In case you didn't notice, the unrest in Egypt has sent investors scurrying. They are worried that there is a virus taking hold in the Middle East and more countries will catch it, leading to more overthrows and and and. Call it the democratic domino effect. It terrifies investors who love a good decent hard working hard loving dictatorship to impose its cruel iron fist on the will of the people. From the investors point of view, until Egypt gets its house in order AKA violent repression, stocks are not so attractive. Hard to imagine Saudi Arabia being affected even in the tiniest. Now that is one repressive little fundamentalist government, tow the line or face decapitation. Tea Partiers and ultra conservatives must drool over it.
Corporations are still making money hand over fist. The big enchilada next week will be Friday's report on employment and the major lack there of. I would suspect the numbers might be a little off for January with Christmas season workers now bye bye in January. The main problem is that a 3.2% GDP does not create enough employment. One would suspect that is a severe oversimplification.
Reuters: Focus will be on Egypt, earnings, jobs data
The government's January jobs report on Friday will highlight the week's economic data...
Worries that Egypt's unrest could spread to other countries in the Middle East, home to the world's top oil exporters, caused investors on Friday to pull out of stocks and into bonds and other safer assets.
The majority of companies continue to beat expectations...
...economists see slow progress ahead for job gains.
3 comments:
American based Int'l Corps. have taken Donald Trump's famous "Your Fired" line very seriously. You could say it's their business plan overall. you get rid of expensive American workers and trade them for cheap Asian and Indian peasants, throw in 11 mil. illegal aliens here and it's deal. Profits flow up to the top 10% and everyone else tries desperately in many cases just to scrape together enough $$ every mos. to pay your bills.
I think you are correct here. They have figured out that the international market is where its at. We can fall to being a third world country and it won't matter to corporations. The country has helped to create these international corporations with tax breaks, subsidies, relaxed, environmental codes for decades. American labor, and now its you're fired, hit the road, we don't need you anymore.
Let me add that the heads of these places in many cases are flag waving Republicans. In reality they are people who encourage patriotism in the sheeple while they themselves are only patriotic to their unlimited greed.
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