CEOs less willing to hire, sales a worry

[CARLHAYDEN]

CEOs less willing to hire, sales a worry

 (Reuters) - U.S. chief executive officers' view of the economy darkened in the third quarter, with top executives saying they were less willing to hire new workers as they fear sales growth will slow.

www.reuters.com/article/idUSTRE68R2Y620100928

[Frink]

CEOs less willing to hire, sales a worry

 (Reuters) - U.S. chief executive officers' view of the economy darkened in the third quarter, with top executives saying they were less willing to hire new workers as they fear sales growth will slow.

www.reuters.com/article/idUSTRE68R2Y620100928

AKA Aggregate Demand is falling and efforts should be made to boost it.

[Mr.Phips]

CEOs less willing to hire, sales a worry

 (Reuters) - U.S. chief executive officers' view of the economy darkened in the third quarter, with top executives saying they were less willing to hire new workers as they fear sales growth will slow.

www.reuters.com/article/idUSTRE68R2Y620100928

AKA Aggregate Demand is falling and efforts should be made to boost it.

What is your suggestion?

[RI]

Carl, what was the point of this thread? All this shows is that continuing high unemployment is being caused by poor demand. How shocking.

[CARLHAYDEN]

Carl, what was the point of this thread? All this shows is that continuing high unemployment is being caused by poor demand. How shocking.

Several points.:

First, the so-called 'mainstream media' has been pushing the 'recovery' idea for months, contrary to the facts.  Week after week after week the media gives out the 'unexpected' line for bad economic news.

Second, in addition to the public having little confidence in the immediate economic future, executives share that realistic assessment.  I cited the public mood in another (earlier) thread.

Third, Obama and his minions in the so-called 'mainstream media' have been pushing the line that employers are not hiring for political reasons.  Whereas as the article points out, it is based on anticipation of poor revenue.

[○∙◄☻¥tπ[╪AV┼cVê└]

Low pay and low consumer confidence means poor demand and therefore poor sales. Of course, the Republicans think that this will all be solved by making the richest 1% richer.

[Frink]

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You think a President and the Government shouldn't keep an optimistic outlook? Do you have any idea how much further confidence would go down the drain and worse off we'd all be if we had the President, Fed Chairman, etc. telling people that the economy was going down the drain?

They're doing their job.. incorrect or not.

[Frink]

CEOs less willing to hire, sales a worry

 (Reuters) - U.S. chief executive officers' view of the economy darkened in the third quarter, with top executives saying they were less willing to hire new workers as they fear sales growth will slow.

www.reuters.com/article/idUSTRE68R2Y620100928

AKA Aggregate Demand is falling and efforts should be made to boost it.

What is your suggestion?

Right now?

The recession we're experiencing is the result of a demand for safe and high-quality assets. Have the government buy up risky assets, like the Fed is currently engaged in to an extent, so that people have more safe assets to park their cash in. Essentially an all out expansionary policy that has the effect of 1) Reducing the demand for such high quality assets and 2) Increases the supply of high quality assets for investors safely park cash in. The Fed must also be careful, however, to make the original investors and financiers who parked their cash in the not-actually-safe "safe" assets do not profit from the government underwriting their bad investments (otherwise the next downturn will be spectacularly worse than the first)

Economics is reduced from "science" (the quotes are to appease skeptics of this status) to art in the current downturn.

The other problem is how carefully governments have to tread when engaged in this policy to make sure confidence in the governments backing of these assets doesn't waver. If investor confidence in the governments ability to meet its obligations (essentially if the ratings agencies unleashed hell on the US and downgraded us threefold) then the government guarantees of these assets will be useless and actually worse the problem. We've seen this broad collapse of confidence before in Greece.

So in essence; spend and spend freely, but at a penalty rate so that speculators don't profit from parking their money in non-safe assets (You can see where the Fed has failed at this strategy).

Its not a pretty situation nor an orthodox Keynesian, Monetarist, or "Classical" recession. Its both a supply and demand side problem at the same time.

[TeePee4Prez]

I read an article the other day on MSN about how people are playing it too safe and the bond market is actually in a bubble state right now.  The article suggested now is a good time to buy riskier stocks because they will beat out inflation. 

[CARLHAYDEN]

You must be logged in to read this quote.

You think a President and the Government shouldn't keep an optimistic outlook? Do you have any idea how much further confidence would go down the drain and worse off we'd all be if we had the President, Fed Chairman, etc. telling people that the economy was going down the drain?

They're doing their job.. incorrect or not.

Sorry, but I think that the President and other parts of the government, including the Fed Chairman should tell us the truth, rather than feeding us optimistic nonsense.

[Grumpier Than Uncle Joe]

Sorry, but I think that the President and other parts of the government, including the Fed Chairman should tell us the truth, rather than feeding us optimistic nonsense.

C'mon CARL, all Fed Chairmen are cautious with their words and error on the side of optimism......one gloom and doom sentence from a Fed Chairman and markets worldwide could plunge.

And Presidents?  LMFAO........every one of them feed us optimistic nonsense.

[CARLHAYDEN]

Sorry, but I think that the President and other parts of the government, including the Fed Chairman should tell us the truth, rather than feeding us optimistic nonsense.

C'mon CARL, all Fed Chairmen are cautious with their words and error on the side of optimism......one gloom and doom sentence from a Fed Chairman and markets worldwide could plunge.

And Presidents?  LMFAO........every one of them feed us optimistic nonsense.

Look, happy talk just doesn't work.

Ford tried it, Carter tried it, Bush I tried it, and it all failed.

While you may prefer "optimistic nonsense," I would prefer the truth.

[Grumpier Than Uncle Joe]

Sorry, but I think that the President and other parts of the government, including the Fed Chairman should tell us the truth, rather than feeding us optimistic nonsense.

C'mon CARL, all Fed Chairmen are cautious with their words and error on the side of optimism......one gloom and doom sentence from a Fed Chairman and markets worldwide could plunge.

And Presidents?  LMFAO........every one of them feed us optimistic nonsense.

Look, happy talk just doesn't work.

Ford tried it, Carter rried it, Bush I tried it, and it all failed.

While you may prefer "optimistic nonsense," I would prefer the truth.

Don't forget Reagan, Clinton, and the other Bush, and thanks for making my point, they all do it, they always will.

And who said I prefer it.  I'm just being realistic vs. batsh**t idealistic (since nothing will change in this regard).

[Grumpier Than Uncle Joe]

......and CARL, you've been around long enough, even the president's spokesperson is not permitted to SPEAK on certain issues economically because of market reaction.

Don't expect anything different no matter who is in office next.

[Frink]

Sorry, but I think that the President and other parts of the government, including the Fed Chairman should tell us the truth, rather than feeding us optimistic nonsense.

C'mon CARL, all Fed Chairmen are cautious with their words and error on the side of optimism......one gloom and doom sentence from a Fed Chairman and markets worldwide could plunge.

And Presidents?  LMFAO........every one of them feed us optimistic nonsense.

Look, happy talk just doesn't work.

Ford tried it, Carter tried it, Bush I tried it, and it all failed.

While you may prefer "optimistic nonsense," I would prefer the truth.

One word of truth from the Chairman of the Fed and Markets would, indeed, plunge. You would prefer the truth I'm sure, but your not Wall Street who really can't hear the truth (that our situation is awful and we could be facing a Lost Decade).

It may not be ethical but its necessary to keep peoples rather shakey faith in the Market intact. If Bernanke was to suddenly say "We're in a liquidity trap, there's nothing we can do with monetary policy, good luck!" the results would be horrific.

[CARLHAYDEN]

Guys, its very simple.

When government officials make overly optimistic projections on the economy, they end up losing credibility.

A lot of people remember when Obama told us that if Porkulus was passed, unemployment wouldn't be higher than 8%.

Biden told us a few months ago about 'recovery summer.'  Well, summer has come and gone and people aren't buying it.

When Ford came up with his absurd Wip Inflation Now program, he was rightly rediculed.

When Carter tried to blame the economy on 'malaise,' he was a laughing stock.

I can cite more, but hopefully, you get the drift.

[Frink]

Guys, its very simple.

When government officials make overly optimistic projections on the economy, they end up losing credibility.

Theirs a big difference between losing credibility and actively telling people they're doomed/good luck with it. Governments can lose credibility but the second they tell the truth to Wall Street things only get worse.

There is, also, a difference between admitting theirs a serious economic problem and actively encouraging the economic downturn with the full blunt of the bad news.

[CARLHAYDEN]

Guys, its very simple.

When government officials make overly optimistic projections on the economy, they end up losing credibility.

Theirs a big difference between losing credibility and actively telling people they're doomed/good luck with it. Governments can lose credibility but the second they tell the truth to Wall Street things only get worse.

There is, also, a difference between admitting theirs a serious economic problem and actively encouraging the economic downturn with the full blunt of the bad news.

You continue to misrepresent my point.

I am not urging government officials to tell people "they're doomed/good  luck with it," as you suggest, but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

You seem to believe, in the famous movie line that the people of the United States "can' t handle the truth."  I disagree.

[Frink]

You continue to misrepresent my point.

I am not urging government officials to tell people "they're doomed/good  luck with it," as you suggest, but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

Some reasonable measures have been proposed (and enacted) since the stimulus. What would you propose?

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Fair enough. 

[Grumpier Than Uncle Joe]

Guys, its very simple.

When government officials make overly optimistic projections on the economy, they end up losing credibility.

Theirs a big difference between losing credibility and actively telling people they're doomed/good luck with it. Governments can lose credibility but the second they tell the truth to Wall Street things only get worse.

There is, also, a difference between admitting theirs a serious economic problem and actively encouraging the economic downturn with the full blunt of the bad news.

You continue to misrepresent my point.

I am not urging government officials to tell people "they're doomed/good  luck with it," as you suggest, but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

You seem to believe, in the famous movie line that the people of the United States "can' t handle the truth."  I disagree.

Hasn't Obama been doing that?  That's how he got what you call Porkulus passed (though many don't find it reasonable).  He hasn't been rosey, in fact he's said it's bad and blamed Bush at every turn.  President's mix some truth and politics.

The Fed Chairman though needs to temper his words though and you know this.......if he passes gas wrong markets react worldwide.  You just have to pay attention to what he's saying to hear it's bad, but he's never gonna make statements a President would.

[Frink]

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Not really, he said the situation and outlook were quite poor not "we're screwed good luck with it".

[Grumpier Than Uncle Joe]

You must be logged in to read this quote.

Not really, he said the situation and outlook were quite poor not "we're screwed good luck with it".

I was referring to the last part of that sentence of CARL's -  but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

[Frink]

You must be logged in to read this quote.

Not really, he said the situation and outlook were quite poor not "we're screwed good luck with it".

I was referring to the last part of that sentence of CARL's -  but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

My mistake. You bolded the whole thing so I didn't know for sure..

[Grumpier Than Uncle Joe]

You must be logged in to read this quote.

Not really, he said the situation and outlook were quite poor not "we're screwed good luck with it".

I was referring to the last part of that sentence of CARL's -  but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

My mistake. You bolded the whole thing so I didn't know for sure..

NP, I wasn't clear......my fault.

[CARLHAYDEN]

Guys, its very simple.

When government officials make overly optimistic projections on the economy, they end up losing credibility.

Theirs a big difference between losing credibility and actively telling people they're doomed/good luck with it. Governments can lose credibility but the second they tell the truth to Wall Street things only get worse.

There is, also, a difference between admitting theirs a serious economic problem and actively encouraging the economic downturn with the full blunt of the bad news.

You continue to misrepresent my point.

I am not urging government officials to tell people "they're doomed/good  luck with it," as you suggest, but rather they admit there is a serious economic problem, and propose reasonable measures to deal with it.

You seem to believe, in the famous movie line that the people of the United States "can' t handle the truth."  I disagree.

Hasn't Obama been doing that?  That's how he got what you call Porkulus passed (though many don't find it reasonable).  He hasn't been rosey, in fact he's said it's bad and blamed Bush at every turn.  President's mix some truth and politics.

The Fed Chairman though needs to temper his words though and you know this.......if he passes gas wrong markets react worldwide.  You just have to pay attention to what he's saying to hear it's bad, but he's never gonna make statements a President would.

No, Obama has NOT been "doing that."

Porkulus was a liberal spending project rather than a genuine stimulus package.

Obama largely ignored the economy for much of his term and had Biden tell us about "recovery summer."

Oh, and yes, Obama blames Bush for everything that goes wrong and doesn't take responsibility for his own action and inactions.

Finally, the Fed Chairman is actively engaged in a coverup of Fed activities, which has resulted in a lawsuit by Bloomberg News, which is wending its way through the federal courts (Bloomberg won on the appealate level).  I have posted on this previously here.