Bernanke to the Congress

[Anonymous]

It will be 10 years before a "normal" unemployment rate is achieved. Normal according to his definititon is 5-6% UER. This is assuming current quarter growth rate, 3.2% GDP, is maintained throughout the decade. However, he also said that a "normal" unemployment can be achieved at 4.5% GDP that is liekly to be achiveed in 2012. In that scenario it will be 5-6 years to achieve UER of 5-6%.

Additionally, he said COngress should inact laws that would allow repatriation of 1.2Trillion dollars stashed abroad by american companies. However, Ben was skeptical that repatriation will reduce UER as corporations will distribute money for bonuses and d8ividends.

Congressman compared his testimony to lost decade that Japan had in 1990s.

So to job seekers, turn away. Lilly is just advertising hiring.

Watch it on C-Span.

 

[Anonymous]

One point that is almost always overlooked when estimating future unemployment is the impact of future retirements. The average baby boomers are now turning 65. The Fed now says we should all continue working at that age. However, such a recommendation was missing a decade or two in the past.

Mixed signals are very normal these days, and they aren't just mixed signals, but often contradictory. If the Fed REALLY cared about unemployment, why not suggest early retirement with scaled down lifestyles? In this country (USA is my residence) it is not difficult to cut lifestyle cost by 50% and maintain an excellent quality of life.

Another point. This is for the scientific minds among you. Do a search and browse Ben's PhD thesis. The topics concerned are the economics of "specialized machine tools." Please share with us what you think he is REALLY talking about. Decide, think, for yourself

Are some machine tools outdated, and if so, do they magically morph into new machine tools, or do they retire? I suggest that the USA allow for early retirement. Of course, that is impossible. The money was stolen by GWB and the Defense Department at the rate of $1 Trillion/Year to "protect us" from terrorists.... in Iraq and Afghanistan. Please.

 

[Anonymous]

Bernanke stayed mum on a question of possible 12.8 Trillion dollars injected into global banks (i.,e top 7 Window Watchers). Upon asking by a congressman, he delined to answer who were the beneficiaries...but another congressman named top four Window Watchers. This is what is propeling the Dow30 to a new heights. Also, a congressman compared the risk of superinflation, but Ben simply said that he will be ahead of the inflationary curve. Finally, Ben left open a possibility that 18Trillion debt ceiling may have to be lifted if we are in another war. Lesson for John: Act like Ben and bankrupt Lilly at faster rate so that you can leave easily, unlike the Hosni Mubarak who defied Egyptians.

 

[Anonymous]

Bernanke stayed mum on a question of possible 12.8 Trillion dollars injected into global banks (i.,e top 7 Window Watchers). Upon asking by a congressman, he delined to answer who were the beneficiaries...but another congressman named top four Window Watchers. This is what is propeling the Dow30 to a new heights. Also, a congressman compared the risk of superinflation, but Ben simply said that he will be ahead of the inflationary curve. Finally, Ben left open a possibility that 18Trillion debt ceiling may have to be lifted if we are in another war. Lesson for John: Act like Ben and bankrupt Lilly at faster rate so that you can leave easily, unlike the Hosni Mubarak who defied Egyptians.

(Imagine if you will, a baseball bat up my butt - which gives me this high pitched whiny voice) .... Funny you should mention that (shrugs). Of course I will bankrupt Lilly better, faster, more productive and On-Target than ever before. After all, the CEO bonus policy, which gets revised every year depending on whether I work 30, 35 or *gasp* even 40 hours per week, is in constant upward revision. Now all of you sales folks - you need to revise upward with me. Onward and Upward as we Crimson Alumni always say!

 

[Anonymous]

This is exactly why the Fed needs to be audited, NOW. Hopefully, Ron Paul will make this so in his new role as chair of the House Finance Committee.