Unemployment rate 5.5%

[Guest]

http://news.yahoo.com/s/ap/20080606/ap_on_...o_ec_fi/economy

anyone ever watch "Titanic", the movie? Remember towards the end of the movie when the ship is vertical and sinking? Now apply that to the economy, and enjoy the ride...

Edited June 6, 2008 by vacguy

[JM15 386]

I Think that you meant UNEMPLOYMENT lol

[Guest]

I Think that you meant UNEMPLOYMENT lol

lol i'll change that!

[ny10570 745]

Yeah, 5.5% unemployment and another spike in oil suck and the housing market isn't helping anything we're far from the the Titanic scenario. The economy is still growing and wages have yet to start retreating.

[joey01 10]

Add to it Banks and Financial Institutions are failing and it reminds me of what happened in 1929.

[ny10570 745]

Yep, just like 1929 when the Dow lost close to half of its value in less than a month. The stock market had been wildly inflated during the prosperity of the 20's and much of that growth had been on the backs of unsecured debt since at the time people were under the impression we had reached a level of growth that could never be lost. Take the dot com crash and spread that over the entire stock exchange and remove the safteys and checks from the system and then you could repeat 1929. The banks were crushed because there was over $8 billion loaned out just in the stock market and only about $5 billion in currency in circulation. Combined with other private debts there was 2 1/2 times more money owed than money available and this doesn't even include the national debts incurred by the gov't during WW1. Besides, depending on who you listen to, the depression was a forgone conclusion and the crash may have just been the exclamation point.

[gamewell45 258]

Yeah, 5.5% unemployment and another spike in oil suck and the housing market isn't helping anything we're far from the the Titanic scenario. The economy is still growing and wages have yet to start retreating.

According to the US Departent of Labor, the country had a net loss of over 50,000 jobs in the month of May. And yes, wages haven't started retreating yet; for those who still have jobs. If we continue the trend (lost jobs, increase in oil prices, slumping stock market, loss of tax revenue, etc) we'll probably start to see the impact by the fall. Just in time for the elections.

When you lose your tax base, the government starts slashing services and its always the police and fire service that pay the price. Some of you may remember in the early 1980's when places like Clariton, Pa, Duesqne, Pa (not sure on the spelling) etc. switched from career fire to volunteer fire becaue the bottom dropped out of their tax base. I don't think that would ever happen in NY, tho' there is a history of layoffs and reductions due to budget shortfall in the state (ie. the budget crisis in NYC in the mid-70's).

Lets all hope that the economy improves.