Sunday, November 7, 2010

When Employment Will Really Improve

Ethan Harris,chief North American economist at Bank of America/Merrill Lynch,thinks the best we can hope for is mid-2011.A pick-up in jobs is linked to clarity on tax and regulatory policy.He wouldn't expect agreement on those matters until the end of 2010 or January 2011.
The economy remains in a growth recession,and uncertainty is the enemy of growth.The Federal Reserve is using weaker and weaker tools,but it doesn't mean they're going to give up.
The market has been a bit overexcited about the election.If they just keep fighting with each other,that's not good for the economy.It's a bipartisan nastiness,Mr.Harris observed.
The economy added 151,000 jobs in October-the first increase since April,but the unemployment rate remains at 9.6%.At that rate of job creation,it will take seven years for the labor market to recover.
Bank of America/Merrill Lynch(BAC)

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