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Coming soon to U.S., 1 million jobs lost every month: Report
Stephen C. Webster
Raw
Story
Monday, Dec 08, 2008
London-based GFC Economics is making a frightening
prediction: By spring 2009, the United States could be facing
more than 1 million layoffs every successive month.
Expenses related to corporate debt, and muddy credit markets
consumed by fear, are driving a fast-approaching "hard landing,"
claims a Sunday report in UK's Guardian.
"Corporate bond yields have rocketed since the credit crisis
began as investors flee risky assets in search of safe havens
such as US Treasuries. That effectively means many firms are being
forced to pay eye-watering interest rates to borrow funds,"
the paper reported.
"November's jobs figures were so much worse than analysts
had expected that the Dow Jones share index actually rallied by
259 points, more than 3 per cent, as investors bet that Washington
would have to launch a major new rescue package for the economy
even before President-elect Barack Obama takes over the White
House in January."
(ARTICLE CONTINUES BELOW)
Sunday morning, during an appearance on Meet the Press, President-elect
Obama cautioned Americans that the crisis would only get worse
before it begins to ease. He also outlined a new stimulus package
some senior Democrats have said could cost as much as $1 trillion.
"Mr. Obama refused to put a cost on the plan, but senior
Democrats are talking about $700 billion, with others urging up
to $1 trillion," reported the Times Online. "When he
met the nation’s governors last week he was told that on
the state level there was $136 billion worth of building projects
ready to go if federal money was made available."
David Frost, director-general of the British Chamber of Commerce,
paints a grim deadline.
"The worry is that next year the job losses will be just
horrendous," he said. "All sectors are taking the hit.
In the middle of the year it was construction and estate agencies.
Now it is services, the automotive industry, retailers. Firms
are waiting for Christmas and if they can't see any improvement
they will cut their payrolls."
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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