Following the release of a statement from the Fed and Bernanke's press conference, King World News interviewed the chief economist Richard Yamorona Bloomberg Brief. He holds consultations on monetary and fiscal policy and acts as a consultant for major U.S. corporations. Yamoron also held senior positions in major U.S. and international financial centers, and investment banks. On the question of what is really happening to the U.S. economy, Yamoron replied, "I think people just ran out of money. We are reducing real incomes. Most of the jobs that we have created are low-paying. "
"I was lucky enough to chat with 300-500 people in the Chamber of Commerce. All of them told me, "Look, I first firing workers. And then I take them back for a penny of what they paid before. "
On the other hand, I hear something like, "Hey, I finally found a job after two years of searching. I used to earn $ 100,000 (per year) and now earns $ 45,000, or, well, I work part-time. " Or (hear you), I was earning 500,000 and is now $ 200 or $ 125,000 … "
"So we live to witness this collapse and the decline in real income. If you have no money, you can not ease the costs. Here's the problem. That's what's really going on in the U.S. economy.
Do not listen to all these big numbers are telling you from the screen. Talk to people that hold this country. 99.7 percent of all employers, it is a small business. So when they say you better listen.
And they say they are, "Look, I'm the head in the third or fourth generation 75-100-year-old business and I have to slam the door," or "have to lay off people. And if I hire someone back, it was only on a temporary basis. "
Sometimes they do this by recruiting agencies to circumvent the payment of unemployment insurance benefits. That's what is really going on at the grassroots level of the economy. Which is very, very different from what you see when someone reports a huge profit. "
Yamoron also adds: "Monetary policy is very different from the days when we were an industrial giant. If you look at the first eight recessions since World War II, when we were the largest manufacturer, if the Fed saw the problem, then just cut rates, and voila, idle factories took on a second wind.
However, if you look at the last two recessions 90-91 years and a recession in 2001, they were restorations without jobs recovery. We did not meet the same monetary policy, because it no longer been the industrial giant. Thus, the Fed cutting rates at the first sign of trouble, and in those recession had 40 months to regain all the jobs that we lost.
In the current recession, we are not even close to the restoration of jobs, after a lapse of 50 months and the time keeps going. "