Tuesday, December 7, 2010

Job Openings in U.S. Rise

Job openings in the U.S. rose in October for the first time in three months, a sign gains in payrolls will accelerate in early 2011.

The number of positions waiting to be filled increased by 351,000 to 3.36 million, the most since August 2008, the Labor Departmentreports. Excluding a drop among government agencies, the 369,000 increase in openings at companies was the biggest in four years.

This proves two things. Bernanke is clueless when it comes to forecasting, since as was obvious in his 60 Minutes interview, his projection of "years" of high employment was done based on a simple projection of the then current tend.

Second, he has no clue as to how powerful monetary policy is in turning around (in a manipulated fashion) the economy. This October number is just from his decision to reinvest MBS proceeds, when QE2 data starts to hit, the economy will look like its on steroids. He may even be hailed as a hero. When the inflation hits a few months later, people will want him locked up in Guantanamo.

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