"You can't turn a financial toad (into a prince) by kissing it or by securitizing it or by transferring its ownership to somebody else"So Warren Buffet says the U.S. is nearing a recession if "jobless rates increase", eh. Guess what...they will. What most Americans and obviously the mainstream press, analysts, and all the Real Estate prognosticators fail to mention is how the "housing crunch" affects not only the "jobless rate", but also the immigration debate.
Let me be a little more clear. We all know that many "illegal immigrants" are concentrated in the construction industry. These people are NOT counted in our POLLS. Therefore the "jobless rates" are dramatically off kilter.
In many of the declining markets unemployment rates are misrepresented. These "illegals" are in the shadows. In short, the "jobless rate" has increased and will continue to as long as developers and investors begin to slow their projects. The "illegals" that are laid off will become UNEMPLOYED, but not COUNTED. Hence an increase in rates. Welcome to the RECESSION!
Here are a few excerpts of the article from Reuters,
asked about the subprime mess and the Financial industry "write downs", Buffet commented,Billionaire investor Warren Buffett said the United States could slip into a recession if the jobless rate increases, he told CNBC television on Tuesday.
"If unemployment picks up then we could be in for a recession," Buffett said.
The U.S. unemployment rate in October rose to the highest level since August 2006, and was steady at 4.7 percent in November......
Buffett said daily figures from his own outlets, which include a broad range of companies in sectors ranging from food to furniture, indicated the season was "looking soft."
"You can't turn a financial toad (into a prince) by kissing it or by securitizing it or by transferring its ownership to somebody else"The dollar is shot! Unemployment is up! The Fed is wildly lowering rates! Foreigners are realizing their power and purchasing many U.S. assets! Welcome to the impending recession.
Same Players. Different Scandal.