It's More than Just Jobless Thursday

But let's start with the fact that initial jobless claims jumped to 380,000, though tropical storm Isaac may have contributed to those numbers.

The bigger news is that the Federal Reserve has officially begun the 3^rd round of quantitative easing (QE3):

The Federal Reserve opened a new chapter Thursday in its efforts to stimulate the economy, saying that it intends to buy large quantities of mortgage bonds, and potentially other assets, until the job market improves substantially.

This is the first time that the Fed has tied the duration of an aid program to its economic objectives. And, in announcing the change, the central bank made clear that its primary reason was not a deterioration in its economic outlook, but a determination to respond more forcefully — in effect, an acknowledgment that its incremental approach until now had been flawed.

The concern about unemployment also reflects a significant shift in the priorities of the nation’s central bank, which has long focused on inflation. Inflation is now running below the Fed’s 2 percent annual target. But with the unemployment rate above 8 percent, the Fed’s policy-making committee suggested Thursday that it might tolerate a period of somewhat higher inflation, promising to maintain stimulus efforts “for a considerable time after the economic recovery strengthens.”

“The weak job market should concern every American,” the Fed’s chairman, Ben S. Bernanke, said at a news conference. The goal of the new policies, he added, “is to quicken the recovery, to help the economy begin to grow quickly enough to generate new jobs.”

The need for new stimulus reflects the disappointing condition of the American economy, which continues to struggle between crisis and prosperity three years after the official end of the recession. More than 20 million Americans cannot find full-time jobs. Median household income has declined. The housing market remains depressed.

You know, you guys should have been running around with your hair on fire a few years ago.

Of course, with interest rates at the zero bound, the people who are supposed to do this is the Congress, because fiscal stimulus works better under these situation, but between the gutlessness of the Democrats, and the active sabotage of the economy by the Republicans, it's not like there is going to be any help from that end.