Macro and Other Market Musings: Is the Fed's Able to Offset Austerity? Insights from the Employment Report<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Mark A Sadowski comments: In November 2012 the CBO estimated that the maximum level employment effect would be a decrease of about 200,000 jobs, 640,000 jobs (80% 0f combined payroll and UI effect of 800,000 jobs lost) and 800,000 jobs for the high income tax increase, payroll tax increase, and sequester respectively: http:\/\/www.cbo.gov\/sites\/default\/files\/cbofiles\/attachments\/11-08-12-FiscalTightening.pdf In other … <\/p>\n
Continue reading “What happened to the liquidity trap?”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,34],"tags":[59,1686,1963,2121,2622,3090],"class_list":["post-7711","post","type-post","status-publish","format-standard","hentry","category-economy","category-us-canada-countries-regions","tag-fiscal-cliff","tag-high-income-tax-increase","tag-job-losses","tag-liquidity-trap","tag-payroll-tax-increase","tag-sequester"],"yoast_head":"\nWhat happened to the liquidity trap? - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What happened to the liquidity trap? - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Mark A Sadowski comments: In November 2012 the CBO estimated that the maximum level employment effect would be a decrease of about 200,000 jobs, 640,000 jobs (80% 0f combined payroll and UI effect of 800,000 jobs lost) and 800,000 jobs for the high income tax increase, payroll tax increase, and sequester respectively: http:\/\/www.cbo.gov\/sites\/default\/files\/cbofiles\/attachments\/11-08-12-FiscalTightening.pdf In other … Continue reading "What happened to the liquidity trap?"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2013\/05\/06\/what-happened-to-the-liquidity-trap\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2013-05-06T07:14:37+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"What happened to the liquidity trap?\",\"datePublished\":\"2013-05-06T07:14:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/\"},\"wordCount\":131,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"\\\"Fiscal Cliff\\\"\",\"high income tax increase\",\"job losses\",\"Liquidity trap\",\"payroll tax increase\",\"sequester\"],\"articleSection\":[\"Economy\",\"US & Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2013\\\/05\\\/06\\\/what-happened-to-the-liquidity-trap\\\/\",\"name\":\"What happened to the liquidity trap? 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A sizable improvement as the economy re-opens. Initial jobless claims, however, remain high at 1.427 million for the week ending June 27. Of greater concern is the level of continued unemployment claims: 17.92 million\u2026","rel":"","context":"In "Deficit Spending & Employment"","block_context":{"text":"Deficit Spending & Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19643,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/01\/18\/us-stocks-bull-or-bear\/","url_meta":{"origin":7711,"position":1},"title":"US Stocks: Bull or Bear?","author":"Colin Twiggs","date":"January 18, 2020","format":false,"excerpt":"I have read several commentators proclaiming that the crisis is over and the stock market and US economy are back on track for solid growth. Let's examine some of the evidence. The Yield Curve (Bearish) While the US yield curve has uninverted in the past and yet a recession has\u2026","rel":"","context":"In "Deficit Spending & Employment"","block_context":{"text":"Deficit Spending & Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/img.youtube.com\/vi\/mccPg_LtFuQ\/0.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":22464,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/11\/05\/the-slowing-recovery-needs-stimulus-but-there-is-a-cost\/","url_meta":{"origin":7711,"position":2},"title":"The slowing recovery needs stimulus but there is a cost","author":"Colin Twiggs","date":"November 5, 2020","format":false,"excerpt":"Last week I spoke of a W-shaped recession as COVID-19 cases soared to new highs. The jobs recovery is slowing, with total non-farm payroll at -6.4% (Sep20 compared to Sep19), still well below the 2009 low of -5.0%. Real GDP may have recovered to -2.9% for Q3 but hours worked\u2026","rel":"","context":"In "Debt Levels"","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18544,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/07\/13\/rate-cuts-and-buybacks-the-emperors-new-clothes\/","url_meta":{"origin":7711,"position":3},"title":"Rate cuts and buybacks – the emperor’s new clothes","author":"Colin Twiggs","date":"July 13, 2019","format":false,"excerpt":"The interest rate outlook is softening, with Fed chairman Jerome Powell hinting at rate cuts in his Wednesday testimony to Congress: \"Our baseline outlook is for economic growth to remain solid, labor markets to remain strong and inflation to move back over time.\" but.... \"Uncertainties about the outlook have increased\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26199,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/06\/07\/sp-500-trend-when-will-it-end\/","url_meta":{"origin":7711,"position":4},"title":"S&P 500 trend: When will it end?","author":"Colin Twiggs","date":"June 7, 2021","format":false,"excerpt":"\"The trend is your friend except at the end where it bends.\" ~ Ed Seykota We all know or suspect that stocks are over-priced. Not only are stocks like GME and AMC obvious examples of irrational exuberance but market pricing multiples -- like Warren Buffett's favorite stock market capitalization over\u2026","rel":"","context":"In "Banks & Interest Rates"","block_context":{"text":"Banks & Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27227,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/08\/07\/rising-wages-inflation-but-4-6m-missing-services-jobs\/","url_meta":{"origin":7711,"position":5},"title":"Rising wages inflation but 4.6m missing services jobs","author":"Colin Twiggs","date":"August 7, 2021","format":false,"excerpt":"Total employment increased by a healthy 943,000 in July. But total employment is still 5.7 million below its February '20 high. Unusually high job openings reflect the slow return to the workforce -- encouraged by the extra $300 per week in unemployment benefits -- and account for 2 million of\u2026","rel":"","context":"In "Deficit Spending & Employment"","block_context":{"text":"Deficit Spending & Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=7711"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/7711\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=7711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=7711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=7711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}