The economy is not limping anywhere……it is dead.

When congress and Obama signs one or both of the disastrous legislation pending (healthcare reform and cap-n-tax, both guaranteed business and job killers) on Capitol Hill, the economy will be dead and this will be the last nail hammered into the lid of the coffin before it is lowered into a 6 feet deep hole.

A 10% unemployment for another full year will certainly be a major driver for a double dip.
The financial institutions will see a free fall. Further bailouts are unlikely - the citizens may not allow a repeat of this.

On the flip side, a diminishing dollar could actually create jobs with the promise of re-establishing a manufacturing base and exports. Even rising oil prices will help indirectly via in-house energy production (oil and/or alternative). Most importantly we might just see a cultural shift - trends of materialism may reverse, we may spend more time with our families, even integrity may rise again.

Thanks $800 Billion stimulus + bailouts for too-rich-to-fail Wall Street banks doing God’s work + $3.4 Trillion in funding for the banking sector - and we can muster only 3% growth and 10% unemployment?? Next year, the last 65% of the stimulus will be used -then what? Double dip recession? I doubt China’s interested in bailing us out yet again so the the change from free fall to free lunch won’t last long.

From the Philadelphia Federal Reserve - unemployment expectations for 2010-2012. Unemployment rate is expected to drop from 10% in 2010 to 8.3% in 2012. Don’t know how GDP will jump to 3.4% in 2012…

http://www.philadelphiafed.org/research-and-data/real-time-center/survey-of-professional-forecasters/2009/survq409.cfm

It sounds like 2010’s winners will be much the same as 2009’s while the losers in 2010 will be Main Street - like in 2009. There are rumors that Geithner is out the door next year. I think that was planned some time ago. My guess is that he’ll be working for Goldman Sachs.

You know what the problem is is all these dudes that are making the economic changes are all the same ones that messed it up in the first place , and to top that off they all are still making big bucks , so they got no pressure to incentives main street.

FINANCE PROFESSIONALS DON’T SEE U.S. COMPANIES HIRING UNTIL 2011

By E. Johns - Published:December 17, 2009

Dec. 17, 2009 — WASHINGTON — Significant hiring won’t begin at most U.S. companies until well into 2011, even though the U.S. economy will continue its modest recovery next year, according to professionals in the finance departments of U.S. companies.

The 2010 Business Outlook Survey released today by the Association for Financial Professionals (AFP) and underwritten by Wells Fargo & Company (NYSE: WFC) shows that while more than a quarter of respondents indicate that their organizations will shrink their payrolls in 2010, 46 percent expect that their organizations’ workforces will be stable in the new year.

When hiring begins, most finance professionals expect payroll growth to be modest at first. Of organizations surveyed, 25 percent anticipate returning to pre-recession staffing levels in 2011; 32 percent expect a rebound in 2012; and three out of ten do not expect their organizations ever to return their payrolls to pre-recessionary levels..)
…
Even if the recession might have ended by a textbook definition, nearly 90 percent of financial professionals surveyed believe that the U.S. economy has yet to enter a period of sustained economic growth. Fifty-one percent do not see economic growth beginning until the second half of 2010, and nearly a quarter do not see it happening until at least 2011.
…

…article continues…
http://www.afponline.org/pub/res/news/ns_20091217_jobs.html

…Link to AFP Report…
http://www.afponline.org/pub/pdf/2010_Business_Outlook_Survey.pdf

…good independent explanation…
http://www.thiscantbehappening.net/?q=node/436

Below are a smattering of contradictory ecomomic news I pulled of the net in the last 10 minutes! The only thing I’m sure of is that NO-ONE is telling the whole truth on the economy, jobs or the real estate market.

MSNBC
Employers see uptick in hiring in 2010
Report: One-fifth of hiring managers plan to add full-time staffers next year

AP Newswire
Consumer confidence extends rise in December
Report: Better-than-expected reading fueled by long-term outlook on jobs

Newsweek
Double-digit unemployment is expected to drop, as companies slowly begin to hire in the spring and latter half of 2010, and new digital and technological jobs could start to take shape as Americans re-settle into this emerging, post-recession economy.

Wall Street Journal
U.S. Home-Price Declines Slow
The Case-Shiller indexes showed home prices in 20 U.S. cities fell 7.3% in October from a year ago, but were flat compared with September. Consumer confidence rose.

Wall Street Journal
Despite Subsidy, Cobra’s Bite Still Stings for Many
Government Benefit for Uninsured Fails to Cover Rising Cost of Premiums; Unemployed Often Remain Ineligible for Program

Wall Street Journal
Jobless Middle-Class New Yorkers Struggle to Get By
High Unemployment Takes Toll on Once-Thriving Neighborhoods, Where Foreclosures Are Up and Recovery Is Elusive

- Coventry

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The recovery is indeed going to be proportionate to the bubble, once it pops. The government has merely transferred the bubble to another arena. The bubble has yet to pop. Consumer debt has been moved over to government debt ledgers where it is being compounded upward to unimaginable proportions.

Assets were ostensibly ‘loaned’ to the homebuyer and have now been moved to government ledgers. They remain there at the inflated levels engineered by the powers that be. They would like to hold them until they are somehow priced at that level. Since the populace would not naturally price them that high they will inflate the dollar until it matches the assets current prices (not current value). (analyze the fannie and freddie arrangements)

While the inflation progresses, real incomes are forced to decline. This natural response of wage shrinkage and price inflation separates the value from the price by ever increasing sums. The only workers immune from this theft are government workers who now enjoy earnings, benefits, and retirements at levels twice those of American workers. When this bubble does pop, and it will, the implosion will result in the largest national collapse on record.

- Kprime

Related Posts:

• There is a huge risk of double dip recession is the government is not careful.
• Allowing zombie banks to continue to operate and take bigger risks has only increased the costs of cleaning up the mess.
• The Storm is developing to be a huge depression.
• The following article should be front page news on every newspaper on the planet…
• The Democrat Economic Storm

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