US Treasury rally jump-started by FOMC minutes (Unemployment thru 2005)

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?storyID=3979553&type=bondsNews

CHICAGO, Dec 11 (Reuters) - U.S. Treasury prices surged on Thursday, dramatically reversing course after minutes from the Federal Open Market Committee's Oct. 28 meeting seemed to lessen the chances of higher interest rates next year.

Traders seized on comments that if the U.S. economy grows in line with forecasts, slack in labor markets and other resources could continue through 2005 or beyond.

The FOMC's eye-catching statement looked for "large margins of unemployed labor" persisting until late 2005 or beyond.

"The minutes fit the view of those who believe the Fed will not raise interest rates until 2005 and put a timeline on what the Fed might mean by 'considerable period,'" said Tony Crescenzi, chief bond market strategist at Miller Tabak & Co.

...more...

can someone tell me what "large margins of unemployed labor" really means for the economy???

[Tempest]

1. For one thing

It means a larger pool of available labor, which translates to a continuing decline in wages.

[OrAnarch]

2. for the economy, doesn't this mean...

...that coorporations paying 50-60% of the normal workforce will be able increase their profit margins and become richer, while we become poorer and more desparate? YAAAAAH! Were in a recovery!!!

[54anickel]

3. Oh great! They're turning their backs on the unemployed again!

First no UE extensions and now this. The UE really don't matter with all these other GREAT numbers coming in. Yep, we're admitting UEs going to be up for a couple of years, but let's not let them ruin the party!

So now, they'll raise rates before the recovery proves to be sustainable, bursting the already slowing housing bubble and creating a new bubble in foreclosures.

Ain't life grand?
Thanks for posting UIA, now I think I need a stiff drink.
:beer:

[Lindacooks]

7. Not only that

but by not extending unemployment benefits, the Repukes can artifically trim the 'unemployment rate', as more people come to the end of their benefits and fall off the rolls.

[54anickel]

4. UpInArms, Here's a quote for you

"The Great Depression was not an event that wiped out U.S. capitalists. It was an event that made the rich even richer by transferring the wealth of the people into the hands of the wealthy. Legendary is Bank of America’s rise to affluence through real estate foreclosures from 1929-37. Don’t believe for a minute that the richest of the rich will be hurt by the coming collapse. The only ones hurt will be you and me."

Taken from:
http://www.guerrillanews.com/corporate_crime/doc575.html

[schultzee]

6. Perhaps this is just what the greep pigs want?

[xchrom]

5. long term goals they are really after

this is one of the goals of the oligarchs.
they will want to defend shipping manufacturing overseas as well.
though i'm unclear on the exact path -- i'm guessing there is a payoff to the financial institutions in all this news as well.