I think that as September advances, the Obama Administration's predictions of 'a summer of recovery' have fizzled seriously again. Asian stocks fell today following the dismal US jobs report on Friday.
Asian stocks fell for a second day, led by mining companies and exporters, after U.S. unemployment stagnated in August, fueling concern that the world’s largest economy may be headed for a recession.
Samsung Electronics Co., a South Korean exporter of consumer electronics that gets 22 percent of its revenue from America, sank 3.1 percent in Seoul. Toyota Motor Corp., the world’s biggest carmaker by market value, declined 1.6 percent in Tokyo. Clothier Fast Retailing Co. sank 3.6 percent after reporting sales fell at its Uniqlo stores. BHP Billiton Ltd., the world’s largest mining company and Australia’s No. 1 oil producer, retreated 1.1 percent after crude and metal prices slipped.
The MSCI Asia Pacific Index dropped 1.3 percent to 122.60 as of 9:27 a.m. in Tokyo. More than six stocks fell for each that rose on the gauge. The measure slumped 8.6 percent last month, the most since May 2010, amid concern global economic growth is slowing as Europe’s sovereign debt crisis spreads and after Standard & Poor’s cut the U.S. credit rating
“People didn’t expect an increase in U.S. jobs would come to a halt, which was a negative surprise,” said Toshiyuki Kanayama, a market analyst at Tokyo-based Monex Inc.
In Europe, Deutsche Bank shares lost 6% after CEO Joseph Ackermann told a banking conference that the euro zone debt crisis could kill weak banks and stunt profits for the rest of industry for years to come. (CNBC)
Democratic Party Philosophy vs Republican Party Philosophy
The Department of Labor, Bureau of Labor Statistics (REPORT) indicates that the US is entering another phase of recession or perhaps even depression as this lingering economic crisis and malaise drags on - and on.
President Obama poises himself (THE PRESIDENTIAL LABOR DAY SPEECH) as reported by Voice of America to launch yet another stimulus package [maybe as much as another trillion dollars?] to put America back to work. In his speech in Detroit (famous 'union city') where the genuine jobless numbers approach 35%, the President remained hopeful that government borrowing to pay workers to keep the unemployment numbers down will boost his re-election campaign prospects.
Albert Einstein defined insanity this way: "Doing the same thing over and over again and expecting different results." Another trillion dollar stimulus package?
Will some of the money for the new stimulus be used to smuggle firearms to Mexican Drug Cartels the way that the last one did?
Today, Texas Governor Rick Perry said, “We [have] got to get America back working again. And government’s role is to create an environment [conducive to job growth]. I did not create those jobs. Americans created those jobs. Texans created those jobs, because we allowed them to have an environment where they were not overtaxed, over-regulated, or over-litigated. We got out of the way and let the private sector do what the private sector does best: create jobs.”
The difference between the (so far failed, dismal) Democratic Party's approach to borrowing a trillion or two that is subsequently wasted and the Republican Party's concept of enabling the private sector couldn't be more different.
Happy Labor Day