6,000,000 U.S. jobs to be lost in 2009

6,000,000 U.S. jobs to be lost in 2009

What do you guys think?

 

this is an exagerated number ... I think that the Gov will find a solution for this .

 

How is that exaggerated? It's based on the past three months? No?

But fair enough, the government is trying hard to fix this...

Nevertheless, it has tried to fix this for quite a few months now and things appear to be getting worse, not better...

 

Wow!

Who do you think created this mess?????!!!!?!?!?

If they do what happened during the Great Depression (massive government spending, restricting the money supply, subsidies, increased bureaucracy)...

we're headed for a decade of tough times (scarce money / high unemployment).

And...

it looks like that's exactly what the government has done and will do (bank/insurance bailouts, restricted credit, stimulus checks, government infrastructure programs, huge military),

make the same mistakes all over again.

 

It is based only on averaging the amount of jobs lost over the past 3 months, to make a long term projection, you must look at long term past results, as well as facftor in many other factors.

 

In all honesty, will the auto industry on the verge of collapse with or without bailout, I think this number may be a severe udner estimation. I truly beleive right now is a time to put all your money under your matress, invest in land, and brush up on your survival skills.

 

Now even the economists agree with me

http://www.bloomberg.com/apps/news?pid=20601087&sid=arYTOz63Yf40&refer=home

Forecasts are forecasts and only time will tell, but the underlying essence here is that 2008 was only the tip of the iceberg and unemployment this year will see sharp increases as the domino effect of the economic crisis unfolds...

 

You have to take in consideration that the US labor force has almost doubled over the last 35 years.

The unemployment rate from 1981 to 1986 was over 7% and there were two years that unemployment topped 9% - 1982 (9.7%) and 1983 (9.6%)

http://www.bls.gov/cps/prev_yrs.htm

 

God forbids! And it's very good that Barack Obama has started to
focus on this situation as he assumes office "first thing in the morning" on
January 20, 2009.

 

The democrats have been in control of Congress since 2006 and they have had control of the Senate since 2002.

Barry Obama has been a Senator since 2004. I'm glad that he will start focusing on the problem.

But in a situation that we are in, we need to identify what the problem is and how to solve it. Throwing money that we don't have at the problem is no solution. At the most it ill lessen the pain.

However, there is a risk of double digit inflation or even a dollar crash.

 

And it also put's the US at the mercy of those owed, like China....

I also read about this and totally agree, the risk is high!

 

Sure.

But, if consumption collapses, it creates deflation. Therefore, no dollar collapse.

To collapse consumption, you create massive unemployment, tight credit, and massive government spending.

This is the recipe used during the Great Depression by the United States government.

 

I believe the problem is the people are living in such a fancy life now. We own too much thing that we don't need. Our live is so much more than just surviving.

I don't think any American will starve to death, even the employments rate jump to double digit. We might own less stuff in our house or get less entertainment.

 

Really? You think this?

Isn't the problem that people (and businesses) have bought and hyped up over their head? i.e. Things they cannot afford...

 

Americans are not saving money and rely on asset appreciation to fund their lifestyle and retirements. Japanese and Germans have trillions in savings and the average American is in debt.

There isn't deflation. Rather the asset bubble is deflating and prices are returning to the mean.

The money supply is increasing and its reflected in the price of gold. The average gold price in 2005 was US$444.75. Merrill Lynch sees $1000 gold at an average of $1000/troy ounce in 2009.

 

I don't think this will matter. Our current financial system is completely interdependent with the rest of the world.

If the dollar collapses, so does the yen, mark, pound, euro, etc. So, I am not worried about that.

Why? Because all paper money in the world is backed by nothing. It can be redeemed for nothing. It has no value beyond what each government says it has.

So vast paper fortunes in savings, investments, debt, or equities can be made worthless with one change in law.

You are right.

With all the bailouts and giveaways, and takeovers, and war, saying anything else is just silly.

(Merrill Lynch is still in business??!!?!?!? They don't need to be advising anyone about their finances. )

I meant to say the goal IN THE FUTURE of the government and the banks will be to restrict the availability of dollars in the economy to collapse demand.

The banks are doing their part by restricting credit and dropping the interest rate to near 0.
The government will start huge spending to suck up all available investment capital that ordinarily would have gone to businessmen, entrepreneurs, and workers.

This will starve the economy of jobs, businesses, and capital.

Hence, less consumption means less demand means lower prices which I call deflation (knowing full well dollars are always increasing in supply).

 

6 millions?
coincidence?
do people love the 6 millions number?