It is amazing that the government, the media and most of the people are buying into the supposed fact that the unemployment rate is at an "astonishing and tragic" 10.7 percent.
Actually everyone, its more like 24 percent. Yes, you read it correctly, 24 percent.
One must wonder how it is possible that I came to that conclusion. Well it is certainly not just me, but a steady stream of intellectuals, politicians and bloggers who are realizing that the governments' current guidelines for determining the unemployment rate is horrendously flawed.
'After a year, if you haven't found a job, they assume you gave up and dont count you anymore!'
According to Jason Termin a jobs analyst who works for the Department of Labor, the unemployment figures are skewed to give a much better picture and its been this way for decades. "Basically the unemployment rate is figured by guessing how many people have been looking for a job for a year or less" Termin says.
"If you have been looking for a job longer than a year, than the government assumes you gave up and doesn't count you in the tally of unemployed, even though in this recession, according to MOST job sites it can take almost 1 to 2 years in this climate to find the ideal job."
He went on to point at the latest jobless figures. "If you figure in the people who STILL havent found work after a year, its certainly close to, if not more than 20 percent unemployment, and most job statisticians would agree with that figure".
So what is the solution? Termin says we should really "press the media to stop buying into the goverments flawed way of calculating the unemployment rate and demand that the government give accurate figures"
The bottom line is, both sides of the government are at fault for promoting this lie. People deserve the truth. Unfortunatley the truth may be too sobering for both sides of the media and goverment to admit to, especially when the truth points to that grim fact that this recession has a jobless rate almost equal to that of the Great Depression.
Showing posts with label great recession. Show all posts
Showing posts with label great recession. Show all posts
Thursday, February 11, 2010
Sunday, August 23, 2009
Is the "Great Recession" over?
Federal Reserve Chairman Ben S. Bernanke rendered his most positive assessment of the economy yet in a speech Friday and gave credit in part to his own institution's handling of the worst economic crisis in decades. He claimed that the so-called "Great Recession" is over and things are turning around as we speak.
On paper, one may think so. Home sales have jumped a whopping 27 percent (some say 33 percent, or 17 percent, but either way its a jump). Job loss claims were lower than expected last month (even though they did jump this month to over 500,000). So one might think things are easing up... Well, that is simply not true.
According to Ray Jones, CEO of Farmworth Capital LLC. the majority of home sales were done by corporations who were looking to get a steal from buying foreclosed and decrepid homes. That is where the sales increased. These werent sales from people who were looking to buy a great home at a great price. The latest scheme going on these days, according to Jones is that corporations are getting together and buying homes that once cost $400,000 for less than $150,000 dollars... in bulk, that is all that is happening. And that's not all..
The commercial real estate bubble hasnt even burst yet. There are some companies that overpaid for buildings in Manhattan by hundreds of millions and have no way to coming up with their payments.
One building bought in Times Square for almost a billion dollars, has not only gone down in value by nearly half since the "Great Recession" started, but the company that bought it, TL Gerban, a Dutch corporation, has no way of coming up with the payments because theyre about to go bankrupt. It is one example of perhaps thousands of companies that have no way of coming up with rent payments.
When the foreclosures start in the commercial real estate market, that is truly when the "Great Recession" will have bottomed out. So until then, Mr. Bernake can keep doing the drugs he is doing, he is stepping down in January anyway. Sorry everyone, the "Great Recession" is here to stay for another few years.
On paper, one may think so. Home sales have jumped a whopping 27 percent (some say 33 percent, or 17 percent, but either way its a jump). Job loss claims were lower than expected last month (even though they did jump this month to over 500,000). So one might think things are easing up... Well, that is simply not true.
According to Ray Jones, CEO of Farmworth Capital LLC. the majority of home sales were done by corporations who were looking to get a steal from buying foreclosed and decrepid homes. That is where the sales increased. These werent sales from people who were looking to buy a great home at a great price. The latest scheme going on these days, according to Jones is that corporations are getting together and buying homes that once cost $400,000 for less than $150,000 dollars... in bulk, that is all that is happening. And that's not all..
The commercial real estate bubble hasnt even burst yet. There are some companies that overpaid for buildings in Manhattan by hundreds of millions and have no way to coming up with their payments.
One building bought in Times Square for almost a billion dollars, has not only gone down in value by nearly half since the "Great Recession" started, but the company that bought it, TL Gerban, a Dutch corporation, has no way of coming up with the payments because theyre about to go bankrupt. It is one example of perhaps thousands of companies that have no way of coming up with rent payments.
When the foreclosures start in the commercial real estate market, that is truly when the "Great Recession" will have bottomed out. So until then, Mr. Bernake can keep doing the drugs he is doing, he is stepping down in January anyway. Sorry everyone, the "Great Recession" is here to stay for another few years.
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