For those like me, watching the Administration and the Fed talk about the employment situation is sad. The fact that the media and the public accept the pronouncements that go along the line ” it will be a long time before employment gets back to 1999 levels” is astonishing. See David Stockman’s article from yesterday:
This week the stock market postured itself into Bernanke’s testimony. If enough people keep believing that his model makes sense, the farther we have to fall when it is all over. In the meantime interest rates are rising and the dollar is falling and one of the trades for this year is setting up, ie buying T-bonds just before the wheels come off the stock market.