Replies to post #151043 on Zeev's Turnips Patch-No Politics (ZEEV)

[michael03332002]

It has been preying on my mind how this works in terms of effects on the stock market so lets see how I got this messed up there in the recesses of my mind and put it out there for all to see

WHEN jobs are cut and the unemp rates goes UP, then thats GOOD for companies in general via cost reductions and a better bottom line, but BAD for the ecomony as a whole, right?

If so, their stocks value and price SHOULD go up if the umemp #'s keep inching up as they are, so would the inverse be true and if unemp goes down, will the talking heads inform us of how BAD this is for companies, but good for the economy or once again do they get to cherry pick the good side of information and spoon feed the unsuspecting? Seems you cant have it both ways, and if that knife cuts coming and going, then should one look for stock prices to drop if people start back to work?...

I am quite sure that wont happen because of how things are reported and I'm just looking for the winning lottery numbers and fairness in how things are reported, probably WONT ever get either, but

WHEN YOU WISH UPON A STAR MAKES NO DIFFERENCE WHO YOU ARE.............

M

[Bullwinkle]

One thing is for certain and that is all the tax cuts in the world don't mean diddly if you have no income...

[Public Heel]

Very interesting. I had not thought of it that way (clearly, I am not an economist). While reading it, though, it occurred to me that there was a larger, and even more insidious, cause of the decoupling of capital investment and job growth.

A lot of the capital investment is being spent overseas.

If Proctor and Gamble ups their capex by $1B, but spends it all in Mexico and China, then it does our labor market no good at all.

An optimist, however, would read this article and say that, once companies have spent their new dollars where they can get the greatest returns (machines), they will have no choice but to spend additional profits on assets providing lesser returns (people).