FED says: Future = Lower Growth + Higher Unemployment

Melensdad · Nov 21, 2010

Yup you heard it hear first, the Federal Reserve is now predicting that the near term future of the USA will included a revised LOWER rate of growth and a revised HIGHER rate of unemployment. Folks I think the economic SHTF and its not going to be better soon.

FOR THE FULL STORY => http://www.ft.com/cms/s/0/b92ecb0c-f596-11df-99d6-00144feab49a.html#axzz15y1vZApj

Just a little tid bit to entertain you:

The revised forecasts will show how the Fed became much more pessimistic over the summer and also highlight fears among a few members of the FOMC that some of today’s 9.6 per cent unemployment rate is structural and will take years to cure.

When the FOMC published its last forecasts in June most members thought that 2011 growth would be between 3.5 and 4.2 per cent, but many now think growth will be between 3 and 3.5 per cent, and some expect less than that.

FOMC members have made particularly aggressive upward revisions to their unemployment forecasts, with a large number now predicting that it will still be 8 per cent or above at the end of 2012, compared to the 7.1 to 7.5 per cent that they forecast in June.

“Because I expect hiring to strengthen only gradually, the unemployment rate is likely to remain elevated for quite some time. In fact, I do not expect it to fall below 8 per cent before 2013” . . .

muleman · Nov 21, 2010

They are finally starting to tell the truth because they know the new congress is going to be looking at the Fed real hard and efforts to disband it will be coming. They need to quickly boost their credibility to fight the efforts against them. They and others pulling the strings have been engineering this calamity for quite some time.

jpr62902 · Nov 21, 2010

I can't help but think that we have yet to swallow the most bitter of pills. Everyone's gonna take a big hit. There's way too much spending, way too much "entitlement," way too much consumption and not nearly enough production.

I'm not talking anarchy, but those of us who have saved and lived within our means are about to get bent over big time.

Sure hope I'm wrong.

Melensdad · Nov 21, 2010

jpr62902 said:
I'm not talking anarchy, but those of us who have saved and lived within our means are about to get bent over big time.

I think you may be pretty accurate in your statement.

Inflation? Deflation? Dramatic reduction in government services? Dramatic increase in government taxes, user fees, etc?

Honestly I don't know but I am expecting hardship and I'm not looking forward to it. My main hope is that we can get through it in a reasonable time with some level of stability remaining in society.

thcri · Nov 21, 2010

And the new house will get blamed for it.

muleman · Nov 22, 2010

Cut spending on all levels of government before they raise taxes and the economy could start a solid recovery. This would be self correcting for our deficit problems. If the current growth in government continues it will lead to revolt eventually.

SShepherd · Nov 22, 2010

SHIT................8% ???????? I'd be happy to see that here !!!!

thcri · Nov 22, 2010

So here's a thought. Instead of fixing things let's make it look ok by making the people accept what the times are as being great.

Doc · Nov 22, 2010

thcri said:
So here's a thought. Instead of fixing things let's make it look ok by making the people accept what the times are as being great.

Sounds like you are "Fed" material Murph. I figure that is exactly what they say behind closed doors.

FED says: Future = Lower Growth + Higher Unemployment

Melensdad

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muleman

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jpr62902

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Melensdad

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SShepherd

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Doc

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