Bernanke on '60 Minutes': Grim outlook for jobs

[somone]

http://money.cnn.com/2010/12/05/news/economy/ben_bernanke_60_minutes/?iid=MPM

Bernanke on '60 Minutes': Grim outlook for jobs
By Annalyn Censky

NEW YORK (CNNMoney.com) -- On the heels of a disappointing jobs report, the country's top economist told 60 Minutes the outlook isn't much brighter.

"At the rate we're going, it could be four, five years before we are back to a more normal unemployment rate," Federal Reserve Chairman Ben Bernanke told 60 Minutes in an interview that aired Sunday night.

The 60 Minutes broadcast comes just a couple days after the government released a jobs report bringing two downbeat surprises: the economy added only 39,000 jobs in November and the unemployment rate rose to 9.8%.

Stubbornly high unemployment is one reason Bernanke is standing by the Fed's recent controversial decision to initiate a $600 billion bond-buying program, its second round of so-called quantitative easing or QE2. It is meant to stimulate the economy by keeping interest rates low and encouraging consumers to spend more and businesses to create jobs...

[aquart]

1. And yet Bernanke is employed. Why?

[hayu_lol]

7. Based upon the last reporting figures for new unemployment...

applications, we are still losing roughly half a million jobs per reporting period.

This, if it were not for SS, welfare, food stamps and the like, would be a full blown depression. Worst thing is that we are still losing factories to overseas countries and there are no brakes being applied to slow this outbound flow of jobs.

The part-time jobs that seniors used to hold to give them extra money are either gone or have gone to younger workers.

For the retired set, the fact that employment is likely to be depressed for several years means real poverty for the last few years of their lives. The younger folks are watching their house equity shrink, their retirement plans(401s and the like)being chewed up and the rest of their assets going to meet current expenses. This isn't working very well for anyone.

For the in-college group, the future looks very dim at this time. Do they stay in school to get advanced degrees or decide to try for a job--those student loans are a millstone around their necks.

For parents of college grads, it is depressing to see the kids come home because they cannot support themselves.

[notesdev]

2. misquote

he actually said "At the rate we're going, it could be four, five years before I have an immigration application accepted by a country that does not have an extradition treaty with the United States."

[Subdivisions]

3. But at least Wall Street, foriegn banks, corporations, and the rich are set to the good. n/t

[RKP5637]

8. Yep! Trickle down voodoo reaganomics works so well, thanks Reagan for

having showed us the way. I think what Bernanke is really saying between the lines is ... this shit is probably not going to work too well so get your head in gear masses for really austere times.

IMO our capitalistic system needs major a renovation, but who is going to do that ... certainly not those enriching themselves off a system for their benefit.

IMO it's an obsolete system for the 21st century, unless we want warlord corporations and a feudal system.

[napi21]

4. I don't blame Bernake. All those jobs are in China now or

Pakistan, India, Tiwan, etc. The only way to gt the obs here is to force Co's to brig them back!e

[Subdivisions]

9. It's his muthafuckin' duty to create jobs. How in the fuck can you not blame him? n/t

[BzaDem]

10. There's only so much he can do when interest rates are at 0. The fact that he is trying to do QE2

shows that he is trying his best. There's really a limit to how much monetary policy can help the jobs situation in these circumstances.

[Subdivisions]

12. He's failed from DAY ONE! Yet Obama kept his sorry ass. They both

deserve the blame. Obama's not even trying to create jobs!

[BzaDem]

13. "Obama's not even trying to create jobs!"

What a false statement.

"He's failed from DAY ONE!"

There is little ANY fed chairman can do when interest rates are at 0%. The only thing that really works is fiscal policy. Monetary policy can work around the edges, but it doesn't have much effect.

[dixiegrrrrl]

5. The Federal Reserver has 2 goals, he has not met either of them.

Monetary policy has two basic goals:
to promote "maximum" sustainable output and employment
and to promote "stable" prices.
These goals are prescribed in a 1977 amendment to the Federal Reserve Act.

He HAS succeeded in giving away all the money in the country to his cronies here and abroad.

Mission accomplished, Ben.

[BzaDem]

11. When interest rates are at 0%, there's very little the Fed can do to meet either goal. What is

actually required is fiscal policy (to get us out of the deflationary trap), but the Fed can't touch that.

[dixiegrrrrl]

6. The Federal Reserver has 2 goals, he has not met either of them.

Monetary policy has two basic goals:
to promote "maximum" sustainable output and employment
and to promote "stable" prices.
These goals are prescribed in a 1977 amendment to the Federal Reserve Act.

He HAS succeeded in giving away all the money in the country to his cronies here and abroad.

Mission accomplished, Ben.

[napi21]

14. I still say we are finally feeling the reprocussios of millions of jobs going overseas.

Bernake cant create jobs, neither can the President. Businesses have to do that. There was ONE good move on the part of the Dems when they had the bill to change the tax code to punish moving jobs overeas & reward co;s that bring jobs back. the damn Pubs and some buedogs voted it down. Get with it people, politicians can't & don't create jobs! Stop blaming the peope who can't do anything and start blaming the one whoare bocking the road!