Where do you think the unemployment rate will go from here?

2 Comments

  • Fionna Walker - 14 years ago

    Things are only going to get worst in terms of finding steady employment unless you are in a field with a high demand such as healthcare or engineering. Other than that, brace yourself, things are only getting worst.

  • Bill in CA - 14 years ago

    Home owner speculation drove the housing bubble. The housing bubble drove spending and borrowing. Now that housing prices are correcting back to Case-Schiller index of 100, values will over-correct as a sine-wave as economic data does. This will be pronounced as a wave of commercial mortgages and regional banks fail. Only 28 banks failed in 2008 at an FDIC estimated cost of $12B, 95 banks failed in 2009 at an estimated FDIC cost of $26B, and we have three more months to go.

    The two contracting economic waves of residential and commercial property values are compounded by an insolvent FDIC (lost $26B on a beginning balance of $17B), and an insolvent FHA and failing regional banks heavily exposed to commercial real estate mortgages.

    Stocks have been artificially inflated, they're very expensive compared to corporate earnings (PE Ratio). Stocks are up, corporate revenues at record lows, go figure. Google 'reported earnings' and look for charts. Stock values are artificially inflated by money injected into the banks by the government, bank invested those billions into their stock and index funds instead of loaning it out. It's been faked. There's no recovery.

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