Just when all of us thought that we are seeing signs of recovery, that the economy is climbing back on its feet, we experience another shock, an unforseen ramification that the government has to fix.
Unfortunately, I personally surmise that the unemployment rate will definitely hit over 10% because the cash-for-clunkers program are not even removed yet and we are already seeing the unprecedented rise in unemployment rate.
Just when people are seeing recovery and the government having been prepared to remove the clunkers program soon, the unemployment rate starts to surge.
Can you imagine the day when the cash-for-clunkers program are removed? I wouldn't. It will definitely be a major disaster. I forsee a situation whereby people stop spending for a few months on the luxury goods, they start seeking refuge in Wal-Mart for cheap offers, no one drives as often due to the rising oil prices and people dare not take the precarious move to invest in stocks.
Then, we will start seeing plummeting stocks, bonds and equities and the stock market will sink into depression once again. Consumer demand starts to drop rapidly and government will have trouble once again. Not forgetting that consumer demand is one of the major pillar that supports the economy, if it falls, the whole economy will sink into a crisis, like a domino effect. Mortgage loans start to decrease because people dare not buy houses again and this cause the housing market to sink into a second depression. Oil prices start to remain stagnant for a while before they capitulate and start dropping like mad again. Of course, these scenarios are some of the worser off ones, now let's be optimistic and pray for the best !
Credits -nationsonline, -swlearning, -mysouthwestga
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