The economy needs to grow by at least a 2.5 percent rate with payrolls expanding by 150,000 a month just to keep the jobless rate from rising. In the second quarter the economy grew by an anemic 1.3 % and third quarter growth looks to be about 2 % which will be unable to make a dent in the unemployment rate.
Not surprisingly, the Labor Department reported today that non-farm payrolls rose only 103,000 and the unemployment rate remained unchanged at 9.1 %. And when you dig into the actual numbers, you see that this number includes the 45,000 Verizon workers who were added back to the September number after striking in August.
Thus, in actuality, payrolls increased by a mere 58,000!
With the myriad economic problems both here and abroad, unemployment is likely to remain high for the next several years. With the close correlation between unemployment and credit card charge-offs, it can reasonably be expected that banks will continue to suffer losses.
Ropay Asset Investors is positioned perfectly to help you take advantage of the current economic situation.
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