AT&T shareholders will decide executive compensation – a new era in corporate accountability and fairness in the middle of deflation and cracking Wall Street
Sam Adelton
Mar. 6, 2007

Since early eighties the bull market that started in 1982 has shown an interesting relationship to underemployment. Underemployment is defined as lack of adequate opportunities in the economy. Unemployment means lack of any opportunity. Underemployment makes people accept jobs that pay little and exploit them. It was a phenomenon that created poverty over hundreds of years in China and India.

Underemployment started in United States in early eighties when large corporations decided to start reducing employees to boost profitability through productivity. Underemployment reached the climax in 2003-2006 time frames with illegal aliens, H1B workforce from cheap labor countries and outsourcing. Every time corporations increased the effects on underemployment, it translated to higher stock prices.

During a short period of time, between 1999 and 2002, underemployment actually reduced. It was also the years when stock market collapsed.

Now, something interesting is happening. The underemployment is changing into unemployment as deflation spreads like a wild fire. The issue is no longer getting someone cheaper to get the job done. Now the issue is to shutting the money losing units. It is spreading as deflation spreads across the board.

Now underemployment will change into unemployment - it has already started ad evident from low number of non-farm job creations and slowly creeping unemployment claims.

Dow can drop precipitously if the correlation is correct. As underemployment changes to unemployment, stock markets will implode with extreme power.

Why stocks and gold are moving in tandem – where is the inflation beast?
Peter Oberois
Whenever the economy gets its liquidity from borrowing, the gold and stock markets run in tandem. Many analysts confuse between inflation driven gold market and borrowed liquidity driven bull markets.
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100,000 jobs last month, the fewest in two years, after a gain of 111,000 in January-a sign of deflating economy headed for recession
MarlaGuthrie
Since early eighties the bull market that started in 1982 has shown an interesting relationship to underemployment. Underemployment is defined as lack of adequate opportunities in the economy.
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Rise in S&P in recent days is a function of underemployment because of fiscal incentives – where will the stock market be at the end of the year?
Allan Hershey
Dow can drop precipitously if the correlation is correct. As underemployment changes to unemployment, stock markets will implode with extreme power.
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Falling productivity and capacity utilization signal the end of long-term bull market in word stock markets – a repeat of 1929-33
Fred Day
Productivity is falling in every country. In addition, percentage of capacity utilization is falling in those countries. The scenario is worst in China, North America and Euro Zone. Japan and rest of Asia also look bad.
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Failure of Fannie Mae and Freddie Mac – a nightmare that can come true if economy tanks and deflation skyrockets foreclosure
peter Oberois
Federal Reserve is finally realizing the risk of failure of Fannie Mae and Freddie Mac. The massive portfolio of these two institutions contains home loans that not only back affordable housing but also others.
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