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S&P/TSX +23.80 (12,577.28)
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Obama/Banks, Roubini on China, U.S. Youth Unemployment - StockReserchPortal.com
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January 22, 2010
Good Morning:
Obama/Banks, Roubini on China, U.S. Youth
Unemployment
Obama and the Banks
I consider President Obama's proposed U.S. Bank Regulation policies announced yesterday
to be a potentially important precursor to change - and fraught with both uncertainty
and difficulty. I have not as yet had time to fully consider what may be likely
and possible implications, will do so over the next two days, and will convey my
thoughts on this in next Monday's e-mail. Obama's comments immediately had
a negative impact on the U.S. equity markets, a negative impact on the overseas
markets overnight, and may have a further negative impact on the U.S. equity markets
today.
Roubini on China
In an article today titled 'Roubini says China can't bring recovery alone'
reports Nouriel Roubini said Thursday that expectations China can buoy the global
economy on its own will meet with disappointment, adding that a glut of worldwide
industrial capacity threatens recovery from the financial crisis as it will take
"a decade if not a generation" before Chinese consumers are in a position to have
a meaningful impact.
I consider Roubini's views carefully. It seems to me that many economists
and commentators are counting 'big-time' on China to continue to fuel world economic
recovery. I think Roubini's views are well worth considering as one contemplates
their investment strategy, and that if he proves to be right in his views on China's
impact on recovery those who are betting on it in a big way may be sadly disappointed.
I recommend you click here and read the referenced article
carefully.
U.S. Youth Unemployment
An article this week titled 'Black Youth Unemployment 50%, White is 20'
says an Institute for Public Policy Research survey shows 48% of African-Americans
aged 16-24 were unemployed in November, 2009 (up from 35% in March, 2008) as contrasted
with 20% of U.S. whites in the same age group (up from 12% in March, 2008).
Aside from the discrepancy said to exist between U.S. black/white youth employment
numbers, I reiterate my concern that one of the principal issues I believe is facing
the governments of developed countries is youth unemployment rates generally.
I have said previously that 'idle hands are the devil's work'. In the current
economic climate many older people appear to be taking jobs that in better times
youth would take. Ultimately if youth are not gainfully employed (irrespective
of race, creed, colour or country) I think we stand to see likely increases in crime
rates and perhaps ultimately one or more forms of insurrection. I doubt governments,
short of creating jobs that otherwise would (and probably should) not exist through
subsidies, can do much about this issue. In my view while it may cut into
the standard of living of otherwise retired older people, I think it would be societally
better for large employers (e.g. Wal-Mart) to develop 'youth hiring policies' that
would see youth hired ahead of otherwise retired people, and by doing that to some
degree perhaps address the current youth unemployment problems.
Notes to Readers
This email and its content is in no
way to be interpreted as an endorsement of one or more of the companies mentioned
herein, a suggestion as to the future direction of the stock price of one or more
of them, or a suggestion or recommendation to buy or sell the shares of one or more
of them. Rather this email is simply a short overview commentary and tutorial
demonstrating the type of information available on StockResearchPortal.com and how
to access it.
The owners of Stock Research DD Inc. (the owner of StockResearchPortal.com and StockResearchPortalBlog.com)
or their families, entities in which they have ownership interests, and officers,
directors, employees, agents, partners, affiliates and partners of Stock Research
DD Inc. may beneficially own securities and participate in Private Placements of
companies referenced in this E-mail. The fact that one or more companies are
referenced or discussed in this E-mail should not be construed as an endorsement
or investment recommendation with respect to those companies or their securities.
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