The current "recession" will likely last longer than Japan's "Lost Decade" or America's "Great Depression".
More bank failures, falling consumer confidence, declining new home sales, long-term unemployment, excessive debt, and future inflation will haunt the U.S. economy for years to come.
The F.D.I.C. is bracing for a wave of bank failures. With bank failures running at their highest level in nearly two decades, the F.D.I.C. is racing to keep up with rising losses to its insurance fund. With so many banks failing, the federal deposit insurance fund has been severely depleted. At the end of 2009, it carried a negative balance of $20.9 billion.
http://www.nytimes.com/2010/02/24/business/24fdic.html
New Home Sales at a Low in U.S. - New-home sales fell 11.2 percent in January (the third consecutive month of declines) to a seasonally adjusted annual rate of 309,000, the lowest since record keeping began in 1963, the Commerce Department said. Analysts had forecast an increase of 3.5 percent. With January’s numbers so low, and consumer confidence weakening, several economists said they were revising their forecasts.
http://www.nytimes.com/2010/02/25/business/economy/25econ.html
Ben S. Bernanke, the Federal Reserve chairman, said the economic recovery would remain halting for months to come (months ???). He said,"The Federal Reserve will at some point need to begin to tighten monetary conditions to prevent the development of inflationary pressures." Mr. Bernanke predicted that the recovery would be slow. "Obviously unemployment is the biggest problem that we have...the job market remains quite weak."
http://www.nytimes.com/2010/02/25/business/economy/25fed.html?partner=rss&emc=rss
The stock market has partially recovered since the lows of March last year, but that's mostly because corporations have cut back on expenses by laying off workers to accommodate lack of demand for goods and services. Existing workers, who fear losing their jobs, have been pressured to be more productive.
This does not signal an economic recovery, but a decline in Gross National Product...a company can produce less widgets with less employees and still make a profit.
And of course, American corporations continue to out-source overseas for cheaper labor...that also helps their company's bottom line. (I find this to be ironic since most of their products are shipped back to the U.S. for sale here; but to hell with American labor!)
And I fear most of those jobs are lost forever. New hiring can't even come close to the population growth. The ones who are lucky enough to still be working will be burdened with paying Federal, State, and City union pensions for years to come.
See all my well-researched posts on the current unemployment situation:
The New Poor - Millions of Unemployed Face Years Without Jobs
http://tobuds.com/blogs/blog1.php/2010/02/21/the-new-poor-millions-of-unemployed-face
Government Jobs (Bigger Government) Drive Employment Numbers
http://tobuds.com/blogs/blog1.php/2010/03/01/government-jobs-bigger-government-drive
Actual Unemployment in 2010 - Recession Worse than Reported
http://tobuds.com/blogs/blog1.php/2010/02/04/actual-unemployment-in-january-2010-rece
Deep Recession Shows No Sign of Letting Up - Maybe Getting Worse
http://tobuds.com/blogs/blog1.php/2010/02/24/deep-recession-shows-no-sign-of-letting
Largest U.S. Labor Union: AFL-CIO says Jobs Won't Return
http://tobuds.com/blogs/blog1.php/2010/01/07/largest-u-s-labor-union-afl-cio-says-job
More Bad News for the Unemployed in 2010 - and Beyond
http://tobuds.com/blogs/blog1.php/2010/02/23/more-bad-news-for-the-unemployed-in-2010
Almost 1 out of 5 People are Out of Work in the U.S.A.
http://tobuds.com/blogs/blog1.php/2009/12/31/unemployment-december-2009-new-release
FOX News Wages War on Unemployed - Thinks They're Lazy
http://tobuds.com/blogs/blog1.php/2010/03/02/real-reason-why-extended-unemployment-be
Tea Party, Fox News, and Conservatives Attack the Unemployed
http://tobuds.com/blogs/blog3.php/2010/03/04/tea-party-gets-in-wrong-on-unemployment
Extended Unemployment Benefits in 2010 - Fully Explained
http://tobuds.com/blogs/blog3.php/2010/02/16/extended-unemployment-benefits-in-2010
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