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US Economy added no jobs in August

Discussion in 'Off-Topic' started by Integral, Sep 2, 2011.

  1. Integral

    Integral Can't you hear it?

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    BLS report
    Relevant excerpt:
    In addition, GDP growth last quarter was revised downwards from 1.3% (already really bad) to 1.0% (even worse).


    Bottom line: the economy's not getting any better.

    The hole in GDP:


    This is why we need QE3 and a jobs program.
     
  2. MobBoss

    MobBoss Off-Topic Overlord

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    This could hurt Obama politically.
     
  3. Leoreth

    Leoreth 心の怪盗団 Moderator

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    Unfortunately the political deadlock will prevent you from doing anything about it.
     
  4. Cutlass

    Cutlass The Man Who Wasn't There.

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    I think QE3 will happen. I think a jobs program will not. Politics is not answering to reality and public needs these days.
     
  5. civver_764

    civver_764 Deity

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    These days?
     
  6. Cutlass

    Cutlass The Man Who Wasn't There.

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    It really is different from even 10 years ago.
     
  7. GamezRule

    GamezRule Inconceivable!

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    Ironic that even though Republicans were blaming Obama for the weak economy since January 21, 2009, now they have some power and things are getting even worse.
     
  8. Artifis

    Artifis El Gato is not happy

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    Understatement of the century.
     
  9. Ayatollah So

    Ayatollah So the spoof'll set you free

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    Of course a jobs program will be DOA because it goes against Republican ideology, and because of what MobBoss said. Woulda been nice if Obama had been less timid back in 2009, but that's just who he is. Asking for audacity is like asking for rice to stop being white. The Fed's timidity, however, is more mysterious.

    This is gonna spank him so hard it will even Downtown will feel the pain. The other architects of this disaster, both on Wall St and in Congress, will mostly get off scot-free. :(
     
  10. kronic

    kronic Deity

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    So, how much is GDP off from the trend now? 10 %? Maybe it's time to think about a new trend.

    I don't think these bad figures really show how bad things really are. Based on what happened to previous estimates in the past few years, we'll see more downward revisions in the following weeks and months.
     
  11. Bestbank Tiger

    Bestbank Tiger Deity

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    Insanity is doing the same thing again and again and expecting different results.
     
  12. Orka

    Orka Warlord

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    I don't think QE3 will be particularly effective this time around. Corporations already have plenty of money; but the problem is lack of demand, not lack of credit. QE3 would help a little but could be offset by the higher inflation. Remember that QE2 was undertaken in part because of fears of deflation.

    A stimulus is what we need, but probably won't be coming.
     
  13. GenMarshall

    GenMarshall Blood Elven Ghost Agent

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    For the first time, I agree...

    ...and the world trembles as MobBoss and myself agree on something! :run:
     
  14. Cutlass

    Cutlass The Man Who Wasn't There.

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    It's not that QE3 is all that likely to be effective, as it's the only damned thing left. With Congress fubar, there's QE or just accept stagnation.
     
  15. GamezRule

    GamezRule Inconceivable!

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    If QE3 really is as dangerous as it appears, stagnation might be the better option.
     
  16. Cutlass

    Cutlass The Man Who Wasn't There.

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    QE3 isn't really dangerous at all. Stagnation, on the other hand, is. The worst that could happen with QE3, and it's not by any means certain, is another bubble. But a bubble at least revs up the economy. The second worse thing that could happen is a couple of years of somewhat higher than desirable inflation. But that would actually make things better off in the long run. Because one of the major reasons that the economy is not getting better is excessive debt loads. And inflation makes that weaker.

    Stagnation, on the other hand, means that a lot of people are going to have to accept permanently lower standards of living. And the nation would be decades recovering from it. It is a far worse fate for the average American.
     
  17. BasketCase

    BasketCase Username sez it all

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    The problem is a good deal more complicated than that. Corporations are sitting on the money which they have plenty of, and not spending it, because they do not intend to end up where the Big Three auto companies ended up. Corporations have to keep their own cash reserves because the banks are scared to lend to people. QE3 will not "fix" this. Nothing can fix this except loosening up the banks--which is not going to happen because the banks don't want to end up where Fannie Mae and Freddie Mac did.

    QE3 is not going to happen, and wouldn't fix the problem even if it did happen.
     
  18. kochman

    kochman Deity

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    Great thinking!
    Bubble 1 - Tech Bubble... bursts, economy slides downhill, Bush and gang create Bubble 2 - Housing/Investing Bubble... it, as all bubbles do, bursts, to way worse effects...
    Possible answer? Another bubble... the Government Spending Bubble...
    And what happens when this one bursts?
     
  19. amadeus

    amadeus Serenity now!

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    QE IV, with Federal Reserve chairman Ivan Drago.
     
  20. Ayatollah So

    Ayatollah So the spoof'll set you free

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    Small businesses don't. I agree that QE3 is likely to have little effect (especially if it's as small as QE2). But the Fed could and should also change the interest rate it pays banks on their excess reserves from +0.25% to something negative. That would help a little. Admittedly, not enough, but Congress is too insane to provide any fiscal stimulus, and Obama isn't the guy that could rally the public to change Congressional minds. Like Cutlass said, the Fed is all we have left.
     

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