Unemployment: 2007 Feb 4.5% 2009 Aug 8.2% 2010 May 9.7%
How can the economy still be in trouble when the stock market is going up, and why is the dollar going down and if the stock market is well?
It doesn’t make sense until you understand how you measure a healthy economy. I am not the expert but Eric Bolling Is an expert. He wrote the book, “Follow The Money”. He said that the jobless number to October 9, 2010 is
462,000 Jobless New Claims
We need it to be 350,000 Jobless Claims or LESS
Less Than 350,000 = How Many Jobs We’ve Gained
More Than 350,000 = How Many Jobs We’ve lost
With the Stock Market up over $11,000 (almost $14,000 yesterday), how can people not feel it in their lives? The answer is the economy is made up of several factors, the big three being Labor, Housing, and Stock Market.
1. As we just saw in the example above, the JOB MARKET is not doing well yet.
2. The HOUSING MARKET we know is in foreclosures, with record 102,000 new foreclosures (that means acutally titles have been changed and not those getting paper in the mail saying we plan to foreclose) so the Housing Market is not doing well either.
3. So the only factor that’s not following the trend is the STOCK MARKET. Because the stock marketing is doing so well, people look at it and think we must be doing better. But keep in mind that the stock market is only one of the three major indicators. I’ve heard that frankly, the stock market is the least important of the indicators.
Obviously, the job market is the most important one, and that isn’t doing well at all right now.
Now Gold prices are interesting right now. When the price of gold is high, it means that Obama’s approval rating is down says Bolling. You ask, “Why?” Because people have no confidence in Obama being able to turn the economy around, which translates into fear, so people buy gold.
Until the job market gets better and we see less jobs lost, and until we see great improvements in the housing market, we cannot expect to see any healthy changes in the economy says Eric Bolling.
I am interested in your thoughts on this subject.