"WASHINGTON (Reuters) - U.S. employers cut a deeper-than-expected 263,000 jobs in September, lifting the unemployment rate to 9.8 percent, according to a government report on Friday that fueled fears the weak labor market could undermine economic recovery.
The Labor Department said the unemployment rate was the highest since June 1983 and payrolls had now dropped for 21 consecutive months.
Analysts polled by Reuters had expected non-farm payrolls to drop 180,000 in September and the unemployment rate to rise to 9.8 percent from 9.7 percent the prior month. The poll was conducted before reports, including regional manufacturing surveys, showed some deterioration in employment measures…"
They keep thinking the economy is going to get better. Why won’t they recognize, that unlike previous recessions, the government now has the sink-holes of the FDIC, GM, Fannie Mae, Freddie Mac, and other banks that are money pits? What about all the barriers to entry into the market that they have setup? These people are just such idiots. I would not be surprised if we have 20% unemployment by the end of 2010.
That’s what I keep telling people. Banks are shuffling around their balance sheets and offloading what they can on the Fed but the reality is still there: giant sinkholes of worthless buildings and leveraged paper. They can paper over the bad debts and malinvestments all they want, the costs are still there. The government is preventing the full extent of the correction from happening but eventually they won’t be able to stop it. We have not hit bottom.
… and so does selling stocks, bonds, commodities, etc. Anyway, the point is that stock brokers (the people I was referring to) get a commission for every trade. And getting it wrong doesn’t mean that they will lose sales.
Wall Street - the minor players - might not realize it but I no longer believe it’s not intentional. And I don’t mean just some typical government attempt to nationalize something and bailout some friend. It looks like a deliberate attempt to destabilize economy - not jut US, but the whole world, probably with hyperinflation, high unemployment and a lot of desperate people ready to do anything. I think we’re heading for some major crisis. Total financial collapse? Swine flu? Big riots? Major war with WMDs?
