Just a quick post to show you what the financial press is saying about yesterday’s job numbers. First from Bloomberg … what the Fed is saying:
Bernanke Says Unemployment Imposes `Heavy Costs,’ Fed Encourages Lending Federal Reserve Chairman Ben S. Bernanke said he’s concerned about the toll that joblessness is taking on Americans and that the central bank is trying encourage lending to creditworthy companies.
Lockhart Says Private Job Creation Is Too Weak for Big Cut in Unemployment Federal Reserve Bank of Atlanta President Dennis Lockhart said private job creation during the past three months has been too weak to significantly reduce the nation’s jobless rate.
The brainiacs are worried. They should be. Duration of Unemployment in U.S. Rises to Record 34.4 Weeks.
The problem with Bernanke’s headline is that, and he knows this, business isn’t borrowing because the business isn’t there, and given the way companies get whacked for wreckless spending these days, no corporation is going to extend itself, through either debt or new hiring, no matter how much “encouragement” they get, if they don’t see two things: An increase in demand for their products and a government that stops punishing success. Or as Ben Stein said a few months ago, stop stepping on the oxygen hose, Mr President.