Over the last few months it seems that even the unemployment numbers are having less of an impact on the market.
If you look at the chart, this is the worst situation that the US has experienced since the war, and employment still looks like it is on a downward slope. In addition the closest point to the level of unemployment now was way back in 1948. Everything in between 1948 and now was a mere trifle compared to what we are experiencing now.
However, it is a pity that the figures for the Great Depression are not included, as I think they would show around a 7% unemployment rate, and with the post war numbers, you have to factor in that many of the men did not come back from the war. So full employment would have been somewhat easier to achieve as there were less people to fill massive demand for war reparation and the restocking of goods and services in very depleted economies.
So, "... are we there yet ?". Is the market becoming complacent and running the risk of looking the other way when the freight train comes out of that tunnel that they have been seeing the light at the end ?.
There is a great line in the Lamb Lies Down On Broadway by Genesis:.
If you look at the chart, this is the worst situation that the US has experienced since the war, and employment still looks like it is on a downward slope. In addition the closest point to the level of unemployment now was way back in 1948. Everything in between 1948 and now was a mere trifle compared to what we are experiencing now.
However, it is a pity that the figures for the Great Depression are not included, as I think they would show around a 7% unemployment rate, and with the post war numbers, you have to factor in that many of the men did not come back from the war. So full employment would have been somewhat easier to achieve as there were less people to fill massive demand for war reparation and the restocking of goods and services in very depleted economies.
So, "... are we there yet ?". Is the market becoming complacent and running the risk of looking the other way when the freight train comes out of that tunnel that they have been seeing the light at the end ?.
There is a great line in the Lamb Lies Down On Broadway by Genesis:.
.... and I feel like a fly hovering, waiting for a windshield on a freeway ...".
Undeniably, the chart above clearly shows how devastating the global financial crisis has been in it's impact on employment. So are we now waiting for a large "smack" as we hit Wall Streets windshield, or does the chart above tell us we are near the turning point ?.
Cheers
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