The Fed hopes for jobs

[pimples]

The most recent comments by the Federal Reserve governors are upbeat and positive. They feel that the economy is improving due to: the data on consumer spending(i.e. borrowing), the better than expected jobs report showing the 'bounce' of 50,000 net new jobs created in one month and they think its just a matter of time before low interest rates will increase business investment.

Say what?

I must ask, are low interest rates a reason to increase your company's investment in new workers and capacity? Perhaps THEY would invest YOUR money, but for entrepreneurs it requires a market of new possible return of capital through a vision of demand. For example: Do you buy milk because it is on sale, or do you buy it because you're running low(I bought 2 gallons once because it was on sale and threw out half of one because it went bad)?
We only 'demand' one gallon a week so why buy 2?
Now, if you know that guests are coming, THEN you 'invest' in 2 gallons because of expected new demand(they are big drinkers...hehheh).

At this point in our economy, the entreprenaurs do not see new demand and therefore 0% interest rates are probably not a reason to invest. Fed sees otherwise.

The Fed is only capable of keeping the consumers spending by low borrowing costs.

So when will the jobs appear?

Not until we can see new demand.

Solution? The Fed would better serve us by CREATING demand-but that is not possible[COLOR=RoyalBlue][FONT=Arial].

They hope for new jobs and wish upon a star.

[G-khan]

The way I see it we will lose a lot of jobs after the dismal Xmas sales come in.. If energy stays high or gets higher we may see a lot of lost jobs...

As far as the Fed goes they know whats up as they are bankers. They also know that at some point the fiat money scheme will fail. Most of them are human (believe it or not) and do not want it to happen on their watch. They will try to pass the buck into the future by issueing more debt. I am not convinced they can do it because I don't think they can get any one to take their loans - most have debt up to their eyebrows. The other thing they can do is get Government to take on this debt. They create things like Homeland Security agency and hire 100,000 and pay them with debt that will be passed on to our children. They also can start wars and buy night goggles and kevlar helmits and vests and tanks and guns etc. This will create some jobs and pump some dollars into the system..

Do not expect our Government spending to slow down any time soon. 87 billion here and 87 billion there and maybe they get enough juice into the system. Problem is if they do get it going energy prices will rise with the economy and snuff out any real recovery. My personal opinion is the fed is in deep shit and their shovel broke...

Feds pulling and yanking at the levers for sure.......

[pimples]

I thought I would demonstrate the most recent example of the mindset of the investment community-From the 'big guy' himself:

Sun 10:41pm ET - Reuters
Warren Buffett sees very few attractive investments at the moment, and is sitting tight on a $24 billion war chest. The billionaire investor and chief executive of Berkshire Hathaway said in an interview with Barron's that he is not impressed with the current opportunities in stocks, Treasury bonds or junk debt.

Well Warren,
How about the yellow shiny stuff?

:shine:

[jasonditz]

I thought I would demonstrate the most recent example of the mindset of the investment community-From the 'big guy' himself:

Sun 10:41pm ET - Reuters
Warren Buffett sees very few attractive investments at the moment, and is sitting tight on a $24 billion war chest. The billionaire investor and chief executive of Berkshire Hathaway said in an interview with Barron's that he is not impressed with the current opportunities in stocks, Treasury bonds or junk debt.

Well Warren,
How about the yellow shiny stuff?

:shine:

No kidding.

Why on earth wouldn't he put it in short term treasury bills if he's going to sit on cash anyways? It'll probably give him a negative return after inflation, but the same is true of cash.