Unemployment may continue to get much worse into next year, much more than even the most pessimistic possibly. Why?
By Alex Mai at 3 July, 2009, 2:00 am
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DEBT DESTRUCTION will reaccelerate next year along with the rollover game for all but the bailed out or the fascistly connected is done. This will continue to put the petal to the metal on the easiest thing for businesses to cut - workers. Plus a lot of state governments going bankrupt but not really because they will ask for handouts from federal govt which will start first with California asking for “bailouts” - they will get some of the bailout money from the TARP out of the remaining 350 billion and will also drain the FIRST stimulus package for funds just to KEEP PAYROLL.. First California with 26 billion , then I expect Michigan to ask for 15 billion then Florida etc… So now a new round of layoffs in state goverments across the country! This is all a new frontier on our history folks. And a dark one.
Oh yeah, and the labor secretary says do what it takes huh? - If the administration and Bernanke generate 2nd stimulus and another 1 trillion of printing, there goes the 10 year yield up to the sky. Inflation indeed. In the PRICE of money which will crowd and lock out more cash strapped individuals and businesses in the spiral to hell. So debt financed businesses, stocks, bonds, homes and the like will continue to deflate. Meanwhile, higher taxes to subsidize it all will continue to drain out existing resources and savings from responsible people, especially on time paying property-tax paying homeowners and other taxpayers and food shoppers and public transporting citizens and toll bridge car driving people etc…
See the pattern yet?
AC/DC “Highway to Hell” - Sing it now!
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