Recession Over, Unemployment Still High
BBC: US Federal Reserve cuts 2011 growth forecast: The Fed expects growth of 3-3.6% next year, down from its previous 3.5-4.2% estimate. .... the US economy grew faster than first thought in the third quarter of this year, at an annualised rate of 2.5%. ...... US Federal Reserve said it would buy $600bn (£373bn) of US government debts in order to try to lower long-term interest rates and thereby boost the economic recovery. ...... support for the move on the policy committee was almost unanimous, with only one member voting against. ..... among the positive effects of quantitative easing that they noted was a lower value in the dollar. ..... the unemployment rate remains stubbornly high at 9.6%.
There is not going to be a double dip recession. The Great Recession could easily have become the second Great Depression, but it didn't, thanks to the stimulus package. The banks are back in shape. Spending is going up. But the unemployment is still at European levels, and that is a big problem. It has to be brought down to something like 6%.
The best thing that could happen is the private sector stops sitting on the two trillion dollars it is sitting on. And if the private sector will not get off its rear end
Image by Getty Images via @daylife on its own, the Fed should pull a few strings and make the inflation rate go up. When the inflation rate goes up, sitting on money makes less sense.
The high unemployment rate bothers me. But I am also very happy that I think we have entered a boom decade. A lot of cutting edge stuff is going to happen over the coming years. And I am personally excited. This is a great time to be alive.
Bubble, Boom Or Froth?