Age discrimination is widespread and has been for years, everyone just shrugs

 Don't complain when it happens to you. No one cares.

 

More than half, 56%, of full-time workers in their early 50s get pushed out of their jobs (due to circumstances like a layoff) before they’re ready to retire, according to a 2018 paper published by the Urban Institute.

“Job loss at older ages is really consequential,” said Johnson, a report co-author. He attributes much of that workplace dynamic to ageism.

Just 10% who suffered an involuntary job separation in their early 50s ever earn as much per week after their separation as before it, the Urban Institute paper said. In other words, 90% earn less — “often substantially less,” Johnson said.

Johnson’s research shows that in the aftermath of the Great Recession (from 2008 through 2012), workers 50 to 61 years old who lost a job were 20% less likely to be reemployed than workers in their 20s and early 30s. Those age 62 and older were 50% less likely to have a new job.

 

More.

Vanguard's long term Treasury fund, started in 1986, set a new all time low price record yesterday: What a coincidence

 VUSTX fell to $7.37 yesterday, October 19, 2023.

Until the bond debacle of 2022, the lowest price ever was set way back in 1987, also on October 19, aka Black Monday, when the S&P 500 crashed 20.47% in its worst single day ever.

2022's new all time low for VUSTX at 8.16 had occurred on October 24, missing the anniversary of the old all time low by just three days. Also a very odd coincidence.

The debacle has only continued in 2023, and VUSTX prices haven't seen $8 since September 22nd.

ZIRP since the Great Recession is ultimately to blame for the current mess in long term Treasury securities. The clamor it created for yield drove bond investors long, culminating in the highest nominal prices ever paid for long term UST in March 2020, and the lowest yields. 30Y UST yield crashed to 0.99% on March 9, 2020, 20Y to 0.87%. Yields across the board in 2023 for 2Y to 30Y have set records for this cycle in October. Yesterday 20Y demanded 5.30%, 30Y 5.11%.

No one wants that 2020 and prior junk now, so wherever it sits it's causing collateral problems, at banks, insurance companies, pension funds, et cetera. And on the Fed's balance sheet: As of October 18th the Fed has $1.503922 trillion of UST maturing in more than 10 years on its balance sheet. It basically has to keep it until it matures, and it pays it very little to return to the Treasury as it does.

Are prices done falling?

Confident pretenders said so a year ago this month, and now here we are with $TLT investors down another 12.22% since then.

Given the obscene overvaluation of stocks, and the demand for higher yields by bond investors, cash still seems the safest place to be. VMRXX, Vanguard Cash Reserves Federal Money Market Fund Admiral Shares, has returned 4.00% ytd. You continue to lose to inflation, however.

Nothing is ever perfect.

 

1987 high and low

2022 high and low to the left, all time high and low to the right

Owner-occupied housing levels are still a long way off from those reached pre-Great Recession

 

The on-going housing bubble

I checked the value of my home on Zillow today.

It's nuts.

After 13 years the estimated price is up 6.5% per annum.

On the other hand, the house I previously owned and sold is up only 0.8% per annum over the same period.

Two entirely different houses, two entirely different locations, two completely different histories. What seems like a bubble living in my current house wouldn't seem like one living in my old one.

The best way I've found to think about this is to ask, How much of a house will my income buy? For bubble purposes nationally, even though housing is a regional and local matter, use median household income and median sales price.

Here's the chart of that data as currently available.

In 2020 the Median Sales Price of Houses Sold for the United States (MSPUS) averaged a new high of almost $337k. We don't yet have the median household income figure for 2020, but it's likely to be bad news, skewing the graph lower again as less income buys a smaller share of increasingly expensive housing.

As you can plainly see, the trend for the percentage of a house purchased by an income has been all downhill since the end of Reagan Bull in 2000. The percentage really fell a lot during the housing bubble which peaked in 2005-06, helping precipitate GFC1. Incomes fell a lot after the Great Financial Crisis because people lost their jobs by the millions and never got them back and so less income purchased less house. Housing prices bottomed in 2012 and then rebounded slowly. Incomes did not, however, and what you made just kept buying less in the low range of 19%. 

That all sucked. Obama really sucked. Sucked historically bad. Record-setting bad. 

You'll notice things really improved in 2019, however. That's because median household income shot up $5k to over $68k (Trump tax cuts), and the median sales price of a house actually fell $5k to $320k. Your higher income bought more of a slightly cheaper house, not as much as the good old days, but more.

Unfortunately in 2020 median sales price shot up almost $17k while millions upon millions lost their jobs. The feds enacted foreclosure forbearance so that 2.3 million homes whose owners lost their jobs never came onto the market. But desperate people who wanted out of cities snarfed up inventory. Demand far exceeded supply, so prices went up. 

But even at 21.5% in 2019 housing was nowhere near affordable like it was from 1987-2001. It was a nice, hopeful moment, while it lasted.

I'm guessing it's going to be quite a while, though, before we ever see even that again. 

In January 2021 just 47.4% of the civilian population had full-time jobs, compared with 2020's average of 47.3%

Biden reportedly said in response to the employment situation summary today:

"At that rate it's going to take ten years to get back to full employment. That's not hyperbole that's a fact."

The fact is employment has never recovered to pre-Great Recession levels, and Biden is as little likely to fix that as were Obama and Trump.

The Reagan era tax reforms hollowed out the labor economy. 

Before Reagan, high marginal tax rates on ordinary income steered that income into capital investment, gains from which received preferential tax treatment if held long enough. The investment grew the economy, providing good jobs for Americans and tax revenues for government at all levels. The arrangement distrusted rich people to do the right thing with their money, but rewarded them if they did.

Reagan libertarianism changed all that.

We were sold the idea that lower taxes on high ordinary incomes would still result in capital investment because we could trust people to do the right thing with their own money.

Guess what? Libertarian trust of human nature turned out to be as false as liberal trust of human nature. 

Under the influence of libertarian free trade dogma and growing globalization, that investment went abroad where there was far cheaper labor, lower taxes and less regulation. Profits soared for the few, bringing the number of billionaires from less than fifty in the 1980s to nearly 800 today. Meanwhile the good jobs gradually disappeared and income inequality soared.

Ordinary people today cannot afford cars, educations, health care, and houses as a result.

Add in cheap labor competition from immigration at a clip of 1 million a year and you can understand how Trump was so popular, however incompetent and narcissistic he was.

Trump may be gone, but the people remain screwed by these problems and by the time serving politicians and 2.8 million federal bureaucrats working for pensions who stand in the way.

Returning to the status quo ante might fix it, but it would take a generation to start feeling it. And who among us has the vision and the cojones to pull it off?

Certainly not the women and snowflakes who cry crocodile tears of fear on the House floor. Certainly not the sailors on board the Chafee who are in a panic because the cooks are infected with COVID.

The country is rotting from the inside out. All it will take to bring it down is . . . a series of unfortunate events.

Just a reminder that the harrowing nature of full time employment in the United States hasn't changed much as of Nov 2020

 As a percentage of population, full time in Nov 2020 remains in the basement digging holes at 47.6%, reminiscent of the historic lows pre-Reagan and the double Reagan recessions of the early 1980s.

Full-time never recovered after the Great Financial Crisis of 2008, if you mean a return to pre-GFC1 levels. Under Obama and continuing under Trump full time after eight long years finally clawed its way up to 50.4% in 2019 on an average annual basis, only to be felled again by a lousing, stinking virus.

But don't make the mistake of blaming the virus. Conditions were long too weak to support pre-GFC1 levels of full time employment. Contrast this with the vigor of the Reagan/Bush surge in which full time went from 47.3% to 52.2% in just six years.

That missing vigor is the irreducible fact of the present economic malaise now in its twelfth year which very few acknowledge let alone understand.

  

Fake News from Drudge vs. Trump reminds me of Fake News from Rush Limbaugh for Trump: "Economy in same place as Great Recession..."

 Anyone with any brains can see that the economy is about where it was at the beginning of 2019, not where it was in 2009, at least on paper.

Rush was telling us for months that businesses were being destroyed by the lockdowns and that they would not recover. Now he's telling us "we can survive a massive unknown hit like this thing by the coronavirus" and calling for "even more stimulus", i.e. what Democrats always call for, spending money we don't have, which is anything but conservatism from "The Big Voice on the Right".

The entire GOP signed off on the massive deficit spending to purchase this V-shaped recovery Drudge doesn't want to recognize, but 8.4 million still don't have the full time work they had just a year ago. That's a massive hit which will take years to recover. As in 2009, however, older workers who lost their full time jobs this time around won't recover them either. Full time will recover only as population grows. 

Neither Drudge nor Rush Limbaugh think too much of the intelligence of their patrons. Their understanding is thimble-deep.

But neither do Democrats nor Republicans. They go into panic mode to preserve as much of the status quo as possible with bailout gimmicks, same as ever. And when the bailouts end, the dispossessed will face what they always face: disillusionment. 

Sad!

The trend for growth of part-time work since 1968 has been much stronger than for full-time, saving business the cost of paying benefits such as paid holidays, sick time, retirement and health insurance

PART-TIME

FULL-TIME

Note the huge jumps in the percentage working part-time due to the Clinton tax increases after his election in 1992 and after the Great Recession in 2008.

Full-time has still not recovered to the two decade experience pre-Great Recession.

Average weekly hours for 80% of workers quarterly, post-Great Recession, has never recovered to pre-recession cyclical high of 33.9 and is as low now as when Trump was inaugurated

Economic shrinkage illustrated: Average consumption post-Great Recession has collapsed by 42%

Average 4.3% PCE up to year 2000, 2.5% post-Great Recession:

The shrunken Trump economy is still over 5 million full-time jobs behind the Great Recession average

The 2-point average percentage difference applied to current population amounts to nearly 5.2 million full-time jobs behind what used to be normal for more than two decades.

I don't care if post-Boomers don't want to hear it, we are living in a country whose real rate of economic growth has shrunk by 47% since the Great Recession

We are in deep kimchi.

And please note that Trump hasn't fixed it. The year 2015 was better than 2018.

Average hourly earnings are up 3.4% two quarters in a row for 80% of workers, but still fall short of pre-Great Recession highs

Gee what a shock, millions of older Americans get fired in the Great Recession, and their homelessness soars

Welcome to libertarian hell.

WHY AMERICANS ARE RETIRING INTO HOMELESSNESS:

UCSF researchers estimate that half of the single homeless adults are age 50 or older, compared to 11 percent in the early 1990s — a 354 percent uptick. This data is emblematic of a graying homeless population across the nation: America’s homeless elderly population is projected to nearly triple by 2030, according to new research encompassing New York City, Boston and Los Angeles County. And this problem spans the globe: A 2017 report on the U.K.’s homeless population found that the population of homeless people over 60 had increased 111 percent since 2009, and for those over 75 it had increased by 155 percent — compared to an increase of 48 percent in the general population.

Whites are over 77% of the population, but received just 7% of the net new jobs since the Great Recession as of Feb 2019

up net 963,000 in Feb 2019

up net 6,569,000 in Feb 2019

up net 3,023,000 in Feb 2019

up net 2,637,000 in Feb 2019

Hispanics took 50% of the net new jobs.

Trump's had strong wage gains in excess of 3% in six out of the last seven months for 80% of workers

Aug: 3.1%

Sep: 3.4%

--

Nov: 3.4%

Dec: 4.2%

Jan: 3.3%

Feb: 3.5%

Keep in mind that wage gains were similarly strong just before and even during the Great Recession.

The m/o of business since the Great Recession has been not to hire the young and to fire the old

We don't need any more immigrants: Population increases have outpaced labor force increases for a decade

Before the Great Recession the growth rate of the labor force easily exceeded the growth rate of population for decade after decade, but since then the situation has reversed dramatically.

Population has been increasing at a rate 75% higher than the labor force over the last decade. The increased population is not assimilating to work.

THERE IS NO LABOR SHORTAGE.

Increasing the population of the non-working has been the number one drag on the economy, causing GDP to fall and debt to rise, negatively impacting every standard measure.

Since the Great Recession, Hispanics took over 4 jobs for every job going to whites, Blacks took 2, and Asians nearly 2

The jobs recovery from the Great Recession has by-passed white people even two years after Trump election