The Human Face Behind This Economic Crisis
Posted on Sunday, February 8th, 2009 | In Market CommentaryThe hard figures released by the Labor Department last Friday, may look cold and impersonal. And Wall Street may be able to thumb its noses at it for a day or two.
But the half-million-plus stories of frustration, pain and even panic that they conceal couldn’t be more important:
- In January, U.S. companies told nearly 600,000 people to pack up and go home.
- A mind-numbing 626,000 filled out initial applications for unemployment benefits — a 26-year high.
- The official unemployment rate has now exploded to 7.6%, the worst in more than 16 years.
- Nearly 11.3 million American workers have lost their paychecks.
- And these are just the most narrowly defined, official numbers. They exclude millions of jobless Americans who have given up looking for work or are employed only part time. Moreover, they’ve been candy-coated to portray the employment picture in the most favorable possible light.
Many experts — such as economist John Williams of Shadowstats.com — say the real unemployment rate is twice as bad, between 14% and 15%.
But These Are Just the Numbers. Don’t
Forget the Human Face Behind Them!
For every one of those unemployed workers, this crisis is intensely personal: Disappointment, humiliation, dependence; the death of dreams and the birth of new nightmares.
Worse, now, there’s a real question as to whether or not state governments will be there for the unemployed.
So many people have filed for unemployment benefits that seven states have already emptied their unemployment-insurance trust funds and another 11 states could run out of money for benefits by year’s end.
In South Carolina, for instance, the state boasted more than $600 million in its unemployment trust fund a decade ago. Today with official unemployment at 20% in some counties, the fund has gone broke.
Other states are facing even larger financial challenges.
A Big Impact on Your Investments
Unemployment in America is the single most reliable indicator of the economy; and the economy is the single largest driver of investment performance.
So in addition to the obvious consequences for America’s workers, the impact of surging unemployment on your stocks, bonds, dividends and interest is undeniable.
That’s why, for the past several weeks, we have urged you to consider a special strategy designed to keep income and profit opportunities flowing to you no matter how much worse this crisis becomes or how much longer it lasts — a strategy we give you in a cutting-edge educational system we call “Your Personal Money Machine.”
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Last 5 posts by Martin D. Weiss, Ph.D.
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![]() About Martin D. Weiss, Ph.D. (http://moneyandmarkets.com)
Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets. Dr. Weiss’ keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, The Chicago Tribune, Investor’s Business Daily, and Forbes, and has also appeared on CNN and CNBC. Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources to provide analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation’s future by demanding honesty in government accounting, a balanced budget and sound economic policy. Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron's Roundup for 2002. Dr. Weiss holds a bachelor’s degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages. |



