New Normal, Bernanke Terrified

Bernanke Is Terrified Of Higher Mortgage Rates And The Debt Ceiling Debate - Forbes: "In his post-FOMC press conference, Fed Chairman Ben Bernanke made it clear that he had lost control of the market, causing a tightening of financial conditions that directly hit the highly supported housing market through higher mortgage rates.  Trouble is also brewing in Washington, with possible fights over a government shutdown as Speaker Boehner puts pressure on President Obama, and the specter of another debt ceiling fight, which also spooks Bernanke and the FOMC.  The Chairman appears to have boxed himself in, as the market roars higher on any indication of monetary stimulus, and could tank if the training wheels come off."

The Age of Amerisclerosis: Are jobless recoveries here to stay? | AEIdeas: "It’s not just Obamanomics. The US is stuck in its third-straight “jobless recovery,” just like after the 1990 and 2001 recessions. And new research suggests this “persistence of unemployment” could mean future US recessions and recoveries will continue to resemble Europe’s 1980s downturn. Even after growth recovered, hiring didn’t. That’s when “Eurosclerosis” was coined. . . ."

Class Is Seen Dividing Harvard Business School - NYTimes.com: "Many of the school’s top donors and alumni are members of the same ultramoneyed culture that some students criticize. And because many students attend business school in the specific hope of building a network of influential contacts, they tend to fear offending anyone, especially wealthy classmates who might one day provide connections and financing."

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