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To: Gottfried who wrote (45771)11/6/2009 2:16:55 PM
From: Sam  Read Replies (1) | Respond to of 95598
 
Well, the headline of that chart is that the 10% threshold has only been crossed twice since WWII, but to me the most significant thing the chart shows is that unemployment keeps rising after recessions end, sometimes well after (especially so after the last two recessions ended--probably has to do with greater utilization of technology to make up for employees?).



To: Gottfried who wrote (45771)11/6/2009 5:52:35 PM
From: Jacob Snyder2 Recommendations  Respond to of 95598
 
That's an interesting chart. Assuming the recession is ending now, and assuming the unemployment rate will continue rising for another 2 years (that's what happened the last 2 recessions), then the unemployment rate will peak at around 11-12% (official rate, which means a real rate of 16.5-18%), around late 2011. And sometime after that, real wages will start to rise.

Another pattern in that chart: at best, after a recession, the unemployment rate gets cut in half during the following recovery. So, if it peaks at 12%, we can't expect it go below 6% in the following recovery.



To: Gottfried who wrote (45771)11/10/2009 12:51:55 PM
From: The Ox  Read Replies (2) | Respond to of 95598
 
One thing I take away from the unemployment chart is that the up spikes come very close to identifying the starts of new bull market run. 82, 93, 03. It would be interesting to overlay an inverse DJIA chart with the unemployment spikes to see if my theory holds water.