Fed Summit at Jackson's Hole

Federal Reserve Chairman Ben Bernanke will give a presentation on "Economic Outlook and the Federal Reserve's Policy Response" at Jackson's Hole this Friday.

Hopefully, he will give us some clues as to the extent of the quantitative easing with respect to the balance sheet.

Again, I think the fed is at the end of using its tool box.  There is so much monetary policy can do in this economic environment with respect to the unemployment problem.  Adding more liquidity to the economy will not do much; there is not policy traction.

The labor market is weak because the skill level of the jobs available does not match the labor force of the American workers.  Essentially the jobs that once americans can do are exported to Asia at a lower cost structure.  Americans need to upgrade theirs skills which requires time.  The transitional period is where we are now under the present economic condition.