Market Overview

Unemployment...The Least Of Our Worries!!!

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Applications for unemployment are lower because there are fewer people working and less people left to layoff. With the measurable unemployment rate (those who qualify to collect benefits) hovering around the 9-10 percent. The actual unemployment rate is conservatively double that amount. Factor in those who no longer qualify for aid, don't apply for aid, have given up looking for jobs and those who are severely under employed the number of non-working or working poor Americans is more like 25-30 percent.

Add to that the fact that all American's net worth is getting crushed by housing values depreciating at a break neck speed. Most home values have fallen 30%-50% over the past three years. 40 percent of homeowners owe on average $50,000 more on their home than they are worth. 10 percent of US home owners have lost homes due to foreclosure with another 10 percent set up to lose their homes this year. The average American home is now worth what is was worth 15 years ago. Pile on near all-time high gas prices and sky rocketing food costs and the average Americans net worth is being suck into some big black hole. Every American is being affected by this fiasco not just the unemployed.

Almost half of the small businesses across the country have closed down due to the economy. The strip malls look like downtown Gary, Indiana after the steel mills in Northwest Indiana closed down in the 1980's. Almost all of the home builders across the country sit idle as they wait for the huge inventory of foreclosed properties to sell which could take years putting most tradesmen on the streets until building resumes. The huge inventory of recent and not so recent college graduates who have yet to land their first legitimate post college career job is now entering the fourth year.

The United States economy is surviving on life support to say the least. It is time for Washington, Wall Street and the banks to get together stop pointing fingers and clean up the huge mess that they created.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Economics Markets

 

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