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
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.

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.
READ MORE>>

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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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
The fundamentals of the market is bad and once these executives find no reason to inflate profit any further, the real shock of the millennium will be in – the corporations were manipulating the books just like backdating options.
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If and when Dow, S&P and Nasdaq opens limit down for several days – how can you protect yourself?
Sam Adelton
When limit down occurs, there may not be any official bids. That is dangerous because the next day it can go again limit down. If markets do not trade, you will not be able to exit the market.
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