World Bank President gives markets reality check: ‘unemployment may cause loan defaults’ Gee ya think?!

Seriously. That is the CNBC headline: ‘Unemployment May Cause Loan Defaults in US’. Well that is a keeper for the No Shxt Sherlock files. In other news Water is Wet!

Since it is the World Bank President saying it and not we little people maybe the markets will BUY A FRAKKIN CLUE!

no-shit-sherlock

CNBC:

Stubbornly high joblessness threatens to trigger loan defaults and drag on consumption next year, hobbling a U.S. economy struggling to rebound from recession, World Bank President Robert Zoellick said Wednesday.

...”You’re going to have problems with delinquencies of credit card loans, consumer loans, people won’t be able to pay their mortgages,” Zoellick told reporters in Singapore. “Some banks are going to continue to be troubled by bad loans.”

Government stimulus spending will likely fuel economic growth through the middle of next year, Zoellick said. After that, consumer spending and business investment must take the baton to boost expansion, he said.

“If you’ve got large scale unemployment, if you’ve got consumers rebuilding savings and deleveraging, I don’t think the consumer is going to play that role,” he said. “What’s the other source of demand?”

Gee that sounds familiar! Cause we have been saying it here at MiM for OVER A YEAR!!

…Governments should execute existing stimulus packages, but hold off on implementing new ones, he said.

Asian authorities should consider ways to tighten monetary liquidity, such as raising interest rates, before asset price bubbles get out of hand, Zoellick said. Asian stock indexes and some property markets have soared since March….

Can you say China bubble? Hong Kong real estate bubble?

November 11, 2009. Tags: , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Labor Department, Obama Administration, Politics, Popular Culture, Unemployment Statistics, Wall St. Comments off.

NABE Forecast: More job losses ahead

WSJ discusss the anti growth measures coming from Congress and the impact they have on job creation – that being they kill it.

wsjstimulusjobschart

Meanwhile no action in the Senate on the UE extension as they wrangle over health care which is NOT a crisis; and on the House side,  Pelosi is back to the drawing board talking to economists again, b/c her first swing at a stimulus went so well eh? NOT!

In other good news NABE (the group that officially call the recessions and what have you correction, that is the NBER) has a jobless forecast:

The worst U.S. recession since the Great Depression has ended, but weak household spending as the labor market struggles to create jobs will slow the pace of the economy’s recovery, according to a survey released Monday.

…The NABE survey, conducted in September, predicted real GDP growth expanding at a 2.9 percent pace over the second half of this year. Output for the whole of 2009 is expected to contract 2.5 percent and next year, rebound to 2.6 percent.Much of the anticipated recovery was seen driven by businesses rebuilding their inventories after aggressively reducing unwanted stocks of unsold goods to match weak demand…(Gee sounds like MiM’s forecast from last July, lol)

…The survey predicted that the unemployment rate would rise to 10 percent in the first quarter of 2010 and edge down to 9.5 percent by the end of that year. The labor market was not expected to regain most the jobs destroyed in the current recession until 2012 or beyond....

CNBC:

(…)Rob Shapiro, an economist who was a top official in President Bill Clinton’s Commerce Department, sees “substantial, continued job losses” for some time if the government doesn’t take more aggressive steps to foster job growth.In the meantime, the Obama administration should “prepare the American people to wait a while for real results,” said Shapiro, now with a Democratic think tank called NDN.

October 12, 2009. Tags: , , , , , , , , , , , , , . Economy, Finance, Healthcare, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics. Comments off.

Outlook From the Bond King – CNBC.com

Mohamed El-Erian of Pimco on the future of the economy….

a PRIVATE SECTOR LED ECONOMY to reduce unemployment he advises, gee what a novel idea!! Notice the yields on the 10 yr Mohamed references….

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more about “Outlook From the Bond King – CNBC.com“, posted with vodpod

May 27, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Labor Department, Obama Administration, Politics, Taxes, Uncategorized, Unemployment Statistics, Wall St. Comments off.

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