The decade ahead could be a brutal one for America's unemployed - and for people with jobs hoping for pay raises. At best, it could take until the middle of the decade for the nation to generate enough jobs to drive down the unemployment rate to a normal 5 or 6 percent and keep it there. At worst, that won't happen until much later - perhaps not until the next decade. The deepest and most enduring recession since the 1930s has battered America's work force. The unemployed number 15.4 million. The jobless rate is 10 percent. More than 7 million jobs have vanished. People out of work at least six months number a record 5.9 million. And household income, adjusted for inflation, has shrunk in the past decade. Most economists say it could take until at least until 2015 for the unemployment rate to drop down to a historically more normal 5.5 percent. And with the job market likely to stay weak, some also foresee another decade of wage stagnation. Even though the economy will likely keep growing, the pace is expected to be plodding. That will make employers reluctant to hire. Further contributing to high unemployment is the likelihood of more people competing for jobs, baby boomers delaying retirement and interest rates edging higher. All this would come after a decade that created relatively few jobs: a net total of just 464,000. By contrast, 21.7 million new jobs were generated between 1989 and 1999. - Huffington Post
Conclusion: Deprived of market signals, investors have a hard time determining what's an efficient business and what is not. They've decided, with considerable reason, that too-big-too-fail banks are probably a good investment. Well, this may be so, but it does nothing for the larger economy. Putting good money after bad into these large fiat-money sinkholes only retards real innovation and sets the economy up for another bout of inflationary bleeding and boom-bust madness. What's needed is a return to a private market gold-and-silver standard that will provide real feedback to those who want to purchase equity in winning entrepreneurial companies. See, it's not hard to explain, but for some reason, the story just doesn't get told, certainly not in the mainstream press.
LINK HERE
This article is pretty bleak, and that's because so many people tend to buy way over their means such as houses, cars, possessions of all kinds, hence to keep them they must WORK. Absence of income tends to hurt your cash flow, and a no or low cash flow means you cannot pay for all that big home and Lexus cars you have. The banks repo them and more jobs are lost. Add to that the criminal lending practices of the last ten years. That was when many mortgage companies and banks would lend $200,000 to a dead cat. And people wonder why their stuff is in deep kimshee? Hinge a home or car loan on a job making $8.00 an hour? And you make even $20,000 a year, but your spending as if you made $50,000, which in many cases would not be close to enough itself. Drive around and you would think many many people made $150,000 from looking at their McPalaces and big new cars in the driveway. OK, enter year 2007 (Mid-Fall) and people begin to "notice" a twingy-tightening of their nooses. September of 08 those "personalities" including the President come crap-faced on National TV to tell you the well has dried up big time, and our greed has come home to roost, open your tax wallets, please.
ReplyDeleteSo-----why are we worried about jobs? Is there any logic?
Economic Analyst at 6:58 PM: Very well said. You basically summarized the average American consumption habit in two paragraph. We need to fix this mess in a hurray. The number one problem is the MINDSET of people. Stuck on Stupid. Oh yeah, I've been stuck on stupid, but I had recovery time. This time around there is no recovery time. If every person that read this blog to help out just one person, maybe we could turn 10 percent of the people around in 2010. Remember 10 in 2010. We can do it.
ReplyDeleteThe majority of dimwit Americans don't give a damn about what our Empire is doing in its quest for self destruction.
ReplyDeleteVery well put by all, many folks have been living like there is no end. My parents used to say many times that there is no suh thing as a money tree. Well, just like Jesus said of the tree that bears no fruit. I would like to say I feel for many who have put themselves in this pickle, but I can't. Most are well educated and supposedly mature adults, yet, they thought the chickens would never come home to roost. Guess what, their here.
ReplyDelete3:54, you are exactly correct, most of the sheeple walking the streets today, and the ones that do have a job think this is not for real. Only thing I can say, they had better wake up NOW. The time is at hand. Do I foresee the total breakdown of many facets of our society? YES!!, between finiancial, job opportunities, transportation and crime, a perfect storm is forming.
Even if you have worked hard, paid all your bills, and have good credit --- you have still been screwed by theFederal Reserve and IRS.
ReplyDeleteAnd according the the Presidential Executive Orders over the last 15 years or so --- your property can be taken away at any time even if it is fully paid for.
Yes, a perfect storm is forming and it's not gonna be an easy ride. My money is in short supply, do I buy food for my stockpile or buy a weapon? If I have food and water, I'll have to defend it. Could'nt afford a shotgun so this past few days I made my own that can shoot .410 and 16 gage. Total cost, less than $100.00.
ReplyDeleteBTW, I lost my job in Sept. 2008, 15 months ago.
Problem I see is with all this "no inflation, or deflation" talk its like everything else is "so cheap" BS, my bills aren't deflated, I don't see any real price drops on the so called big items, and food prices aren't way down like the feds say it all is. My tax's are all up, even my house was reassessed "higher" this last time.
ReplyDeleteWhat I do know is that because of all this "deflation" there was no COLA on SS, and won't be for another year, While medical hasn't gone down, the banks that got my tax money are now getting more free or 1% loans that they are buying treasuries with and making a lot better that the 1% they give you for your money.
So if the prices of everything would also fall by as much as they keep saying the "inflation" figures are down they put out, than maybe it would all wash out in the end, but its not
My mom is 81. She worked in banking all her life. Therefore I was a bit surprised when we were talking about the FED and their unquenchable urge to print more and more money. She asked me why that was a bad thing. Even my wise old mother had no idea how hyperinflation is triggered.
ReplyDeletePray for the best and plan for the worst.
It is sad that so many people are out of work and even if you find a job. Your new job will pay a lot less than your previous job. But at least Wall Street is going fine and they are getting big fat bonuses.
ReplyDelete4:28
ReplyDeleteI don't think you would want to have a .410 pointed at your chest with 4(triple ot)sized balls tearing up your heart and lungs. This ammo is available at Wal Mart for 14 bucks a box.
I think you forgot the part about the pocket shotgun being built for less than $100.00 bucks. The next generation will chamber 12 gauge.
Forgive me for putting you in the same category as the spelling police that hang out on Craig's List, correcting the bad spelling and grammar, even though you have nothing of real value to say.
True, the only thing he has to say is how everyone else is a moron but him. But in all of his concerted efforts to say nothing he has been unable to realize that perhaps he is the moron.
ReplyDelete4:28pm = Ex-Military constipated angry white guy with possible prediabetes symptoms.
ReplyDeleteI suggest a check up and some laxitives sir...If angrily chastising an internet stranger over their choice in weapondry is in your blood then you sir need Jesus/Yoga and a 6 pack of Red Wolf...If they still make it.
:)