Bernanke is insisting that low interest rates did not create the bubble. At this point, I'm curious. Is there anyone out who still takes this guy seriously? This guy has no clue. In early 2008, he said that there would be no recession. The same guy who had no clue that this thing was coming is going to be the same guy who going to tell us what caused it. And he's saying that it's likely over.
JOBS
People have been sending me e-mails on the possibility that there could be job growth in December. First of all, I've always said that in an economy, nothing ever goes straight up or straight down. Bear markets have rallies and sales sometimes increase. What's important is the overall trend. Does tens of thousands of people working $8/hour during the holiday season equate to an economic recovery?
Jobs in December?
http://www.marketwatch.com/story/green-shoots-monthly-jobs-data-might-show-growth-2010-01-03-120140
Low rates didn't cause bubble, Bernanke says
http://www.marketwatch.com/story/low-rates-didnt-cause-bubble-bernanke-says-2010-01-03
Bernanke Sees No Recession, but Big Challenge
http://www.npr.org/templates/story/story.php?storyId=74992288
Bernanke: Recession 'Likely Over'
http://online.wsj.com/article/SB125301730771311713.html
Reginald its not a one or 2 month blip though. Its been slowly decreasing in job losses for the last year. We have gone from losing a lot of jobs to hardly losing any and possibly even gaining jobs now from here on out.
ReplyDeleteThat's because so many companies are already working skeleton crews.
ReplyDeleteI used to think that, but only about 6 percent (worst case estimates) of payrolls have been lost since the recession began. 6 percent on the overall economy isn't anywhere near enough to say that they have run out of workers to fire and they would have to close shop if they fired anymore. Thats just a talking point of the doom and gloomers.
ReplyDeleteAnd if you don't believe me I got proof, about 20 percent of the payrolls were lost in the great depression. So the reason job losses have stopped is not because we have run out of workers. Its because the economy has run its course. Now we are recovering for many months now.
What you don;t understand is that comparing the current situation to the depth of the last depression is foolish, because we've just begun this depression.
ReplyDeleteWell, we have lost many jobs; however, the real question is, what is going to happen to the people who lost those jobs and cannot find work now? Will Bernanke become the Job Fairy and magically make jobs appear?
ReplyDeleteI think the truth is, those jobs are never coming back.
It doesn't make sense to think that things are okay or getting better if those initial groups of people will no longer find jobs. Add to that the coming waves who will join the ranks of unemployment.
Those who see things in a one-sided view most likely are not being affected by the economy or only a little, if at all; but just because they are doing okay doesn't mean the general state of the economy is. Those who do not see it need to go out in the real world and talk to those who have lost their jobs; talk to the homeless; talk to everyone you meet and get their opinion. Going to the mall and seeing more affluent people shopping doesn't mean there is any proof of anything getting better. Naturally, those who are still working, or working part-time but still collecting enough to be able to buy luxuries are shopping, but this doesn't mean anything is getting better.
For every person who can buy an Abercrombie shirt on the 50% off sales after Christmas, there are probably ten who are at home because they cannot afford to go out.
I strongly recommend to all those follow this blog to read Dark Ages America by Morris Berman as to the mental state of Americans who cannot think critically. Morris also has a blog somewhere on blogspot.
Reginald, I am watching this right now and I thought maybe you'd like to see it. I know some people talk trash about LaRouche, but anyhow, they make some interesting videos:
ReplyDeletehttp://www.larouchepac.com/node/12904
I would say that Mr. Bernanke is one of the people who aided the richest 1% in once again stealing from the middle class.
ReplyDeleteLook at what the banks are doing. They are not using the tarp money to pay against bad debt as they agreed in order to get this money. Instead they are using this money to finance even more risky loans. Mr. Bernanke was part of the system that created the financial house of cards that started to fall.
Giving the banks the tarp money might have forestalled the collapse. But, standing aside and doing nothing while they build higher walls on the financial house of cards is not what we need.
What is happening is that the folks who caused this financial mess took lesson from the Great Depression of the 1930s. What occured during the Great Depression is that the middle class disappeared and became impoverished. The wealthiest in the country/world simply held all the money without suffering. Once the economy returned the wealthy reclaimed their seats as heads of industry.
In the short term the bankers are saying hey all the tarp money we were given is great you all are not all poor enough yet. Let us take more money by building higher on the financial house of cards so that when it falls we will acquire even more money you fools.
If you want another example of their treachery look at so called health care reform.
Well I disagree with your point mondlicht. Its called resetting the economy to a new high. If the current unemployed get "Left behind" that is really too bad because we have been in a full recovery since July/august. Look at all the monthly numbers every month through 2009 and it is clear as day the recession ended many months ago. If you can't find a job, that doesn't change the fact that we are in a recovery.
ReplyDeleteskyding8962 apparently you have no compassion.
ReplyDeleteWhere does compassion have to do with facts? So in other words you would rather me lie to the unemployed than face the facts? The economy was out of balance and the people that lost there jobs probably will never get them back because the economy is resetting to a higher level of permenant unemployment. The only way to get jobs back is to put them in productive areas of the economy, like if we get our manafacturing base back. Thats how you rebalance the economy. With all this outsourcing though it aint going to happen. Peter schiff has talked about this.
ReplyDeleteI think the US should begin to bankruptcy for the sake of American people. The fall of the USA is a question of time and I'm sure that a default as soon as possible will able to save many lives.
ReplyDeleteBy the way, look at this blog:
http://johngaltfla.com/blog3/
His history "The day the dollar died" is quite realistic, isn't it?
Sorry for my English, guys.
Sergey, Russia (Moscow).
Actually, I am concerned more about the economy for others' sake than my own. I am not that concerned about my state for reasons I do not feel like mentioning on this blog due to privacy issues.
ReplyDeleteTrust me, I don't need to worry in my position in the long run. But I am concerned about other people and the state of this country.
I think we all should be, don't you think? Compassion is a hallmark of civilisation. Or at least I would hope so. A lack of it leads to a pretty horribly selfish kind of society. Morris Berman writes about this Dark Ages America, which by the way, is a MOST EXCELLENT book.
January 7, 2010 7:21 AM
Mondlicht: Please, share the link on Morris Berman's book with me, I'd like to read it.
ReplyDeleteSergey.
The book is going for 1.24 used.
ReplyDeletehttp://www.amazon.com/Dark-Ages-America-Final-Empire/dp/0393058662
I think you can "search" through the book a bit on that page.
Mondlicht: Thanks a lot!
ReplyDeleteDon't you have a free on-line version of this book? Or in the US are cruel lows concerned "Copyright"? :)
In Russia I used to download free all things what I want because "copyright" in my country does not work.
Unfortunately I could not find this book in Russian web...
Sergey.
This Op Ed explains my thoughts much better than I am able.
ReplyDeletehttp://www.nytimes.com/2010/01/10/opinion/10rich.html?pagewanted=print
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