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OT: American Politics

Habsy said:
What's Bernanke to do? Print more money? All that does at this point is make the rich richer. The market is not this high because of confidence in the economy, it's this high because of cheap money. The more cheap money the Fed makes available the more it benefits the rich, not the poor. Exactly against what Obama is preaching.
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He's somewhat trapped. Bernanke's problem is that he doesn't want to slide back the other way (there's no way they can move rates up), which can be devastating. They'll likely do another QE3, buy up some crappy long-term debt to reduce the overhang and lower rates on long term instruments - that might spur some non-residential and infrastructure investment. But that can only do so much - at the end of the day, there has to be a fiscal response to address unemployment. He's already acknowledged this.
 
Why should it be a fiscal response though when the Fed has pretty much done all it can do. The response now has to come from government. Bernanke knows this but he won't bite the hand that feeds him.
 
Re: OT: Canadian Politics

i can't even begin to tell you how long and how hard i have argued within my federation to try to get us to stay OUT of the business of endorsing or working with any particular party.
 
Simply his opinion as there are other breakdowns as to why. Discouraged is just one of them, they have a slew of them like "don't want a job" etc. It's easy to say the unemployment rate is high but not because of discouraged people when in actuality people checking wrong boxes exist.

In any event, the economy is still sucking and we are nowhere near what Biden describes as turned the corner.

Aug-12 Jul-12 Delta
Total not in the labor force 88,311 86,828 1,483
Do not want a job now 81,280 79,991 1,289
Want a job 7,031 6,837 194
Did not search for work in previous year 3,812 3,618 194
Searched for work in previous year
but not in past 4 weeks 3,219 3,219 0
Not available to work now 658 690 -32
Marginally attached
(available to work now) 2,561 2,529 32
Discouraged over job prospects 844 852 -8
Reasons other than discouragement 1,717 1,676 41
Family responsibilities 302 260 42
In school or training 273 249 24
Ill health or disability 181 203 -22
Other 960 965 -5
 
That being said, the delta from month-to-month does appear to support the claim that there are greater reasons for the unemployment than discouragement.
 
Couple of studies have the participation rate tanking over the next two decades due to retirement, death and slowed birth rates.

ParticpationRateProjection.jpg
 
Habsy, if you were to pick between Romney and Obama solely on who you think would be better for the economy over the next four years......is Mitt your choice?
 
Habsy said:
Couple of studies have the participation rate tanking over the next two decades due to retirement, death and slowed birth rates.

ParticpationRateProjection.jpg
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This is what underpins the actuarial reality of the lower spending / higher tax narrative. Unless there is an unexpected technological/productivity shock out of the blue, the math is inescapable. This is the case for all industrialized democracies. You should see Japan's numbers. Ouch.
 
Montana said:
Habsy, if you were to pick between Romney and Obama solely on who you think would be better for the economy over the next four years......is Mitt your choice?
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Neither is my choice truthfully. Mitt will probably go back to old school thinking and I just don't see Obama as doing more in the next four years.

If we are talking strictly economy I prefer Huntsman.
 
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