The market enjoyed a session in which the Dow peaked over 15,000 after better-than-expect news on the jobs front was posted. While there is no doubt this celebration of mediocrity is a reflection of a nation that more often than not braces for the worst, it does reinforce the fact the country isn't a house of cards. That being said, the nation is nowhere near where it could be and could one day be the feeble nation many think it's already become.
Yes, even the mightiest have fallen in the past, but the pillars of our economy, while under constant attack or lack of reinforcement, aren't ready to topple, but ....
At this stage of the recovery, the economy should be pumping out north of 300,000 jobs, easy. In fact, considering the size of the nation, 400,000 could be the norm. But, it's not, and we are left to celebrate mediocrity. It's the kind of backdrop corporations can survive on domestically while growing internationally (GM bailed out at the expense of US taxpayers, announced plans to spend $11.0 billion and create 6,000 jobs in ... China), but it's not good enough to induce investment. Companies aren't ready to build plants or hire lots of people in this economy.
"This economy" is the direct reflection of this administration and its war on success.
It is interesting that this week President Obama will focus on business and jobs beginning with a trip to Austin, Texas. I'm sure he'll be looking for people with words that more reflect his social agenda instead of seriously looking for answers. Of course last week the president could have learned a lot about bold moves to unlock a nation's greatness. The trip to Mexico was misreported by the press still enamored with violence and illegal immigration. The new president of Mexico, Enrique Pena Nieto has already hit with a splash just as President Obama was making this second-go-round a thud.
The new Mexican president has arrested a top union leader and charged her with stealing $150.0 million. He has taken on Carlos Slim and his monopolies in media. He has talked about opening the oil industry, which boasts amazing assets, yet Mexico imports gasoline and natural gas. He didn't come into office talking about confiscating wealth, but rather trying to spark greater competition and opportunities. Mexico's economy and education are already on the move and are far better than the general perception in the United States.
Perception is what it's all about these days, but this can't last forever. We can be what we think we are, but so many people have altered their opinion on the nation. They've given up, and for them 165,000 jobs seem like a lot. It's good for the stock market, for now, but both the nation and business eventually need to generate more employed Americans ready to buy stuff pumped out of factories in this country instead of forking over their dough to the government that squanders it in the name of the planet, social spending, and social campaigns to alter how we think and act.
Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect | Mike Shedlock