CNBC : Tribble was right about unemployment
November 23, 2009
Evidently CNBC is coming to the same conclusion we did nearly a year ago that the U-6 is the real unemployment rate standard.
The problem is that the U-3 doesn’t count in the millions of people where their unemployment benefits have ran out, hence the U-3 is counting them as employed… even though they have no job! (go figure).
Also the U-3 doesn’t factor in the Accountant that had to take a part time job at McDonalds flipping hamburgers because he cannot find a real full time job, however the U-6 does.
Meaning that the real unemployment rate is isn’t 10.x percent, it’s actually at the great depression level of 17.5%.
We said this a year ago, CNBC is saying it now… as did one of the federal reserve heads.
In other words people, we are being had. It’s bad people, really bad. Unemployment is perhaps the biggest threat we have to an economic recovery… because let’s face it.. unemployed people don’t buy houses or cars.
Also worth noting, we don’t think this is going to recover unless we have another bubble… something that CNBC said today… and we said a year ago
From CNBC:
“”To me there’s no easy solution here,” says Michael Pento, chief economist at Delta Global Advisors. “Unless you create another bubble in which the economy can create jobs, then you’re not going to have growth. That’s the sad truth.”"
Go figure… we need another bubble people.. and the stimulus spending went into roads and bridges.. not another bubble.
Enjoy the new reality.
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Although I agree that U-6 is a better reflection of the real situation, things were much worse in the 1930s. At the peak of the Great Depression, U6 was 37.6% and U3 was 25.2%.
So we are like almost 1/2 way there… that's hot…