The Breakdown

Explaining Southern California's economy

Reportings: Obama v. everybody; old loan troubles; cold September jobs; Tim Cook iPhone 4S fail

Obama can't win: "Of course, aggressively addressing capital requirements and restructuring zombie banks three years ago would have turned Wall Street against Obama—but Wall Street's now against Obama anyway. Meanwhile, blaming Wall Street for its contribution to the country's problems—and actually backing up the talk with action—would have won over the rest of the business community and Main Street." (Business Insider)

 

The problem of "old loans" versus "new loans" and how it relates to willingness to work. To earn money. And to spend it all paying off the old loans: "A significant fraction of households and businesses are typically so burdened with the debts they accumulated during the housing surge that they have little incentive to produce and work, because their creditors would get most, if not all, of the fruits of their labor." (NYT)

 

Initial ADP forecast for September says economy added 91,000 jobs. This is exactly the same number ADP reported for August, when the number actually came out to…zero: "Over the previous six reports, ADP's initial figure was closest to the Labor Department's first estimate of private payrolls in March, when it understated the gain in jobs by 29,000. The estimate was least accurate in June, when it overestimated the increase in employment by 100,000." (Bloomberg)

 

Say goodbye to free: "The era of big-bank free checking is over…If banks need to charge a monthly fee in order to make money on their checking accounts, then so be it. But I do think that the current level of checking-account fees is excessive, and that charging for debit transactions is downright idiotic." (Felix Salmon)

 

Tim Cook's Apple iPhone 4S #FAIL: "[D]espite upgrades to its internal components and some new software capabilities, the iPhone 4S looks like its predecessor physically and doesn't make a big leap in its overall capabilities." (WSJ)

 

Follow Matthew DeBord and the DeBord Report on Twitter.


Photo: Saul Loeb/Getty Images

 

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