WASHINGTON – US stocks and market averages retreated into wishy-washy territory Thursday morning, as Wall Street continues trying to digest current events and the state of the economy. The straight-up tendency stocks largely enjoyed after 2020’s disastrous March trough seems stuck in stall mode, with good news always counterbalanced by the universally negative drumbeat of a delusionary media. Today’s impasse: New unemployment applications are down significantly. Again. But Congress continues to wrangle over a reasonable add-on stimulus plan vs. the Socialist Party’s plan to bail out disastrous blue state governments and other hangers on. Or no plan.
The result? As of 12:30 p.m. ET, both the Dow and the usually robust NASDAQ stand barely above the zero flatline zone. For its part, the broader-based S&P 500 is in the red, but just 0.03% below that zero mark. No conviction in markets today, it seems. At least for now.
Good news on new unemployment applications
Today’s good news centered around the US Department of Labor report showing an encouraging drop in unemployment apps. Breitbart, of all places, provides a useful, succinct report explaining these numbers.
“New claims for unemployment benefits declined by 249,000 to 1.186 million last week, data from the Department of Labor showed Thursday.
“This is the 20th consecutive week of initial claims above 1 million but it was much better than expected. Economists had forecast 1.442 new claims, a slight increase from the previous week. The prior week was revised up by 1,000 to 1.435 million.
“Claims hit a record 6.87 million for the week of March 27. Until two weeks ago, each subsequent week has seen claims decline. In last week’s report, based on the previous week’s labor market, claims actually rose. That was seen as a signal that the labor market could be stalling as infection rates surged higher in many parts of the country.”
What those declining new unemployment numbers mean
More from that Breitbart report.
“The unexpected decline appears to indicate a subsequent strengthening at the end of July, despite many businesses and states rolling back or delaying reopening plans. Reports in August, including Friday’s much-anticipated jobs report for July, will paint a clearer picture of the health of the labor market.”
Absurd reporting on the reality of the coronavirus issue continues to keep people out of work. Unnecessarily.
Reality on the ground tells us that, increasing numbers of coronavirus “cases” aside, most states, even a few blue ones, continue to re-open for business as an apparent majority of citizens nationwide have simply decided they’re tires of house arrest, of not earning money and watching their hard-won businesses remain on shutdown, perhaps permanently at this point.
As we’ve preached numerous times in these columns, reported “cases” lump together everyone who, through whatever testing regime, has tested positive for either the coronavirus or its antibodies. Of course that number continues to increase massively.
But what no one tells you is that only a tiny fraction of individuals ever contracts even a mild case of the resulting illness. Worse (or perhaps better), only a tiny percentage of these individuals, those already suffering from serious medical conditions, actually end up in the morgue. And a big percentage of these unfortunate individuals are either very old and / or are warehoused in nursing homes waiting to die anyway.
It’s not our intention to diminish the sorrow of unexpected death at any age. But the real fact here is, as we’ve said before (but which government officials at all levels will not tell you) is that we’re all going to have a close encounter with this virus sooner or later. So we can’t just destroy the economy because we’re afraid that something bad will happen. Which it won’t for any individuals not, say, over 50-60 and / or seriously ill already.
Whether it’s medicine or science, everything is now politicized. It’s a bad way to run a country. Or a market. Or a stimulus plan.
In fact, the coronavirus problem, like everything else in this increasingly doomed country, has been politicized. But the major casualty is not human death. It’s the death of truth, un-politicized science and, ultimately, the American way of life. Which, for those destroying it, is a feature not a bug.
So we should be encouraged by today’s unemployment claim numbers, even though the media still insist we’re all going to die. Perhaps tomorrow.
America’s Socialist Party continue to damage the American economy with its extortionate demands
Which actually gets us to some moderately bad economic news. Namely that another reason behind the market’s drift is the current impasse on Capitol Hill where Socialist Party leader Nancy Pelosi is once again on the verge of success in another attempt to extort payoffs to blue states, unions, businesses and Commies that support the continued leftward drift of her ruined political party.
Pelosi continues to insist that we spend money that doesn’t exist on failed blue states. Why? Their socialist and anti-Trump policies never worked and never will. As evidenced by the mass exodus of citizens from those states. Giving these clownish and downright evil governments a reward for their disastrous policies, including “defunding the police” and embracing Antifa’s and BLM’s “summer of love,” is a total abuse of the average American taxpayer.
But Pelosi’s Socialist Party ignores the nation’s disgust with all this. It reminds us how she ignored the 60% of Americans opposed to Obamacare. Voters don’t matter any more and we’re seeing it here.
Let’s help the middle class with the next stimulus plan — not extortionate Blue State governors and mayors
We do need another stimulus plan from the Feds. Sadly because so many states and Congress have done such a great job of wrecking the Trump economy. But we don’t need to saddle future generations with a debt so huge the country can never pay it off without an onerous tax increase. Which the middle class doesn’t want, since they’ve only just recovered from Part I of Obama’s Fundamental Transformation. (They expect the allegedly incoming Biden administration to finish that job.)
All this wrangling is a major reason why today’s good unemployment numbers have been waylaid by the usual Congressional indecision. The only way to break the logjam, of course, is for the GOP to completely cave into the Socialist Party’s extortionate demands. Which the GOP is pretty good at, we’ll have to admit.
We’ll see what happens when it happens. But as the wrangling continues, we can be sure of one important thing: It’s all Trump’s fault.
– Headline image: Cartoon by Branco. Reproduced with permission and by arrangement with Legal Insurrection.