The economic news is dreadful

recession chart

No, I mean really dreadful.

Bad news for housing, autos, eBay, chipmakers, and more

Banks too
.

Even Google and Microsoft are laying off workers, as the unemployment rate keeps rising.

China is in recession now too.

Rising unemployment usually translates into political unrest. In the Great Depression, FDR created a jobs program and defused the situation. Some said he was a traitor to his class, me, I think he might well have saved it.

Obama will certainly do massive spending to create jobs. He has no other choice. Given that other countries are worse off than the US (even though the crisis started here) means that, sooner rather than later, the dollar and the US will be seen as the safe haven. In the land of the blind, the one-eyed man is king.

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