Apparently,the recession is over since June of 2009 – it was announced today, stocks went up in the US and em pathetically-worldwide. But this does not go well with lots of Americans.
As President Obama mentioned today, all talk of the recession ending is useless if you do not have a job. And currently the number of unemployed that I heard is 7 Million plus. The 9.6% unemployment figure will jump up to double digits, according to some observers, because people who had given up on job search will again start looking and will be added to the jobless percentage and the unemployment rate is based on those "looking" for work.
Today you go to a restaurant and ask to split a meal and you get an understanding look from the waiteress in contrast to the "get out of here" glare of the boom days. You leave a bigger tip and hope the lower calories will keep you healthier longer. But all this frugal eating out is- if you have a job !
On the positive side, companies have profits and reserves but are feeling nervous to invest and hire. Although today's estimates by experts are putting the return to low unemployment at about 2014 – I am more optimistic and guess that by early 2012 this should be much better.
So the sequence of events should be:
Companies start investing—-> Start Hiring—-> Unemployment reduces to 4-6%——> Housing market starts to recover… middle 2012?
Let's hope so!
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