Yamarone – Fed Impotent, Depression & China’s Crash Landing
KingWorldnews.com
June 15, 2012
With investors and professionals around the world wondering when we will see additional monetary stimulus, today King World News interviewed Richard Yamarone, senior economist at Bloomberg Brief. Yamarone has consulted for monetary and fiscal policymakers and served as an adviser to major U.S. corporations. He also held senior positions for major international and domestic money center and investment banks. When asked about the Fed providing additional stimulus, Yamarone responded, “The Fed stands ready, but unfortunately I believe the Fed policy is impotent. It’s pushing on a string. We are in a liquidity trap. I believe it’s been that way for a very long while. They are shooting blanks. They are trying to restore the two most interest rate sectors of the economy, construction and manufacturing.”
Richard Yamarone continues:
“Construction and housing is flat on its back. Conditions are getting awful. Unfortunately, the only job creation we are getting are the less than desirable burger-flipping jobs. These are minimum wage type jobs and you don’t get the economy coming back with that type of hiring.
State and local governments are shedding jobs continually by 10,000, 15,000, 20,000 jobs each month because they don’t have the revenues coming in from the commercial real estate. There are widespread vacancies. They don’t have enough revenues and incomes taxes coming in. They also don’t have enough revenue coming in from the housing sector, which as I said is flat on its back.
So without the incomes and the tax revenues coming in, what do they do? They have to cut services….
The Rest…HERE
