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Bill McBride, channeling Krugman, is reminded of Wall Street's "dirty little secret": It likes...

Bill McBride, channeling Krugman, is reminded of Wall Street's "dirty little secret": It likes the unemployment rate on the high side. It "keeps wage growth down, and helps with margins and earnings - and higher unemployment also keeps the Fed on the sidelines... a slowly declining unemployment rate (even at 9%) with some job growth is considered OK."
Comments (8)
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    "'keeps wage growth down, and helps with margins and earnings - and higher unemployment also keeps the Fed on the sidelines... a slowly declining unemployment rate (even at 9%) with some job growth is considered OK.'"

     

    Never before in our history has 9% unemployment been acceptable for more than 6 months.

     

    Our first affirmative-action President must be preserved.

     

    But for another 4 years?
    6 May 2011, 06:29 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    I've said all along that this is a demand driven recession. Until the middle class gets some serious tax relief instead of the upper 2% the recovery will be anemic because the middle class is not creating any demand. The big money does not need tax breaks to create jobs the factories they own are already running a 70% capacity and will continue to do so until the middle class recovers. In the mean time tax breaks for the upper 2% will keep them fat and happy and there won't be any need to increase capacity. Additionally, the increased productivity of the American worker has increased 30% over the past ten years so in a sense factories are probably running at a comfortable clip for the big money. Why give the middle class a break when the fat cats are purring.
    7 May 2011, 02:49 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    So housing is no longer important, jobs aren't either, no one cares about preserving the purchasing power of the middle class apparently as well, or the savings of older folk.

     

    Exactly what kind of economy do we think we are building here?
    6 May 2011, 06:36 PM Reply Like
  • Monngie
    , contributor
    Comments (928) | Send Message
     
    Answer: A power elite economy.
    7 May 2011, 02:50 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    I would like to see Krugman on the sidelines.
    6 May 2011, 07:50 PM Reply Like
  • golfitobob
    , contributor
    Comments (2347) | Send Message
     
    Krugman..........that says it all ! No !
    Einstein said insanity is listening to Prof. Krugman over an over an expecting real logic.............

     

    Maybe we could surrender to Saudi Arabia and we can all go on the dole.........
    6 May 2011, 07:53 PM Reply Like
  • drekon
    , contributor
    Comments (181) | Send Message
     
    unfortunately it makes sense. more free money to chase speculative commodities and pay 45*eps on stocks that grow eps 25%...until they don't because we are suddenly smack in the middle of a recession. what a joke and house of cards. AGAIN we are seeing the bubble play out. when gas/food prices choke the consumer, they stop spending, companies don't grow at 25% (NFLX, CMG, LULU, you get the picture) and we see a SLV like debacle... meanwhile, that job growth hurts everyone.
    6 May 2011, 08:19 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    The Kleptoligarchy punishing hard working savers and investors while rewarding the illegal, the indolent, and the greedy. That will work out well in the long run.

     

    *cough*
    7 May 2011, 02:10 AM Reply Like
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