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They said that the unemployment rate is still "elevated." Not sure how additonal purchases are gonna bring it down when whatever improvement occured is barely enough to keep pace with population growth and then there's the hidden so called improvement in the stats with people leaving the "labor force."
The unemployment rate is the wrong metric for the Fed to use. The unemployment rate can decrease not because of an improving labor market, but because folks drop out of the labor force because there are no jobs. Instead, the Fed should use the Labor Force Participation Rate.
It's not true that the economy is about to take off.
Lending is not growing.
The QE money is stuck in banks.
I'd like to see that Too!!!
Pull the plug immediatley on QE and your evidence will be crystal clear.
smaulgld
2013 Sep 18, 8:40am
The unemployment rate is the wrong metric for the Fed to use. The unemployment rate can decrease not because of an improving labor market, but because folks drop out of the labor force because there are no jobs. Instead, the Fed should use the Labor Force Participation Rate.
Agree
You can get 0% unemployment if everyone just drops out of the labor force
It's not true that the economy is about to take off.
Lending is not growing.
The QE money is stuck in banks.
And the government shrunk its deficit.
In fact the mere talk of tapering already caused a significant shrinking of lending.
They achieved what they wanted: put a big break on housing, so no need to taper yet.
#housing