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-- -- Let's get the members of the -- community get their reaction I'm joined by democratic represented -- back in Pennsylvania.
And Republican representatives child -- -- -- -- child with -- you hear of Louisiana good morning gentlemen thanks for being here.
Are some -- -- -- -- since NASDAQ first of all your immediate reaction what do you think the numbers.
This is good news in the sense that while the economy still is intense it is not intensifying this is one of three factors you need to look at.
In order to see if the bottom is about to be reached we had hoped when you run the models like Moody's dot com.
That we would hit 500000.
Initial new unemployment claims by July we're still gonna go to 10% unemployment.
But this shows in particularly compared to the 1982.
Where in the first fifteen months.
You had only two point 9% huge job losses we've had -- last fifteen months three point 7%.
Job losses this shows that.
Business -- have shed jobs more quickly therefore there's less slack now.
So therefore they're slowing down of laying off workers this is good news.
Interesting point there comes in -- Johnny do you do you agree I mean when you look at 600000.
Jobs lost in the private sector.
That's gonna rattle some cages today.
Well these these numbers are unacceptably high.
Clearly we need to get a more certain climate in place for businesses.
Small businesses and large businesses alike.
We're having a hard time making decisions about hiring and everything else given the uncertainty.
And when I talk about uncertainty I'm talking about a lack of an energy policy for this country.
A lack of certainty with regard to tax policy and also unacceptably high health care costs.
Thomas is SX isn't a concern I I -- one of those I hate to say if I am most concerned about a double dip in this recession might I feel like.
There's only markers out there that we're going to get fooled by and one thing to Stephen leave mention is if you look at oil prices you look what's happening to energy to gasoline prices.
All of inflation fears are percolating.
-- unemployment and things of that nature are only gonna get worse.
What do we do if we hadn't used all of our bullet -- early in the process.
It's interesting if you're concerned about inflation and we should have -- concern.
-- one told that we always use is still there in the closet ready to come out raise interest rates by the Fed because the friend.
As actually use the federal overnight lending rate to 0%.
We have kept the interest rates low when it's done is used its quantitative easing program -- Put money out there for capital so we can get the mother milk of our economy credit flowing again.
Look here's the issue we still have that wonderful two of raising up the rates if inflation -- -- and and this is I think important the other two ingredients to look at to see if the economy's beginning to start body amount I don't love these numbers but to good indicator is Libor the overnight bank lending rate -- It shot up to six point 7% last September for a few days well you know it's normally a fifty basis points it's about 86 basis points now.
Again credits beginning to give us a little bit of traction and finally.
Public confidence you saw the reports last week in the New York Times public confidence is starting to rebound.
I'm not saying this is tremendous I'm saying it's coming to say that we're no longer in free fall.
And we've got to keep that -- of raising interest rates by the Fed available for inflation by our economy is beginning to get traction and this is good sign.
You know if.
Interest in congress in this diet I received a report some comments coming out of the Obama administration since some steps that they're going to use this morning.
To address those are out of work suggesting staying on unemployment rolls -- not necessarily the best thing we want to give people the proper education the things to move forward.
What is gonna be the message today at the administration how they address this after what at least was perceived in the marketplace as though fairly well done stress tests.
Well I think it's important to have an unemployment insurance program as a safety net but I heard some earlier comments on your program.
That it also needs to be a springboard back to employment and so I think clearly the president needs to send that message.
And on the house Ways and Means Committee which has jurisdiction of this program.
We need to look at this and look at it closely.
I would also say that.
The the treasury auction this week has worsened sides I mean -- the yield has gone up.
And as a -- as using quantitative easing measures we also have a real problem with the risk of inflation coming on down the line.
The energy prices are concerned they haven't fallen as far as we thought they would with this recession.
But I'll tell you without a good energy policy in place energy prices are going to come right back up and we could be -- a real hot box very quickly.
Any kind of success back you know it's interesting I've -- -- are -- people over the past couple days where I've been saying look.
I believe there was a thought process behind the Fed deciding it was gonna be six months.
That they wanted these financial institutions fully funded mean the fact the matter is about a third of the money might be -- by Monday morning alone.
And -- -- it signaled that the Fed.
Wants to get her ahead of the inflation -- They will know that there fully funded and therefore they can start raising rates or even -- -- quantitative easing.
Faster and that everybody predicts the problem -- because wolf unemployment so high how can they do that.
On the other hand aren't the consequences of the rising inflation so dangerous for this economy.
You know it's interesting I think the real challenge.
Inflation is absolutely.
I think we're beginning to move away from -- and towards art concern into an inflation one.
I think what you're going to begin seeing in the stress test was good news for two reasons one for the first time in quite some.
Period we actually had the government instead of reacting to something being proactive in looking ahead to say what if we have a worse economy.
Now it said let's get some more capital -- and the private markets look like they're going to work without more government infusion so now the second point is.
Can the Fed begins on -- wine itself from the economy.
In a very deliberate way.
Without causing chaos and more concerned -- even the money out there from the government of inflation.
We have already seen.
They've been making regular notes that are just put out there get you pay day by day.
That no longer does the Fed have to give money out there -- for banks are companies to borrow money from who.
In order to do their payrolls now the Fed in the private bank are taking that over the second we have very many things out there that are automatic.
For example about one trillion dollars of the money that the Fed has loaned out there is only on three months.
Loans like credit default and loans and all so you're gonna see the Fed begin on twine here.
Slowly but surely so be inflation concerns from the federal government money being out there.
Is removed got a -- taught carefully it's going to be challenging but at least we still have that tool of -- raising interest rates if we need to by the Fed to help control it all right I got this is a deliberate nice.
That okay isn't this an act he went to -- asking you are you gonna run against senator Arlen Specter.
Well I'm from Louisiana I might get a little bit of those affected I -- this -- my.
That -- Are you can you tell me I have a name recognition problem.
If you don't have a name recognition problem and you certainly know a lot about this economy when he do.
I'll let let me say that I would not hesitate.
To get in this race I was disappointed in the political democratic establishment of Washington DC.
Stating that they knew who our candidate.
We independent Pennsylvania's candidate should be that's why I stood up -- my district in Pennsylvania said wait a moment this is.
A country -- no -- and no king makers we will decide that now what I believe is this you said it.
This economy as our number one issue.
What is our -- running the war.
Kenny articulate how -- in the past would've helped us do better and in the future.
What's his proposals having voted against president Obama's budget to -- warm.
Our health security will we lose 100 billion dollars a year in economic productivity because of the 46 million uninsured Americans.
Finally -- the right answers.
I believe that the mantle of leadership that we want to carry the right idea -- Ford for policy.
Should be one of the Atlantic ports where we're going and I wouldn't has -- to get in at all haven't decided yet but I'm not gonna hesitated quite.
I am laughing you'll always join me for the job Friday's and you're always terrific I'm laughing because let me answer was yes at the start I believe but let's not I I.
-- -- -- -- I -- I don't lose money and that's like the biggest estimate.
I don't even think he's so much it was great having you both went that's when I hope you'll join us again on the on the next jobs Friday thanks so much guys thanks for --
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