I wrote about a possible dockworker strike earlier and now thousands of members of the International Longshoremen’s Association (ILA) stopped working Tuesday, striking for a substantial compensation increase and protections from automation after years of record profits for the shipping companies that employ them.
Markets obviously reacted like I thought yesterday as the boarder markets were all down. However, markets are fairly flat this morning. There was good money to be may in puts yesterday, but with this market if you are a trader it's been bad to hold onto options for too long.
So now that the strike has started here are the things to know. it's estimated that this strike could cost as much as $5 billion per day as almost 2 out of 3 containers that leave the U.S. go through those eastern ports. This strike also puts Biden in tough spot which has impacts on the upcoming election as well. Biden has embraced unions and organized labor as few presidents have, even joining an active United Autoworkers (UAW) picket line last year. Biden released a statement Tuesday encouraging collective bargaining and supporting the rights of workers.
If this cannot be resolved quickly it could impact prices of common goods. Inflation has been sticky so this disruption may be a seen as a way for companies to squeeze out more profits as earns have been pretty disappointing. This short term thinking could be horrible for the overall economy. Add in the trumoil in the middle east and this could be the cataylist for iunsututions to have a market wide selloff into years end. Markets have been good this year and are way above their historical returns so we may see some retracement.
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The whole world should protest against inflation
I think the whole world should protest cooperate greed and ask for fair livable wages.
Agreed
I really think the strike is actually needed. Even if it looks odd but if they didn't embark on strike, the issue might not be solved
I agree with you. I'm a fan of organized labor. It may cause some hurt short term, but I think us workers need to band together to demand fair wages. A job is an exchange and workers have been getting the short end of the stick for too long.
I am a bit mixed at the strike. I do think that they need increased wages, but refusing a 50% wage increase seems pretty crazy to me. Then again, I am not sure how much the shipping profits are though. This will definitely affect the economy and increase inflation if it extends longer than we expect. Only time will tell.
The only stat I know off the top of my head is 25 billion to 110 billion in profit from 2020 to 2021. That's a good year over year increase. I figure they are still in the 100s billion range.
The situation is the same in our country, the inflation is so high that the people who are working here are not getting enough money to pay for their house and the companies are also earning thousands of rupees and millions of rupees. People of will also have to strike in the same way.
We need companies to realize workers are the backbone of their existence. It's only fair to pay them fairly. If a companies profits in crease pay should increase.
The strike called by the International Longshoremen's Association (ILA) is a matter of concern for Biden. If the price of the product increases, it will become more dangerous. This should also be resolved
It's complicated because we want to support these workers and make sure they get fairly paid, but yes their jobs are so critical that they could do real harm to the economy if this drags on.
Just as inflation was seeming to finally ease up a little bit we then get hit with this. It sucks. I am sure my wife and I will weather it just fine, but there are likely others who will not be able to. Including some of the workers.
It's pretty bad timing. Now with the Middle East it seems we can't catch a break. I think if it's a short strike it won't be that bad. I know some will take advantage of the situation
I saw a news story last night that people are already starting to horde toilet paper again like a bunch of morons. They made a point of saying that no TP comes in through the ports, but you know people won't listen...
I saw the face thing... Some people need to get a grip on reality.
I come from the future, I have already lived that, and it does not look good, the ambiguity of the policies that are applied only to satisfy some people does not always favor everyone, and, on the other hand, manipulation also plays a very important role.
What is happening there, happened here on a smaller scale, only that the government took off its mask.
If you come from the future I'd love a tip on BTC or the stock market :). I think those in power have been taking advantage of workers for too long.
Yes, I come from the future, but BTC is unpredictable. What happens is that my future is from a communist country, LOL
Not that scary communist word! I think we will be ok
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