Bill Gross thinks the June unemployment data is bad

By Edward Harrison On Jul 2, 2009

Now, Bill Gross, the Bond King, knows that bonds go up in price when bad economic data comes out. So, leaving aside the desire to talk one’s own book, I think Gross makes a number of good points on CNBC about the unemployment data which came out at 830 ET. His basic point is this: no jobs and no wage growth equals no recovery.

We need to see incomes rise in order to get consumers to spend. If the Obama Administration wants recovery, they need to do more to increase incomes and worry less about bailing out the banks.

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

467,000 jobs lost in the U.S. in June 2009

Jobless claims still above 600,000

4 Comments

stk says 15 years ago

See! That’s why banks/financial institutions are pushing for wage increases and bonuses. Otherwise, no recovery! LOL.
LavrentiBeria says 15 years ago

Suspect that a future involving a resumption of vigorous consumer spending is a bit imaginative. Michael Hudson speaks to the question of what consumers are likely to do with any available funds here:

https://www.counterpunch.org/hudson06302009.html

Seems to me the worm has turned. The illusion of being forever financed now turns into the reality of debt peonage. And if you’re really taken with illusions, just keep believing that the ballot box will offer a remedy.

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