12/07 Morning Report

The good news? Employers added 94,000 jobs in November, and unemployment held steady at 4.7%. The bad news?

The jobs report showed a loss of 33,000 jobs in goods-producing industries during November while 127,000 jobs were created in service-providing businesses. Manufacturing industries continued to shed employees, cutting 11,000 jobs last month on top of the 15,000 that were dropped in October.

. Unfortunately, service sector jobs do not have the salary range of manufacturing jobs. Still, this increase is believed to raise the probability of a rate cut when the Fed meets next week.

More bad news? According to this NY Times article, The subprime bailout announced by the White House may not do as much as people expect.

“The approach announced today is not a silver bullet,” said Treasury Secretary Henry M. Paulson Jr., who hammered out the agreement. “We face a difficult problem for which there is no perfect solution.”

On top of that non-revelation, one industry analyst believes only about 20% of those facing rate increases in the next 18 months will be helped by it. BUT, analysts agree that a “sweet spot” must be found, and that this is what Bush is trying to find.

(…does the Times, and everyone else, seem to think this can be quick fixed?...it took years to get into this mess…Americans…well people…are so short term focused…)


Meanwhile, Democrats their own tax conundrum.

Trying to find a way out of a sticky tax problem, the Senate on Thursday voted overwhelmingly to prevent the alternative minimum tax from hitting millions of middle-class Americans without replacing the $50 billion that would be lost.

So, the AMT would reduce taxes by $50 million to the middle class and the Dems gave it the ax? The very people who voted them into office yanked the rug out? I understand the need to find a source for the money before cutting the taxes. But, you would think the Democrats would have had solutions for that before now.

(…maybe they were just too busy bashing Republicans and posturing for election…think the media will bash them the way they do Republicans over similar issues?...oh yeah…no media bias…how silly of me…)


Meanwhile, in Iraq, the decline in violence seems to make each new attack that much more spectacular. Now using female suicide bombers, al-Qaeda struck once again at the offices of those who have turned against them. Actions such as this, and wiping out villages for sake of power and control, demonstrate al-Qaeda’s total disregard of people—much like the Taliban was doing in Afghanistan. Frankly, the whole thing reminds me of the history lessons on how organized crime families (i.e. “the Mob”) had to be taken down by the feds after shooting lots of people and blowing up lots of stuff. They haaven’t been eliminated, but their power has been reduced and in some cases broken. Unfortunately, I think the same will be true for al-Qaeda. And, I think the Democrat ”phased withdrawal” has more risks than people want to see.

(…I wonder when that will actually come back to bite them in the @#$#...)


And finally, but not least important, did you remember—without media help—today was the anniversary of the Japanese attack on Pearl Harbor?



Of the 16 million who served in WWII, only 2.9 million are still alive. There are even fewer who were actually on the island of Oahu that morning. In Ft. Worth, one of the few still alive who were there tells his story.