Today’s “disappointing” jobs report shouldn’t be a surprise. Corporations are sitting on record cash, but not using it to add jobs. Most of the gambling in the $600 trillion derivatives market is all about rent-seeking, not creating jobs. Poor earnings and falling wealth for average Americans translates into weaker demand. So does government austerity. As I write, the Dow Jones Industrial Average is down about 110 points and the S&P 500 off about 1 percent. The stock rally has had more to do with abundant money from the Federal Reserve than the underlying condition of the real economy or dangers overseas (the eurozone, Syria, North Korea).
So what happens now?
Read on for the top links of the week and the haiku:
This Week’s Links:
Now it’s official: Obama sells catfood futures | Naked Capitalism
Supply chain problems hitting hospitals near you | Naked Capitalism
Wealth disparity in America (graphic) Boing Boing
Should local government be run like Silicon Valley? | Governing magazine
Highly experimental central banking | Mohamed El-Erian/Business Insider
Today’s Econ Haiku:
We’ll cut back earned benefits