The former head of the BLS (the agency that issues the official unemployment numbers) came out with a statement today that the real unemployment rate is closer to 11% than 7%. No shit, Sherlock. If he’s making such a statement, then it means one of two things:
1) Bernanke told him to do it in order to make a stronger political case for QE4EVAH.
2) The numbers must be even worse than that, so they’re trying to inch the expectations up to prevent a mass-shockwave when the real data set finally leaks.
And I’m not even being cynical, just practical.
In other news, Detroit finally filed for bankruptcy and Obama prepares to bail the city out. Yet again, but this time he’s bailing out Detroit municipal pensons, rather than Detroit auto pensions. This is why the pensioners refused to even discuss accepting cuts; they knew they would get bailed out by the taxpayers at the state or national level.