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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
 
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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?

http://www.businessinsider.com/fed-president-thomas-hoenig-delivers-speech-to-tea-party-acknowledges-battle-with-bernankes-qe-insanity-video-2010-9

http://www.themoneyillusion.com/?p=7366

"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"

http://voices.washingtonpost.com/ezra-klein/2010/10/wonkbook_draft_1.html

Beyond all of that, who actually invests on hope?

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

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