More on Bernanke: The Chairman dusts off Okun's law, which suggests recent improvements in the...


More on Bernanke: The Chairman dusts off Okun's law, which suggests recent improvements in the labor market could just be a reversal of large layoffs during the recession. For continued gains, he says, faster economic growth is required. S&P 500 at morning's high, +0.7%.

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Comments (6)
  • Tack
    , contributor
    Comments (16281) | Send Message
     
    The reversal of recession layoffs alone will not restore all the jobs lost for the simple reason that businesses, small and large, were forced by the recession and associated fears to confront on a broad scale the unsavory task of firing people and eliminated a vast array of unnecessary workers, who had been maintained on payrolls for various loyalty and "humanitarian" reasons. Now, that they're departed, they will not be rehired in any circumstance because they were unnecessary to business operations in the first instance.

     

    This means that further gains in employment must come almost exclusively through economic expansion, not restoration of the status quo.
    26 Mar 2012, 08:36 AM Reply Like
  • Stoploss
    , contributor
    Comments (1713) | Send Message
     
    Oh please..
    http://bit.ly/GRKXCc

     

    Read the last sentence before the formula's.
    Then, plug in some of this wonderful "data" we seem to keep getting and see what you come up with.

     

    Real good Ben, keep it up. Try reading and playing around with some of this shit before you open your mouth. The answer is right there.

     

    So, exactly WHY has it taken four years to "discover" Okun's law??

     

    Yeah, too late now. Good luck with all that future tax revenue... LOL!!!
    26 Mar 2012, 08:44 AM Reply Like
  • Teutonic Knight
    , contributor
    Comments (3445) | Send Message
     
    Obviously, some see this as bullish, as evidenced by the market surge today; while some see it as negative, the professor is sensing a longer period of anticipated slow growth and high unemployment. The Fed is privy to more advanced data and has more visibility.

     

    It is all in the eyes of the beholder!
    26 Mar 2012, 06:25 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13375) | Send Message
     
    Accommodation is needed to keep long term US Treasury yields low even though there are no legitimate buyers and to help TBTF banks book profits even though their operations are terrible. It has nothing to do with helping America or Americans. The Federal Reserve's interest lies in the banks that they represent. It's about time people realize it.
    26 Mar 2012, 11:52 PM Reply Like
  • Hedgephone
    , contributor
    Comments (1421) | Send Message
     
    nice comment Moon... Rgds
    27 Mar 2012, 12:45 AM Reply Like
  • User 353732
    , contributor
    Comments (5158) | Send Message
     
    Bad debt, bad money and egregious misallocation of capital based on the perversion of credit markets never created real sustained job growth at any time. anywhere.

     

    It certainly leads to the concentration of wealth and power and the suffocation of small, new and start up businesses while reducing the effective purchasing power of the privately employed middle class.

     

    But then, the Regime is concerned soley with self aggrandizement and self perpetuation: this what Plantation Economics means.
    27 Mar 2012, 05:42 AM Reply Like
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