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Old 02-08-2010, 12:35 PM   #28
Avalon Senior Member
Join Date: Mar 2009
Posts: 335
Default Re: What recovery? Unemployment shoots past 10 percent

This is one of the key areas I've been watching. Collapse is inevitable if Unemployment is ever agreed upon to be ceased. We are currently looking at 16 million unemployed (non-farmers), and 6.2 million of them are already on unemployment extention programs beyond 30 weeks. This also does not include the number of employees whom are having hours cut down or moved from full time to part time employment.

As indicated on another post, most states are borrowing from the government to pay for this, thus the Mortgage/Auto/Insurance/ and Utilities market remain afloat and depending on this service as well. For these things would be let go as the funds are let go.

A quick note on the FDIC current scenario
As we all know, the FDIC is bankrupt and are borrowing from the government, which means there are realistically more banks bankrupt than what you are being told, but will eventually be listed as closed by government. This is simply being done slowly to prevent the public from ambushing their accounts.
The Move Your Money campaign, will hurt in the long run if successful, because it will further bankrupt institutions for which bigger loans (businesses,etd) are being held. It depends on how many Americans truly move their money. However, this does not change the predicament of the FDIC, because the bigger banks may fall faster, but they (FDIC) are still responsible for insuring a mandatory percentage of the funds for banks, which would include those moved to the smaller banks.

There's a bit more to all of this, but back to the first paragraph...If you ever hear the government conclude that "hey, no more unemployment extensions"...Goodnight.
gscraig is offline   Reply With Quote