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Originally posted by theWCH
Taking a closer look at the broader data, it looks like the unemployment rate change has slowed down. The U-6 slowed from a normal increase of ~.9 percentage points (seasonally adjusted) to a mere .2 percentage point increase. Meanwhile, the the SGS unemployment chart seems to show the curve starting to level off.
I wonder how much of this is due to the census?
I also wonder if the U-3 looks worse than it otherwise would due to the extensions in unemployment benefits?
[edit on 8-5-2009 by theWCH]
A report published by the Economic Policy Institute, however, disputes that assumption, pointing out that the economy needs to create seven million jobs to return to pre-recession employment levels.
The study shows that while the unemployment rate may have been higher 15 months into the 1981 recession - 10.1 percent - this recession has seen the unemployment rate increase more rapidly than any previous recession. From December 2007 to March 2009, the unemployment rate rose 3.6 percent. Conversely, through 15 months of recession in 1981, the unemployment rate rose only 3.2 percent.
In that 15 months, the economy has shed a total of 5.1 million jobs. Simply to keep up with population growth, the U.S. economy needs to create roughly 127,000 jobs each month. That means that over the course of the last 15 months, the U.S. economy should have created 1.9 million jobs. Therefore, the U.S. economy is approximately 7 million jobs short of where it should be.
Not only that, but even those that are still employed are finding that their hours are being slashed as companies scurry to find cost-cutting measures. This recession has also seen the greatest decrease in aggregate work hours of any recession of the past 50 years. As of April, aggregate work hours have fallen a total of 6.4 percent. In that same time over the 1981 recession, aggregate work hours fell just 5.7 percent.
That has left a total of 24.4 million Americans either underemployed or unemployed – meaning that one in six Americans are working less than they would prefer to be.
Originally posted by marg6043
. . . everything is Better than expected.
Financials cos rally following results of government's stress test, which showed 10 of 19 banks will require additional capital of $75 bln.
Decline in April payrolls better than expected (-539K vs -600K consensus)
In a report titled "California's Cash Flow Crisis," the Legislative Analyst's Office said the state might need to borrow anywhere from $10 billion to $23 billion to pay its day-to-day bills in the first few months of the fiscal year that starts July 1.
More at Link...
Kitsap Bank, Port Orchard, Washington, Assumes All of the Deposits of Westsound Bank, Bremerton, Washington
FOR IMMEDIATE RELEASE
May 8, 2009
David Barr (202) 898-6992
Cell: (703) 622-4790
Westsound Bank, Bremerton, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Kitsap Bank, Port Orchard, Washington, to assume all of the deposits, except those from brokers, of Westsound Bank.
Westsound Bank's nine offices will reopen on Monday as branches of Kitsap Bank. Depositors of the failed bank will automatically become depositors of Kitsap Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
Over the weekend, customers of Westsound Bank can access their deposits by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 31, 2009, Westsound Bank had total assets of $334.6 million and total deposits of $304.5 million. Kitsap will not assume the approximately $9.4 million in brokered deposits. The FDIC will pay the brokers directly. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.
When the Fed last month informed banks of its preliminary stress-test findings, executives at corporations including Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. were furious with what they viewed as the Fed's exaggerated capital holes. A senior executive at one bank fumed that the Fed's initial estimate was "mind-numbingly" large. Bank of America was "shocked" when it saw its initial figure, which was more than $50 billion, according to a person familiar with the negotiations.