Saturday, March 09, 2002

Jobless rate falls, hinting recovery Saturday, March 9, 2002 "The nation's ailing job market got a double shot of good news Friday. The unemployment rate fell unexpectedly to 5.5 percent in February as companies added jobs for the first time since July. And Congress approved an economic stimulus package that clears the way for millions of unemployed Americans to get extended benefits. The one-tenth percent drop in unemployment, the second straight month of decline, surprised many economists, who had expected joblessness to rise. The report capped a week of strong economic news, leading stock markets to a second consecutive week of gains." "Even so, the news drew mixed reaction. Some economists hailed the report as the clearest sign a recovery may be under way, as employers added 66,000 jobs last month. But it wasn't enough to convince some economy watchers, who are reserving judgment for another few months." ... [more] [also] "U.S. companies added jobs for the first time in seven months, helping push down the unemployment rate to 5.5 percent in February, the strongest sign yet that the recession is over. ... [more] 10:11:25 AM    comment  []

March 9, 2002 Buffett Warns on Terror Attacks, Markets "Billionaire investor Warren Buffett issued a pessimistic outlook on the world on Saturday, saying the war on terror could never be won -- a potential problem for his insurance interests -- and warning that returns from the stock market over the next few years look meager. Buffett, known as the 'Oracle of Omaha' for his astute investments, also blasted executives for taking millions of dollars out of businesses even as they fare badly, a practice he said went far beyond Enron Corp." "'Fear may recede with time, but the danger won't ... The war against terrorism can never be won. The best the nation can achieve is a long succession of stalemates.''' "' ... decidedly lukewarm feelings about the prospects for stocks in general over the next decade or so ... Today's equity prices presage only moderate returns for investors ... The market outperformed business for a very long period, and that phenomenon had to end. A market that no more than parallels business progress, however, is likely to leave many investors disappointed, particularly those relatively new to the game.''' BOSSES MAKE OFF WITH THE CASH "Buffett also returned to a favorite theme -- the shabby ethics of many businesses in the United States -- encapsulated by the tech bubble and the fall of Enron. ... 'disgusted by the situation, so common in the last few years, in which shareholders have suffered billions in losses while the CEOs, promoters, and other higher-ups who fathered these disasters have walked away with extraordinary wealth' ... Enron has become the symbol for shareholder abuse, Buffett said, but 'there is no shortage of egregious conduct elsewhere in corporate America' ... " ... [more] 9:59:25 AM    comment  []