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Rate cuts won't save the economy/stock market

Discussion in 'Business, Investment and Economics' started by SensibleInvesting, Jun 8, 2019.

  1. SensibleInvesting

    SensibleInvesting

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    Judging by how hard the stock market has rallied in the last few days, it seems like 2 - 3 rate cuts have been priced in. The problem with this however, is that no matter how much Powell cuts rates, it still doesn't address the issue that mass redundancies are happening across the board; moreover, rate cuts don't just magically make laid-off jobs reappear.

    There have been over 7200 retail store closures to date in 2019, and recently Ford, GM, 3M, IBM, MGM Resorts, among other notable names have announced large redundancies.

    Despite this, the government keeps harping on about how low unemployment rates are and etc.

    What's surprising is just how low the barrier to entry is for people to be considered as "employed" by the government, which has led to an entirely new issue all together: "Underemployment" or "Underemployed". If the DLS disclosed what their definition of "employed" actually is, then stacked both the unemployment and underemployment numbers next to each other, we get a whole different story all together.

     
    moXJO likes this.
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