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May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
August 11, 2009
/ 21 Menachem-Av 5769
Response to manipulation is education
By
Jack Kelly
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http://www.JewishWorldReview.com |
The Bureau of Labor Statistics announced last Friday morning (8/7) the
unemployment in July declined a tenth of a percentage point from June,
to 9.4 percent from 9.5 percent.
This welcome news prompted President Obama to declare a few hours later
that his administration has "rescued our economy from catastrophe."
Mr. Obama should be careful about overstatement. His overpromising
about the $786 billion "stimulus" bill passed in February (his economic
team said it would keep unemployment from rising above eight percent) is
a big reason why so many are wary of his health care reform promises.
The BLS reported another 247,000 Americans lost their jobs in July.
This is a distinct improvement over June, when 467,000 were laid off or
fired. But how can the unemployment rate go down if the number of
unemployed is still going up?
The reason is because the BLS doesn't count the number of unemployed
workers who've become so discouraged they've stopped looking for work.
According to the BLS, 796,000 people stopped looking for work in July.
That amounts to two tenths of a percent of the labor force. Had they
been included in the BLS' calculations, the unemployment rate would have
increased to 9.6 percent instead of declining to 9.4 percent.
If the number of discouraged workers who quit looking for work in the
months before July were added in, the unemployment rate would be still
higher. The BLS offers an unemployment rate that includes discouraged
workers. It increased to 10.2 percent in July from 10.1 percent in
June.
According to the BLS, the number of the long term unemployed (27 weeks
or more) climbed by 584,000 in July to five million. The long term
unemployed now account for a third of all unemployed persons, the BLS
said.
Overall, the percentage of Americans of working age with jobs declined
in July to 59.4 percent from 59.5 percent in June, 60.5 percent in
January, the BLS said.
Things are actually a little worse than this number indicates because,
according to the BLS, there were 8.8 million people working part time in
July who really want to work full time, but can't find full time jobs.
The BLS has been calculating the unemployment rate the same way for a
long time, so there is no chicanery here. But it's important to know
the real rate of joblessness, because consumer spending is the great
engine of our economy, and people with jobs spend more than do people
without them. Also, the unemployed are more likely to default on credit
card payments, home mortgages and auto loans.
Things could get worse in a month or so, because about then people who
lost their jobs last fall will be running out of eligibility for
unemployment insurance. Congress will have to expand eligibility or
their already meager incomes will plummet.
If more people default on their credit cards, mortgages and auto loans,
that'll put more pressure on banks. As you know, many of our largest
banks required a massive federal bailout after the residential housing
bubble burst.
Most experts (the very same experts who were caught by surprise when the
housing bubble burst) think home prices are at or near the bottom. This
is one reason why the stock market has been rising.
But, the Wall Street Journal reported July 21, commercial mortgages (on
office buildings, shopping malls, hotels and apartments) are now failing
at the fastest rate in nearly 20 years. This is an $8 trillion market.
And, as they did with home loans, banks have sliced up commercial loans
into derivatives that multiply risk.
It's chiefly regional banks rather than the "too big to fail" national
giants such as Citibank or Bank of America that are holding the shaky
commercial paper. But if one or two of them were to fail, it could
start the bank run we narrowly averted last fall, because the Federal
Deposit Insurance Corp. is nearly broke. In theory, the FDIC insures
our bank deposits up to $250,000. In practice, the FDIC has about $15
billion on hand to insure $13.5 trillion in deposits, or about a penny
for every $9.
"A large number" of bank failures may occur through 2010, the chairman
of the FDIC, Sheila Bair, said in a letter in March.
I hope the economy has turned the corner. But administration claims
that it has may be as misleading as claims unemployment has actually
declined.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Comment by clicking here.
JWR contributor Jack Kelly, a former Marine and Green Beret, was a deputy assistant secretary of the Air Force in the Reagan administration.
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