ÿþ<html> <head> <meta http-equiv="content-type" content="text/html;charset=iso-8859-1"> <title>OnlineColumnist®.com: Putin Punishes Georgia</title> <meta name="generator" content="Adobe GoLive 4"> <style type="text/css"> .style3 { height: 68px; } .MsoNormal {} h1 {margin-bottom:.0001pt; page-break-after:avoid; font-size:12.0pt; font-family:"Times New Roman"; font-weight:normal; text-decoration:underline; text-underline:single; margin-left: 0in; margin-right: 0in; margin-top: 0in; } .style4 { font-size: large; font-weight: bold; font-family: Arial; } .style6 { height: 69px; } h2 {margin-bottom:.0001pt; text-align:center; page-break-after:avoid; font-size:12.0pt; font-family:Arial; margin-left: 0in; margin-right: 0in; margin-top: 0in; } .style7 { width: 285px; } .style8 { font-size: x-large; font-weight: bold; } .style9 { font-size: small; font-weight: bold; text-decoration: underline; } </style> </head> <body bgcolor="white" vlink="black"> <center> &nbsp;<table cool width="624" height="2719" border="0" cellpadding="0" cellspacing="0" gridx="16" showgridx gridy="16" showgridy> <tr> <td height="118" rowspan="2" valign="top" align="left" xpos="0" class="style7"> <a href="aboutdiscobolos.html"><img height="110" width="62" src="images/discobolos.logo.transp.gif" border="0"></a></td> <td width="7" height="118" rowspan="2"></td> <td width="482" colspan="2" valign="top" align="left" xpos="140" class="style6"><img height="75" width="450" src="images/banner.GIF"></td> <td width="1" height="118" rowspan="2"></td> <td width="1" class="style6"><spacer type="block" width="1" height="79"></td> </tr> <tr height="39"> <td width="182" height="39"></td> <td width="300" height="39" valign="top" align="left" xpos="322"><a href="aboutdiscobolos.html"><img height="14" width="267" src="images/divisionofNEW.GIF" border="0"></a></td> <td width="1" height="39"><spacer type="block" width="1" height="39"></td> </tr> <tr> <td width="624" colspan="6" valign="top" align="left" xpos="0" class="style3"> <table border="0" width="100%" bgcolor="black" cellspacing="0"> <tr> <td> <table border="0" width="100%" bgcolor="#99ffcc" cellspacing="0" cellpadding="4"> <tr> <td align="center"> <div align="left"> <a href="index.html"><font face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular" size="2"><strong> HOME</strong></font></a><font face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular" size="2"><strong> &#8226; <a href="articlesindex.html">ARTICLES</a> &#8226; <a href="books.html">BOOKS</a> &#8226; <a href="teflon.html"> THE </a><a href="teflon.html">TEFLON</a><a href="teflon.html"> REPORT</a> &#8226; <a href="mailto:letters@onlinecolumnist.com"> REACTIONS</a> &#8226; <a href="aboutdiscobolos.html">ABOUT DISCOBOLOS</a></strong></font></div> </td> </tr> </table> </td> </tr> </table> </td> </tr> <tr height="2"> <td height="2" class="style7"></td> <td width="489" height="2576" colspan="3" rowspan="2" align="left" xpos="133" content valign="top" csheight="2573"> <p class="style4">Poor Job Growth Rains on Wall Street</p> <p><b><font face="Arial,Geneva,Helvetica">by John M. Curt</font></b><font face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular"><b>is<a href="books.html"><br> </a></b></font><font face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular"><b> (310) 204-8700</b></font></p> <p><font size="2" face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular"><i>Copyright August 7, 2010<br>All Rights Reserved. </i></font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <p class="MsoNormal"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <span class="style8">U</span>nable to grow private sector jobs over the last three months, President Barack Obama finds himself behind the eight-ball trying to sell his economic program.<span style="mso-spacerun: yes">&nbsp; </span>His $787 billion stimulus program was supposed to either save or create millions of new jobs.<span style="mso-spacerun: yes">&nbsp; </span>With cash running out, three s growing concern about the economy slowing down.<span style="mso-spacerun: yes">&nbsp; </span>Last week s GDP rate of 2.4% was under economists expectations for future growth, causing Wall Street to sell off.<span style="mso-spacerun: yes">&nbsp; </span>Without a steadily rising stock market, publicly traded corporations don t have sufficient capital to expand payrolls, eventually reinstating the 7-million lost jobs since Dec. 2007.<span style="mso-spacerun: yes">&nbsp; </span>Now at 9.5%, the unemployment rate doesn t tell the whole story, especially about the chronically unemployed who have given up on finding jobs.<span style="mso-spacerun: yes">&nbsp; </span>Obama s Keynesian plan of subsidizing government jobs has petered out leaving the private sector bereft.</p> <p class="MsoNormal"> <![if !supportEmptyParas]>&nbsp;<![endif]><span style="mso-tab-count:1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Private sector employers only added 71,000 jobs in July, offset by losses in local, state and federal jobs, leaving the net gain at a paltry 12,000.<span style="mso-spacerun: yes">&nbsp; </span>Over 200,000 jobs are needed a month to stay ahead of normal population growth.<span style="mso-spacerun: yes">&nbsp; </span>Obama s decision to push for national health care March 22, 2010 won an age-old Democratic battle but lost the war against unemployment.<span style="mso-spacerun: yes">&nbsp; </span>White House officials believe the country can do both, expand jobs and implement a $1 trillion dollar health care plan, but haven t shown they can grow the economy running massive budget deficits.<span style="mso-spacerun: yes">&nbsp; </span>If the government stimulus-based recovery loses steam, the recession could double-dip, further hurting private-sector job growth.<span style="mso-spacerun: yes">&nbsp; </span> Private sector job growth is directly connected to a rising stock market, something that can t happen unless the government gets control of short-sellers, private equity and hedge funds that bet against the market.</p> <p class="MsoNormal"> <![if !supportEmptyParas]>&nbsp;<![endif]><span style="mso-tab-count:1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Without an advancing stock market, the private sector doesn t have the capital needed to expand payrolls.<span style="mso-spacerun: yes">&nbsp; </span> Consumer demand also doesn t start until the unemployed go back to work.<span style="mso-spacerun: yes">&nbsp; </span>Today s sluggish jobs growth and low consumer demand directly relates to publicly traded corporations not having the needed capital to add jobs.<span style="mso-spacerun: yes">&nbsp; </span>Many companies today hire temporary workers to offset current gyrations in the stock market where private equity and hedge funds start short-selling in response to cyclical profit-taking.<span style="mso-spacerun: yes">&nbsp; </span>With government census jobs winding down, the economy could lose another 20,000 to 30,000 more jobs a month.<span style="mso-spacerun: yes">&nbsp; </span>Some economists worry that further contraction in the jobs market whether private sector or government could cause the current 2.4% growth rate to go negative.<span style="mso-spacerun: yes">&nbsp; </span>Prospects for adding significant private sector jobs look more and more dismal.</p> <p class="MsoNormal"> <![if !supportEmptyParas]>&nbsp;<![endif]><span style="mso-tab-count:1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Federal Reserve Board Chairman Ben S. Bernanke hinted that more rock-bottom interest rates and stimulus may be needed to keep the economy from double-dipping.<span style="mso-spacerun: yes">&nbsp; </span> If we don t see significant job growth by the end of the year, the economy could be in serious trouble, said Bill Cheney, chief economist of John Hancock.<span style="mso-spacerun: yes">&nbsp; </span>Cheney knows that you can t create private sector jobs without a rising stock market.<span style="mso-spacerun: yes">&nbsp; </span>Since yesterday s home equity lines are no longer available, it s imperative that the stock market continue to inflate until publicly traded corporations have enough cash to begin adding to payrolls.<span style="mso-spacerun: yes">&nbsp; </span> Employers do not want to take chances, said Sung Won Sohn, an economist at California State University Channel Islands, formerly with Wells Fargo Bank.<span style="mso-spacerun: yes">&nbsp; </span>With demand down and companies strapped for cash, the stock market provides the best source of operational cash.</p> <p class="MsoNormal"> <![if !supportEmptyParas]>&nbsp;<![endif]><span style="mso-tab-count:1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>Hiring temporary jobs provides some hedge against the growing possibility that the economy could deteriorate in Q-3 and Q-4.<span style="mso-spacerun: yes">&nbsp; </span> There is a very clear recovery during the first half of the year, but there are still questions whether that will continue in the second half, said Jose Maria Alapont, CEO of a Michigan-based parts supplier.<span style="mso-spacerun: yes">&nbsp; </span> While car sales don t necessarily predict the overall economy, they do reflect consumers perceptions of job security and future growth.<span style="mso-spacerun: yes">&nbsp; </span>Fed Chairman Bernanke will keep rates low, and, if needed, add liquidity to the bank system, making consumer loans more available.<span style="mso-spacerun: yes">&nbsp; </span>Without more government bailouts, a number of states could start running further into the red, putting more pressure on unemployment.<span style="mso-spacerun: yes">&nbsp; </span>Whether Democrat or Republican, no one wants to see more state workers, or those like school teachers dependent on state aid, to face more unemployment.</p> <p class="MsoNormal"> <![if !supportEmptyParas]>&nbsp;<![endif]><span style="mso-tab-count:1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>President Barack Obama faces his greatest challenge of creating more private sector jobs.<span style="mso-spacerun: yes">&nbsp; </span>No capitalist society can thrive only on government-sponsored jobs without severe economic, social and political fallout.<span style="mso-spacerun: yes">&nbsp; </span> Instead of busting the budget, the president should look for ways to reassure the business community that his policies are pro-growth.<span style="mso-spacerun: yes">&nbsp; </span>When Barack signed regulatory reform into law July 21, he needed to reassure Wall Street that they could get their piece of the pie without, compromising economic growth.<span style="mso-spacerun: yes">&nbsp; </span>Barack has more work to do with his Treasury Secretary Tim Geithner and Fed Chairman Bernanke to make sure that currently unregulated private equity and hedge funds don t sabotage the current fragile bull market with runaway short-selling.<span style="mso-spacerun: yes">&nbsp; </span>Without a sustained rising stock market, it s doubtful companies will generate enough cash to hire long-term permanent employees.</p> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <bAbout the Author</u> <p class="MsoNormal"> <span class="style9">About the Author</span><span style="mso-spacerun: yes"><span class="style8">&nbsp; </span>&nbsp;&nbsp; </span> </p> <p class="MsoNormal"> <b>John M. Curtis </b>writes politically neutral commentary analyzing spin in national and global news. He&#x2019;s editor of OnlineColumnist.com and author of <a href="books.html">Dodging The Bullet</a> and <a href="books.html">Operation Charisma</a>.</p> <p class="MsoNormal"> &nbsp;</p> </td> <td width="1" height="2576" rowspan="2"></td> <td width="1" height="2"><spacer type="block" width="1" height="2"></td> </tr> <tr height="2574"> <td height="2574" valign="top" align="left" xpos="0" class="style7"><img height="172" width="111" src="images/johninframe3.jpg"></td> <td width="1" height="2574"><spacer type="block" width="1" height="2574"></td> </tr> <tr height="1" cntrlrow> <td height="1" class="style7"><spacer type="block" width="133" height="1"></td> <td width="7" height="1"><spacer type="block" width="7" height="1"></td> <td width="182" height="1"><spacer type="block" width="182" height="1"></td> <td width="300" height="1"><spacer type="block" width="300" height="1"></td> <td width="1" height="1"><spacer type="block" width="1" height="1"></td> <td width="1" height="1"></td> </tr> </table> <table border="0" cellpadding="0" cellspacing="2" width="597"> <tr> <td><font size="1" face="Arial,Geneva,Helvetica"> <hr noshade size="1"> </font><a href="index.html"><font face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular" size="2"><strong> Homecobolos> p><font size="2" face="Arial,Helvetica,Geneva,Swiss,SunSans-Regular">©1999-2005 <a href="aboutdiscobolos.html"> Discobolos Consulting Services, Inc.</a><br> (310) 204-8300<br> All Rights Reserved. </font></td> </tr> </table> </center> </body> </html>