The Economic Picture Is Rosy….Um, Maybe Not

Everything Is Rosy

President Obama said, “America is back,” in his State of the Union address last night. We have $16 trillion in debt, a government that doesn’t work and our economy is definitely not back.

If the economy is doing so well, why are the Feds keeping interest rates near zero until 2014?

Why, oh why, is Bernanke thinking about another stimulus? Bernanke said, “I don’t think we’re ready to declare that we’ve entered a new, stronger phase at this point. If the situation continues with inflation below target and unemployment declining at a rate which is very, very slow, then … the logic of our framework says we should be looking for ways to do more.”

Then there is this information from John Batchelor –

Is the jobs picture improving, or stagnating, or deteriorating? I’m John Batchelor; this is the Heads-Up Minute. The Obama administration is delighted with the gain of 200,000 private-sector jobs in the final month of 2011. Also positive was a separate report that showed the US jobless rate is back down to 8.5%. Another positive is that first-time unemployment claims declined to about 350,000.

I learn from Stanford professor and Hoover Fellow Ed Lazear, who was chairman of George W. Bush‘s Council of Economic Advisors, that another important measure is not so rosy. It compares the number of people fired to the number who quit in a month. At long last, the quits outnumber the fireds- but just barely.

Also, the number of monthly hires today is just about the same as it was in January 2009, at the depths of the collapse. Conclusion: the jobs market still needs a long, long recuperation. I’m John Batchelor. John Batchelor Show

Read more here: Yahoo finance