Friday, July 22, 2005
When 11 of 56 Leading Economists Agree, Part II
Well, they’re hiring in the valley.
Silicon Valley, that is. And it’s not just Google. Even Cisco, after a few years of keeping a tight leash on new hires, is out there competing for talent.
And it is getting competitive—“like 1998,” according to one friend with a history in the technology business, frustrated after losing a recent battle over a good new candidate.
Another friend—a mid-level engineer at a brand-name semiconductor company—is ready to bolt for an offer on the table if he’s not happy with his performance review this week. What would make him happy with his performance review this week? A big raise would make him happy.
I’m no economist, but that’s called wage inflation—something we weren’t supposed to get until the “labor arbitrage” with China was finished, which until yesterday’s move in the bond market apparently wasn’t going to happen for the next 10 to 30 years.
In fact, after yesterday’s revaluation in America’s Cost of Goods Sold—by which I mean the Chinese Yuan—our yield curve might start looking like the UK.
By which I mean inverted.
So whoever is buying those pools of “alluring and controversial mortgages that require unusually slim payments for a few years, before bigger sums fall due” from the likes of Ben Ray III (see “When 11 of 56 Leading Economists Agree, Something’s Wrong” below) might want to start checking those “low documentation” mortgages a little more carefully.
And make sure Billy Bob really does work down 't the Stuckey’s, like he tol' Ben Ray III.
I Am Not Making This Up
Posted by Jeff Matthews at 7:50 AM