[Nesster]

Now that we got some austerity - and removed the uncertanity about the economy that holds back private sector hiring - and seem to be pointing to more government layoffs due to spending cuts - but addressed our This Cannot Continue debt - what's the market and the private sector telling us?

Um... seems like the uncertanity removal made a poor outlook more certain?


Layoffs Surge As Recovery Shows Little Sign Of Momentum

The early days of the recession were characterized by massive layoffs across industries, and while economists caution that the labor market isn't there yet, a surge of private sector layoffs in July may be an indication that the American recovery is stalling out.

This week has been a worrisome one for economists who monitor the health of the U.S. economy, with mounting signs all pointing in the same direction: For the average American worker, a rebound will not be soon forthcoming. In fact, things seem to be moving in the other direction.

GDP growth is weak; new hiring is not keeping pace with populations growth, according to fresh data; and growth in manufacturing -- which once lead the recovery -- has practically ground to a halt. But most worrisome of all the signs, perhaps, is the return of mass layoffs.

For the past three months, American companies have been cutting their workforce in increasing numbers, according to a new report from Challenger, Gray & Christmas, an outplacement consultancy group in Chicago. In July, the number of planned job cuts surged to a 16-month high of 66,414 -- a 60 percent increase from June.

Economy woes hit Wall St; S&P at new low for year - Yahoo! Finance

NEW YORK (Reuters) - Stocks fell on Wednesday, and the S&P 500 hit a new low for the year as the latest data triggered more pessimism about the economy's outlook.

The Nasdaq composite index briefly turned negative for the year before bouncing off its worst levels of the day.

The S&P industrial sector (^GSPI - News) was down 14 percent since its April 29 high. Wednesday's weakest sector was energy (SNP:^GSPE - News) was down 1.7 percent.

Adding to the economic worries, data showed the U.S. services sector fell in July to its lowest level since February 2010, while new U.S. factory orders fell in June, pulled down by weak demand for transportation equipment.

The news followed weaker-than-expected manufacturing data earlier this week, causing more worries about a pullback in the recovery.

Job killing companies - Borders stores close, 10,700 jobs lost (1) - CNNMoney

ADP and Challenger: Job growth stalls and planned cuts surge - Aug. 3, 2011

Market Report - Aug. 3, 2011 - CNNMoney

Economy Moving At Snail-Speed ISM, Jobs Report Show - Agustino Fontevecchia - Moral Hazard - Forbes

Now that the dust is settling from the debt ceiling debate in Washington, economic variables have been thrust back into center stage, with employment and ISM numbers out on Wednesday showing an economy that continues to move barely above stall speed. The non-manufacturing ISM report showed expanding business activity, new orders and employment, but at a decelerating pace. At the same time planned layoffs reached a 16-month high while the private sector added 114,000 jobs in June, most of them in the small business and the services sector.

Economic data continued to show an economy moving forward at the speed of a slug. The Institute for Supply Management (ISM) released its non-manufacturing report for July and it wasn’t pretty. The index registered 52.7% in July, which implies growth (anything above 50% does) but came in 0.6% slower than in June.

A closer look shows deceleration in many key indicators. New orders slowed 1.9% to 51.7%, new export orders contracted 8% to 49%, and employment slowed 1.6% to 52.5%. On the other hand, price growth remained high (slowed 4.3% to 56.6%) and inventories growth accelerated 3% to 56.5%.

Survey respondents noted the economy was cooling off, with municipal government activity lagging, discretionary spending per costumer falling, and input costs rising.

The situation does not look good. According to Dave Rosenberg, seen by many as a perma-bear, it will be really hard for a self-sustaining recovery to pick up. “The overhang of excessive debt burdens is still with us today and the problem with the government stimulus programs that were put into place is that they were not designed properly; the multiplier impacts never did kick in,” said Rosenberg. “So we can’t ‘grow’ our way out. Now government sectors in nearly every jurisdiction […] are tightening their fiscal belts. Companies and banks retain their extreme stash of cash, if we dare suggest, because they see the economic environment that we do and want to survive the next downturn.”

[shooz]

Well, more layoffs are predicted.
Where's those "job creators" that got the HUGE tax cuts for 10 years running?
Mine went up, their's went down.
They bought a yacht, I'm worried about buying tires.

Welcome to the plutocracy!

[mikemike]

Thats pretty fast to blame some more stuff on the tea party. We just passed this thing yesterday and they have already surveyed hiring managers? Methinks this was in the cards either way.

Will the second dip be Obama's recession or will it be some absentee Bush's fault again?

[jeffkrol]

not too well for Great Britain but mikemike feels "no pain no gain"........

[mikemike]

not too well for Great Britain but mikemike feels "no pain no gain"........

Our company is hiring right now and we have more business than we have people to work on it. I am involved in the interview process to vet people's technical capabilities and the only thing painful is wasting my time with people who come through here who know nothing about what they claim to know on their resumes.

[shooz]

blame some more stuff on the tea party

That's because they did it.
Should we just pretend they didn't, just to be PC?

[jeffkrol]

Our company is hiring right now and we have more business than we have people to work on it. I am involved in the interview process to vet people's technical capabilities and the only thing painful is wasting my time with people who come through here who know nothing about what they claim to know on their resumes.

and what gov. "Program" created that surge.. My answer.. NONE......
you do have a hard time with cause and effect don't you...........

[Nesster]

Thats pretty fast to blame some more stuff on the tea party. We just passed this thing yesterday and they have already surveyed hiring managers? Methinks this was in the cards either way.

Will the second dip be Obama's recession or will it be some absentee Bush's fault again?

LOL who brought up Tea Party

The point being that maybe this was a sham resolution to a sham problem which was the wrong sham problem to begin with.

And why not blame Congress and Obama, right away? It's in the Grand Old Tradition


In any case, if state/local governments are already full steam in austerity, and businesses are feeling the pain from it, how's even more austerity going to play?

[jeffkrol]

Thats pretty fast to blame some more stuff on the tea party. We just passed this thing yesterday and they have already surveyed hiring managers? Methinks this was in the cards either way.

Will the second dip be Obama's recession or will it be some absentee Bush's fault again?

No it will be
Congress' recession IF we draw the correct line from cause to effect.........

For my northern Brethren.........


http://www.dane101.com/current/2011/08/03/wisconsin_to_new_orleans_antiwalke...riott#comments

This morning one of our contacts inside the ALEC conference at the New Orleans Marriott (who's asked to remain anonymous) sent photos of anti-Walker stickers that have shown up around the venue. The stickers are apparently acting as alternate names for various legislation panels.

http://www.dane101.com/current/2011/08/01/alec_discussion_moves_from_wisconsin_to_new_orleans

[mikemike]

I guess my fair city owes Scott Walker a bit of gratitude for pissing off these people enough that they come down here to protest him.

This is a pretty good time and place for these protesters to be, they might actually get some media attention because there is a very big trial going on right there for a case where some cops shot unarmed civilians during Katrina and tried to cover it up. The closing arguments were yesterday and deliberations started today I wouldn't be the least bit surprised to see them still deliberating by Friday so they will probably be a sizable cadre of reporters and camera people there hanging outside of the federal building awaiting the verdict.

A number of Wisconsinites are traveling to NOLA this week to join a protest scheduled for August 5. The protesters will gather at Hale Boggs Federal Building on Poydras Street where speakers will talk about their experiences with model legislation drafted by ALEC members. After the speeches they'll march to the Marriott to bring their anti-austerity message to the attendees.

[Nesster]

The news keeps on coming:
Stocks dive; Dow off 513 points, worst since 2008 - MarketWatch

Meanwhile, the Job Creators are piling up the profits... and laying off workers
Second Quarter of ?11 S&P 500 Earnings Snapshot as of Aug. 3 - Bloomberg

S&P 500 Year-Over-Year Estimates
==========================================================================
Q2/11 Earnings Estimated Growth: 19.3%; Ex-Financial: 19.7%
Q3/11 Earnings Estimated Growth: 16.4%; Ex-Financial: 16.2%
S&P 500 Year-Over-Year Estimates
==========================================================================
Q4/11 Earnings Estimated Growth: 16.5%; Ex-Financial: 14.2%
Q1/12 Earnings Estimated Growth: 12.3%; Ex-Financial: 11.4%

Clearly, the best possible course of action is to cut the deficit on the backs of the middle and lower income people, while giving these job creators ever more wealth. Oh, and laying off the unproductive, drain-on-the-economy government workers & canceling government contracts.

The markets seem to have their own ideas about all of this.

http://finance.yahoo.com/blogs/breakout/fear-street-inside-stock-sell-off-204130841.html

There's a growing realization among even the most optimistic investors that the United States is entering a new recession -- a dreaded "double-dip." Adding to the pain is the sense that the government and Federal Reserve are out of both ideas and ways to stimulate the economy. Corporate America is sitting on record amounts of cash but is refusing to make new investments with so little end demand for its products. Consumers and corporations are hoarding cash, and the economy appears to be seizing. The debt ceiling debate was a fiasco, snuffing any remaining confidence traders had for help from Washington, D.C.

The bottom line is traders are becoming convinced that we're facing a prolonged and severe recession, and there's nothing any government on Earth can do to stop it. In that context, selling stocks or "reducing exposure" as they say on Wall Street, is quite rational.

[jeffkrol]

Gee.. don't give "the little people" any cash huh......