Coming soon to U.S., 1 million jobs lost every month: Report

http://themancommon.blogspot.com/2008/12/coming-soon-to-us-1-million-jobs-lost.html

Wednesday, December 10, 2008

Coming soon to U.S., 1 million jobs lost every month: Report

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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."

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.


FULL story at link.