Dave Lewenz

And Bernanke Didn't Think Unemployment Would Reach 10%

While fortune 500 companies have abated layoffs expect thought’s that are consolidated, which we will see a lot more of, IE Pulte – Centex, just announced 800 lay offs due to merger. Wait to you see the Black and Decker numbers which could be around 5 thousands, The vast majority of unemployment entries into the market are now small business that are closing their doors. This could be a spiraling effect that no amount of government intervention can prevent unless banks start loaning again. We could see 15% by end of 2010


On Nov 08 06:24 AM Steve in Greensboro wrote:

> Don't worry, Mr. Slavo. All we need to do is more of what we have
> been doing: print more money and have another stimulus or two. Plus,
> let's raise taxes by socializing medicine, taxing carbon dioxide
> emissions, allowing the Bush tax cuts to expire in 2011, imposing
> a VAT, etc. Plus, let's impose massive tariffs like the G-20's "balanced
> trade" plan. Paul Krugman thinks these are all good ideas and he
> has a Nobel prize -- in economics!
>
> Happy days are here again!

How Will This Depression Differ from Previous Ones?

The economic conditions today are no way comparable to the 1920-30's. With a banking system that is insolvent, a real-estate industry booth residential and commercial that has 20-30% devaluation yet to come, creates a vacuum in the financial system that will bring the average business to fail, due to lack of cash flow and ability to borrow against future historical earnings. This by it’s self does not allow for an economic recovery and does not permit new job creation.