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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Mike Johnston who wrote (72669)10/23/2006 3:20:06 PM
From: UncleBigs  Read Replies (1) | Respond to of 110194
 
When the real price of labor goes down while nominal sales are strong, businesses can afford to hire.

Businesses add employees when they need more labor to produce the demanded output.

If real economic activity is declining while nominal revenue is rising, that would mean there is excess labor.

The job numbers indicate exactly the opposite. Businesses are laying off fewer workers while job openings expand.

That means real economic activity is expanding faster than productivity increases.



To: Mike Johnston who wrote (72669)10/23/2006 3:29:24 PM
From: GST  Read Replies (1) | Respond to of 110194
 
<wages and spending at the top of income scale are going through the roof> Brains are the most likely winners in this environment.