Federal Reserve: Weak Recovery Means High Unemployment For Several Years

[AllentownJake]

WASHINGTON — Unemployment likely will remain high for the next several years because the economic recovery won't be strong enough to spur robust hiring, Federal Reserve officials warned Tuesday.

The cautionary note struck by the presidents of regional Fed banks were the first public remarks by Fed officials since the government reported last week that the nation's jobless rate bolted to 10.2 percent in October. It marked only the second time in the post-World War II period that the rate surpassed 10 percent.

In separate speeches, Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that rising unemployment could crimp consumers, restraining the recovery. Consumer spending accounts for about 70 percent of economic activity.

http://www.huffingtonpost.com/2009/11/10/federal-reserve-weak-reco_n_352194.html

Shit I was an economy crank when I said this two months ago

[Vinnie From Indy]

1. They have it exactly backwards

The fact is that there will be weak recovery because so many Americans are unemployed. These folks are unemployed because there is a mass migration of jobs from America to points around the globe. In short, the American worker is being abandoned by corporations. They don't need us anymore. Soon, they won't even need us to drive the world's consumer economy. Most are betting on India and China to become the consumer markets of the future. The sooner Americans understand that there is no patriotism in business and no crying in baseball, the transition to serfdom will be less of a jolt.

[AllentownJake]

2. That is my theory

but the economic experts on DU always insist it is the other way around.

[HughBeaumont]

9. Sooooo, Indians and Chinese, with monthly wages that couldn't pay the average American rent . . .

. . . are going to be able to buy (snicker) "American made" products at American prices, especially the bigger ticket items?

Shyah, good luck with that plan, CEOs. Corporatists are laughably laughable.

The Repukes who ran this country straight into a chasm, in all of their furious energy to compartmentalize and cheapen business, kind of forgot the notion of replacement. They never replaced the resources they gutted. They never replaced the occupations/careers they destroyed. They never wanted to update the factories to accommodate new technologies.

That was never part of their plan.

They didn't care about infrastructure, health care, education or social safety nets, because it didn't represent direct profits to THEM. Since they don't see direct benefit to raising our wages, they've stagnated them for three decades straight.

[arcadian]

10. The term 'bled dry" comes to mind.

[SammyWinstonJack]

3. K&R

[TacticalPeek]

4. Apparently this news impinges on the reality some would prefer.

I remember that attitude.

[arcadian]

5. So, what plans do the financial class have?

Are they going to start trying to feed off the burgeoning Indian and Chinese middle class? They will have to fortify their homes and offices here in th US though, which is why I see security service sector becoming a lot bigger.

[lonestarnot]

8. And how bout those private prisons? Woohoo.

:thumbsdown: :puke:

[AllentownJake]

11. They are locust

they don't make plans per se, they just devour all they can and move onto the next target.

Their locust like behavior insures that no-such classes will be allowed to develop in the BRIC nations once they have taken care of the crops here.

Best way to understand their behavior is to understand the behavior of a storm of locust.

[lonestarnot]

6. Welp of course. Inside story of slave labor creation.

[Mari333]

7. well, is anyone being fined or regulated over outsourcing?

no, they are not, they are still allowed to be drunken corporate pirates.

they take our tax money and create jobs in mexico and india and china.

[madrchsod]

12. which means the democrats could lose the house and lose seats in the senate.

it just may serve them right for pissing on us while they wiping the bankers asses

[AllentownJake]

14. They were quite arrogant and silly after the election in 08

I think they forget that in a two party system, angry people don't vote ideology, they vote to replace management.

[librechik]

13. Only one institution that can create jobs out of nothing: US Government

And boy do we need some work! Bridges falling down, facilities crumbling, understaffed hospitals, filthy national parks etc etc etc. Government could try to do something about that.

Where is our govt to close the gap between the jobs we need and the jobs that exist? They don't even offer a safety net alternative, like every other civilized country. And healthcare is down the drain. All Congress does is wring their hands about being called "socialists"

I guess rich people like to live in cities clogged with homelessness and crime. As long as they don't have to pay a tiny sliver more than the average worker does in taxes, and they can horde all their profits they are happy.

Stupid, stupid management, IMO. We used to be better than this.