tag:blogger.com,1999:blog-11027528911364475.post6618934480992396425..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Capacity Utilization vs. UnemploymentJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-11027528911364475.post-20223742071846830312009-09-16T13:51:42.722-07:002009-09-16T13:51:42.722-07:00I have two take aways from this note:
1) the US ...I have two take aways from this note: <br /><br />1) the US government has a new way to "cook the books" and end ressions -- simply throw some future tax payer cash at some sort of manufactured product (Cash for ___ plan), and <br /><br />2) Capacity utilization has always (therefor will always) stop the lay-offs.<br /><br />Ok, I believe #1, but #2 is harder to believe given the high unemployment levels and accelerating credit card defaults/ mortgage defaults/CRE defaults leading to continued credit restrictions. Plus an economy not based on manufacturing. One has to wonder if there isn't a significant feedback loop this time.<br /><br />Wouldn't it be surprising if the NBER concluded that we do not stop "recessing" unitl the economy and net employment start growing (beyond a dead-cat statistical noice level).Anonymousnoreply@blogger.com