With the most recent announcement of Non-Farm Payrolls once again it is clear that when God said I am passing out “brains” future Federal Reserve officials thought he said “here come the rains” and all headed for shelter.
In the most recent FOMC minutes the members are quoted as saying ”The labor market was now closer to what might be considered normal in the longer run”.
This statement will rank with Greenspan’s-I didn’t see it coming and Bernanke’s-National housing prices never go down and sub-prime is well contained.
I believe we need to have a better understanding of what “normal” means.
The latest participation rate has dropped to its lowest level since 1978 and the people not in the labor force has risen to an all time high of 92.3 million.
Of course, according to Janet Yellen, the majority are enjoying their baby boomer retirement in the
I am not sure how normal it is that according to Freelancers Union, a non-profit organization, 34% of the nation’s workforce, 53 million people, could be considered Temp, as they are freelancers, independent contractors, moonlighters and street corner entrepreneurs.
One of the most recent additions to the Federal Reserve Board said she expected the unemployment rate to be at 5.5 by the middle of 2015 based upon the continuing job recovery. Surprisingly I concur as the most recent report corroborates there were no, I repeat no manufacturing jobs created. Of the greatest paying jobs, finance and information, seasonally adjusted a paltry 4,000 jobs were added. Therefore, we can expect the participation pool to continue to decline and the unemployment number to decline with it. That’s just simple mathematics.
Halleluiah happy days are here again!
Even the three stooges would be embarrassed by the Federal Reserve’s idea of normal. Curly, Larry and Mo were three very financially savvy and astute stooges.
Unfortunately, we long for the stooges but we got the morons and normality has taken a different direction.