When will the U.S. labor market going to come back?
1 post, 1 voice
Login to reply
PrincessA
1 post
|
CEO of Pacific Investment Management Co. (Pimco), Mohamed El-Erian, thinks the last decade is a “lost decade” of unemployment for the labor market within the U.S., according to Bloomberg. El-Erian also thinks that the economy is used to moving forward and never looking back. Loans are needed by more people than the credit market can allow. He thinks a “new normal” in America is getting set in. Article source – Will the U.S. labor market rise from ashes of a lost decade by Personal Money Store. Unemployment and labor in U.S. nevertheless doing bad Unfortunately, El Erian thinks the labor market isn’t really going anywhere with the federal stimulus that is actually hurting. He also thinks there is nevertheless a high unemployment and the credit market nevertheless isn’t really lending. There is a worse view coming from Charles Nenner of the Charles Nenner Research Center. On Bloomberg Television’s “On the Move,” Nenner predicted the Dow Jones will fall to 5,000 within two years, underscoring El-Erian’s belief the U.S. economy isn’t really as flexible as policy experts believe. Playing with interest rates and holding hands out for an instant money bailout aren’t necessarily the best springboards to long-term recovery. People and institutions that watch for money now without understanding the long-term impact of borrowing from the future to prop up the present are doomed to fall from the trapeze and strike bottom.El-Erian said “This country has very weak safety nets” on “Bloomberg Surveillance.” “It is built on the assumption that our labor markets are very flexible, that if you lose your job in California you move somewhere else, you get another job, and what we’re seeing is structural unemployment.”Some trying to get high quality assets High quality assets are bought by Pimco right now. Within the U.S., the company’s Total Return Fund is the largest of its kind with the 11.8 return in the last year which is beating 67 percent of peer bongs, say Bloomberg. El-Elrian nevertheless thinks things are wrong. Structure should be more important within the country. In addition to the mildly ineffective bouts of stimulus, the dead-in-the-water U.S. housing market is not producing the assets needed for recovery. The U.S. economy needs to restructure the way business is done. “It needs other agencies to help and in particular, it needs structural policies to be there,” El-Erian informed Bloomberg. “Put another way, you need to stimulate not just demand, but also you need to make supply more flexible.”You will find numerous dreams and wild speculations occurring with IOUs. El-Erian’s idea of a “new normal” could just help the economy snap back.Bloomberg bloomberg.com/news/2010-08-30/el-erian-sees-lost-decade-for-u-s-jobs-amid-weak-safety-nets-tom-keene.html PIMPCO europe.pimco.com/LeftNav/AboutPIMCO/Milestones.htm Understanding the “new normal” youtube.com/watch?v=t8oyYYBJGX4 |
* For speed and versatility, Corrections.com has been relaunched in opensource. Some older postings dates may be affected.
