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US Labor Market Still Weak After Trillions In Stimulus (Dude, Where’s My Recovery?)

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

As I pointed out on Friday, the US jobs market had a fine print in terms of quantity of jobs added, not quality. 80% of jobs added were of the low-wage variety.

Liquidity moves markets!

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And two employment indicators show that the US economy is back … to the worst levels prior to 2008. Both U-6 underemployment (total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force) and the employment-to-population ratio still remain grim.


Despite the massive fiscal and monetary stimulus (ZIRP and QE 1-3) thrown at the employment problem.


M2 Money Velocity keeps falling along with real median household income (both lower than in 2007).


While we got stagnant wages and almost 10% U-6 underemployment, we did get big increases in asset prices (house prices and stock market prices).


Industrial production (YoY) and total business sales (YoY) are in negative territory.


The purchasing power for consumers has decreased dramatically since the creation of The Federal Reserve System in 1913 under President Woodrow Wilson. But at least the volatility of industrial production declined. /sarc


At last bank credit growth is back at about 7.5% YoY. Mortgage credit growth (net) has barely broken into positive territory.


So after the $831 billion in 2009 and the trillions in Fed monetary stimulus, dude, where’s my recovery?


The next time Fed Chair Janet testifies in front of Congress, members of Congress should welcome her with Zoltan!

Thanks to Jesse’s Cafe Americain for the Dude graphic.

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