Post by Chris_Wendt on Nov 6, 2009 14:55:56 GMT -5
Quoting National News wires:
"The national unemployment rate jumped in October to 10.2 percent from 9.8 percent in September, the federal Bureau of Labor Statistics reported Friday. It was the largest percentage increase in unemployment since April 1983. "
Of course, this is a composite rate across the entire nation, where some areas and certain cities are much more 'hard hit' by unemployment than other cities and other areas.
On the other hand, when unemployment happens to YOU, then the "unemployment rate" jumps up from 10% to 100%.
Another 500,000 Americans hit the 100% Unemployment Rate last month!
This does not bode well for the economic recovery.
Far too many people, including way too many economic analysts are trying desperately to make the stock market indices proxies for the economy. That is as dangerous as it is WRONG!
About the best that could reliably be attributed to the stock market is that the market indices are reflective of the shrewd gambling strategies of large fund managers to pick RELATIVE winners among thousands of companies in a dozen industries to which other investors will flock--with their money and their greed--in the face of deposit interest rates that are less than one percent at almost any bank or financial institution.
To me, the stock market is wishful thinking, with presently less fundamental value underpinning its current performance than at almost any other time in recent memory...and I have a really long memory.
Our currency has been effectively devalued on the world stage, and other nations and groups of nations are hankering to displace the U.S. Dollar as The 'World' Currency. As our indebtedness to China and the Arab world continues to grow unchecked, and as the value of the Dollar continues to fall, unchecked, our creditor nations can only be wondering and worrying about the value of their "investments" in American debt, looking to charge ever higher interest or higher crude oil prices and to make the terms of their loans to us more and more onerous. Some creditor nations are looking hard at cashing in their soft American debt for hard American assets, or, for key assets owned by American entities, such as the Chinese buying Volvo from Ford.
Personally, I see warning signs of a coming "double-dip" recession possibly taking hold after a potentially poor holiday retail season. I would love to be dead wrong about this, and I am stopping short of making this a prediction.
What do you think?
Chris Wendt
