What’s worse than a house of cards?……

The answer is much easier to state than  getting  someone to understand. Here’s an example….

A house built of solid materials,  new technology, great neighborhood, energy saving technology, new paint, etc, etc.  What  could possibly be wrong?…..How about a  weak foundation….. or improperly mixed concrete……..shoddy foundation work…etc, etc.

Most people (and even worse a lot of business people )  today seem only interested in the superficial. You can build a great house with the finest materials and craftsmanship, but if the foundation is not properly constructed, it’s only a matter of time till it All comes crashing down.

Today, yesterday, and tomorrow the foundation of this country, and it’s economy IS, and WILL BE,  for as long as you or I am alive is, JOBS.

Jobs, Jobs, Jobs is what an economy is built on. If unemployment is growing at record levels, and no end in sight, I don’t care what your selling, you’ll be hard pressed to find buyers. No buyers, no profits, no profits, no jobs, no jobs, No Economy…..Period! This notion that we are going to create all these jobs when company after company announces layoff after layoff is In my estimation….Fool Hearted.

We are at a point as I’m writing this post over 6 Million unemployed..and at 8.5 percent…with the number continuing to climb with No End In Sight!….Every report this year has been titled as…The worst since 1945, or 37, or 42, or 77…….The current theme is Worse than…Not Better than…and with that you’ll see politicians, business leaders, and talking heads quote this statistic, or that statistic stating why one shouldn’t be  worried.  I gave this statistic at a speech I did at the End of last year and I believe it to be more relevant now than then…….The so called ” Experts ” and ” Analysts” who make their living, and are paid by Fund Managers, and people like the ones who probably control Your IRA…correctly called 2 of the 500 companies earnings on the S&P 500……I did not miss type…..2 as in TWO…out of 500…yes Five Hundred. That’s a winning percentage of let’s see…….Zero….Oh wait ..I’ll move to a floating decimal point….0.004%……I guess that’s better than zero right?

So here’s the rub, and why I’m so indignant on this issue…. I was speaking with someone the other day who was telling me how the      “Government” was in the process of fixing the economic conditions, and will be ” Creating better business conditions”.  Then they went on to tell me how this was going to be, and how that was going to be, and how this projection will put that projection, and all will be profitable in the end. So me being me I asked only 1 question….I said I’ll assume all of your projections are correct if you just simply answer this One Question.

Your projections are based on unemployment not going any higher than 8.2%…and it has to be no higher at any time over the next 10 years to make your projections credible….We’re 3 months into the first year, and we’re currently at 8.5% and it has been rising every month for the last 6 months. All indicators, and all corporate reports are stating more layoffs are coming, and larger, and larger layoffs are announced weekly…( 16,000 more announced from one company just yesterday)…So already your numbers, and projections are suspect are they not?

There was silence for about a minute, then he started telling me how well  the windows were constructed, and what color the house would be, and………..I think you get the picture.

Pinochle anyone?

Mark