Welcome to 9.09.....40% Unemployment!!!!!!!
September 07, 2009
– Comments (19)
Unemployment in California should be really reported as 40% if we wanted to make and apples to apples comparison to The Great Depression. In the thirties there was no government social safety net keeping tens of millions off the streets and not standing in food lines waiting for a meal.
Today, 2/5 working age people in CA do not have a job.
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/09/06/state/n000211D96.DTL#ixzz0QOTlkz7S
The irony is the furloughed state workers suffering massive wage loss are the ones now being forced to stand in food lines.
California state workers swallow pride at food banks
Jasmine Bess has held down a good job at the Department of Motor Vehicles for the past seven years. She isn't used to asking for charity.
Three unpaid furlough days each month, erasing 14 percent of her income, have hit her budget so hard that by the end of August, she couldn't afford to feed her 9-year-old daughter....
http://www.sacbee.com/topstories/story/2164703.html
With the consumer accounting for 70% of GDP......goverenment consuming 50% of GDP.....and health care consuming 20% of GDP.....soon all will realize America has very little economy when Americans are not consuming.
With Benny Bin Laden and the bailed out bankers tightening credit and RAISING interest rates on citizens and business....fewer and fewer consumers are able to consume and the economy is imploding as consumption and service revenues are extinguishing.
As credit it tightened and interest rates rise, MORE AND MORE loans will default further suffocating incomes and consumption.
The credit-card business is becoming an increasing burden for Bank of America, which has seen its default rate rise to almost 75 percent higher than its largest competitor, J.P. Morgan Chase.
The largest bank in California saw its credit-card default rate hit 13.81 percent....
“The losses being absorbed on credit-card portfolios are simply unprecedented. They reached 10.01 percent in the second quarter” for banks overall said analyst Dick Bove with Rochdale Securities. In response, credit-card issuers are raising rates, cutting credit lines and calling in loans through higher minimum payments.
http://www.bizjournals.com/sanfrancisco/stories/2009/09/07/story12.html?b=1252296000^2045981
THE RESPONSE IS THE CAUSE OF THE PROBLEM...AS CREDIT IS TIGHTENED AND RATES RAISED ON AN OVERLEVERAGED SWAP INFECTED ECONOMY, MORE AND MORE WILL DEFAULT. THAT FACT THAT WE JUST BAILED OUT WALL STREET BANKERS, AND BENNY BIN LADEN WAS ONE OF THE ARCHITECTS OF THE PROBLEM AND IS DOING NOTHING ABOUT IT....MAKES HIM NOTHING MORE THAN AN ACCOMPLICE TO ECONOMIC TERRORISM.
Since over 90% of our economy is based on consumer consumption, government consumption, and health care consumption, it will be very interesting to see what happens to our nation WHEN tens of millions of unemployed lawyers, doctors, nurses, accountants, architects and others are just standing around and staring at each other not knowing what to do as the bankers drain the money from the system and we bail them out....
It will not be very long before America must make a choice:
Massive Depression or Massive Government.
Niether choice is very appealing, but often the choice between personal liberty and freedom versus totalitarianism has been historically challenging. Especially when the politicians don't want to adjust their lifestyle and they can take everything you own.
You think America is angry about health care "reform" and Presidential speeches???? Just wait until you Fools finally find out that you have been unknowingly bent over, in gang type fashion, by Benny Bin Laden and his banker buddies and many of you have been cheering it along as they have been controlling you and your family the whole time.
It was never hard to see, just hard to watch as so few really knew....even The Gardner Brothers were clueless.
RSS Headlines
Fool UK