Site icon

Unemployment Could Hit 10% – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<p>A recession is about to begin&comma; or has begun already&period; One debate about the downturn is whether it will be long or deep&period; Economists have begun to line up on opposite sides of the argument&period; The worst-case scenario is always that the downturn will look like the Great Depression&period; No sane economist has gone down that path&period; The worst part of the Great Recession is a more likely set of circumstances&comma; if a new recession is both long and deep&period; Unemployment reached 10&percnt; in October 2009&period;<&sol;p>&NewLine;<p>The causes of the new recession will not look like the last one&period; The collapse that almost took down the global financial system is not in the offing&period; Government officials have &OpenCurlyDoubleQuote;recession-proofed” banks&period; The government’s moves have been aggressive and probably will work&period; Additionally&comma; hundreds of thousands of mortgage defaults are unlikely to take the housing market under&period; Banks rarely make subprime variable-rate home loans&period; The risk that people cannot pay them soon is too high&period;<&sol;p>&NewLine;<p>Inflation and the Federal Reserve’s efforts to fight it could cripple the economy&period; With inflation at over 8&percnt;&comma; according to the consumer price index&comma; people find their paychecks are eaten quickly by daily expenses&period; At some point&comma; if wages do not rise fast&comma; people will have trouble paying for critical expenses like housing&comma; food and transportation&period; Consumer spending will be crippled&comma; and the economy will implode&period;<&sol;p>&NewLine;<p>The Fed believes that raising rates is the only way to combat high inflation&period; That may be true&period; However&comma; it makes everything from homes to cars to credit card purchases more expensive&period; So inflation makes things more expensive&comma; and so do rising interest rates&period; The Fed believes those two things cannot coexist for very long&period; If its efforts work&comma; both inflation and interest rates eventually fall&period;<&sol;p>&NewLine;<p>The solutions to the economic problems are balanced upon the backs of America’s workers&period; One tested way to bring down inflation is to put people out of work&period; In a typical recession&comma; the unemployment rate peaks between 6&percnt; and 7&percnt;&period; Rates higher than that are rare&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;section>&NewLine;<p>The new recession may be a rare recession&period; High-interest rates and high costs could coexist for months&period; Supply chain bottlenecks will be one cause&period; Recently&comma; it has become clear that the price of diesel fuel is so high that items carried by truck may need to reset at much higher prices&period; The Fed cannot solve the diesel price problem&period;<&sol;p>&NewLine;<p>The pairing of high interest rates and high inflation is not impossible&period; However&comma; it could be very difficult to solve both problems simultaneously&period; The sure way to crippling inflation is to deeply cripple the job market&period; The Fed will drop rates to bring unemployment down&period; Throughout that trip&comma; people should not think that 2023 may not look like 2009&period;<&sol;p>&NewLine;<div id&equals;"smartasset" style&equals;"margin-bottom&colon; 1em&semi; margin-top&colon; 1em&semi;">&NewLine;<p><b>Sponsored&colon; Tips for Investing<&sol;b><&sol;p>&NewLine;<p>A financial advisor can help you understand the advantages and disadvantages of investment properties&period; Finding a qualified financial advisor doesn’t have to be hard&period; SmartAsset’s free tool matches you with up to three financial advisors who serve your area&comma; and you can interview your advisor matches at no cost to decide which one is right for you&period; If you’re ready to find an advisor who can help you achieve your financial goals&comma; get started now&period;<&sol;p>&NewLine;<p>Investing in real estate can diversify your portfolio&period; But expanding your horizons may add additional costs&period; If you’re an investor looking to minimize expenses&comma;&Tab;consider checking out online brokerages&period; They often offer low investment fees&comma; helping you maximize your profit&period;<&sol;p>&NewLine;<&sol;div>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

Exit mobile version