My prediction in January of 2007 was that unemployment would reach 8% or more before the end of 2008, we have met that goal. It is my belief that 10% is not far out of sight. Economist are still holding on to the hope that things will turn around in the economy by the 3rd quarter of this year and things will start improving. My thought on this is phooey. We are in this for the long haul, like it or not. We still have to pay for all the money the government put out there. I don't see things looking better until at least the middle of 2010 or later. People in the government better get their heads out of the clouds or elsewhere.
Although thoughts vary it will take 2 to 3 years to really see a real recovery. With the money put out by the government in various stimulus packages we have a steep bill to repay. People have less money in their pockets to spend and the paltry tax break given to the middle an low income earners was more of an insult. In a capitalistic society, the economy will eventually correct itself. This correction is needed due to all the artificial influences applied to the economy. Housing prices will need to come inline so more people can afford them ($250,000 is not really affordable or reasonable for anyone earning less than $90,000/year), businesses will have to feel more comfortable about hiring and most important the public will need to feel more comfortable about spending. Prices will need to stabilize throughtout all industries all before we start to see a real recovery. My though goes back to razor blades, keep your eye on the price, when it starts to go down - the recovery will be started. Again just my opinion - my explosion of thought.
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