While any positive economic news is welcome, many in Washington and elsewhere are way too optimistic about a recovery. Until consumer spending and job growth turn positive, things are going to be painful.
Regarding consumer spending, Baseline Scenario critiques a post in the LA Times discussing a new Bank of America Merrill Lynch report “The Myth [...]
Continue reading about Can we have a recovery without consumer spending and job growth?
“In July, the number of unemployed persons was 14.5 million,” according to the Bureau of Labor Statistics. Another quarter million jobs were lost; however, as Chart 2 indicates below, the month-to-month decline is about half the job loss rate six months ago.
The bad news in the BLS report for July is on page 2:
The number [...]
Continue reading about Long-term unemployment rises as total unemployment slows
Here’s my online “kiosk” explaining the credit crunch:
Three exquisitely complementary articles pull back the curtain on how this crisis happened and why it will take years before we’re on solid ground again.
Links and brief excerpts below the fold.
Today’s WSJ column by Meredith Whitney is must reading for any business that depends on credit cards or has customers dependent on credit cards. Armed with statistics, Whitney predicts trouble ahead as credit card companies aggressively reduce credit lines to limit their exposure.
Currently, there is roughly $5 trillion in credit-card lines outstanding in the U.S….My [...]
