Michigan is really getting hit hard and we know why.
There is an upbeat consumer survey which is helping to propel today's market gains, at least as of 3pm. But what happens when the base of people without the money to purchase anything keeps increasing?
I was listening to the NPR story about the woman they are following in D.C. who is on a job hunt. She is now at the end of her benefits and is literally beside herself with panic about what to do. She is also weeks away from being homeless. We suspect this is the way it is for probably millions. The benefits do run out and the job scene is getting tighter.
Bloomberg: Joblessness Reaches 10% in Indiana; Jumps in Oregon
Indiana in March joined seven other U.S. states with a jobless rate of at least 10 percen...
Michigan, with 12.6 percent, remained the state with the highest unemployment rate, followed by Oregon at 12.1 percent. The rate in California rose to 11.2 percent from 10.6 percent.
2 comments:
Remember, employment is a LAGGING indicator. So, the Recession might technically end at some pt. but employment nos. will tank for months , maybe even yrs. after the recovery begins. In other words the misery index isn't likely to get any better for a very long time out here.
This is true, it is a lagging indicator.
What gets me though is that it is still rising. Maintaining or diminishing is one thing but increasing is a different animal. Take California its up to 12+% and you have to figure that the numbers are adjusted to make the government look as good as possible, so I suspect the percent is higher than 12+. If there isn't a leveling off and the thing goes up to say 20% then we are not in a recession, its worse, its full bore depression.
I am not convinced its a bull rally, I still think its a bear rally.
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