Ben Bernanke's Jobless Recovery

Why the U.S. economy won't recover and why Depression is inevitable. Part 1.

Media pundits and government 'economists' everywhere are already calling for recovery, even though the underlying causes of this economic crisis still have not been addressed.

In December of 2008, real unemployment was around 17.5 %. In July of 2009, real unemployment was around 20%. If you follow the trends, you can clearly see that we are already experiencing depression-level unemployment. The U.S. economy CANNOT truly recover as long as we keep losing millions of jobs because, in a consumer-based economy, employment is more directly linked to GDP.

Another major problem is real estate. Sales volumes may be picking up, but only because sellers have gotten very desperate. We still have yet to see the peak in Alt-A/Option ARM recasts, which will, in conjunction with the commercial real estate collapse, no doubt create more junk mortgages for banks, leading to another collapse in the banking system. The only problem is, this time, the big boys won't just be affected by this crisis. Small banks will be affected by the commercial real estate collapse because this is where most of these commercial real estate loans are held. Nevertheless, home prices continue to plunge to their natural, pre-bubble level. The current 'toxic' asset bloodbath has not yet been addressed either. The longer these banks hold on to these 'toxic' assets, the more they decline in value, which means they lose more money. They simply want the government to pay for these assets at bubble value - this is why they are not letting the government look at them so that they can determine the value. So, while banks are already being choaked by worthless securities, more 'junk' mortgages will be created by the next wave in residential recasts/foreclosures and the commercial real estate collapse, making credit much harder to get, which will also affect the small businesses who are currently holding their head above the water in this economic environment. And lets not forget about the massive amunt of money these banks are holding. When these banks finally open up, along the Fed monetizing debt/printing money, will result in a massive inflation shock that will form a negative feedback loop into the overall economy, further dampening employment and overall economic growth.

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[1776in2008]

Yo, Jack, when are you gonna post part two? I hope you will soon.

[JackNeedles]

I will probably be posting part two this week. Got a lot of new economic data to go over too.

[JackNeedles]

Yeah, you should try it sometimes. Might wake you up.

[Blueace12345]

seriously, you want me to watch you read for 9 mins? You should have just posted whatever you were reading from i might have got more then 26 seconds in.

[JackNeedles]

When I post my economic updates, I make an outline of important topics that I want to cover on paper. I write them myself - that way I don't forget something and I am able to cover all of the micro-economic mechanisms that are involved. I then make a video and go from subject to subject so that I am able to deliver the best economic information to the viewer. What's so wrong with that? Many people do that in the professional business world. I lost you.

[Blueace12345]

Yea all of the above is great for doing a video. The problem is when i watch the news it doesnt look like i'm being read to, its more like a 1 sided conversation and I cant see the persons eyes move left and right constantly as if ...they're reading to me.

[JackNeedles]

Perhaps thats because they have a thousand dollar teleprompter that they're reading from. Anyway, I am sorry you do not like it. After all, it is the information I am getting out, not my delivery, that is important.

[Relugus]

A "recovery" in which unemployment goes up is not a recovery by any sane definition.

[slobomotion]

Greetings from France.

[mjpitche]

The rich get richer and the poor get poorer. That's just life in this world. We had crazy prosperity just after WWII up until the 80s. The middle class was strong and you just had to go to a factory and make tons of money and have two cars and a great house and be able to afford everything you wanted on one income. Since this all ended in the 80s we will just continue to see two classes, the very rich and very poor. The rich set laws and policy and find ways to make more money.

[duwbryd]

I'm surprised you can read so well, after smoking so much weed.

[obeyance]

@Blueace12345 If you base your intake of knowledge by the way its present then maybe you should watch Barny? Hes relaying a lot of FUN TIMES and BRIGHT COLORS for people that have problems paying attention for more than 15 seconds...

[arzoyan]

Unemployment is the essential reserve of the army of labor to keep the price of the wage slavery down as to maximise Profit for the criminal ruling/owning class. Capitalism is the wage slavery of immense humanity in a Politically manipulated,tyrannical Market System of artificial scarcity and manipulation to perpetuate the conditions of wage-slavery in the interest of few elite. Capitalism is the organised,legalised robbery of the working class. Capitalism is crime against humanity

[Ladyshystar]

7 months later and its playing out as you spoke it!

Dont you feel sick now Jack! Being right aint all its cracked up to be.

Keep posting!

LadyShy

[markbradleyvideos]

I am thankful to have seen this video. Great one! thank you and keep up the good work!

[xojoe]

to call the recession technically over is to say you can devalue your currency and then claim it as growth. by a gold standard or an inflation standard the recession is technically not over.

also any reference to "unemployment rate" is worthless without comment on "fulltime employment rate" which is clearly more important of a number.

the numbers have to add up to 100%

[shroomduke]

How long is "some time" and what do they men by "weak economy"?

The Crimes: Looting, Treason, Murder, Sedition, insider trading, etc.

The Criminals: Dick Cheney, karl Rove, Donald Rumsfeld, Ben Bernanke, Henry Paulson , Phil Gramm, Alan Greenspan et al...

What is the penalty for Treason "IN A TIME OF WAR"?

WHERE ARE THE INVESTIGATIONS? will they try to put kissenger in charge again?

How Ignorant and feckless are the American people? will we let these crimes stand?