doesn't look good for a few more years
By JEANNINE AVERSA FEB,17,2010
WASHINGTON (AP) - The Federal Reserve expects unemployment will stay high over the next two years because recession-scarred Americans are likely to stay cautious, making for only a moderate-paced economic recovery.
Fed policymakers said in a forecast released Wednesday that it will take "some time" for the economy and the jobs market to get back to normal. They did not spell out how long that would be. Previously they suggested it could take five or six years for economic conditions to return to full health. A "sizable minority," however, thinks it could take more than five or six years for the economy and the job market to return to normal.
In updated economic projections, the Fed said the unemployment rate this year could hover between 9.5 percent and 9.7 percent. Next year, it will drop to between 8.2 percent and 8.5 percent. By 2012, the jobless rate will range between 6.6 percent and 7.5 percent.
Although those forecasts are little changed from projections the Fed had released in late November, the figures show that unemployment will remain elevated heading into this year's congressional elections as well as the presidential election in 2012. A more normal unemployment rate would be between 5.5 percent and 6 percent.
Fed policymakers "expect that the pace of the economic recovery will be restrained by household and business uncertainty, only gradual improvement in labor market conditions and a slow easing of credit conditions in the banking sector," according to the forecast.
Against that backdrop, the Fed expects the economy will grow between 2.8 percent and 3.5 percent this year. Growth will pick up to between 3.4 percent and 4.5 percent next year and log similar growth in 2012. The economy would need to grow by at least 5 percent a year to make a dent in the unemployment rate, analysts say.
rs!
This crap just kills me....what do they get up in the morning and read tea leaves, or stroke each other and see how they feel afterwords???
It doesn't take a rocket scientist to figure out that if people aren't making money they aren't going to spend it. Does that mean that since 15% of the country is out of work we will NEVER EVER come back from this???
And what about having a job before you go buy a car, truck, TV, RV, house....not going to happen is it??
Frankly I don't think that we are being handed the real truth. Maybe as jack nickle-son says, "we can't handle the truth...." for fear of everyone panicking and sitting home holding the cat and crying in our beer (notice I never give up my beer ...no matter what!!).
Fact is I agree with MJK here in that BOTH POLITICAL parties have left me behind. Neither one represent me anymore. Maybe they changed, or maybe I got smarter (doubt that one....) but I am lost without a party right now and feel nobody represents me. For the record, I did NOT vote for Ross P. but my dad did because he felt what he said was spot on target....but then he put that lame brain up for VP, and I felt that meant that he wasn't really serious or perhaps I would have voted for him. Meanwhile slick willie got in there milked out the good times...basically did nothing to make this better or worse (don't forget the euphoric dot com point in history where everyone was making money hand over fist and all you had to do was to invest in SOMETHING, and you made money) so Billy boy took the credit but as the saying goes, it is always better to be lucky than be smart...always. He was in the right place at the right time. Unfortunately Georgie Porgy, was NOT.
Meanwhile the country is busy sucking an egg....(do they really believe that this could be a jobless recovery??? Isn't that more or less like getting pregnant by sitting wrong on a toilet seat????)
We aren't turning any corners, without industry, and housing. Both are vitally important...and we simply are not going to get out of this hole in the ground until we find a fix for these. Screw wall street...who needs em??? We need to find a way to play a great big "do over" on all this, but I just don't think anyone knows how to do that...certainly not me.
But I do know that the fundamentals need to be protected, and invested in. Buy American or don't buy anything. Better yet, but locally since locally has the highest return on your "investment" which keeps YOU working.
I will do some research and find some websites that list American made products. There are more of them than you think...including toys which don't stunt children's growth.... oh, and era...your one crazy guy...but you sure have a good eye for the truth.