Unemployment, The Perfect Recession Indicator
Posted on Mon 9th Jun, 2008 01:20:33 AM
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?)
Unemployment: The Harder You Look, The Uglier It Appears
(naked capitalism, 9/2/09)
40% of Working Age Californians Jobless
(naked capitalism, 9/8/09)
Paul Krugman: U.S. Unemployment to Peak in 2011
(Shocked Investor, 9/17/09)
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
.