This video goes into symptoms of this today:

http://money.cnn.com/video/news/2011/08/04/n_big_business_jobs_cash.cnnmoney/

Over $1.5 trillion sitting in the reserves of large companies, not circulating or doing anything, nor being used to hire.  Business won't do anything, unless it sees it is necessary.

Assuming of course a business actually needs people.  That is a kicker.  A business would even be iffy to employ people for free.  You could run stuff like in Mexico where people bag tips for groceries, but if there isn't demand there for more labor, then it isn't going to happen.  Try walking into some store and offer them help, and they will say no.  This doesn't discount that Gamestop would likely employ fanboys for free, if they could get away with it.  But, you see a bum on the street come up and start do your windshield, do you accept that or find it a problem?  And then, there is a need to factor in specialization of labor in some areas, where you can't just employ everyone.  Businesses also can turn down some technology due to labor reasons.  I know one business that refused to switch over to S.A.P out of fear that they couldn't keep workers.  And in the area of IT, the skills needed have gotten far more diverse, and at the same time, they are demanding people have am absurd mix of skills, just for a 3 month contract.  

This video goes into symptoms of this today:

http://money.cnn.com/video/news/2011/08/04/n_big_business_jobs_cash.cnnmoney/

Over $1.5 trillion sitting in the reserves of large companies, not circulating or doing anything, nor being used to hire.  Business won't do anything, unless it sees it is necessary.

And yes, no one happened to either see that Madoff also was doing stuff no one could see either.  Shame that the government was responsible for him and put a gun to people's head and order them to invest with him.  Same with Long-Term Capital Management.  Yep, the government was all behind that.  And all those Ponzi schemes, autosurfs and other nonsense that the government is behind these big bad entities to the extent that NO ONE has the power to stop it, because the government forces such leveraging.

http://en.wikipedia.org/wiki/Long-Term_Capital_Management

The idea of a hedge fund, and what derivates are supposed to do is protect you not against the normal, but against the really odd stuff that is catastrophic.  That is what it will do, but when you end up with inane groupthink, that happens in markets, as is CLEARLY show in the experiment, then it doesn't work.  You aren't using hedging as a chance to minimize loss, you are using it to take risks you wouldn't normally, because you believe the math is foolproof, or you need to keep up with the Joneses, because if you don't show the same absurd rate of return as others are doing, then end result is that lose your job.  Well, the guys who ran this overleveraging make out like bandits and take down the banking system.

But hey, keep believing the government did it, and ONLY is the one to cause it to happen.  No way EVER do bubbles happen which aren't due to government holding guns to people's heads and telling them to leverage.

The thing about moral hazards is the people who do them still did the stupid thing.

If you want to lay fault on the government here, it is for providing a climate where there was too much money floating about that drove people to dumb things.

I make no assumptions that corporations will be the ones who create these jobs ...

I know there are countless jobs that individuals do on a daily/weekly basis that they would gladly pay someone else to do if they could afford to, and if the artificial pay-floor created by welfare and minimum wage was removed individuals who didn't have a job or decent prospects for a job would probably be willing to work for the amount of money these people were willing to pay. As an example, for $5 per hour (probably) 75% of people in North America would be willing to pay someone else to do their house cleaning for them, but if people can earn more than that sitting at home there is no incentive for them to take this housecleaning job.

How about bagging groceries for tips?  We could have businesses install showers in back for people so they don't stink, and individuals bag groceries for tips all day, just like they do in Mexico?  Well, that is assuming that automated check outs and people bagging their own groceries doesn't become the norm.  

How low should jobs go for people in society?  Should every single possible thing be an option?  Like pay people $1 an hour to wait in long lines?  We could also have people have on their job application they are professionals recyclable bottles off the side of the street, or dumpster divers.  Heck, and yes make prostitution viable profession also.  If you have no choice, sell your body.  And organ donor, that works to.  Sell off all your body parts while still alive.

People think legalizing drugs and prostitution will result in 30 million jobs being created over a 5 year period? Is someone going to open up a McHooker's chain, which will employ millions?  Yes, we can go to the world of Idiocracy, where you go to a Starbucks and get a little extra with your order.

So in otherwords, you have no actual way to argue the point and are trying to bring in unrelated pyramid scams to try and conflate the arguement to support your point.

Again, the math failed because of a state of the market hereto thought impossible.

You instead are blaming the market, for not prepairing for something that just about everyone would of agreed was unniversally impossible before it happened....

rather then government for creating such an occurence.

That's not even blaming the market for lava insurance.

It's more like blaming the market for having over leveraged in the case of dragon attack.

Though if you want to blame the market for that sure, they could of not levereaged vs the hereto thought impossible thing, then we'd of never had the crash because the economy wouldn't of even been as good as it is now, so there would be nothing to correct against since derivatives are the only reason the global economy was able to drive so high in the firstplace, the derivatives market being worth more then the actual cash of the nations in the world.

You think it's bad when 1.5 trillion is in buisnesses unused?   How about when many more trillions don't even exist anymore or never did.

In a sane world where derivatives are used to minimize risk that occurs in the line of performing regular business, they are fine.  The problem is that derivatives, and excessive faith in them, plus quantitivate analysis, results in people taking far more risks than they normally would.  This, in turn, produces a culture where everyone is driven to take excess risks, and then when the unthinkable happens, then the you have a crash far larger than would occur before.  In the past, we had the savings and loan crisis, with housing, and it didn't take down the entire economy as this last one did.  

A reason why I don't blame the government completely and fully for the crisis, while I can fault them for a good chunk of it, is that blaming the government ends up being an excuse to justify individuals in t he market for taking too many risks, and presuming their are bulletproof, and screwing things up.  What one has to realize is the markets ARE risky and you can just magically make the risks go away.  I would also suggest that things be done to eliminate "too big to fail".  But hey, it is convenient to bring up loss of jobs whenever you want to get a bailout from government.  Too much big business will cry loss of jobs whenever they want their government pork.