“… but Disney stock was up 3 percent Thursday on news of a possible Disney-Pixar deal that would make Pixar’s (and Apple’s) Steve Jobs the biggest individual shareholder of Disney.”
Apple stock closed at $64.56 the first day I mentioned it here, January 11, 2005. It split 2:1 shortly thereafter, so $32.28 a share seven years ago today.
Close yesterday: $423.24.
The Dow Jones industrial average closed above 2,000 (2,002.25) for the first time 25 years ago today (January 8, 1987).
An excerpt from Beat the Press, always a good source for understanding the day’s economic news:
So we’re supposed to be happy about 200,000 jobs in December?
Another way to think about this is that we currently have a shortfall of around 10 million jobs. If we generate 200,000 jobs a month, then we are cutting into this shortfall at the rate of 100,000 a month, since we need 90,000-100,000 jobs a month just to keep pace with the growth of the population. This means that in 100 months we should expect to be back to full employment. So the champaign bottles for that happy occasion will be dated 2020.
Okay, but this puts too bright of a picture on the data. The 200,000 jobs number reported for December was distorted by unusual seasonal factors, the most obvious of which was the 42,200 job growth reported in the courier industry. This is primarily companies like Fed Ex and UPS who hire additional workers to deal with holiday demand.
“The value of household real estate has fallen $6.6 trillion from the peak – and is still falling in 2011.”
Household real estate peaked at $22.7 trillion in 2007. It is now worth $16.1 trillion (or down about 30%).
There are 52+ million households. Nearly a third have no mortgage. About a fifth have negative equity (are under water to use the colloquialism).
Numbers from Federal Reserve Flow of Funds Report.
But on Tuesday, we heard something different. American Airlines, once the largest airline in the United States, declared bankruptcy. This is not surprising news for the beleaguered airline industry; what is different is what is emerging from the wreckage. Gerard J. Arpey, American’s chief executive officer and chairman, resigned and stepped away with no severance package and nearly worthless stock holdings. He split with his employer of 30 years out of a belief that bankruptcy was morally wrong, and that he could not, in good conscience, lead an organization that followed this familiar path.
Read more about A Departing C.E.O.’s Moral Stand.
“Nothing can be said about banks that hasn’t already been said more eloquently about hemorrhoids.”
“Friends, it’s been raining for 39 days and we ain’t built an ark.”
Go read it, laugh and be angry.
A year ago today I posted that Apple stock was at $301.12.
$404.73 right now.
$34.28 in January 2005 (factoring in 2:1 split).
“A $1 investment in the S&P 500 Index at the beginning of 2000 was worth just 91 cents 10 years later after ‘the worst decade in stock market history,’…”
Reacting to Tom Friedman is knee-jerk unless you’re smart enough not to bother. Dean Baker reads Friedman for us — his running debate is which Times columnist is sillier, David Brooks or Friedman. You really should be following Baker everyday. Today Baker’s take is Thomas Friedman Is Upset That President Obama Is Not Kicking the Elderly.
Thomas Friedman joined the ranks of the Peter Peterson deficit hawks and criticized President Obama for not wanting to beat up the elderly. Specifically, he is upset that President Obama did not propose cuts to Social Security and Medicare.
Apparently Friedman is not aware of the upward redistribution of income over the last three decades. Nor does he seem to understand that the government just needs to spend money to create jobs now.
The current crisis is the result of the collapse of a housing bubble that he and his deficit hawk friends allowed to grow unchecked. The construction and consumption demand created by the bubble was driving the economy. Now that the bubble has collapsed there is nothing to replace this demand.
In the short-term this demand can only come from the government. In the longer term it will have to come from more a smaller trade deficit as domestic production replaces foreign production. This will only come about from a lower-valued dollar.
The long-term deficit is driven entirely by the broken health care system in the United States. If the United States paid the same amount per person for care as people in any other wealthy country we would be looking at large budget surpluses, not deficits.
Social Security is already largely in balance. According to the Congressional Budget Office it can pay all scheduled benefits until the year 2038 with no changes at all. After that date it can pay more than 80 percent of scheduled benefits indefinitely. A tax increase equal to 5 percent of the wage growth projected over the next three decades would be sufficient to allow it to make all scheduled benefits indefinitely.
According to The Inflation Calculator it would cost $1000 to buy what you could get for $82.88 the year NewMexiKen was born.
Even so, you can get a much better value in a plasma TV these days.
“Again, I am not a lawyer, but what exactly has to happen before this stuff falls under RICO. How is this not an organized crime situation?”
John Cole commenting on a former VP’s revelations about the rating agency Moody’s.
If you issue a security, you ask a rating agency to rate it. You pay them for this rating. Conflict of interest? You think?
It’s like the home inspector when you buy a house. Your real estate agent usually recommends the inspector. How many referrals you think an inspector will get if he finds too much wrong and squelches a few deals? Multiply that times millions of dollars in the financial area.