Date: March 21, 2009.
There has been lot of commotion regarding the Meredith Whitney’s, new crisis that US will soon face. It’s the rising defaults in Credit Card payment.
California jobless rate has just climbed to 10.5 percent. The state unemployment rate jumped to 10.5 percent in February, a level not seen since 1983. All told, the recent economic slide has left 1.95 million Californians scrambling for work.
Bernanke recently stated that unemployment problems would continue till 2011 and unemployment rate would be contained around 9%. American Economy will bounce back in 2010 if they are able to stabilize the banking crisis.
Now looking at the California numbers, I am wondering if Bernanke would be able to manage the unemployment numbers. Obama’s Infrastructure plan will bring in lots of blue collar jobs. But will it be sufficient to cater the growing unemployment numbers.
According to Jim Cramer, the whole credit market will fail if the unemployment touches 10%. Looking at these unemployment numbers and the current shabby economy, credit cards crisis seems quite plausible.