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The falling unemployment rate signals exactly what it suggests, says JPMorgan's Brandon Odenath...

The falling unemployment rate signals exactly what it suggests, says JPMorgan's Brandon Odenath - the labor market is improving, hastening the end of QE and ultra-low interest rates. The meme of a declining labor force participation rate leaving headline UE devoid of meaning is mistaken, claims Odenath. Falling participation is less to do with discouraged workers and pretty much everything to do with the secular trend of an aging population. Ignore this reality at your own risk, he warns fixed income investors (AGG, BND).
Comments (6)
  • Paul Price
    , contributor
    Comments (1508) | Send Message
     
    The participation rate for people 55 and older has actually increased in recent years as oldsters find they can't afford NOT to work.

     

    It is youth unemployment that has the participation rate at its worst level since the early 1980's.
    28 Jun 2013, 07:50 AM Reply Like
  • Common Guy
    , contributor
    Comments (79) | Send Message
     
    Most of the US jobs created are low skilled jobs which provide minimum wages.

     

    While it is true the unemployment rate is going down, it is also truth that youth unemployment is not going down.

     

    Time for these wall street bankers to get away from their luxury offices and smell the real state of main street.
    28 Jun 2013, 08:11 AM Reply Like
  • june1234
    , contributor
    Comments (2655) | Send Message
     
    Bernanke is a true believer and he has always been steadfast going back to 09 of his intent to taper when numbers get better which he really believes they are
    28 Jun 2013, 08:21 AM Reply Like
  • Angry Ninja
    , contributor
    Comment (1) | Send Message
     
    It seems like you could measure the overall participation by looking at the gross income of the population. If people are working part time jobs which are counted as "Employed" then it should reflect in a lower income overall.
    28 Jun 2013, 08:35 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    "Time for these wall street bankers to get away from their luxury offices and smell the real state of main street. "....
    They are much to good for that..they went to some swank college..they wil never get their hands dirty..they just read pretty little reports given to them and write their articles.....they do not care about the real world...just seeing their name in print is what they like...
    28 Jun 2013, 08:44 AM Reply Like
  • WMARKW
    , contributor
    Comments (10454) | Send Message
     
    I personally don't believe the Fed will ever, or can ever, pull the trigger on tapering. QE will continue until something unforeseen and dramatic changes the course this country is on. Right now, the new normal GDP will grow 1.5% - tops - on a go forward basis.
    28 Jun 2013, 10:53 AM Reply Like
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