Wednesday, April 21, 2010

No recovery for another year or two

The pillars of Americans' financial security — jobs and home values — will stay shaky well into 2011, according to an Associated Press survey of leading economists.

. . . The unemployment rate will stay stubbornly high the next two years. It will inch down to 9.3 percent by the end of this year and to 8.4 percent by the end of 2011. The rate has been 9.7 percent since January. When the recession started in December 2007, unemployment was 5 percent.

. . .Home prices will remain almost flat for the next two years, even after plunging an average 30 percent nationally since their peak in 2006. The economists forecast no rise this year and a 2.3 percent gain next year.
http://news.yahoo.com/s/ap/20100412/ap_on_bi_ge/us_ap_economy_survey

If unemployment stays high, and home prices stay low, all incumbents are in danger.

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