Looking down of the capitalist system is a favorite wipping boy of most Democrats. Well receently the finacial times said:
Many experts expect unemployment will soar from its current level of 6.1 per cent and worry it could go above 8 per cent. The Fed now thinks that unemployment will rise above 7 per cent and is likely to peak at about 7.5 per cent – a level last seen in 1992.
Further the Times writes:
Many economists think the savings rate – which was 0.2 per cent this year before being temporarily lifted by a tax rebate – will rise to between 3 per cent and 4.5 per cent. The fall in the price of oil will accommodate part of this.
But if it happens over a few quarters – as seems increasingly likely, given the shock to wealth and extreme denial of credit – it would produce a deep, if not necessarily long-lasting, recession.
Rising unemployment threatens to deepen the housing slump, further depress mortgage debt and increase delinquencies on car loans, credit cards and other consumer loans.
Meanwhile economic weakness is likely to multiply corporate defaults, including private equity deals. This second wave of losses for banks might prolong the credit crisis.
What a wonderful world the Democrats started and lets see if they can make it worst of make it better. Wonder what the odds in Vegas will be?
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