Job seekers use the wall to fill out job applications during a job fair at the Myrtle Beach Convention Center in Myrtle Beach, S.C.
A new Reuters poll of economists does not offer much hope for an improvement in the nation's financial condition. Many see unemployment topping 10%. The news service reports that "Median forecasts now assume gross domestic product will shrink an annualized 5.3% this quarter, following a brutal 6.2% decline at the end of 2008."
On another front, data from the states shows that four now have unemployment rates above 10% and some have recorded joblessness well in excess of 9%. (What Sells in a Recession: Canned Goods and Condoms.)
All of those numbers indicate that the recession is picking up speed. At the same time, the rescue packages which are supposed to help salvage part of this year are starting to get bogged down. Several senators have told President Obama that they do not have the votes to pass the newly proposed budget without changes. That could lead to several weeks of debate.
Those are weeks that the economy does not have.
Instead of one coordinated program to bolster the economy, financial, and credit systems there are a number of piecemeal solutions. Freddie Mac (FRE) yesterday said it would need $30 billion in new funding. AIG (AIG) got billions of dollars in additional assistance and a restructuring of its obligation to the government just last week. The Wall Street Journal is reportingthat several large insurance companies may need substantial aid. Those who may put their hands out include MetLife (MET), The Hartford (HIG), and Prudential (PRU).
Instead of being able to get out in front of problems like unemployment, foreclosures, and the faltering banking and insurance industries, the government is falling inexorably behind. The remaining question is whether there is any chance at all that it can catch up, even a little.
— Douglas A. McIntyre
Read about the 25 people to blame for the financial crisis.
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