- India’s Remittance is one of the highest in the world as many Indian are employed globally and with Crude prices unstable and labor demand lower in Gulf region and Major developed world unemployed rates are very high.
- Social unrest is becoming lager in developed world as Indian saving habit and hard work has made locals attack Indian increasing security concern. Australia has become a good example.
- Unemployment and under-employment is a problem globally with U.S payroll data saying workweek is33hours so any improvement in demand will improve workweek first and Fed has expressed the same view.
- International trade hasn’t picked up as people refusing to spend in developed countries and for the past 11month Indian trade has been negative and Baltic Index a gauge for global trade also indicate weakness.
- India is also seeing social unrest due to job security consequent Pilot strike, HR murder in Pricol, Flash strike in Cummins, MRF, Hyundai and JKtyre can be few flash points. Many presently employed are afraid to apply a leave due to fear of losing job, making the strain beyond limit.
The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States. The non-farm payroll statistic is reported monthly, on the first Friday of the month, and is used to assist government policy makers and economists determine the current state of the economy and predict future levels of economic activity. Non-farm payroll data, which represents the total number of paid U.S. workers of any business, excluding general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals, and farm employees.
The official unemployment rate is 9.8% in September from 9.7% in August, highest unemployment rate since June 1983.
The longest stretch of job losses since the 1930s probably continued September, U.S. nonfarm payrolls fell by 2, 63,000 in the month marking the 21st consecutive month of falling employment. Unemployment rate rises to 9.8%, a 26-year high. Since the recession began in December 2007, 7.2 million jobs have been lost and the unemployment rate has doubled.
Federal Reserve Chairman Ben Bernanke in congressional testimony on Thursday said,” Even with relatively decent economic growth of about 3% next year, the unemployment rate wouldn't come down very much”.
An alternative gauge of unemployment, which includes discouraged workers and those with part-time employment, rose from 16.8% to 17%, the highest in the 15-year history of the data. The average workweek dropped back to an all-time low of 33 hours.
The seasonally adjusted jobless rate for the Euro zone inched up to 9.6% in August from 9.5% in July, Eurostat said Thursday. That was the highest rate since March 1999. It also matched economists' expectations. A year ago, the rate of unemployment was 7.6% in August. There were 15.165 million people out of work in the euro area in August. The jobless rate for EU27 stood at 9.1% in August, up from 9% in July. That was the highest rate since March 2004.
Indian Market are defying all gravity while Global markets has started it correction and many market now trading below 1 to 2months low, timing a correction is never possible correction doesn’t come saying, when it comes and it needs just few days to erode wealth and the reason is never understood when it happens one can only do post analysis. Investor should always adjust the investment according to the situation now time to be in 70% cash and hold only 30% in stock.
Read Report from John Mauldin http://www.4shared.com/file/137207786/7c5c2d34/Unemployment_is_high_and_rising-John_Mauldin.html
Dow suffers seventh decline in eight sessions. U.S. stocks fell, capping the market’s first back-to-back weekly declines since July, as a bigger-than-estimated loss of jobs and a drop in factory orders spurred concern the economy is struggling to recover.
Know about FDIC.
Warren, Mich.-based Warren Bank and Spring Grove, Minn.-based Jennings State Bank were 2 banks closed by regulators Friday, bringing the number of U.S. bank failures this year to 97 due to the lingering credit crunch.
http://www.fdic.gov The Federal Deposit Insurance Corporation (FDIC) preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for up to $250,000 (through December 31, 2013); by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
Baltic Index not picking up
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Baltic Index not picking up
