2/18/2010

High Unemployment Next Two Years


The Federal Reserve issued a bleak forecast [article link] yesterday by stating Americans face another two years of high unemployment. The last unemployment figures had the U.S. unemployment picture at 9.7%, which is down from the previous month's 10%. The Federal Reserve believes American businesses will be very cautious due to a high deficit, slow growth of consumer goods sales and the belief the recession could reignite.

I'm not sure how much more good news we can take from the federal government. They state in that article that unemployment will remain between 9.5-9.7% for this year. That could prove disastrous for the Democratic Party in November if that prediction holds true. And, I do not believe the bravado from the Obama Administration that the worst of the recession is behind us. New home sales rose 2.8% in January. However, construction applications fell 4.9 percent to a rate of 621,000 units [article link]. According to the article I linked, "Applications for new home construction are viewed as a gauge of results and watched closely. The drop in applications came after two consecutive months of increases." Businesses are still folding nationwide. I'm sure the Obama cultists will point to the rise in construction of new homes as an indicator the recession is behind us. But, like their idol, they point only to what appears to be "good news." This recession is still hurting Americans. And, I know it's all the fault of George W. Bush. I'm just curious when does this economy become the fault of President Obama and his big government spending solutions?

To quote Harry Truman, "It's a recession when your neighbor loses his job; it's a depression when you lose yours. I suspect there are a lot of depressed Americans today. And, their anger will be displayed in November.





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