I can’t bring myself to turn on CNBC or Fox Business and listen to apologists try to sugar coat the dismal jobs recovery in the USA (Mark Zandi, can you hear me now?)
First, the good news. Initial jobless claims rose to 283,000. But that remains far below the peak in March 2009 of 665,000.
Now for the bad news. Despite the improvement in initial jobless claims, real median household income and average wage growth remain lower than in 2007.
And to top if off, The Federal Reserve through it’s policies have driven short-term rates to near zero, punishing savers. This of course is an attempt to encourage Americans to take on more risk and invest in risky assets.
Now, while America’s middle class is lagging in terms of wage and income growth, The Federal Reserve is pumping air into real estate prices and the stock market.
So now you can understand Fed Chair Janet Yellen’s plea for folks to “get on the asset train!”
That is, until it crashes and burns.
But not to worry. As long as Chinese investors pump up Irvine and Arcadia home prices in the Los Angeles area and continue to purchase New York commercial property, what can go wrong?