

The May Unemployment Numbers are Here, and Worse Than Predicted - azgolfer
http://michaelscomments.wordpress.com/2009/06/05/the-may-unemployment-numbers-are-here-and-worse-than-predicted/

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cwan
It's more than a question of the fact the stimulus doesn't seem to be working
- it should be downright alarming what's happening in the credit markets.
Because of the spending, world governments and investors are seriously
questioning the US dollar's place as the world reserve currency and it's
already lost its lustre by many as a "safe haven" currency (as judged by
yields - higher yields means that fewer people want to hold your bonds).

Interest rates have jumped up especially on longer term Treasuries - and
because things like mortgage rates are based on this, this means not only is
deficit spending going to be more expensive (and there's a lot of that being
projected) but that mortgages for everyone and the cost of debt for businesses
could soar. 10 year treasury bonds had a yield of 3.83 up from a low of 2.07
percent per Forbes: [http://www.forbes.com/2009/06/05/treasury-bernanke-
economy-b...](http://www.forbes.com/2009/06/05/treasury-bernanke-economy-
bonds-markets-gmac.html). This will mean it will be more difficult for
businesses to expand and for people to start spending because they're going to
be spending more on just meeting their interest costs.

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ckinnan
The unemployment numbers are also worse than the "more-adverse" scenario in
the bank stress tests.

[http://www.calculatedriskblog.com/2009/06/unemployment-
compa...](http://www.calculatedriskblog.com/2009/06/unemployment-compared-to-
stress-test.html)

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rjurney
"Stimulus Effect: Shit Sandwich"

