"When money yields nothing, then it will return nothing. So, when bonds have a zero percent interest rate, or negative interest rate, then there's nothing to gain from owning them." Bill Gross
Once again, Draghi has worked his verbal magic unleashing a buying spree before the ECB has bought even one single bond, all because other buyers are now completely price indiscriminate and fully aware they have the ECB's backstop.
The WSJ's conclusion:
Since the ECB’s bond buying program is designed to spur lending by reducing the cost to corporations, record low yields are good news: for now, at least.
We disagree: what the chart above shows is yet another asset class that is now completely dislocated from its fundamentals, just like European sovereign bonds, which are trading not on their underlying merit but because the ECB has to buy them. The same is happening in the corporate financial space. And, once the corporate non-financial market ends up broken and there is no more supply, the ECB will be forced to expand its bond buying universe again, launching the monetization of junk bonds, convertibles and ultimately equities
The Wall Street Journal uses the term “gig” meaning an “alternative work arrangement job”.....
The estimated increase in gig employment between 2010 and 2015 is 10,058,540....
The BLS shows employment rose 10,628,000 in the same period.
Thus, nearly the entire increase in employment (94.6%) since 2010 has been in the gig economy!
New research shows labor shift affects health care, education and other industries that have traditionally offered stable employment. However, the Wall Street Journal reports Contract Workforce Outpaces Growth in Silicon-Valley Style ‘Gig’ Jobs.
Uber drivers aren’t the only “gig” workers rattling the U.S. economy. Older workers, especially women, increasingly are filling in as contractors across a range of traditional industries, from highway inspectors to health aides.
As companies look to shed noncore tasks and government budgets come under strain, an expanding share of the workforce has come untethered from stable employment and its attendant benefits and job protections.
The explosive growth of Silicon Valley companies such as Uber Technologies Inc., where on-demand drivers summoned by an app set their own hours and are paid by the ride instead of an hourly wage, has shined a bright light on the so-called gig economy. But new research shows this shift away from steady employment has taken place largely in the shadows
The Labor Department breaks down the four main types of alternative work arrangements into independent contractors, on-call workers, temp workers and workers employed by contract firms, but it hasn’t updated its count of such workers since 2005...
Workers in these alternative arrangements often find themselves with erratic schedules, spotty earnings and few benefits such as health insurance, Social Security or a retirement plan....
From 1995 to 2005, the “gig” workforce grew from 9% of the jobs to 10% of the jobs. Since then, the “gig” workforce grew to 16% of all jobs.
Today, the survey estimates 17% of women and 15% of men hold “gig” jobs.
Permatemps and Giggers
Even though some giggers (can I say that?) work full time, the rising cost of benefits and salary differentials means there is little to no chance companies will hire them. The polite new term for this plight is “permatemp”....
We now have gigger, side-gigger, permatemp, Silicon-Valley style gigger, full-time gigger, on-demand gigger, and solopreneur in the language lexicon.
According to Entrepreneur, a “side-gigger” works less than 15 hours a week. If a full-time gigger works 35 hours a week, is a part-time gigger someone who works gigs between 15 and 35 hours a week?
Clearly we need new terms here....
is a “gig” an “on-demand job” as the Journal defined? Or is a “gig” an “alternative workforce arrangement job” as the Journal also defined the term?...
U6 is a measure of unemployment that includes those working part-time. Those who work as little as one hour a week are counted as “employed”....
Total employment in December 2010: 139,301,000
Total employment December 2015: 149,929,000
2010 “gig” employment (10% of line 1): 13,930,100
2015 “gig” employment (16% of line 2): 23,988,640