For years, despite what the bullish CNBC dimwits would have you believe, we’ve told you that the economy is just getting worse… with no real solution.
And finally… investors are getting it.
The economy is not as rosy as the corporate puppets of CNBC would have you believe.
It’s worse… much worse.
With many economists predicting unemployment will rise into the double digits, foreclosures will only accelerate, which will add to bank losses, which will add pressure to the financial system and broader economy.
And the unemployment picture, at least for a while, isn’t getting any better.
Just today, Obama wouldn’t predict how high unemployment would climb, but made it clear “he expects it to keep worsening for a while as hiring lags behind other signs of economic recovery. My expectation is that we will probably continue to see unemployment tick up for several months.”
The Fed is well aware of what’s coming. Why do you think they’re so desperate to pump up the economy before the next fiasco?
Worse, according to today’s Wall Street Journal’s article, The Economy is Even Worse Than you Think:
“The Bureau of Labor Statistics preliminary estimate for job losses for June is 467,000, which means 7.2 million people have lost their jobs since the start of the recession. The cumulative job losses over the last six months have been greater than for any other half year period since World War II, including the military demobilization after the war. The job losses are also now equal to the net job gains over the previous nine years, making this the only recession since the Great Depression to wipe out all job growth from the previous expansion.”
Here are 10 reasons we are in even more trouble than the 9.5% unemployment rate indicates…”
And on top of unemployment, we have to worry about the sizable debt wrapped up in Option ARMS, which is much worse than that of subprime. And if the government or the banks fail to understand this, the second round we’ve been warning about will begin and banking instability will ensue. You can read more about Option ARM resets here.