Posts Tagged ‘job security’

Understanding Reality – You Don’t Know What You’ve Lost Till Its Gone

Understanding Reality – You Don’t Know What You’ve Lost Till Its Gone

Courtesy of Mish 

ITAR-TASS 66: SINGAPORE. FEBRUARY 2, 2010. The Cessna 750 Citation X, the fastest civilian aircraft, on display at the Singapore Airshow 2010. (Photo ITAR-TASS/ Marina Lystseva)

As everyone should know by now, my main concern with unions is specifically with public unions. While I do not care for unions at all, and never have, at least with private unions, someone other than corrupt politicians buying votes is bargaining at the other end of the table.

In the case of public unions, if politicians strike a bad deal, taxpayers foot the bill. In the case of private corporations, if management strikes a bad deal, the company goes bankrupt, shareholders take a hit, or the jobs move elsewhere, as soon as the contract is up.

Except in few cases every now and again, private unions just cannot seem to understand this simple economic fact.

Machinists Union Pickets Cessna Aircraft

The Kansas Wichita Eagle highlights the typical union response, public or private, in Cessna’s initial offer to Machinists includes wage cut

Machinist union members at Cessna Aircraft picketed near the company’s plant in southwest Wichita on Thursday to protest jobs being sent outside the city.

Members fought strong, gusty afternoon winds and carried signs that read "Keep it Made in Wichita," "Outsourcing is Treason" and "We built the Air Capital," as they picketed at K-42 and Hoover roads. Some carried American flags.

Cessna and the Machinists union are in the midst of contract negotiations. The current contract expires Sept. 19. About 2,300 hourly workers at Cessna are covered by the agreement. Hawker Beechcraft also has reopened negotiations with the union as it considers sending work to Louisiana, Mississippi and outside the country.

Cessna’s initial proposal is for a 10-year agreement that cuts wages 4.2 percent, weakens job security, replaces the pension plan with a 401(k) plan and increases the share of the cost of health insurance paid by the workers to 30 percent, said union spokesman Bob Wood.

"There’s no job security in the current proposal," Wood said.

"Wichita is based on aircraft," said Cynthia Hise. "If you don’t get a good contract…." Darren Hise finished her sentence. "It’s going to hurt the whole economy in Wichita."

Reflections on Job Security

Here’s the deal. The Hise’s and the union in general, appears ready willing and able to "hurt the whole Wichita economy" if they do not get what they want.

I have to ask "How stupid is…
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New York Pension Story Gaining Attention in Mainstream Press

New York Pension Story Gaining Attention in Mainstream Press

Courtesy of Trader Mark at Fund My Mutual Fund 

Man with oversize playing cards

The study I highlighted yesterday on New York pensions has hit the mainstream this morning, with a quite massive write up in the New York Times. There is a lot more detail in the story so I encourage a read through for anyone interested. (story here) Recall I was looking for the ages of these retirees so there are some eye openers in the piece! I am always fascinated by public opinion as well, so for a look through of the avalanche of comments already washing ashore go here. 

As I’ve written for the past 3 years, I believe eventually  (if trend lines continue without any fixes) we’re going to see some social issues arise in the U.S. due to the growing inequity between the public v private sectors.   Especially since it appears a massive bailout will eventually be needed to "keep promises" to this select class.  Wherever you fall on this debate, any system that pays out MORE in pension than a person ever earned in a working year is beyond belief. But when you can game the system by adding a ton of overtime in your last year – it’s all just ‘dealing with the cards we were dealt’. (On a side note I did not realize pensions were FREE of state and local taxes – maybe it’s only a New York thing, I do not know)

Much like the deficit stood in shadows for years as some vague ‘issue’ (I still doubt 8 in 10 Americans could tell you the total debt within $2 trillion), I just don’t think most Americans have a clue yet about the growing problem – hence this sort of transparency we saw in the study is going to be an eye opener for those who don’t troll in certain financial blogs.

Via NYTimes:

  • In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with


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There Are Now More Government Employees than Goods-Producing Workers in the US

There Are Now More Government Employees than Goods-Producing Workers in the US

Courtesy of Jesse’s Café Américain

For the first time there are decidedly more government employees than goods-producing (manufacturing) employees in the US according to the Department of Labor.

This chart is from The Mess That Greenspan Made here.

It is interesting to think about this in terms of health care, pension plans, job security, employee loyalty, and so forth.

The reason for this is not the growth of government jobs but rather the drastic shrinkage in US based manufacturing employment while government employment remains resilient. As a percent of the population, the number of government employees is now about 9% which is slightly lower than it was in the 1970′s.

The Service sector dominates. There is a nice chart showing goods-producing, government, service, and non-employed percentages from EconomPicData here.

US corporations have been offshoring jobs for many years, in part due to the structural problems of benefits and environmental costs in a developed nation and Asian mercantilism. Some of this transfer of employee is due to natural market forces, but a great deal of it is a result of purposeful national policy and trade practices such as currency pegs, for example.

As Adam Smith observed in Wealth of Nations (1776):

"To found a great empire for the sole purpose of raising … customers may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced by shopkeepers."

In this case if one substitutes "kleptocrats" for "shopkeepers" and "dollar debt slaves" for "customers" then the quotation may fit the current situation in the US and its reserve currency empire quite well. It also helps to explain the steady role of the government bureaucracy in administering this paper empire, as well as the outsized financial sector.

But one underestimates the resilience of a free people at their peril, as did Napoleon dismissing the English, echoing Smith, "L’Angleterre est une nation de boutiquiers," prior, of course, to his Waterloo in June, 1815.


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Phil's Favorites

Boeing 737 Max: The FAA wanted a safe plane - but didn't want to hurt America's biggest exporter either

 

Boeing 737 Max: The FAA wanted a safe plane – but didn't want to hurt America’s biggest exporter either

Boeing is accused of not being fully forthcoming about changes it made to the 737 Max. AP Photo/Ted S. Warren

Courtesy of Susan Webb Yackee, University of Wisconsin-Madison and Simon F. Haeder, West Virginia University

Recent incidents aside, air travel ...



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Zero Hedge

For The Average Investor, The Next Bear Market Will Likely Be The Last

Courtesy of Lance Roberts, RealInvestmentAdvice.com

Just recently Anna-Louise Jackson published an interesting article asking if “The Financial Crisis” still haunted your investing...

“This month marks the 10-year anniversary of the current bull market’s beginnings. Yet, many Americans remain reluctant to invest in the stock market, a scary hangover from the 2007-09 recession.

From October 2007 to March 2009, the S&P 500 plummeted nearly 57% and it took more than five years for the index to recover. But the share of Americans with money invested in the s...



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ValueWalk

Is Tesla's New Enhanced Summon Feature A National Security Risk?

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors discussing Tesla‘s enhanced summon feature and why the company’s stock is likely to drift down.

Discussion on Tesla’s Enhanced Summon feature

One of my friends (who’s bullish on Tesla) sent me a link to this web page, Watch this Tesla Model 3 drive to its owner on Enhanced Summon in latest video, which has two ...



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Kimble Charting Solutions

Shanghai Index; White Hot Market Peaking?

Courtesy of Chris Kimble.

Is one of the hottest stock indices in the world about to peak? Possible.

The S&P is off to a great start this year, up over 12%. Yet the Shanghai index is white hot, up around 22%, almost twice as much as the S&P 500!

This chart looks at the Shanghai Index over the past 25-years on a weekly basis. It has spent the majority of the past 25-year above rising support line (1). It hit this rising support line in December, where a very strong counter-trend rally has taken place.

Over the past 4-years, the index has created a series o...



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Chart School

Weekly Market Recap Mar 24, 2019

Courtesy of Blain.

It was looking like another week of Federal Reserve Kool Aid and crushing bears .. until Friday.  On the back of bad economic news out Europe, the yield curve inverted on the 3 month vs 10 year bond – before you fall asleep to that news, it is a quite important indicator for the economy (not necessarily the stock market… yet).   More on that in a bit.  As you can see the action in the bond market Friday was quite severe so it will be interesting to see the move in the coming few days.

As for the Federal Reserve:

The Federal Reserve signaled no more increase in interest rates this year and just one in 2020, according to its new ‘dot plot,’ and the bank said it would...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga.

  • Buckingham cut the price target for Trinity Industries Inc (NYSE: TRN) from $32 to $26. Trinity Industries shares closed at $22.96 on Thursday.
  • Canaccord Genuity lowered the price target for Biogen Inc (NASDAQ: BIIB) from $396 to $275. Biogen shares closed at $226.88 on Thursday.
  • H.C. Wainwright cut the price target on Conatus Pharmaceuticals Inc (NASDAQ: CNAT) from $8 to $1.50. Conatus Pharmaceuticals shares closed at $2.91 on Thursday.
  • Wedb...


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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Reminder: We are available to chat with Members, comments are found below each post.

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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Digital Currencies

Facebook's cryptocurrency: a financial expert breaks it down

 

Facebook's cryptocurrency: a financial expert breaks it down

Grejak/Shutterstock

Courtesy of Alistair Milne, Loughborough University

Facebook is reportedly preparing to launch its own version of Bitcoin, for use in its messaging applications, WhatsApp, Messenger and Instagram. Could this “Facecoin” be the long-awaited breakthrough by a global technology giant into the lucrative market for retail financial services? Or will...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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