Yesterday's whipsaw of a market swing had me concerned, but only because of how little the "numbers" reflect whether we're taking the steps necessary to right the ship.
Planet Money's Jacob Goldtein is exactly right in pointing out Why More Jobs = Rising Unemployment -our rosy view of job growth is a reminder that firms must replenish their human capital to realize lasting gains in the marketplace for goods and services.
Check out this gem from the WSJ (my empahsis added):
"Companies are still trying as hard as they can to achieve output gains without adding to their work forces," said Nigel Gault, an IHS Global Insight economist. "It's getting more difficult to do that." -"Productivity Continues to Rise but Breakneck Pace Slows"
If companies continue to please the short term desires of Wall st, we'll continue to see companies more worried about "hitting their numbers" than hiring the workers who will create the next generation of profitable products and services.
So in the short term we preserve the "good news" of profits, only to stew in the "bad news" later: underemployment, restrained innovation, and a shrinking tax base to pay for our ballooning gov't spending and colossal debt.