Bad news is good news. All the more reason for stocks to soar in the faux bubble-economy propped up by the Fed’s massive liquidity injections.
In what was an “unambiguously” unpleasant April jobs payrolls report, with a March revision dragging that month’s job gain to the lowest level since June of 2012, the fact that the number of Americans not in the labor force rose once again, this time to 93,194K from 93,175K, with the result being a participation rate of 69.45 or just above the lowest percentage since 1977, will merely catalyze even more upside to the so called “market” which continues to reflect nothing but central bank liquidity, and thus – the accelerating deterioration of the broader economy.
End result: with the civilian employment to population ratio unchanged from last month at 59.3%, one can easily on the chart below why there will be no broad wage growth any time soon, which will merely allow the Fed to engage in its failed policies for a long, long time.
Add that piece of news to the fact that the number of women not in the workforce has also surged to a record 56,167,000, and we’ll be able to say President Barack Obama’s and Fed Chairwoman Janet Yellen’s recovery is almost complete.
Yet, amid never-ending cycles of bad economic news, a sense of optimism persists on Wall Street while the Fed is stuck in a corner of its own making as to how they can unwind their balance sheet and raise rates (they won’t) with an “improving” economy, without letting the whole thing implode into another recession. Yellen, meanwhile, has also displayed confidence in the future of the economy, which merely begs the question: if the economy is really on solid footing, why not raise rates already? Yellen can’t do that. She knows she’s in a bind created by her Keynesian predecessors and colleagues at the Fed, because her only recourse up until now is pretending she has everything under control.
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Hillary Clinton has never had a reputation for championing — at least in practice — your everyday American. After all, she fully supported the Wall Street bailout in the midst of the 2008 financial crisis, further cementing the financiers’ backing for her presidential run in 2016. She is cozy with Goldman Sachs’ Gary Gensler, and is reportedly preparing to choose him as the country’s next treasury secretary if she gets elected.
Now we have a report from CNBC on a survey showing that Mrs. Clinton is the favorite candidate among millionaire voters, surpassing even Jeb Bush for the top spot:
“The survey, which polls 750 Americans with a net worth of $1 million or more, found that 53 percent of millionaires would vote for the Democratic ex-Secretary of State, compared with 47 percent for the GOP presidential hopeful, in a hypothetical general-election match-up. Clinton had the support of 91 percent of Democratic millionaires, 13 percent of Republican millionaires and 57 percent of Independent millionaires.
“The CNBC Millionaire Survey skews more Republican than the broader voting population, which makes the support for Hillary even more notable. Of the millionaires polled, 34 percent were Independent, 31 percent were Republican and 34 percent were Democrats (a few didn’t give an affiliation).”
There’s nothing wrong with having millionaire support per se, but this is yet another indicator of Mrs. Clinton’s crony agenda to benefit the politically connected few. It also comes with the usual dose of irony, considering her campaign is framing her as an enemy of the 1% who is fighting hard for the middle class and the poor. Many Americans already know whose interests she really has in mind, but it’s time for her liberal supporters to dig a little deeper as to why the banks have been pouring cash into her campaign.