Some people tend to be optimistic, some pessimistic, but the Bond King, Bill Gross usually gives an objective view of the economic situation. Find out what he thinks of the 9.5% 26 Year Historic High in Unemployment.
Mr. Gross highlights that 35 million people are out of work, and want a job. He highlights that there will be a problem with Creditworthiness of Consumers that will persist into the year 2012. He also agrees that the US Economy is headed for Stagflation, i.e. growth of 1% to 2% for a long, long time.
Actually, although the US Government reports a 9.5% Unemployment Rate, it doesn't include those that want to get a job, but have stopped looking. If these people who have given up are taken into account, then, Unemployment Rate is already in the range of 15%, and STILL RISING RAPIDLY.
We are definitely in a Great Recession. Whether we will end up with an Economic Depression, is left to be seen, although Bill Gross states in this video that he thinks that a Depression is out, and that the US Economy is headed towards Stagflation, i.e. not unlike the Lost Economic Decade of Japan.
Such a scenario is alright IF you keep your job. But what happens if you don't, and for the next decade, the economy just drifts along, somewhere around the current level? Unemployment will keep rising, even if there is no major retrenchment exercises due to the new adult 18 years, and university graduates trying to enter the Labor Market every year. Scary Scenario, and yet, it looks like this is the Likely Scenario going forward.
Best wishes,
Ooi
Mr. Gross highlights that 35 million people are out of work, and want a job. He highlights that there will be a problem with Creditworthiness of Consumers that will persist into the year 2012. He also agrees that the US Economy is headed for Stagflation, i.e. growth of 1% to 2% for a long, long time.
Actually, although the US Government reports a 9.5% Unemployment Rate, it doesn't include those that want to get a job, but have stopped looking. If these people who have given up are taken into account, then, Unemployment Rate is already in the range of 15%, and STILL RISING RAPIDLY.
We are definitely in a Great Recession. Whether we will end up with an Economic Depression, is left to be seen, although Bill Gross states in this video that he thinks that a Depression is out, and that the US Economy is headed towards Stagflation, i.e. not unlike the Lost Economic Decade of Japan.
Such a scenario is alright IF you keep your job. But what happens if you don't, and for the next decade, the economy just drifts along, somewhere around the current level? Unemployment will keep rising, even if there is no major retrenchment exercises due to the new adult 18 years, and university graduates trying to enter the Labor Market every year. Scary Scenario, and yet, it looks like this is the Likely Scenario going forward.
Best wishes,
Ooi
Video Courtesy of CNBC.Com
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