2009 Will Be Interesting For Stock Market

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The other horrifying news in the internals of the report was an increase of 423,000 people who went from full-time to part-time work for “economic reasons” (read: involuntarily); this now stands at 9 million workers. This of course means their purchasing power is dramatically cut but they do not get unemployment; ergo, you really need to add those people into the “official” statistics if you’re looking at the impact on the economy. This puts the “purchasing power loss” at roughly 1 million consumers last month.

Remember, employment is a lagging indicator and thus tells us essentially nothing about the future, but this report is clearly bad and continuing to deteriorate.

http://market-ticker.org/archives/928-Unemployment-Friday.html

Lots of good stuff from Karl Denniger today. Here is his “front page”

http://market-ticker.org/

However, as he points out, a lot of what is reported doesn’t and probably can’t include all the things that are dragging spending and tax revenues down.

Notice his comment about adjustments to previous numbers and his comments about lost wages.

Remember the payroll taxes used to lend to the government from trust funds have fallen off a cliff and may go negative as soon as next year meaning not only would the government not have enough to borrow from but would have to borrow to cover the shortfall between revenues coming in and payouts to social security and medicare.

I read, and haven’t seen it confirmed, that they will not raise S.S. checks for the next three years. That has to make seniors feel good knowing food and energy will be going up if the dollar is devalued through the monetizing of debt.

With only about $600 billion available to lend to us and we wanting over $2 trillion, this should be an interesting year.

Related Posts:

• Don’t count on the market going down even though our economy is not in recovery, but the crash will be worse when it comes.
• Let’s see, that passing of the crisis would be in 2020? 2030?
• Largest one year decline since the Great Depression.
• Now that the recession is over, we can forget about:
• The market isn’t the economy.

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