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fredsheldon wrote:Can anybody remember who predicted here that the Dow would hit 16,000 this year and may even pass 17,000. Say what you want but it looks like this economy is heading in the right direction. My retirement nest egg is depending on it.

The euphoria prevails. Stocks skyrocket. Money creation on a massive scale is working, according to the financial markets.

288,000 new jobs were created in June. Dow above 17,000 is welcomed by those who believe the sky is the limit. The labor market is literally exploding, it has claimed, but there are some statistics that are not that reassuring and are ignored by Wall Street.

In spite of the new jobs created in June, jobless claims rose by 2,000 to 315,000. Full-time jobs in June decreased by 523,000 while part-time jobs increased by 800,000. No real wage increases in the past two months.

The labor participation rate is at a 35-year low at 62.8 percent. Obviously the unemployment rate of 6.1 percent was well received. But the underemployment rate of 15.8 percent was ignored, as was the U-6 unemployment rate of 12.2 percent (U-6 is defined as “total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force plus all marginally attached workers.”).

Wall Street desperately wants to believe in the tooth fairy. But massive increases in Federal Reserve credit is the source of inflation, malinvestment and our very fragile economy. Stay tuned.

heathicus wrote:http://www.ronpaulchannel.com/editorial ... mployment/

dusty wrote:Heath might and I hope, for your sake, that your favorable trend continues but I really don't need a regular financial report.

fredsheldon wrote:Your wish is my command I will provide another report in '16