Bernanke: Job gains present economic 'puzzle'

[cthulu2016]

10. Pent up demand

Bernanke is right and it is nice of him not to make the obvious further observation that we will probably also see employment declines that are not in sync with GDP growth. Reversion to the mean. I hope they wait until after November.

The firing frenzy of the first days of the crisis was somewhat like a low inventory phase. If an extrinsic event causes everyone to cut their inventory then the restocking phase is also likely to be all-at-once. Same for hiring.

Everything associated with an event, from a collapse in bank confidence to 9/11 to a tsunami, will be "lumpy" because crisis events put everyone in the economy into sync.