| Volume 14, Issue 26 | For the week of July 26, 2010 |
| JOBS AND UNEMPLOYMENT |
| It's A Fact: | |
| Nearly 1 out of 10 able bodied adults among us is unemployed. | |
| The administration is telling us to expect a near 10% unemployment into the extended future (California over 12.5%). | |
| To date, over $787B has been spent as "stimulus" intended to create or "save" jobs, and Washington is asking for more. | |
| Much of the stimulus is directed to public works that at best create only temporary jobs or more bureaucracy that produces no income, goods nor marketable services. Many of these "created" jobs will require more tax revenues to sustain. This is where taxes are eaten up. | |
| An outrageous percentage of the bailout funds targeted for financial and auto sectors was spent to shore up fat pension funds and salaries. | |
| Approximately 1/2 of the private sector jobs are provided by small firms (less than 500 employees) with the other half by larger corporations. This is where new jobs, marketable goods and services are created, where taxes are generated to support the public job sector. | |
| The stimulus has resulted in the expansion of the public sector (increased employment and pay) and the private sector has shrunk (higher unemployment, fewer jobs). | |
| Every new reform being initiated in Washington is adding additional cost and tax burdens on the private sector while it expands the public workforce (all job killers to the private sector). | |
| To avoid the deficit accounting Washington is ignoring the stimulus spending by placing it "off budget" as they have with Social Security, Medicare and other entitlements they cannot pay for. | |
| Little to no attention has been given to the small employer to stimulate job growth from the bottom up. But, much is being done to discourage it while the government loads up at the top down, a reverse version of trickle-down economics. | |
| Now, unemployment benefits from insurance paid are being morphed into entitlements paid out, while ignoring the source of new jobs to employ the unemployed. | |
| The revitalization of the housing market depends on a healthy private employment sector. This is where households are created and income is generated to qualify for mortgages. This is the soil that needs to be revitalized and nourished, not neglected, over regulated and starved of nutrition. The housing market is tied to the jobs market. | |
| It is time to cut the private sector lose and let it do its magic. The genie is not in a bottle in Washington, it is in the sole of private citizens who through hard work, ingenuity and capital create goods and services. This is the strength of both the American economy and housing. |
Key Economic Reports Released This Week
|
RELEASE DATE |
ECONOMIC INDICATORS |
RELEASED BY |
CONSENSUS | Wt. |
INFLUENCE ON INTEREST RATES |
| Mon 07/26 10:00 am et | New Home Sales for June '10 | Bureau of the Census Dept. of Commerce | 325k | ** |  If above consensus  If below consensus |
| Tue 07/27 9:00 am et | Case-Shiller HPI for May '10 | S&P Case-Shiller HPI | 3.8% | ** | Undetermined |
| Tue 07/27 10:00 am et | Consumer Confidence for July '10 | Conference Board | 52.0% | ** | If above consensus If below consensus |
| Wed 07/28 7:00 am et | MBA Mtg Apps Survey for week ending 07/23 | Mortgage Bankers Association of America | N/A | * | Undetermined |
| Wed 07/28 8:30 am et | Durable Goods Orders for June '10 | Bureau of the Census Dept. of Commerce | 0.8% | ** | If above consensus If below consensus |
| Wed 07/28 2:00 pm et | Beige Book | Federal Reserve Board | N/A | ** | Undetermined |
| Thu 07/29 8:30 am et | Jobless Claims for week ending 07/24 | Bur. of Labor Statistics Department of Labor | 465k | * | If above consensus If below consensus |
| Fri 07/30 8:30 am et | Gross Domestic Prod (GDP) Q2 '10 advance | Bur. of Econ. Analysis Dept. of Commerce | 2.6% | **** | If above consensus If below consensus |
| Fri 07/30 8:30 am et | Employment Cost Index for Q1 '10 | Bur. of Labor Statistics Department of Labor | 0.4% | **** | If above consensus If below consensus |
| Fri 07/30 10:00 am et | Chicago PMI for July '10 | Chicago Purchasing Mgrs Index | 56.0% | ** | If above consensus If below consensus |
| Fri 07/30 10:00 am et | Consumer Sentiment for July '10 | University of Michigan | 67.0% | * | If above consensus If below consensus |
| * Low Importance | ** Moderate Importance | *** Important | **** Very Important |