Federal Reserve Board: H.2 Release for Week Ending September 1, 2018; H.4.1 Release (Balance Sheet) for Week Ending September, 2018; Two Of Note Items

Of Note

(1) Robert Edward Rubin: A faulty exemplar & a standard bearer for the 1 percent, who wrote a column concerned about the deficit (a credit to the people).



 

Rubin’s net worth: $100 million (approx.)

Former partner, Goldman Sachs.

After serving as Secretary of the Treasury, Rubin served as director and senior counselor of Citigroup. From Nov. to Dec. 2017, Rubin was temporary chairman of Citigroup. Rubin resigned in early 2009. He received about $126 million during his tenure, which included the U.S bailout of Citigroup.

Rubin is a pro-austerity “deficit hawk” (for the 99%) through the Hamilton Project, “a centrist policy shop that promoted small-bore strategies for weak forms of social insurance, and had little interest in such progressive causes as full employment or a high wage economy. (http://prospect.org/article/end-austerity-crusade)

Notably, he is silent on the extreme cost of empire (aka funding for the Department of War/ Defense).

 

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(2) Oversupply of labor. Via Truthdig: “The Gig Economy and Outsourcing: A Dark Net of Near Slavery,” by Julian Vigo.

Key quote–

More and more, jobs in the commercial sector have been farmed out by outsourcing websites such as Indeed, Upwork, BloggingPro, MediaBistro, FlexJobs, ProBlogger and many others. While Indeed tends to work with local talent, which keeps the job pool within a rational economic boundary, other sites, like Upwork, do not. For instance, here is a job I applied to a few weeks ago and tried to make work—until I realized that this job would, if properly executed, pay only about $30 per day:

I’m looking for an experienced writer, with in-depth knowledge of travel and photography equipment, to write review articles. For the first project you’ll be writing a total of 12 000 words spread over 10 review articles. You’ll be covering popular travel and photography equipment topics. You should be able to do your own research.


 

The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending September 1, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Supervision and Regulation Resolution Plans — joint determination to move the next resolution-plan filing dates (1) to July 1, 2020, for four large, complex foreign banking organizations and (2) to December 31, 2019, for Prudential Financial, Inc.

-Approved, August 27, 2018

 

Enforcement The Bank of New York Mellon, New York, New York — consent order of assessment of a civil money penalty, pursuant to the National Flood Insurance Act, dated August 28, 2018.

-Announced, August 30, 2018

 

UCB Financial Group, Inc., Atlanta, Georgia (now known as ABB Financial Group, Inc.) — written agreement dated August 19, 2010, terminated August 27, 2018.

-Announced, August 30, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for September 6, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of September 5, 2018):  $4,255,799 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

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Federal Reserve Board: H.2 Release for Week Ending August 18, 2018; H.4.1 Release (Balance Sheet) for Week Ending August 23, 2018


Of Note

(1) David Wilcox, Ph.D., Division Director, Research and Statistics, to retire year-end 2018.

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(2) The Center for Popular Democracy (also known as FED UP) visits Jackson Hole, Montana, the location of a closed-door conference of the Federal Reserve.

Also, see Popular Democracy’s report “The Full Employment Mandate of the Reserve: Its Origins and Importance.”


The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending August 18, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — final Board review to extend without revision the Recordkeeping Requirements Associated with Regulation GG (Prohibition on Funding of Unlawful Internet Gambling) (FR 4026).

-Approved, August 15, 2018

 

Forms — final Board review of a proposal to extend with revision the Reporting Requirements Associated with Regulation QQ (Reg QQ).

-Approved, August 15, 2018

 

Forms — initial Board review to extend without revision the Supervisory and Regulatory Survey (FR 3052).

-Proposed, August 15, 2018

 

Forms — final Board review to extend without revision the Recordkeeping Requirements Associated with Changes in Foreign Investments (Made Pursuant to Regulation K) (FR 2064).

-Approved, August 15, 2018

Monetary and Financial Policy Term Deposit Facility — floating-rate offering of seven-day term deposits with an early withdrawal feature, same-day settlement, and a maximum tender amount of $250 million on August 23, 2018.

-Announced, August 16, 2018

Enforcement Capital Funding Bancorp, Inc., Baltimore, Maryland; and CFG Community Bank — cease-and-desist order dated October 31, 2011, terminated August 8, 2018.

-Announced, August 14, 2018

 

CommerceWest Bank, Irvine, California — cease-and-desist order dated April 12, 2016, terminated August 8, 2018.

-Announced, August 14, 2018

 

Flagstar Bancorp, Inc., Troy, Michigan — supervisory agreement issued by the Office of Thrift Supervision dated January 27, 2010, terminated August 14, 2018.

-Announced, August 16, 2018

 

HSBC North America Holdings, Inc., New York, New York — cease-and-desist order dated October 4, 2010, terminated August 7, 2018.

-Announced, August 14, 2018

 

NBRS Financial, Rising Sun, Maryland — final decision and order of prohibition against Jacob H. Goldstein, a former institution-affiliated party.

-Approved, August 15, 2018

 

Santander Holdings USA, Inc., Boston, Massachusetts — written agreement dated July 2, 2015, terminated August 14, 2018.

-Announced, August 16, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for August 23, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of August 22, 2018):  $4,276,468 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending July 28, 2018; H.4.1 Release (Balance Sheet) for Week Ending August 2, 2018; Precarious Work and Google

Of Note–

(1) Precarious work. The thing that bothers me about precarious work is that no matter how great you work, you can be fired any minute. As a result, things that require long-term commitment–a house, children, car purchase–are out of reach. Workers at the work site all have “temp horror stories,” as if the temp workers are not also being exploited by the employer (low pay and no benefits).

This example serves as a preface to a Bloomberg story, Inside Google’s Shadow Workforce by Mark Bergen and Josh Eidelson, about the precarious workers at Google, nearly 50 percent of Google’s workforce.

Yet Jerome Powell, multimillionaire Chairman of the Federal Reserve Board continues to talk about “full employment”.

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The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending July 28, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — final Board review to extend with revision the Consolidated Financial Statements for Holding Companies (FR Y-9C), Parent Company Only Financial Statements for Large Holding Companies (FR Y-9LP), Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP), Financial Statements for Employee Stock Ownership Plan Holding Companies (FR Y-9ES), and Supplement to the Consolidated Financial Statements for Holding Companies (FR Y-9CS).

-Approved, July 24, 2018

Enforcement Chicago Shore Corporation, Chicago, Illinois, and Security Chicago Corporation — written agreement dated October 28, 2016, terminated July 24, 2018.

-Announced, July 26, 2018

 

Community Trust Bank, Pikeville, Kentucky — issuance of a consent cease-and-desist order.

-Approved, July 24, 2018

 

East West Bank, Pasadena, California — written agreement dated November 9, 2015, terminated July 18, 2018.

-Announced, July 24, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for August 2, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of August 1, 2018):  $4,302,997 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending June 2, 2018; H.4.1 Release (Balance Sheet) for Week Ending June 7, 2018


Of Note–

(1) Nancy Pelosi (net worth $100 million (2015)) and “pay-go”: On so-called pay-go, the limitation is a creation of Congress. Congress can also get rid of it. Pay-go is not infallible fiscal doctrine. (Note: Millionaire economist Jason Furman (net worth $24 million) has also favored pay-go.) This is one idea that will quash any blue wave.

Comment:  The Democrats’ problem is not messaging but the lack of programs that will help people (stifled by pay-go nonsense).

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The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending June 2, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Forms Forms — final Board review to extend without revision the 2019 Survey of Consumer Finances (FR 3059).
-Approved, May 30, 2018

 

Personnel Division of Consumer and Community Affairs — appointment of Amy Henderson as assistant director.
-Approved, May 30, 2018
Division of Information Technology — appointment of Brian Lester, Scott Meyerle, and Langston Shaw as assistant directors.
-Approved, May 30, 2018
Regulations and Policies Regulation VV (Proprietary Trading and Certain Interests in and Relationships with Covered Funds) — notice of proposed rulemaking with request for comment to simplify and tailor requirements relating to the “Volcker rule.”
-Approved, May 30, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for June 7, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of June 6, 2018):  $4,366,764 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

Federal Reserve Board: H.2 Release for Week Ending February 3, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 8, 2018; Two Of Note Items


Of Note–

(1) Millionaire economics “experts” that warn of inflation for any government spending not focused on the rich.

Comment:  Keep in mind that the U.S. Government fully bailed out Wall Street, where the richest 10 percent of Americans now own 84 percent of all U.S. stocks. (Source: Household Wealth Trends in the United States, 1962 to 2016: Has Middle Class Wealth Recovered? Edward N. Wolff, NBER Working Paper No. 24085, November 2017.)

(a) Jason Furman, Ph.D., estimated net worth in 2013 $24.6 million. (Open Secrets)

Observation: Jason Furman’s primary issue with deficit spending is based on “full employment.” Furman believes it is the U3 unemployment rate, 4.1 percent (February 2018). However, the U3 counts people receiving unemployment insurance. After the benefits run out (more or less 26 weeks), the person is no longer counted, whether or not that person has an income-producing job. After 26 weeks, the person seeking work without unemployment insurance payments is counted by the U6 measure. In February 2018, the U6 unemployment rate was 8.2 percent.

With so many left out of the so-called recovery, there is likely room for the government to do more to assist the suffering. As Furman is a millionaire, the idea that people are still broke from the Great Recession’s aftermath seems to be a difficult concept to understand.

Further, Furman believes in austerity, so this stance fits with it–no concern for the suffering. (See also Furman’s support of WalMart.)

Moreover, as the U.S. Government is in charge of its own currency, the notion that it will run out of money or go broke is nonsensical. When Wall Street had paper losses of trillions (bourne mostly by the richest in the United States), none of these economists raised this sort of issue when the government covered those rich people’s losses.

 

 

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(b) Steven Rattner, Wall Street financier and multimillionaire ($108 million to $688 million (2009)), who was involved in a pay-to-play scandal, thinks similarly to Furman on the subject of additional government spending and also that wage increases to workers is inflationary. Rattner also favors globalization that has caused suffering to the middle class with the rampant outsourcing of jobs to low-wage countries.

In light of globalization, will the government spending cause inflation or simply allow the people who are suffering to begin to reassemble their lives and merely exist with the basics (food, housing, and clothing)? It is worth a shot to see so that the long-ignored suffering people can finally receive some assistance (that is, jobs).

(2) February 2018 Monetary Policy Hearing.

Monetary Policy Report, February 2018 

The Monetary Policy Report hearings will be held on February 28, 2018,
and March 1, 2018. It will be the first for the new Chairman of the Board, Jerome Powell.

U.S. House of Representatives U.S. Senate
February 28, 2018, 10:00 a.m., House Financial Services Committee March 1, 2018, 10:00 a.m., Senate Banking Committee
Press release: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=402987 Press release:

The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending February 3, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Personnel Division of International Finance — appointment of Shaghil Ahmed, Brian M. Doyle, and Joseph W. Gruber as senior associate directors; Sally M. Davies as associate director; Carol C. Bertaut and Paul Wood as deputy associate directors; and Ricardo Correa, Andrea Raffo, and Robert Vigfusson as assistant directors.
-Announced, January 29, 2018
Regulations and Policies Regulation KK (Swaps Margin and Swaps Push-Out) — publication for comment of interagency amendments that would (1) conform the definition of “Eligible Master Netting Agreement” in the swap margin rule to restrictions adopted in final rules on certain qualified financial contracts of systemically important banking organizations (QFC Rules) and (2) ensure that any legacy swap would not become subject to the swap margin rule if it is amended solely to comply with one of the QFC Rules.
-Approved, January 23, 2018
(A/C)
Enforcement Bank of Gueydan, Gueydan, Louisiana — written agreement issued August 12, 2014, terminated January 25, 2018.
-Announced, January 30, 2018
J.P. Morgan Securities (Asia Pacific) Limited, Hong Kong, China — determination denying the request by Fang Fang, a former institution-affiliated party, for interlocutory review of an order issued by the administrative law judge in connection with an enforcement matter.
-Approved, January 29, 2018
Wells Fargo & Company, San Francisco, California — consent cease-and-desist order against Wells Fargo & Company for unsafe or unsound practices related to the firm’s governance and risk management that led to violations of law, and associated letters.
-Approved, February 2, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 8, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of February 7, 2018):  $4,467,962 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

Federal Reserve Board: H.2 Release for Week Ending January 27, 2018; H.4.1 Release (Balance Sheet) for Week Ending February 1, 2018; Three Of Note Items


Of Note– 

(1) Janet Yellen completed her term as Fed Chair. CNBC reporter, Steve Liesman, posted photos of the Board’s farewell to Janet Yellen and welcome to the new Chairman, Jerome Powell, on Twitter.

According to Liesman, Yellen will be a “distinguished fellow at the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution in Washington, D.C.”

(2) Wells Fargo & Co. Before leaving the Board, Yellen signed a cease and desist order for Wells Fargo & Co. 

(3) Atlanta Fed Bank’s board chairman, Mike Jackson, CEO of AutoNation, on Bloomberg radio. On February 1, 2017, I happened to catch Bloomberg’s interview with millionaire Mike Jackson, chief executive officer of AutoNation. According to AutoNation’s 2017 proxy (page 29), Jackson had an executive compensation package valued at $11.1 million (2016).

On Bloomberg, Jackson had a response to a question about the still-low workforce participation rate (that demonstrates why having monetary policy from only corporate management executives, rather than from people from all walks of life, is a bad idea which leads to equally bad policy):

  • Comfort level with the social safety net post-financial crash. (!)
  • Skills gap.
  • Uncertain stance on immigration policy.

Comment:  What caught my attention was the mention of the “safety net.” Jackson did not elaborate on this point and the Bloomberg interviewer did not ask him to explain any of his points. What I do know is that the people of the United States (unemployed and underemployed) of the have not seen the recovery yet.

FRB Atlanta Bd. Member (2018) Title & Company (Ticker) Compensation Package
Michael J. Jackson (chair) Chairman, CEO, & President, AutoNation (AN) $11.1 million (2017 proxy, page 29)
Myron A. Gray (Deputy Chair) President, U.S. Operations, United Parcel Service (UPS) $4.75 million (2017 proxy, page 41)
Robert W. Dumas President & CEO, AuburnBank (AUBN) $153,251 (2017 proxy, page 41)
Thomas A. Fanning Chairman, President, & CEO, Southern Company (SO) $15.83 million (2017 proxy, page 62)
O.B. Grayson Hall, Jr. Chairman & CEO, Regions Financial Corporation (RF) $14.1 million (2017 proxy, page 91)
Gerard R. Host President & CEO, Trustmark Corporation (TRMK) $2.17 million (2017 proxy, page 30)
Mary A. Laschinger Chairman & CEO, Veritiv Corporation (VRTV) $8.3 million (2017 proxy, page 35)
Jonathan T.M. Reckford CEO, Habitat for Humanity International $332,338 (2016 Form 990, part VII)
Elizabeth A. Smith Chairman & CEO, Bloomin’ Brands, Inc. (BLMN) $5.5 million (2017 proxy, page 28)

But it is hard for privileged, rich people to see this point. The Atlanta Fed’s board of directors is dominated by millionaires and corporate executives. Yet, these so-called policymakers refuse to go to the Labor Department’s One-Stop Career Centers to ask the suffering directly about their experience of the U.S. economy (no rich economist’s anecdotes needed).

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The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending January 20, 2018, is below.

H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received

Category Action Taken
Bank Holding Companies Associated Banc-Corp, Green Bay, Wisconsin — to acquire Bank Mutual Corporation, Milwaukee, a savings and loan holding company, and thereby indirectly acquire Bank Mutual, Brown Deer, a federal savings association.
-Approved, January 22, 2018
Regulations and Policies Disaster-Related CRA Consideration — interagency statement granting favorable consideration under Community Reinvestment Act regulations to financial institutions outside of the U.S. Virgin Islands or Puerto Rico for activities to help revitalize or stabilize these areas.
-Announced, January 25, 2018
Savings and Loan Holding Companies Wawel Financial Services, MHC, Garfield, New Jersey — (1) to dispose of its subsidiary, Wawel Bank, Garfield, pursuant to a merger agreement with Spencer Savings Bank, Elmwood Park, and to dissolve following the disposition of Wawel Bank; and (2) for the Board to delegate authority to the Reserve Banks to approve future dissolution requests from mutual holding companies.
-Approved, January 24, 2018
Supervision and Regulation Resolution Plans — issuance of joint letters with the Federal Deposit Insurance Corporation to 19 large foreign banking organizations regarding the firms’ resolution plans due in December 2018.
-Approved, January 23, 2018
Enforcement Putnam County Bank, Hurricane, West Virginia — issuance of a cease-and-desist order and assessment of a civil money penalty upon the consent of Jeffrey R. Davis, a former institution-affiliated party.
-Announced, January 25, 2018

Federal Reserve Board: Balance Sheet (H.4.1 Release)

The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for February 1, 2018, is below.

[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]

H.4.1 Release–Factors Affecting Reserve Balances

Total factors supplying reserve funds (as of January 31, 2018):  $4,465,593 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).

(See the release for further information.)

 

Neoliberal Economics: A Dismal and Immoral Academic Theory; Long-Term Unemployed Abandoned

In this election cycle, economic uncertainty, delivered to the poor and the middle class, has roiled the two major political parties in the United States–Democrats and Republicans. The 2008 economic crisis and its aftermath robbed the majority of people of stability. The rush to completely rescue the financial sector, that caused the mess in the first place, at the cost of the rest of the population, was horrible to witness.

The abandonment of those afflicted with long-term unemployment, with the termination of the long-term unemployment assistance at the end of 2013, left innocent, hard-working Americans to face financial ruin while the rest of the nation moved on. The politicians abandoned people who were victims of the economic crisis. The politicians, of both parties (many of them millionaires), sowed the wind and are now reaping the whirlwind.

Economists have been the drivers of this system behind the curtain. The chair of the Federal Reserve, Janet Yellen, in a response to Senator Robert Melendez (D-N.J.) at the hearing  for the Monetary Policy Report (at about 1:22:00 in the video), said unemotionally that people unemployed longer than 26 weeks have “lost skills” and that fiscal policy would be best to handle it.

Meanwhile, the monetary policy assumes that the current level of 26-week unemployment is the best situation and has returned to raising interest rates (that is, the Phillips Curve). This was the cruelest statement that Chair Yellen could have uttered; she, the economic profession consensus, and the Federal Reserve System have abandoned the unemployed people of the United States! Notably, this so-called normalcy includes the doubled percentage rate of unemployment for African Americans and Latino Americans. Such “normal” expectations reflect the failure of both monetary and fiscal policy.

This result, where it appears that he people of this country accept such casually dispensed cruelty perplexes me. Perhaps, it is the action of economists promoting this immoral position, covering such an unacceptable result with confounding calculus and statistical formulae, that prevents necessary critique. Such a situation cannot stand any longer.

This blog covered the paper of Economist Alan Krueger, who proposed the abandonment of the long-term unemployed because he concluded that they lost skills and were destined to persistent unemployment. This paper was published shortly after the Congress decided to let the long-term unemployment program lapse. Krueger, a millionaire, could afford to be unconcerned. Alas, he is financially secure. Frankly, I am sickened by an economics profession that has no tie to humanity or any concern for human beings.

Also, some Fed economists dared to suggest that a burst of hiring accompanied the abandonment of the long-term unemployed. Yet, still to the date of the post of this blog, there are still lots of long-term unemployed people (and people who work who worry about their friends and relatives as well as the instability of their own positions.)

Economic stability is the bedrock of a society. Once that is gone, chaos can only take its place.