Finally...I agree with Jim Cramer...Obama needs to focus on jobs...

Discussion in 'Wall St. News' started by retaildaytrader, May 22, 2010.

Should Obama focus purely on jobs for the next six months?

  1. Yes, jobs are very important to the economy

    17 vote(s)
  2. No, other things are more important

    5 vote(s)

    "Cramer said another bullish sign would be President Obama saying that for the next six months he's focused on one thing, and one thing only... jobs."

    Sometimes politicians do watch Cramer's show and I am glad that this was said on Mad Money...

    Looking at all the Fed Fred data on unemployment in the various large cities as well as the national level, I can't yet see the levels dropping wildly like they did in the past. Usually when there is a peak in unemployment, then it quickly drops resembling a spike like formation. However, the level seems just to be stuck there at the current level stubborningly not wanting to go anywhere.
  2. For "Speculation Friday," Cramer featured KKR Financial Holdings (KFN), a little-known $7.50 a share stock with the safety of a 5.3% dividend yield. Cramer said that KKR Financial is not an easy stock to understand, as the company operates similar to a hedge fund that invests in corporate bonds and is essentially the debt management platform for the KKR private equity firm. But putting aside what the company does, Cramer said that KKR Financial is a stock that was once left for dead, but is now ready to roll.
    Cramer explained that KKR Financial relies on financing to support its operation, which is why shares slid to just 75 cents a share at the height of the financial crisis. However since then, shares have recovered significantly, and all five of the company's credit instruments have come back into compliance.
    Cramer said with KKR's credit fears behind it, and it's CEO buying 50,000 shares this week, this is one attractive stock. The company currently trades at just 91% of its asset value, despite a 4-cents a share earnings beat in its most recent quarter.
    Cramer advised investors to use limit orders, and do their homework, before buying into

    In at 2.40
  3. Washington cannot create the jobs that are needed. When will people wake up to the fact that Washington is the problem not the solution?

  4. I would disagree with someone who states matter of factly that Obama can control the hiring routines of organizations and has total control over the economy. However, there are things that he could do to encourage things along.

    First, his focus is obviously not on job creation. It seems like every speech he makes is about anything but job creation. It almost seems like he is trying to avoid the issue.

    Second, he could hold a job summit to include representatives from the top 100 companies and leaders of small business associations. If not a summit, how about sending them a survey asking them what they think the government could do to help job creation along.

    Third, an independent commission could be established to study how the government can encourage jobs.

    So there are things the government could do, but it isnt doing anything. I suspect lowering taxes and de-regulation would certainly help the situation...
  5. longleaf


    Demand was pulled forward for too long. As for taxes, the ARRA did lower taxes for most taxpayers. Maybe they weren't lowered for the top few percentiles, so you don't hear any applause for this sort of tax cut from the corporate media.
  6. In the Bible, you will read about robbing Peter to pay Paul.

    Althought there might have been some token tax relief for some individual taxpayers in lower income groups, there was no tax relief for higher income or corporations. If you tax higher income or corporate groups more then they will just pass it on to the lower income groups. For example, the higher income family might hire a gardener, a nanny, a landscaper, contract out to get their house remodeled, a babysitter etc. Now they are getting taxed more this year, then they will simply do without some of those luxuries. What about all the products and services in the community that the higher income families utilize? Lets take the Lexus dealership. Hundreds of people in the local community work there to include mechanics, salesmen, secretaries, etc. What happens to them when the higher income families decide to wait another year to buy nother Lexus? All those boats out in the harbor require hundreds or thousands of laborers in the process of manufacture, upkeep, etc.

    A big bank like JPMorgan employs well over 200,000 people. So if you impose more taxes on them then they will just slash their work force or simply not hire any additional people on. Tax raises on a company like JPMorgan could easily put 15-20000 people out of work in a flash.

    So when you raise the taxes on corporations or high income earners, then someone is going to be put out of work. The nanny, the bank teller, etc....You might be jealous of some high income guy who owns a jet or a ship, but lets face it...they employ multitudes of people in the process of owning such luxury items. If they no longer buy a ship or jet, then you are putting out of work a lot of people...

    You cannot rob Peter to pay Paul. They understood that concept 2000 years ago, however for some reason, its not being understood today.

    Obama lives in a mansion isolated from the realities of the world. He sits behind a large fence and has made millions from book sales. He imposes taxes on these banks while giving a small token tax cut to the little man. If he went into the local JPMorgan/Chase bank and realized that Ms. Smith, bank teller, is no longer there due to his tax raises and penalties then he would see the error of his ways. As it stands, he does not see any of that and just reads from the teleprompters from day to day what others have written for him...the truth is that he is punishing the humble man who voted for him. The rich man or big corporate bank can still live comfortably without Ms. Smith, but the reality is that Ms. Smish cannot live without the rich man or big corporate bank...

  7. Government can't create jobs.
  8. If you guys knew anything about business or economics, then you would know the government can substantially encourage job creation? Ever hear of the Laffer curve?

    If taxes are either too high or too low, then government revenue falls and the economy stagnates either way...

    Just take a page out of the Reagan playbook...
  9. United states taxes are among the lowest of all industrialized nations. Need some type of innovation to create jobs. In the past it was the rail road, automobile, space shuttle, TV, computer, internet, etc ,etc. We only have ipads now!
  10. Good luck with that.
    #10     May 23, 2010