TrimTabs Estimates U.S. Lost 335,000 Jobs in August and 5.9 Million Jobs in Past Year
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TrimTabs' employment estimates are based on analysis of daily income tax deposits to the U.S. Treasury from all salaried U.S. employees. Historically, TrimTabs' employment estimates have been more accurate than those of the Bureau of Labor Statistics.
In a research note, TrimTabs explained that large job losses are contributing to huge declines in wages and savings. Based on daily tax deposits to the U.S. Treasury, wages plummeted 4.1% year-over-year in August, matching the decline in Q2 2009.
TrimTabs also pointed out that M2 savings--which consists of bank savings, small-denomination certificates of deposit, and retail money market funds--dropped $94.6 billion in the past three months, the largest three-month decline on record.
"Consumers are yanking record amounts of money out of savings vehicles as they cope with the worst economic slump since the 1930s," noted Biderman. "The report from the Bureau of Economic Analysis that the savings rate was 4.2% in July is dead wrong."
TrimTabs explained that massive defaults on mortgages are spreading to commercial real estate loans, credit cards, and commercial and industrial loans, dashing widespread hopes for a quick economic rebound.
"While many investors are convinced the recession is over, real-time indicators show the economy has not yet bottomed, let alone started to recover," said Biderman.
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Job lossses lead to more job losses. The economy is circular. Demand consumption ebbs, and that leads to reduced production and services which in turn leads to reduced demand and consumption and so on ad infinum.
ReplyDeleteWealth is only created by manufacture and mining/natural resource extraction. There is no other source of wealth creation.
The levels of non-manufacture jobs will always be in direct proportion to manufacturing jobs. According to that,
95% of America will be unemployed in a few years.
Yeah the 4-6% "savings rate" being touted constantly isn't going into savings, it's money that is being spent servicing debt.
ReplyDeleteFrankly, I cannot tell you how much it irks me when I see a gang of theives robbing an Apple store in 31 seconds and they all fail to take the power supplies for the laptops with them.
ReplyDeleteDo they know how much a laptop power supply costs on Ebay? It's a fortune.
I hope in the future the news emphasizes how important the power supplies are so the theives know to take them as well.
I totally agree that manufacturing and natural resource extraction drives a nation's economy. Once you stop making things, the economy dies a slow death. The U.S. no longer has an economy. It has been purposely destroyed by the elite for the purposes of globalism.
ReplyDeleteI am no financial or business "expert" but even I can easily see that the "depression" is only starting, the stock market is following the same cue from 1929 onward and there is still an enormous amount of pain, suffering and deprivation that will be coming in the future. You can only break certain laws, physical or spiritual, for so long and then the time comes when you have to pay the pauper. No different than the law of gravity. You break it; it breaks you!
We are doomed as a nation and our days are numbered.