Unemployment, The Perfect Recession Indicator
A must read by Barry Ritholtz over at the Big Picture citing the connection between a jump in unemployment and recessions.
“Since 1953, this indicator has a perfect record, identifying 9 out of 9 recessions. When it flips negative (year over year), the economy is already in recession each and every time.”
Read Barry’s article, A Perfect Recession Indicator.
After Friday’s market performance I am thinking the market is beginning to believe it too.
More on this topic
(What's this?)
Lessons From Modern Economic Crises (Not for the Fainthearted)
(naked capitalism, 10/7/08)
WSJ Op-Ed: “global depression?”
(Option ARMageddon, 11/10/08)
Peter Schiff's Latest Comments
(market folly, 11/7/08)
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Posted by Blain Reinkensmeyer on June 9, 2008 at 1:20 am --
In all honesty mate - it amazes me that people still do not realize we have been in the beginning of a very serious recession. I’ve been calling this for 9 months.
Cheers to that - My dinner conversations only get more furious as time goes on about how the market has been off on its pricing
.