Fed's sober reality: Not just jobs, but wages

[swag]

from

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_berry&sid=aDBAczWLBr3w

Excerpt:

Fed Sober Reality -- It's Not Just Jobs, But Wages: John Berry
March 17 (Bloomberg) -- While Federal Reserve Chairman Alan Greenspan has been optimistically predicting a surge in new hiring, the Fed statement issued after yesterday's Federal Open Market Committee reflected a more sober reality.

Fed officials are concerned that the continued lack of job growth could sap the strength of the now solid U.S. economic expansion.

Recent employment reports were so weak the committee changed the mildly optimistic language in its January statement, which read: ``Although new hiring remains subdued, other indicators suggest an improvement in the labor market.''

Instead, yesterday's statement said simply: ``Although job losses have slowed, new hiring has lagged.''

[mhr]

1. Unemployed 46 Months, Will Probably Be For Another 46 Months

eom

[phantom power]

2. cards

These people remind me of those delusional individuals who pile up too much credit-card debt, and then try to stay ahead of it by applying for more and more credit-cards.

Sure, it covers up the symptoms for a little while longer, but it makes the inevitable reckoning that much more painful.

I'd be more philosophical about it, except that this time, we're the ones who will pay when the bill comes due.

[Mountainman]

4. Immediate gratification

That's why people can't stop spending with plastic. I was that way until recently. Now when I get an offer for credit I tear it up before opening it.

I doubt any Repub in Congress or the White House would buy with credit and expect their kids to pay off the debt all the while hording their cash.

That's what the Repubs are doing by giving tax cuts then raising spending by increasing the deficit. I think any kid in grade school could understand that concept yet many adults who will vote for Repubs don't understand it.

[phantom power]

5. regulation

I've been thinking lately that maybe credit-cards should be outlawed. As far as I can tell, their original purpose was as a convenience tool for businessmen.

But these days, we have another convenient solution: the ATM card. It gives you all the convenience, but doesn't allow anybody to spend more than they make, since it's a withdrawal, not a loan.

Alternatively, I think that we should at least raise the bar for obtaining a credit-card. I think applying for a credit card should be more like applying for a mortage. To get my mortage, I had to produce a bunch of documentation that showed my earning-potential and my current net worth. It's a pain in the ass, but really it makes a lot of sense. And it prevents people from over-extending themselves.

When you think about it, it's a bit insane how much easier it is to get credit-cards. I could easily obtain credit-cards that amounted to more than my mortage, at a much higher interest rate. Small wonder our economy is crippled by consumer debt.

[phantom power]

6. and another thing

As long as I'm on this soapbox... It really bunches my underoos when I see credit-card ads that say "We increase your purchasing power".

What a load of crap. The exact opposite is true. If you never spend more than you are earning, your purchasing power is maximized. The second you start to carry a balance, some portion of every dollar you earn is being given to the credit company.

And, of course, same for the national debt. Whenever I hear people complain about taxes being too high, I tell them that the single most powerful thing they could do to lower their own taxes would be to demand that congress balance their damned budget.

[Lindacooks]

3. 'now solid U.S. economic expansion'???

Solid for whom? Rich CEOs? Outsourcing companies? Crooked Repukes?

[Beetwasher]

7. Reminds for Some Reason What My Old Football Coach Used to Say

"Hey guys! We may be small, and we may be slow, but we're also stupid!"