Fed lowers outlook for economy through 2011

http://finance.yahoo.com/news/Fed-lowers-outlook-for-apf-2000185105.html?x=0&sec=topStories&pos=2&asset=&ccode= ^

[Red in Blue PA]

WASHINGTON (AP) -- Federal Reserve officials have become more pessimistic in their economic outlook through next year and have lowered their forecast for growth.

The economy will grow only 2.4 percent to 2.5 percent this year, Fed officials said Tuesday in an updated forecast. That's down sharply from a previous projection of 3 percent to 3.5 percent. Next year, the economy will expand by 3 percent to 3.6 percent, the Fed said, also much lower than its June forecast.

Fed officials project that unemployment won't change much this year, averaging between 9.5 percent and 9.7 percent. The current unemployment rate is 9.6 percent. Progress in reducing unemployment has been "disappointingly slow," the central bank said, according to the minutes of its Nov. 2-3 meeting.

The darker view helps explain why the Fed decided at its meeting earlier this month to launch another round of stimulus. The central bank plans to buy $600 billion in Treasury bonds over the next eight months in an effort to lower interest rates and spur more spending.

[Red in Blue PA]

They can't predict a month out, yet have the audacity to predict years out.

[Red in Blue PA]

Gotta love how “better days” are always on the horizon....just out of view.

[avacado]

" They can't predict a month out, yet have the audacity to predict years out."

With Obama at the helm predicting the future economy -- or lack thereof -- has become much simpler.

[central_va]

Green Shoots™

[TSgt]

[Terry Mross]

If I remember correctly the last quarter of Bush the First growth was 2.8 and it gave us Clinton. However, it’s got to be worse than they’re saying. If a republican was in they’d tell the truth and say unemployment is 20% and growth is nagative.

[OldDeckHand]

"If I remember correctly the last quarter of Bush the First growth was 2.8 and it gave us Clinton. "

I think that's right. I believe unemployment was around 7.3-7.4% on election day, 1992. But, it had fallen from a 8-year (or more) high of 7.8%. Of course, only 18mos earlier, it was only 6.4%, but then they raised the minimum wage and - shocking - unemployment went up. Who could have seen that coming? /s.

[FromLori]

The Beginning Of The Ponzi End: As Of Today, The Biggest Holder Of US Debt Is Ben Bernanke

http://www.zerohedge.com/article/today-biggest-holder-us-debt-united-states-america

[Gaffer]

Huh! Go figure. Now that the election is over, they’s yellin’ doom and gloom. I guess the strings have broken on that fat lady’s bustle now.

[LibLieSlayer]

The fed... what a friggin’ joke... they couldn't find their ass with both hands.

LLS

[Gaffer]

Well, I guess you’re partly right. Only now, the TSA have taken over the ‘case of the missing ass’.

[chrisser]

One more item to add to the “unexpected” list.

Funny how a group that was lauded as so incredibly smart, good looking, and nearly omnipotent has found so many things that we rubes predicted to be “unexpected” when they eventually occur.

Maybe we’re the smart ones, and they’re just collectively self-delusional.

[LibLieSlayer]

You know...you are correct.

LLS

[FromLori]

Outside the Oval / The Case Against the Fed

http://www.hussmanfunds.com/wmc/wmc101122.htm

[The Comedian]

"Economic Holocaust" ping.

Moderate (but increasing) volume ping list watching the slow motion Economic Holocaust.

FReepmail me if you want on or off
The Comedian's "Economic Holocaust" ping list...

Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.

[dr_who]

Great work, Ben.

[Restore Real Money]

To wake up my friends and family to the Fed’s failure to fulfill their mandates, I’m asking for silver for Christmas.

Hopefully they’ll learn something when they begin searching for as silver coin or trinket to buy.

[LibLieSlayer]

Thanks for the link. I will read it tonight.

LLS

[Quix]

And the beat goes on.