Langui re: "But here's the good news. Given the recent rebound in corporate profits the U.S. has already experienced, there is a very high chance that employment will get better over the coming twelve months. One can't stress enough the fact that employment is a lagging indicator:"
A very critical point to this equation is how Corporations are turning a profit. The majority of them are currently turning a profit by reducing overhead expense (reducing their compensation expense by laying off workers).
We will NOT see a positive effect on the employment #'s, until this formula includes Corporate profits being driven by a material increase in revenue (instead of expense reductions).
CHART OF THE DAY: Yep, The Great Money Bubble Has Come To Its End Joe Weisenthal and Kamelia Angelova | Feb. 26, 2010, 2:34 PM
It's constantly argued that the one reason the stock market recovered so swiftly from last year's decline was the rapid expansion of the money supply, courtesy of The Fed.
That may be, but soon that reason will no longer be valid.
The latest measure of M2, which is one of the ways the Fed measures the total supply of money out there, shows convincingly that the great expansion has peaked. Actually it's not just peaked, it's cresting in a way that's unprecedented on the chart.
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