Jobs

Making Heroes of Those Who Slash Jobs

Especially of CEOs who parachute into the executive office. Wall Street’s knee-jerk reaction can be phenomenal. Citigroup’s massacre of 11,000 souls caused its stock to jump. But the same day, we learn that wages adjusted for inflation dropped 1.4% in the third quarter—a continuation of 12 years of declines that has hollowed out the middle class, pushed people into the lower classes, and devastated the poor.

From Horrid To Merely Dismal: Feeling Better About The New Reality

The inexplicable American consumer, the strongest creature out there that no one has been able to subdue yet, has come to grips with a new reality, euphemistically called “New Normal,” though it isn’t normal by any means, but dismal. Feeling more upbeat, they nudged up the Consumer Confidence Index to a level not seen since February 2008—a level that caused people to tear their hair out at the time.

The Pauperization Of America

It’s been an unrelenting process. Survey after survey has shown that wages haven’t kept up with inflation since the wage peak in 2000. Families earned less at the end of the decade than at the beginning, a phenomenon not seen since World War II—the process of hollowing out the middle class. But now there is a new phenomenon: the unmentionable class, the class that doesn’t exist in America, is ballooning.

Calamity Economy Strikes Again, But Hope Is Back In Vogue

Hope was once again in vogue Thursday night in President Obama’s acceptance speech, after having gone the way of the green shoots. Hope has been swirling around the financial markets as well. The Fed keeps dangling QE3 out in front of them. And ECB President Mario Draghi injected a mega-dose of it with his bond-buying promise. It goosed the markets even more and powered them to multi-year highs. Then came the jobs report.

The Empire State Vixen Index And Other Befuddled Ironies

We’ve all heard about Wall Street employees who lost their jobs and ended up doing something unrelated, chasing after a dream, starting up a software company, working on a crab boat, teaching English to immigrants, run a taco truck, become a pole dancer…. So there should be indices that measure the number of people undergoing sudden and unlikely career changes—to give us a better gauge of the real job market.

The Worldwide QE Quagmire

Certain central bankers are coming out of the closet admitting that their favorite shenanigans—ultralow interest rates and printing money with utter abandon—can’t solve the very problems they were designed to solve, which has been obvious for a long time. What they’re not yet admitting massively, though some are starting to hand out hints, is just how much havoc these policies are wreaking.

The Big Lie

Since the lousy jobs report, there has been a veritable orgy of Fed Speak with juicy morsels and contradictions, interspersed with leaks and rumors, that climaxed today with Chairman Ben Bernanke’s words of wisdom. It whipped markets into a frenzy, drove the Dow up 500 points, knocked yields to historic lows, and caused gold, the safe-haven, to bounce up and down like a rubber ball. And everyone was eagerly waiting for the big lie. 

Squeezing The Fed From Both Sides

The ugly jobs report gave Mitt Romney what he’d been waiting for: a huge boost. He’s out making hay, calling it “devastating news for American workers and families.” An army of Republican talking heads swarmed over the land and pummeled President Obama with the jobs report. And just as Republicans see victory edge closer, shrill voices are calling for the Fed to launch the next round of quantitative easing. Collision alert!

Taking Bosses Hostage: A Labor Negotiating Tactic In France

At 2 p.m on Thursday, the final day of the annual wage negotiations that were going nowhere, Bruno Ferrec, the man in charge of the nine Fnac stores in Paris, was “retained” by 120 of his employees at a conference room at the Hotel Ibis in Paris. “For now, we do not know when we will let him go,” said the representative of the CGT, one of the unions involved in the negotiations. And the police did nothing.

German Unemployment Obfuscation

One of the hardest things to get in this world is a truthful, or at least a somewhat realistic, or at the very least a not totally fabricated unemployment number. Every country has its own bureaucratic madness in pursuing obfuscation. And Germany is no exception. Official unemployment dropped to a two-decade low in January, but a recreational dive into the Federal Labor Agency’s monthly report reveals another story.