've been seeing is a structural issue.It's gonna be very hard to replace those 8.5 million lost jobs.Many of them were in real estate,construction and mortgages-areas at the heart of the financial crisis.To posit a vibrant,positive economy based on the jobs report is off-base.
The economy,the asset markets have been reflated by the government,Mr.Gross explained.Now a lot of that has been halted,and some has been withdrawn.The private wallet and the will that must take over are being questioned by the markets.The minute that government check disappears,the private market is standing all alone.PIMCO thinks the transition to final demand is different this time than it was for other recessions.Instead of levering,we're delevering;instead of deflating,we're inflating.The new normal taking shape,a protracted period of slow growth and high unemployment,is a sea change,not a readjustment.
Tuesday, February 9, 2010
Monday, February 8, 2010
Oracle Needs Staff
Oracle says that,to make their acquisition of Sun Microsystems successful,they need more smart and savvy employees.They are seeking Sales Consultants and Sales Representatives specializing in servers and storage.Also being sought are first class chip designers,hardware engineers and software developers.If interested,submit your resume to oracle-sun-hiring ww@oracle.com
Crunching the Market:Barclays Capital
As liquidity,or various forms of government intervention,gets withdrawn from the market by central banks,there will be lower lows and lower highs.By the time we get to rate hikes,the process should be complete,in the view of Barry Knapp of Barclays Capital.The process started with Chinese tightening.A recovery starts with government stimulus,then moves on to inventory restocking,eventually resulting in hiring.
Barclays is selling cyclical stocks and buying defensives.Cyclicals are companies that rely on robust growth,such as industrials,energy and materials firms.Defensives are in areas that are less economically sensitive,such as consumer staples and health care.In the current case,however,industrials are just starting to recover.As a rule,during a period of adjustment to stimulus withdrawal,defensive stocks are likely to outperform.Many analysts expect the Federal Reserve to raise interest rates in the second half of the year,a major step in the transition process.
Barclays is selling cyclical stocks and buying defensives.Cyclicals are companies that rely on robust growth,such as industrials,energy and materials firms.Defensives are in areas that are less economically sensitive,such as consumer staples and health care.In the current case,however,industrials are just starting to recover.As a rule,during a period of adjustment to stimulus withdrawal,defensive stocks are likely to outperform.Many analysts expect the Federal Reserve to raise interest rates in the second half of the year,a major step in the transition process.
Friday, February 5, 2010
Medical Aspects of Snowfall
Heavy snowfall presents a number of health challenges,both mental and physical.East coast residents are are getting a full measure of them this winter.If they are not approached correctly,they can lead to exhaustion,injury,and even death.The media are partly to blame for all the stress.If you listen to their raving too much,you will increase your stress level considerably.Turn the TV off for a while.Go for a little walk at the height of the storm.See how it transforms your surroundings.
Consider shoveling two or three times a day,instead of taking on a huge burden by doing it all at once.Relax in between the sessions.If your heart starts to pound,you need a rest.Just stand there a few minutes and catch your breath,taking in your surroundings.If power goes out for any length of time,put your frozen food in a plastic bag or cooler and set it out on the back porch.Let nature provide the refrigeration.
Make sure you have a week's supply of prescription and over the counter drugs,just to be safe.Buy a couple of magazines,paperbacks or newspapers you've always wanted to read while you're at the drugstore.Keep up the spirits of the elderly and infirm,don't alarm them-you will help yourself in the process.Don't fight the snow;make good use of it.It is a gift as much as it is a problem.
Consider shoveling two or three times a day,instead of taking on a huge burden by doing it all at once.Relax in between the sessions.If your heart starts to pound,you need a rest.Just stand there a few minutes and catch your breath,taking in your surroundings.If power goes out for any length of time,put your frozen food in a plastic bag or cooler and set it out on the back porch.Let nature provide the refrigeration.
Make sure you have a week's supply of prescription and over the counter drugs,just to be safe.Buy a couple of magazines,paperbacks or newspapers you've always wanted to read while you're at the drugstore.Keep up the spirits of the elderly and infirm,don't alarm them-you will help yourself in the process.Don't fight the snow;make good use of it.It is a gift as much as it is a problem.
Tuesday, February 2, 2010
Bankers Dislike Regulatory Proposals
The American Banking Association,a trade group,is uncomfortable with the current climate in Washington.Ed Yingling,ABA president,says there's a general situation that is of concern to bankers:that the language portrays banks as risky.The financial crisis should be seen as international in origin,Mr.Yingling believes.The Obama administration's definition of proprietary trading means banks can't have a bond portfolio,in his estimation.All banks have one,Mr.Yingling indicated.
The U.S. has been the world leader for financial services for many years,Ed Yingling recalled.Now only six U.S. banks are in the top 50 of the world.Without coordination of regulation with international authorities,there would be no U.S. banks among the global leaders,Mr.Yingling warned.
Under the Obama administrations proposals,banks' share of the capital markets would be capped at 10%;they could no longer own hedge funds;and proprietary trading,or trading banks do for their own profit,would be taken away from them,resulting ultimately in less money for lending,critics of the proposals point out.
The U.S. has been the world leader for financial services for many years,Ed Yingling recalled.Now only six U.S. banks are in the top 50 of the world.Without coordination of regulation with international authorities,there would be no U.S. banks among the global leaders,Mr.Yingling warned.
Under the Obama administrations proposals,banks' share of the capital markets would be capped at 10%;they could no longer own hedge funds;and proprietary trading,or trading banks do for their own profit,would be taken away from them,resulting ultimately in less money for lending,critics of the proposals point out.
Monday, February 1, 2010
Long&Foster Seeks Students
Long&Foster,the largest privately-held real estate firm in America,is offering pre-licensure classes through its real estate institute.The classes may be taken online or live in Maryland and Virginia,but only live in other states.A free aptitude test is given online to find out if real estate could be for you.If you pass the pre-licensure course,you may take the proctored license exams at a number of regional centers.Long&Foster operates from New Jersey to North Carolina in more than 200 offices.If interested,visit www.thelfire.com and click on the RealSTAR link or call 800-543-3365.Long&Foster was founded in 1968.
SEC:The Challenge of Regulating
Mary Schapiro,Chairman of the Securities and Exchange Commission,appeared before the Financial Crisis Inquiry Commission recently in Washington,D.C.She said she has spent a year taking the SEC apart,trying to understand where its strengths and weaknesses lay.It's quite an independent agency,but is subject to congressional appropriations,while other regulators are self-funded.It's critically important that we continue to have independent standard-setters for accounting;it's particularly important for the profession to remember that the investor is their audience at the end of the day,the soft-spoken Ms.Schapiro observed.
Mary Schapiro was herself an SEC commissioner 20 years ago.As a general matter,I am a huge fan of transparency across the board,she declared.The amount of data to sift through is overwhelming.For us,it's a matter of acquiring new technology,reviewing millions and millions of trades.Our tech budget is 50% below what it was five years ago.I'm concerned about over the counter derivatives markets,their ability to do what is not permissible in regulated markets,Ms.Schapiro added.
The SEC,which has five commissioners,has voted to approve the reining in of computer systems that certain financial firms use to trade huge amounts of shares at high speed.The SEC is concerned this practice may distort market activity and give these firms a leg up on other participants.The commission has also begun an inquiry into the impact of technology on financial markets generally.
Mary Schapiro was herself an SEC commissioner 20 years ago.As a general matter,I am a huge fan of transparency across the board,she declared.The amount of data to sift through is overwhelming.For us,it's a matter of acquiring new technology,reviewing millions and millions of trades.Our tech budget is 50% below what it was five years ago.I'm concerned about over the counter derivatives markets,their ability to do what is not permissible in regulated markets,Ms.Schapiro added.
The SEC,which has five commissioners,has voted to approve the reining in of computer systems that certain financial firms use to trade huge amounts of shares at high speed.The SEC is concerned this practice may distort market activity and give these firms a leg up on other participants.The commission has also begun an inquiry into the impact of technology on financial markets generally.
Subscribe to:
Posts (Atom)