Network News

X My Profile
View More Activity

Silver lining to the jobs report?

The stock market thinks it'll finally force the Fed into the game.

By Ezra Klein  | October 8, 2010; 11:05 AM ET
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   StumbleUpon   Technorati   Google Buzz   Previous: What does 64,000 jobs mean?
Next: Lunch Break


Yeah, because when we're already at the zero bound and the banks are sitting on trillions in cash and not lending since there is no demand out there (because of no jobs and massive deleveraging), more cash will magically get the banks to lend to consumers who can't pay their loans because THEY HAVE NO MONEY. At some point, don't the Masters of the Universe (and their eager would-be acolytes like Ezra) have to understand that the economy might actually rely to some degree on whether the rest of us have money? No? Bueller? Bueller?

Posted by: redscott1904 | October 8, 2010 11:17 AM | Report abuse

So long- and medium-term interest rates will get pushed down even further. More pushing on a string?

Posted by: tuber | October 8, 2010 12:09 PM | Report abuse

What an idiotic thing to write. Liquidity charged speculation without regard to underlying fundamentals, largely undertaken by big financial players as the retail player in equity markets are still exiting, is a "silver lining" to another bad jobs report worth mentioning in a post?

Also, what do think the latest rally has been about anyway? LOL The latest jobs report is hardly a new major impetus in people anticipating QE2 as its been largely priced in in recent rallies.

Posted by: mrnegative | October 8, 2010 12:30 PM | Report abuse

Silver lining?

"A number of economic modelers estimate that the unemployment rate would remain above 9 percent whether the Fed expanded its balance sheet by $500 million or $2 trillion. The reason is that the normal channels through which monetary easing works are pretty worn out. Interest rates are already so low that pushing them lower won't induce more borrowing"

Beyond all of that, who actually invests on hope?

Posted by: justin84 | October 8, 2010 1:22 PM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.

characters remaining

RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company