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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (98061)	5/29/2009 8:52:15 AM
From: The Reaper	Read Replies (1) \| Respond to of 116555

Inflation? Gas prices contributing to rise?

To: ajtj99 who wrote (98061)	5/29/2009 8:58:55 AM
From: Think4Yourself	1 Recommendation Read Replies (2) \| Respond to of 116555

People aren't working and are collecting unemployment. This means lots of time with nothing to do. Result is shopping because boredom trumps financial common sense for the vast majority of Americans. Since they aren't working it also means big drops in tax revenues. Worse, it means the state unemployment funds are being drained. I only recently figured this out. Living outside Detroit was what did it. The factories all shut down recently, and shortly thereafter the parking lots at shopping centers and restaurants became packed during the day. It was remarkable. That's when I put two and two together to figure out what was happening. The next step is when unemployment runs out. At that point corporate support (unemployment funds) ends and state and federal budgets will be further strained by the social safety nets. There is no way in He$$ we have seen the worst of this.