Loading ...Unemployment number only tells half the story! The elephant like unemployment data this morning showed the first contraction in 15 months. Wall Street pundits cheered like 250K jobs were created (not lost). Obama ran to the camera and squealed like a pig the minute he was told the news. It was just sickening, how undisciplined Obama was on handling confidential information. Don’t get me wrong, I can completely understand that the optimism comes from the improvement of the number and not the actual number itself. But the cheerfulness of the CNBC crew is just ridiculous. Dennis Kneale for one has been acted like a high school cheerleader before the big prom night. I’ll admit, he has been right and I wrong (short term) only because I under estimated how dumb the public is. I guess a Wall Street criminal can always find an idiot to overpay for a worthless corporation. This is just like 2006 when the market was trading at 13,000. I told a friend that the market should be crashing any day and not going up. I was proven wrong for several months until the bottom dropped.
Let me point out that 422K people removed themselves from the labor force last month. Think about that, half a million people stopped looking for work (or collecting unemployment). At the same time those that have been out of a job but looking for more than 26 weeks rose by 584K. Any way you look at it, these are bad numbers. Real unemployment is closer to 17%! Just because the government reports 9.4%, if doesn’t mean it’s so.
I don’t know how many times I have to warn you folks, but we aren’t in a recession. We are in a depression! There is a good chance that sometime in 2010 or 2011 the economy starts contracting again and has another huge correction. The only problem is that in two years, printing money will hurt more than help, companies won’t be able to cut people to reduce cost, their won’t be any inventory to deplete and rates will be creeping up. Even if the contraction is have of what it was in 2008, the affect can be twice as much!
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