October 04, 2009

Plutonomy In his new movie, Michael Moore mentions a citigroup document on plutonomy. Here are excerpts from what seems to be it. The document is available here: Download Plutonomy 1 WELCOME TO THE PLUTONOMY MACHINE In early September we wrote about the (ir)relevance of oil to equities and introduced the idea that the U.S.is a Plutonomy - a concept that generated great interest from our clients. As global strategists, this got us thinking about how to buy stocks based on this plutonomy thesis, and the subsequent thesis that it will gather strength and amass breadth. In researching this idea on a global level and looking for stock ideas we also chanced upon some interesting big picture implications. This process manifested itself with our own provocative thesis: that the so called “global imbalances” that worry so many of our equity clients who may subsequently put a lower multiple on equities due to these imbalances, is not as dangerous and hostile as one might think. Our economics team led by Lewis Alexander researches and writes about these issues regularly and they are the experts. But as we went about our business of finding stock ideas for our clients, we thought it important to highlight this provocative macro thesis that emerged, and if correct, could have major implications in terms of how equity investors assess the risk embedded in equity markets. Sometimes kicking the tires can tell you a lot about the car-business. Well, here goes. Little of this note should tally with conventional...
Unemployment crisis shows the failure of capitalism From the WSWS: The staggering figures released Friday on the US labor market demonstrate that what has developed since the Wall Street crash one year ago is not a conjunctural downturn or recession, but an historic assault on working class living standards. The official unemployment rate for September was 9.8 percent, up from 9.7 percent in August, amid predictions that the jobless rate would pass the 10 percent mark and remain in double digits for at least the next year. The US Labor Department reported a net loss of 263,000 jobs in September, far more than predicted by government and business economists. Another 571,000 workers dropped out of the labor market entirely, not looking for work during the month because they saw no prospect of finding a job. Despite the claims of economic recovery, the combined total of 834,000 workers either losing their jobs or giving up the search for work is comparable to the 700,000-plus job losses recorded in January and February. September marked the 21st consecutive monthly decline in jobs—the longest continuous drop in US employment since the Labor Department began collecting such figures in 1939. Some 15 million American workers are unemployed, nearly double the number out of work when the recession began at the end of 2007. The average duration of unemployment is 26.2 weeks, more than half a year, the highest figure since the Labor Department began such statistics in 1948. One third of the unemployed, more than five million, have been out of work...

Jodi Dean

Jodi Dean is a political theorist.

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