The Coming Jobless Recovery

Updated: March 24, 2010

There's been a lot of talk in the media lately about an economic recovery. In some areas homes sales are up, the stock market is up and the price of oil is down. Have the good old days returned?

Though the media made a big noise about the recent surge in homes sales in California, upon closer analysis most of the sales were in reality short sales - home owners forced into selling at deeply discounted prices by their mortgage holders.

Fed Chairman Bernanke has predicted that home prices have another 20% to fall before anything like a recovery can come to the real estate market. Those who buy homes now will regret it later. Chances are they'll join the millions of homeowners whose homes are worth less than they owe.

Recent economic recoveries have been fueled by an increase in consumer spending but this time it's different. The consumer isn't buying. With prices falling why would anyone want to run out and buy something they don't immediately need? Whatever it is - it will be cheaper tomorrow!

No doubt President Obama will be talking recovery this fall as we enter the election season. You'll be hearing a lot of positive news about the economy but I'll tell you what no one else will - you won't be hearing much about job creation.

This will be the mother of all jobless recoveries. Lots of increased corporate earnings. Lots of corporate mergers. Lots of happy media reports. But few if any new jobs.

Many of the top economists are now predicting that we won't see any action on the new job front for several more years. That's sad because job creation is the key economic factor for most people. The rest of it is just so much icing on the cake.

So last week Treasury Secretary Geithner went on a world wide trip designed to calm the nerves of those we borrow from. Obama has also been saying reassuring things. Don't kid yourself - they're worried! A collapse in the dollar would cause the price of gasoline and food to more than double literally overnight. That would put downward pressure on the economy and destroy any chance at an economic recovery.

Survive and thrive during the coming bad times. Get the facts - there's no other book like it. Order today!

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