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| Economy |
| Bernanke: US jobless rate to remain high |
| 2009-12-04 |
| [Iran Press TV Latest] The US Federal Reserve Chairman Ben Bernanke has warned that despite an improving economy the jobless rate across the nation is going to remain high for some time. "Most indicators suggest that financial markets are stabilizing and that the economy is emerging from the recession," Bernanke said Thursday at the start of his confirmation hearing for a second term as the Fed's chief, reported AFP. "Yet our task is far from complete. Far too many Americans are without jobs, and unemployment could remain high for some time even if, as we anticipate, moderate economic growth continues." Bernanke added that "as we move forward, we must take care that the Federal Reserve remains effective and independent, with the capacity to foster financial stability and to support a return to prosperity and economic opportunity in a context of price stability." Since the end of 2007, Bernanke's Fed has used extraordinary powers to ward off another Great Depression, including the bailout of big financial companies, together with the Treasury that has put taxpayers' money at risk. Both houses of Congress are working on legislation to curb the Fed's powers, including an audit of the central bank's interest rate decisions, weaker regulatory powers over banks, and a reduced role for private bankers in the 12 regional Fed banks. Bernanke, however, attributed great improvement in the financial conditions and the relative economic recovery to the powers exercised by the Federal Reserves. "Taken together, the Federal Reserve's actions have contributed substantially to the significant improvement in financial conditions and to what now appear to be the beginnings of a turnaround in both the US and foreign economies," he said. |
| Posted by:Fred |
| #7 The idea here is to intentionally impoverish as many Americans as possible. Poor people vote Democratic and the middle class tends to limit governmental power. |
| Posted by: Iblis 2009-12-04 12:19 |
| #6 Since 1980, the only net job creation in the US has come from businesses less than 5 years old. Which is to say that the unemployment rate is probably not going to improve much until credit for small businesses and investment capital start to flow freely again. The 0ne administration seems to think this things just happen on their own but public policy matters here. Banks are not lending right now as they seek to cover their losses in the housing market and the explosion in government spending has virtually smothered investment. The looming tax increases do not help matters much, either. I suspect the unemployment situation will possibly worsen before it starts to improve, and that could be awhile. |
| Posted by: eltoroverde 2009-12-04 09:41 |
| #5 And don't forget capital gains taxes going from 15% to 20%. I hear investors love a 33% haircut. Oh yes, lovely scheme indeed, 'capital gains.' You LOSE $ 100,000 on an investment, you can take $ 3K IRS write off per year. You MAKE $ 100,000 on investment(s)...you incur a 100% capital gain obligation. Lovely, lovely scheme. |
| Posted by: Besoeker 2009-12-04 09:21 |
| #4 Max income tax rates going from 35% to 39.6% will also stimulate hiring. At least as many as the $3 trillion Federal debt added this year on top of the $9 trillion. And don't forget capital gains taxes going from 15% to 20%. I hear investors love a 33% haircut. |
| Posted by: ed 2009-12-04 08:35 |
| #3 Exactly correct P2K. The other hammer hanging over small business is the pending "Health Care" legislation. |
| Posted by: Besoeker 2009-12-04 08:13 |
| #2 Simple, when small business start hiring again, unemployment will drop. Small business is not going to hire with Obamacare and impacts of Cap & Trade hammering their bottom lines and the 'rescued' big banks not extending credit. The Fed certainly protected their brethren in the New York money markets, but didn't address the basics about credit to the small guy. |
| Posted by: Procopius2k 2009-12-04 08:10 |
| #1 Aren't you glad Obama spent 787 BILLION dollars to prevent this. Oh, well, guess he'll have to spend ANOTHER 300 BILLION dollars now. |
| Posted by: DMFD 2009-12-04 07:00 |