DoL Latest Numbers

The DoL issued its latest numbers as shown below. Unemployment is now at 8.5%. As we have been saying all along, we still anticipate it reaching 10.5% at peak and the current recession lasting until the end of 2010. However there may be the exacerbating fact of the explosive spending from the Current Administration which combined with the FED placing new money on its books that will cause massive inflation followed by another downturn.












Also as we have said there were two other shoes to drop; commercial real estate and then high yield debt collapse. We are seeing the signs of the commercial collapse now and we have seen the signs of the high yield via the Sirius restructuring. Unfortunately there are many more Sirius as we had indicated months ago. The other bad sign in the above numbers is the CPI increasing. Given the bad news one would assume it would be decreasing. The PPI is also positive and productivity is down. This is a sign of impending inflation.