faked jobs report
Did Bernanke Mean the Jobs Reports Are Faked?
Fed Chairman Helicopter Ben Bernanke had the stock markets jumping again Monday after a speech in which he seemed to be promising that the Fed was ready to start a "QEIII" asset purchase binge soon, in addition, of course, to providing the banks zero-interest-rate money until late 2014.
But in the March 26 speech, Bernanke sounded as if he were putting a finger aside of his nose regarding the recent reports of U.S. job growth, and indicating that they were not real.
In fact, these reports by the Bureau of Labor Statistics, much trumpeted by President Obama & co., have been the product of some "seasonal adjustment" whoppers, as Bernanke well knows. He said "there is a disconnect" between those rosy jobs reports and an economy he said is barely growing at all, and implied trouble ahead on the unemployment front.
His conclusion was that the Fed had to keep pumping liquidity into the system like there's no tomorrow. On March 27, Boston Federal Reserve president Eric Rosengren restated Bernanke's "gloom" in a different way: "The spending data have been very weak and suggest recent improvements are probably unsustainable", he said. Bernanke also referred to miserable reports on the housing sector; a whole series of sales, price, and contract reports have appeared in the past week, each one worse than the other -- culminating in the March 26 Case-Shiller Index showing home prices dropping another 0.85% in January, and just under 4% year-to-year -- and the great third wave of foreclosures since 2006 is just gathering momentum.
New York Fed Bank President William Dudley admitted to a House Committee Monday that the Fed -- on top of unlimited dollar swaps lines extended to every major central bank, and Treasury Euro bailouts through the IMF -- also now holds "a small amount of European sovereign debt." Shades of MF Global.