Tuesday, April 14, 2009

The Unemployment Impact

Balance sheet effects dominate slope,Mohamed El-Erian observed.We have massive unemployment.It will take time to adjust.The real answer is,we don't know where the bottom is.Analytically,the employment report is no longer backward-looking.People will save more in the face of unemployment.It impacts forward-looking behavior such as home-buying,Mr.El-Erian pointed out.

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