So, Bernanke has come out and said "current high levels of unemployment could become entrenched and have a "very long-term effect" on the US economy.
Of course this will not bode well for the long term recovery of the US economy any time soon, he even added this statement...
" the world's largest economy was not growing fast enough to handle even the number of people entering the workforce, with 2.0 per cent to 2.5 per cent growth needed to just to keep up. "
That is especially disturbing, if the current job rate is not even keeping up with workers entering the work force. I would not want to be a young graduate trying to find some future employment at this stage of the game.
I wonder if the US economy will continue to lag behind the rest of the world as the recovery grows, perhaps curbing future growth in other countries dependent on the US ?
This could be a real double edge sword. Not good news at all http://news.smh.com.au/breaking-news...m-unemployment-20101201-18fpw.html