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Need help understanding this economy mess


Dan

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As I have said before... Insurance Companies have it pretty good right now. They can play the victim of the healthcare reform bill and they can raise their rates. Stating it's all because of the bill knowing full well that they would have raised rates no matter what.

 

Don't say we didn't warn you.

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The stock markets are reflecting the conventional wisdom in the media, they do not provide an independent assessment of the economy. The moral of this story of late is that financial markets should not be viewed as the embodiments of wisdom about the economy. The big actors in the financial markets are subjects to bouts of fear,panic and euphoria just like the rest of us. In fact, they might even be more subject to irrational mood swings because they sit around talking to each other all day just like you guys.

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Also realize that a "job created" isn't really a new employee.

 

Every 40 hours of work a company can charge to the stimulus money counts as a "job".

 

If it was a project the company wanted to do any way, they simply assign a current employee or group of employees to it and get free labor.

 

Once the project is done, those employees go back to their normal positions and the company might not actually gain any positions.

 

If 4000 hours are billed for work on a large project, including current employees + new contractors, that project is counted as having created 100 new jobs. Once that project is over, the contractors leave, and the employees that were working on it go back to their normal jobs. Perhaps a handful of people are actually hired for ongoing maintenance or support or something related long term to the project, but it's certainly not 100 people.

 

So what gets reported as 100 jobs created probably amounts to no more than 5 real new employees.

 

It's government math.

Edited by Joe Miner
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Companies are not hiring because A: nobody is buying anything

 

So true... Consumers NEED to stop spending!

 

I am still opening and closing my garage door manually... I am waiting for the price of a new opener to drop. Until I find the deal I want... My two hands are the opener. Ain't life great! :D

 

 

 

 

 

 

 

 

 

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So true... Consumers NEED to stop spending!

 

I am still opening and closing my garage door manually... I am waiting for the price of a new opener to drop. Until I find the deal I want... My two hands are the opener. Ain't life great! :D

TMI, no one here wants to know about your sex life!

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