“Unemployment Rate will remain at 10% through this time next year!” Mark Zandi
Posted on | November 2, 2009 | No Comments
Following two very different economic reports, Economist Mark Zandi informed the nation that the unemployment rate is not going anywhere. He feels that the nation is taking steps in the right direction but is confident that at this time next year the unemployment rate will remain the same.
On Sunday CIT group filed for bankruptcy, while Ford Motors claimed a $1 billion profit for the third quarter. CIT’s bankruptcy marks the 5th largest bankruptcy in corporate US history, while Ford Motor’s profit is huge turn around for the company and may re-instate a number of jobs that were previously lost.
Zandi feels that in order for unemployment to drop, the economy must become more stable. Clearly by the events taking place with CIT group and Ford Motors the economy is nowhere near stable and the unemployment rate will therefore remain the same. When enough stimuli are present, and the economy reaches a good balance unemployment may drop, but it will not be a significant drop.
Mark Zandi informs us that at this time in 2010 unemployment will still remain around 10%, as the economy has no chance of stabilizing between now and then. There are far too many banks, and major corporations in the US that are not financially stable, and if they are, it is because they taken bailout money from the US government which is essentially a debt. Until these major banks and corporations can manage to re-pay their debts, or stabilize themselves the economy will remain unstable because events such as those that took place with Ford and CIT group will continuously happen. While one company is filing bankruptcy and eliminating jobs the other may be making an enormous profit and creating jobs.
According to economist Mark Zandi this viscous cycle has little to chance of ending for another full year.
Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.
Author: Sylvia Wayne
Comments
Leave a Reply