Just wanted to take a look at the economy. Last month 240,000 more jobs were lost taking the total jobless to 10 million or 6.5%. And most are still awaiting news of more disaster from General Motors and Ford who have seen rise in losses.
Until now at least the Government has not come out in support of the car makers with the bail-out money. If that is how it continues then there could be serious issues going forward.
Meanwhile regulators have shut down Houston-based Franklin Bank and Security Pacific Bank in Los Angeles on Friday, bringing the number of failures of federally insured banks this year to 19.
Although the politicians are wont to show an upbeat demeanour, the economists are not as excited or upbeat:
“There is no light at the end of the tunnel, and the outlook is pitch black,” said Richard Yamarone, economist at Argus Research.
And Bernard Baumohl, chief global economist at the Economic Outlook Group, said the report “depicts an economy still in free fall and without a safety net anywhere in sight.”
The unemployment rate is not going to stop here – it is going to keep on rising and if an auto company fails then it could hit 10 or 11%
Many economists believe the unemployment rate will climb to 8 percent or 8.5 percent by the end of next year before slowly drifting downward. Some think unemployment could even hit 10 or 11 percent — if an auto company should fail.