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Bernanke: "We're looking for something that brings unemployment down in a sustained way." Asked...

Bernanke: "We're looking for something that brings unemployment down in a sustained way." Asked about further tools if QE3 doesn't work, he doesn't go beyond what's already been used: Communications, Treasury purchases, MBS purchases.
Comments (29)
  • WMARKW
    , contributor
    Comments (10484) | Send Message
     
    Fed actions at zero bound cannot affect un-employment favorably. Massive fiscal stimulus (which no one can sell) can.
    13 Sep 2012, 02:47 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9964) | Send Message
     
    WM,
    Any effect on the economy via QE3, will more than be offset negatively with rising oil and commodity prices. Yes, a ST bump in markets, but wait for the negative flow through to the economy via commodity prices.
    13 Sep 2012, 05:41 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (408) | Send Message
     
    True but the best option is to be long those commodities. Go long crude, silver, iron ore
    13 Sep 2012, 11:08 PM Reply Like
  • David Urban
    , contributor
    Comments (1036) | Send Message
     
    Bernanke knows that he is out of options but cannot say so directly.
    13 Sep 2012, 03:14 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1760) | Send Message
     
    The Fed has its hands tied when you have a President and Congress that can't seem to get along or make a good decision on ANYTHING.
    13 Sep 2012, 03:40 PM Reply Like
  • bbro
    , contributor
    Comments (10710) | Send Message
     
    Dollar Index Friday before Lehman 78.96.....today many QE's later....79.26...
    13 Sep 2012, 03:17 PM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    This is primarily due to the EUR, the heavily weighted component of DX and UUP.

     

    What do you get when you have multiple currencies in a race to the bottom?

     

    Frankly I don't know, it has no precedent: over 4 major curriencies trying to significantly debase their paper: USD, EU, GBP, JPY, and frankly Yuan too...
    13 Sep 2012, 07:59 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (4446) | Send Message
     
    Ben, let's eliminate the middle men. Just print me up a few million and I promise to stimulate the economy with it.
    Thanks!
    13 Sep 2012, 03:23 PM Reply Like
  • WMARKW
    , contributor
    Comments (10484) | Send Message
     
    Cincinnatus....I think you are correct. Give a tax credit equal to 1/2 the everyone Federal Tax bill for 2012 and we'll see the economy pick up.
    13 Sep 2012, 03:26 PM Reply Like
  • CautiousInvestor
    , contributor
    Comments (3075) | Send Message
     
    In the economic forecast released with the minutes the Fed kept their forecast of expected unemployment for 2012 unchanged at 8.0% to 8.2%. The forecast range for 2013 was slightly narrowed; and the forecast for 2014 was marginally reduced. For 2014 the Fed now sees unemployment of 6.7% to 7.3% as compared to June's forecast of 7.0% to 7.7%. Notwithstanding apparent public confidence in the most recent policy announcement, the Fed possibly sees little benefit. Alternatively, things deteriorated since June and with QE3 we will only be slightly better off.
    13 Sep 2012, 05:12 PM Reply Like
  • 6fujitsu0
    , contributor
    Comments (28) | Send Message
     
    This is funny, if it were not so sad. He wants to bring unemployment down in a sustained way. How about not playing with interest rates allowing the large number of seniors to earn something on interest income to buy things to stimulate the economy. demand side. ever hear of it?
    13 Sep 2012, 05:54 PM Reply Like
  • brachiosaurus
    , contributor
    Comments (237) | Send Message
     
    investor returns for the seniors will be better if the economy is stronger. I doubt the asset purchases will help all that much, however I think the forward guidance on interest rates is pretty powerful at revving up housing. Pushing down on mortgage rates even a little bit multiplies big time on the return on equity for housing investors. The stabilization in housing prices will hopefully curtail the de-leveraging we are seeing by households and bring the demand that you are calling for.
    14 Sep 2012, 02:51 AM Reply Like
  • AprilMay
    , contributor
    Comments (5) | Send Message
     
    If he let's interest rates rise much, government debt would soar at a rate that would crush us.
    14 Sep 2012, 04:07 AM Reply Like
  • varan
    , contributor
    Comments (4680) | Send Message
     
    The headline should read:

     

    BERNANKE TO ROMNEY: F U

     

    for Romney has said that if elected he will fire the Chairman.
    13 Sep 2012, 06:12 PM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    I love it. Bernanke slapping Romney. Good luck winning now Romnay.
    13 Sep 2012, 06:20 PM Reply Like
  • Van Hyder
    , contributor
    Comments (169) | Send Message
     
    anonymous, you can't honestly believe that this round of QE is going to get UE below 8%? What it will do is raise commodity prices (pump prices) and give Romney a talking point to seniors other than Ryan's voucher deal. . .
    13 Sep 2012, 08:58 PM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    With a SAT score of 1590, my bet is on with Bernanke. Those who criticize his actions tend to have below average intelligence......
    14 Sep 2012, 08:36 AM Reply Like
  • Cincinnatus
    , contributor
    Comments (4446) | Send Message
     
    Ah yes, the ol' "Smartest Guys in the Room" argument. It worked so well for the Wall St investment banking industry.
    17 Sep 2012, 02:34 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    The problem with the ol' "Smartest Guys in the Room" approach is that they have been in the room for so long they don't know what sunlight or a real job looks like.
    17 Sep 2012, 09:50 AM Reply Like
  • chudzikb
    , contributor
    Comments (1279) | Send Message
     
    Unemployment will certainly improve dramatically, when the labor participation rate drops to a much lower rate, problem solved! See how that works?
    13 Sep 2012, 06:16 PM Reply Like
  • easyfix
    , contributor
    Comments (41) | Send Message
     
    Agreed.

     

    1. How about three year federal tax exemption on any new start-up business? I think Texas has done something like this...
    2. Forgive student loans of recent college grads that start a new business.
    3. Get rid of the citizen-based taxation. When a US citizen moves abroad he pays income plus a plethora of other taxes to his host country on his world wide income and then is double taxed by the IRS on this same income. You can't sell items abroad if you don't have feet on the ground, but this double taxation is unjust.
    4. Modify tax structure on retained earnings for LLC's. Taxing retained earnings at 39.6% is asinine. And you need to prove to IRS that there is a justification for these retained earnings? Really?
    5. There is a significant portion of the US population which drastically needs more education - education which they are not getting. More emphasis on education and retraining. Focus on technical education as well as apprenticeship programs that specialize in high-end and complex manufactured products.
    6. We need to import in more educated people (H1-B visa) (The limit is 85,000 right now and not haphazardly legalize illegal immigrants. If companies want to hire college educated foreigners, there should be no limits to this, especially if they have advanced degrees.....Right now we have a 85,000 H1-B visa limit with a limit of 20,000 for advanced degree holders and have 20 million illegal immigrants. How does this make sense? There should be no limit on advanced degree holders...We as a nation want to draw top talent, period. The approval process for foreigners with advanced degrees should be fast and simple. They stay here three years and start a business that employs people, they automatically get US citizenship. Individuals that want to invest a minimum 500K into the US to start a business, get a green card automatically.
    7. Roadblocks that delay construction, environmental and other permits are significant obstacles to new hiring. There should be a one stop agency that gets all of this pre-approved and cleared.

     

    These are just a few...and there are tons of other ideas....out there...

     

    Both sides in Congress need to ask themselves are we on the same team?... As Seth Godin said....defeat and power and humiliation and money have replaced "doing what works for all of us" as the driving force in politics. Stop disrespecting the other side and tone the rhetoric down.
    13 Sep 2012, 06:17 PM Reply Like
  • varan
    , contributor
    Comments (4680) | Send Message
     
    There is no shortage of US citizens and residents who can fit the science and engineering jobs. There is no need for any H visas. All these visas do is to depress the market for qualified Americans.
    13 Sep 2012, 06:52 PM Reply Like
  • Teutonic Knight
    , contributor
    Comments (2938) | Send Message
     
    @varan

     

    I used to think along the same line as you do on the H visas. Looking it from a deeper perspective, would you not believe that Mr. Obama's hands are tied on this one? How many thousands of American are 'forced' to work overseas on equally temporary work visas? Architects, engineers, finance types, airline pilots, teachers, to name a few. Yeah, we could start a war, by canceling all H 1 visas, but what would happen to those on foreign soils on the same status? They would head home soon enough.

     

    Just my 2 cents. I wish some college graduate student could do a thesis on this topic and explore the facts and its ramification..
    13 Sep 2012, 08:10 PM Reply Like
  • WMARKW
    , contributor
    Comments (10484) | Send Message
     
    Easy Fix.....
    I'll add:
    1. Write off Student Loans Science, Engineering, Math and other critical study areas.
    2. Wiave taxes on all global corporate earnings repatriated to US over next 3 years.
    3. Lower corporate tax rates (or eliminate). There is no reason to tax corporate earnings. All corporate earnings find their way into some other taxable event - dividends, equity appreciation --> cap gains, wages (actually get taxed more than corp tax rate), etc.

     

    Everyone else can add to this list and then we can all look at eachother and wonder what the hell our representatives are doing?
    13 Sep 2012, 06:27 PM Reply Like
  • varan
    , contributor
    Comments (4680) | Send Message
     
    Cancel all H and L visas.
    13 Sep 2012, 06:28 PM Reply Like
  • idkmybffjill
    , contributor
    Comments (1760) | Send Message
     
    "1. Write off Student Loans Science, Engineering, Math and other critical study areas."

     

    As a college student in engineering, I gotta say AMEN!!!! (although I have no loans up till this point but still)
    13 Sep 2012, 06:39 PM Reply Like
  • recession12
    , contributor
    Comments (172) | Send Message
     
    Stop sending people to college these people cant get a job and have huge loans. America needs to get back to hard work.
    13 Sep 2012, 07:37 PM Reply Like
  • WMARKW
    , contributor
    Comments (10484) | Send Message
     
    FREE STUDENT LOANS FOR "WELDERS".
    13 Sep 2012, 10:46 PM Reply Like
  • minecanary
    , contributor
    Comments (752) | Send Message
     
    Bennie is going to print until death do us part. Where is a heart attack when you need it?
    13 Sep 2012, 07:53 PM Reply Like
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