Kerry's `Quality of Jobs' Argument Gains Wall Street Support

[Triana]

July 19 (Bloomberg) -- Democratic presidential candidate John Kerry's assertion that the U.S. has been creating mainly low- paying, ``second-rate'' jobs during the past year's expansion is starting to resonate on Wall Street.

``The vast majority of net new jobs created have been in the low-wage sectors of the economy, and income growth has been disappointing,'' David A. Rosenberg, chief North American economist at Merrill Lynch & Co., wrote July 9. Lagging incomes may cause ``consumer spending to slow in coming quarters.''

Stephen S. Roach, chief economist at Morgan Stanley & Co. in New York, reached a similar conclusion: ``While there has been some improvement on the hiring front in recent months, the quality of such job-creation has been decidedly sub-par,'' Roach wrote the same day. ``Unless that changes, the risks to a sustainable economic recovery will only intensify.''

Gaining the economists' seal on the idea of sagging job quality may bolster Kerry's challenge to President George W. Bush, who counts Wall Street executives as some of his major campaign fund-raisers. Kerry, a 60-year-old, four-term senator from Massachusetts, has previously based his arguments primarily on data from the Economic Policy Institute, a labor-financed research group in Washington, according to his campaign.

In addition to Roach and Rosenberg, senior economist Benjamin Tal of CIBC World Markets Inc. in Toronto said in an interview that until the past two or three months the bulk of the new jobs created have been in the ``lower-wage'' category. CIBC is one of the 23 primary dealers, or securities firms that trade U.S. government debt securities directly with the Federal Reserve.

http://quote.bloomberg.com/apps/news?pid=nifea&&sid=ai5H81d2trCM

[w4rma]

1. Woah. This sounds like very good news to me. (nt)

[Cha]

4. Hey! I like Howard Stern's "bush facts"...

We're on Stern's website..du!

[Cha]

2. Good! Finally some reality!

That's what I've been hearing..I'm glad Wall Street is catching up.

[daleo]

3. Will Wall Street desert Bush? They are his base.

"There are the haves and the have mores. Some people call you the elites. I call you my base." Bush, to a crowd of mega-rich, as shown in Fahrenheit 911.

[fearnobush]

6. SO long as the major indices stay flat, BUSH IS TOAST!!!

They will long for the Clinton boom years.

[DBoon]

14. I don't think Wall Street is Bush's friend

I think a lot of these folks tend Democratic. Financial capital has a more international perspective, at odds with Bush's Fortress America.

I think the corporate sectors supporting Bush would be mining, petroleum, and low wage manufacturing, distribution, and retail (think WalMart)

[kwolf68]

28. Wall Street Dems friend

LMAO...

[depakid]

5. Could it be that the analysts are getting a clue?

Driving down tens of millions of families' disposable incomes is likely to have an adverse effect on their portfolios- Hmm.

[sandnsea]

7. Consumer spending to slow?

If it slows any further, I'll be in the street. I think every small business client I've got has complained about slow sales and they're all dependent on disposable income.

[readmylips]

8. Surprise! Our Investment Firm sent us Polling Qs....

They can't ask us directly if we're voting for bush, but their questions were worded almost directly AGAINST bush. I received the questions before my republican hub did and answered all the questions against bush....our country is going the wrong way....we've lost finances...is the economy a concern, is the war a concern...volunteer question: who would you vote for on Nov 2...JOHN KERRY of course.

[PROGRESSIVE1]

9. ................

[pansypoo53219]

10. some artists

at the 2 best shows in WI were hit and miss. spending was not as good.
except i did great because i had bright fun animal drawings.

but sales were ower than usual.

[quaoar]

11. This goes to show

That if you spin people long enough, eventually they get dizzy and throw up.

Nobody is impressed with all the McJobs Bush has created. Not even Wall Street.

[Triana]

27. kick...

...because it's good news and we all need some.

On edit: well, it's sorta good news - at least it's good for Kerry and our possibly having a better jobs future than the one we've currently got which is pretty dismal. So dismal that even Wall St. is noticing.

[The_Casual_Observer]

12. It isn't Kerry's anything, it is just a plain and simple fact

and as reagan said "facts are stupid things".

[mhr]

13. Chart From The Dallas Fed Says It All

Notice how flat employment has been overall in TX. Also notice that the two high-tech sectors, Dallas and Austin, took the greatest hit under *.

Sometimes a picture is worth a thousand words.

[DBoon]

15. Houston = petroleum, San Antonio = military

right?

[mhr]

17. Correct!

eom

[leftofthedial]

16. I think this is the right tack for Kerry and Edwards to take

the neocon and RW all-out attack on the middle class can't be disguised by propaganda. People are seriously hurting. Families are suffering.

[Triana]

18. and bu$hit wonders why...

...no one believes or gives him credit (the working/not-working folk that is) for his "recovery" (and I use that term very loosely).

People are either out of work, or working one or more shitty low-paying jobs to just pay their damn bills. Forget saving for retirement, health insurance, vacations, or saving for kid's college - they're doing good just to pay the damn electricity bill and keep food on the table. It's despicable. THAT is not a recovery. It's a hair's breath away from being a third-world country.

[FreakinDJ]

19. Wall Street finally opens their eyes

About time we get some honest answers instead of all this Bushit propaganda

[DinahMoeHum]

20. 'BUSH - BAD FOR WALL STREET, BAD FOR MAIN STREET"

Methinks it's a great idea for a protest sign.

:evilfrown:

[Triana]

21. Great Idea for a Billboard...

...if ClearChannel et al the rest of the MediaNazis would allow such a thing...

[Tsiyu]

22. Funny how we laughed at

that Iraqi Information Minister, rewriting the facts to appease The Fearless Leader Saddam.

Now the Repukes are saying "Look at our Boy's Recovery! God's Chosen * sure knows how to run this country!" They keep telling themselves that it's gay marriage and Jesus that people care about, not nasty wars or economic polarization.

They aren't taking into account the depression a single mother feels, working a ten hour shift to bring home $40 or $50 dollars. Or the hopelessness of someone shut out of decent employment for YEARS.

I believe when people are uncomfortable enough, they demand change. And I hope this means a Kerry landslide.

[colonel odis]

23. wall street isn't bush's friend, nor is it anyone else's friend.

the scandals within the brokerage houses demonstrated what types of folks they are. all the more reason to invest in something besides stocks and bonds.

it's hilarious that they're abandoning bush.

[Triana]

24. the rats eat their own?

mwahahaaaaaa! Good enough for 'em. And if their stocks suffer because the Enronomy sucks an ill wind, good enough for them too. If people don't have jobs or don't have decent jobs and money to spend - they don't spend. I can't fathom what type of bean-counting idiot can't figure that out. At some point, they end up shooting themselves in the foot with their own avarice (unfortunately, the bullets have to go through everyone else, including the stockholders, before hitting their foot and it's noticeable).

The stock market is not our friend, I agree. That's one reason I don't support dumping our SS money there - another bu$hit idiot idea. May as well feed it all to a swamp full of pirhanas as put it in the stock market.

[Ernesto]

25. Just a KICK here! N/T

[progressivebydesign]

26. From Kerry's lips to the voter's ears... N/T

[kodi]

29. you don't need a weatherman to tell you which way the wind blows

now that "experts" recognize it, its true?

americans everywhere are relieved that their experience is now considered real by the powers that be.

[Triana]

30. just another kick...

...so more folks can see this - not that it's news to anyone on DU but that Wall Street concurs is amazing.

[struggle4progress]

32. ... and another!

:kick:

[Yo_Mama_Been_Loggin]

31. Why not?

The stock market's been in the crapper since G DUHbya took over. I've invested since the Reagan years and the Dow generally went up under every administration till the current one.