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A big step for the US central bank. The total counted and not counted.



July 30, 2008 – Comments (0) | RELATED TICKERS: SLV

June 07 unemployed. 7 mill. June 08 8.5 mill. Ok.  Total unemployment is 8.5 full time and 1.1 million forced part time worker who wants full time. So now we have the true unemployed and the amount about 9 million.
The number of persons who worked part time for economic reasons, at 5.4 million
in June, was about unchanged over the month, but was up by 1.1 million over the
past 12 months. These individuals indicated that they were working part time be-
cause their hours had been cut back or they were unable to find full-time jobs. In June, about 1.6 million persons (not seasonally adjusted) were marginally
attached to the labor force, little different from a year earlier. These indi-
viduals wanted and were available for work and had looked for a job sometime in
the prior 12 months. They were not counted as unemployed because they had not
searched for work in the 4 weeks preceding the survey. Among the marginally at-
tached, there were 420,000 discouraged workers in June, little changed from a year
earlier. Discouraged workers were not currently looking for work specifically be-
cause they believed no jobs were available for them. The other 1.1 million per-
sons marginally attached to the labor force in June had not searched for work in
the 4 weeks preceding the survey for reasons such as school attendance or family
responsibilities. 8.8 trillion New Jersey.Taxpayers need $1B for pensions next year by Dunstan McNicholSaturday July 21, 2007, 9:30 AM


Local property taxpayers will have to kick in just over $1 billion next year to bankroll retirement benefits for government workers, police officers and firefighters, an increase of about $355 million from the bills included in this year's budgets, state officials said.

The contributions, due from city halls next April, are more than $800 million above the tab included in local budgets just two years ago, state records show.

Read more in today's Star-Ledger "Bottom line, these kinds of increases are problematic," said William Dressel, executive director of the of the New Jersey State League of Municipalities. "This is one of the essential reasons why it's difficult to control property taxes, when you have these kinds of mandated increases."  Banks will drop again soon.
A big step for the US central bank

By Krishna Guha in Washington

Published: July 30 2008 23:49 | Last updated: July 30 2008 23:49

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Wednesday’s further barrage of liquidity support measures from the Federal Reserve broadens its tools to include options on liquidity and extends the maximum term of its regular operations from one month to three.

This is a significant step for the US central bank, which had resisted calls to provide longer-term funds.

EDITOR’S CHOICEFed lays on extra liquidity support - Jul-30Comment: How banks can win back confidence - Jul-30Overview Fed’s move bolsters US confidence - Jul-30In depth: Central banks - Jul-30Full text of Fed release - Jul-30Comment: The world must accept a slowdown - Jul-29

But in recent weeks there has been growing evidence that money market strains were increasing at longer durations. Officials may have seen benefit in providing additional reassurance on access to longer-term funds at a time of extraordinary volatility in bank stocks.

The deployment of options meanwhile gives the Fed a specific tool with which to pre-empt a funding squeeze for investment banks and other primary dealers at points of anticipated stress.

This mimics the strategy used to insure against the danger of a Y2K liquidity crunch, with one difference – the Fed is providing options on Treasury securities, rather than on cash.

The cost of buying this insurance is likely to be lower than the carrying cost of swapping illiquid securities for low-yielding Treasuries under the existing term securities lending facility.

Extending the TSLF and the emergency primary dealer credit facility to January 30 – with the option to extend this further, if “unusual and exigent circumstances” continue to prevail – ensures the primary dealers will enjoy a liquidity backstop at least past the year end. These operations should help ensure that the turmoil in the financial system is not aggravated by liquidity concerns. But they cannot substitute for a lack of capital at troubled financial institutions.

The move signals that the Fed sees the renewed stress in the financial system, which poses a risk to the economy, and intends to combat it through liquidity support operations rather than further rate cuts.

Larry Meyer, a former Fed governor and chairman of Macroeconomic Advisers, said this “raises the hurdle for policy tightening” but “does not prevent tightening in all circumstances”.

In the near term, the move means rates are likely to stay on hold. Looking further ahead, though, the implications are ambiguous, because liquidity tools and interest rates are both complements and substitutes.

Many analysts believe that the Fed will withdraw the emergency liquidity backstop for primary dealers first before it raises rates. This approach would make monetary policy hostage to the stability of the weaker primary dealers.

Instead, policymakers could look to decouple liquidity and monetary policy tools, providing ongoing liquidity support beyond the moment they decide to start raising rates.

The sequence will depend on the evolving constellation of risks. In a “normalization” scenario in which risks to both growth and inflation ebb, the Fed might withdraw emergency liquidity support first, then raise rates.

But in a “tipping balance of risks” scenario, in which key financial institutions remain fragile beyond the point when inflation risk needs to be addressed, it would make sense for the Fed to raise rates first, while keeping its liquidity operations open. balloon rates and arms are still being financed as well as intress only.

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