Toddsterpatriot
Diamond Member
And at 5.4 we have inflation unless the government profit takes. A good economic brake would be to increase SS by 1.9 percent to keep the balance. Your social programs should be used for mild braking NOT an economic driver.The labor shortage will cause the next round of profit taking as wages increase. 3% of the population is either to old or disabled to work. So the closer you get to 4% unemployment the higher wages go. If unemployment hits 4 and GDP also hits 4 you will see a stable balance.There is always a down turn with any major profit taking! I don't care if you are a mom and pop with five employees. If you give a raise that's profit TAKING. All those companies who gave bonuses and raises have to take that out of their future earnings. That lessens the price of the stock because FUTURE expected earnings are effected!
And the more companies who give a bonus or raise the more the market has to re-adjust for that impact. It's just simple economics even a liberal should understand. If you give your child a 1000 dollar bonus your bank account is about to be 1000 dollars poorer okay? If you give your child 5 dollars a week increase in allowance then your monthly income is down 20 dollars okay?
More money in their pocket means less in YOURS. The bonuses and raises were profit taking.
FURY
depending on where the profit taking was taking place there might have been a flavor of extortion involved. Except for retail the labor shortage is getting huge here in FL. Business construction began before the tax bill passed.
There is also the problem that high tech is getting commoditized with Apple, Amazon and the rest of the FANG companies all in correction territory. Mitsubishi (US) is competing with Tesla for low cost cleaner air pick up trucks.
The other side of the coin is that NYC is going through a housing market crash and CA is seeing its tax base implode.The labor shortage will cause the next round of profit taking as wages increase. 3% of the population is either to old or disabled to work. So the closer you get to 4% unemployment the higher wages go. If unemployment hits 4 and GDP also hits 4 you will see a stable balance.There is always a down turn with any major profit taking! I don't care if you are a mom and pop with five employees. If you give a raise that's profit TAKING. All those companies who gave bonuses and raises have to take that out of their future earnings. That lessens the price of the stock because FUTURE expected earnings are effected!
And the more companies who give a bonus or raise the more the market has to re-adjust for that impact. It's just simple economics even a liberal should understand. If you give your child a 1000 dollar bonus your bank account is about to be 1000 dollars poorer okay? If you give your child 5 dollars a week increase in allowance then your monthly income is down 20 dollars okay?
More money in their pocket means less in YOURS. The bonuses and raises were profit taking.
FURY
depending on where the profit taking was taking place there might have been a flavor of extortion involved. Except for retail the labor shortage is getting huge here in FL. Business construction began before the tax bill passed.
There is also the problem that high tech is getting commoditized with Apple, Amazon and the rest of the FANG companies all in correction territory. Mitsubishi (US) is competing with Tesla for low cost cleaner air pick up trucks.
The other side of the coin is that NYC is going through a housing market crash and CA is seeing its tax base implode.
We are nearly below 4% UE already and the Atlanta fed is predicting 5.4% GDP growth for the first qtr so that horse has left the barn.
A good economic brake would be to increase SS by 1.9 percent to keep the balance.
How is handing out larger government checks going to be a brake on the economy?