By, Ron DeLegge
What is the job market is saying about the U.S. economy? And how should it affect the way you invest? Let's examine these questions together.
If you want to know why the housing market is still in a depression or why consumer spending is so fickle, you can blame the bleak employment picture.
The so-called “jobless recovery” that our generation of economists predicted is unfortunately not coming true. In fact, various measures of nationwide unemployment show that a lack of employment and underemployment is hindering economic growth. What is a “jobless recovery” and is it really possible?
Jobless Recovery 101
The term “jobless recovery” was first coined in the 1930s to describe a scenario of increases in gross domestic product (GDP) with high or rising unemployment. Today, certain economists argue that a “jobless recovery” could very well happen again because it existed in the past.
During the Great Depression unemployment remained high even though GDP statistics reflected economic growth. But is it historically accurate to describe that horrific decade from 1930-40 as a “jobless recovery?” Would individuals who lived through that period agree? Any such declarations of a “jobless recovery” during the Great Depression are highly controversial and ignore that much of the nation remained mired in poverty.
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The article is written quite well
ReplyDelete"If you want to know why the housing market is still in a depression or why consumer spending is so fickle, you can blame the bleak employment picture."
Unemployment or lack of employment is not the whole story,
During the credit Boom 2003- 2006 low interest credit rates were offered to the American people, For those with Homes second mortgages were offered at low interest rates, then they could pay off the credit cards,
for others without homes they got A LINE OF CREDIT AT teaser rates of 3.99% or even lower some at 0% for a year.
But then the bottom fell out, The bankers panicked when all the poor who could not afford homes and should never had homes in he first place started to foreclose.
The bankers went after Americans who have been paying their bills on time and hit them with outrageous interest rates!
Now in silent protest consumers have shut their wallets.
Most of us refuse to take on any more debt from the loan shark banksters or consume more goods, therefore the economy is stalled and will stayed stalled until the bankers stop killing the Americans with good credit.
I disagree that people have shut their wallets -
ReplyDeletejust look at June Retail sales from WalMart to
Saks. True; a bigger part is going into the gas tank and refrigerator; but Americans are still
spending at least as much as their taking in.
Case in point - 2 weeks ago; I took my son to
the summernational drag races - I should have bought advance tickets because we ended up standing behind a steel beam the place was so packed - and I'm talking 45 bucks a pop for tickets and 5 dollar beer.
Yes 8:58, debt is wonderful.
ReplyDeleteYes 8:58, consumers are spending, the goverment continues to spend, because it is human nature to xchange services. The difference now is that ourdollat is worth so little we can only purchase the bare neccessities. Food, fuel, etc. but it is summer and mo father will say no to his kids. Just wait till fall and winter youll see the second wave of consumers cutting back and its going to be huge
ReplyDeleteand what father is not going to go skating or skiing or snowboarding or sleding with his kid?
ReplyDeleteyou people have been saying the sky is falling for so long that nobody listens to all this continually doom and gloom. somehow it's
always - wait 'ti; next month or next quarter or next year
blah blah blah blah blah
meanwhile the earth continues to rotate on it;s axis and you mohabs have basically quit living so you can be ready for something that NOBODY
living can say with surety will happen
so yeah take the kid fishing or to the dragstrip
or whatever
we might wake up tomorrow to a 9.5 quake yjay will swallow us all
but I really doubt it just like I doubt most weverything else written here doom doom doom
take a tranqualizer and call me in the morning
2:57 Don't be so anxious for the collapse, you wouldnt be back to this website so often if you were a non-believer. Be patient, things of this magnitude do not happen over night. Or even 2 years, but when they do they grow worse in intensity each time, But hang in there, when it happens, 2:57 the great collapse you wont be visiting sites like this anymore
ReplyDelete