Ben Bernanke - Scares the Hell out of Me (unemployment, authority)

[kjbrill]

I know this is not designed to be a political forum, but considering the recent thread concerning our governor elect - John Kasich, I feel this has already been broached.

The current chairman of the Federal Reserve, Ben Bernanke scared the Hell out of me the other night when I watched his interview on 60 Minutes. The specifics I remember are:

• The current unemployment values or larger may exist for the next 4 to 5 years.
• We are still precariously on the precipice of another recession, and it would not take much to plunge us into one.

This man, and his venue the Federal Reserve wielded more financial power than the world has ever seen during the financial crisis of 2008. And most of this was without a vote, just authority they already had.

So give me you thoughts, political as they may be.

[progmac]

i don't have a strong opinion, so tear apart my weak one if it deserves it...but it occurs to me that a financial system MUST be perceived as stable if it is to function...and that financial system needs something of a "czar" to achieve that stability. so i guess this puts me in the "necessary evil" camp.

[GManorborn]

Originally Posted by kjbrill

The current unemployment values or larger may exist for the next 4 to 5 years.

Sounds about right; maybe longer.

[wolden]

Originally Posted by kjbrill

The current unemployment values or larger may exist for the next 4 to 5 years.

• We are still precariously on the precipice of another recession, and it would not take much to plunge us into one.

I don't see why the above facts (and I regard them as so nearly certain that they are facts ) should be associated with Bernanke. He didn't create those problems.

In fact , 4-5 years is optimistic. That time frame depends on the assumption that the Labor force participation rate (LFPR) will continue to be subnormal. There is no real basis for assuming this. If the LFPR returns to normal, it is estimated that it will take TEN YEARS to get back to the pre-recession employment.

Here is a web site that explains this. Check out the graphs:

Projecting "The Jobs Chart" | zero hedge