JOBS REDUX

The word coming out of the White House and from the media is that there are signs that the economy is "picking up." This suggests that great banking institutions will cease borrowing money at very lay rates from the Fed and investing that money in Treasury bonds at higher rates, guaranteeing a handsome profit even a bank couldn't "blow." Gorged now on easy money, they will begin to "eye" loans calculated to bring in much higher profits.


However, the lending may be initially selective. Not all sectors of the economy ascend at the same rate. Yes, diversity operates in the economy too. In the American system surviving banks lead the way, followed by surviving corporations operating in lucrative niches or in non-discretionary product areas. Slowly, the bull emerges from the pit.


President Obama has carefully explained that it was "W." fault that things got so bad. There is some reason to credit this assertion.



"W." has remained mute on his ranch in Crawford, Texas.


I think that splitting the "bill of ills" is fair. "W." must take the blame for the second Iraqi invasion. Barack must accept the blame for the endless Afghanistan War. "W." must take responsibility for the bulk of the incredible debt incurred over the last ten years. Barack must accept responsibility for the Great Depression-like levels of unemployment.


Goldman Sachs and Morgan Stanley can shoulder the blame as the leading elements in the derivative poison introduced into the world economy.

I learned from an "expert" commenting on jobs in the economy that there were signs that skilled jobs in technical areas were hiring. This commentator rued the fact that most of our American unemployed happened to have worked in areas not much needed in the New American Economy. For them the prospects don't appear so rosy. However, for the worker with a masters in engineering AND in cyber-ciphering (or some such), there were great opportunities.


It's funny how these fields are never mentioned by guidance counselors in schools. Perhaps they feel that they aren't realistic options for ordinary students.


Recently, Dell Computers announced they were closing down their factory in the Carolinas and opening facilities in Mexico and China. It only makes sense to go with the winners.

September 26, 2010