CHART OF THE DAY: NOT YOUR AVERAGE RECESSION
3 October 2009 by TPC
1 Comment
Friday’s jobs data put the fear of a double dip or a very slow recovery back in the mind of many investors. This visualization shows just how much worse the current recession is than the ones most living investors are used to:
Source: Calculated Risk
Although, the official rate is not an all-time high (I recall was 10.5-11%; in 80’s). That’s also despite an immigration boom because our booming economy needed so many low-quality service workers (PS I don’t mean the people themselves, but instead job quality … min. wage, no heatlh benefits, variable hours), which in retrospect was only needed for a false boom. If you look at other countries which have been heavily US-export-oriented and are really at the whipsaw tale of slow/declining global growth … Japan, Korea, Taiwan … rates our ~5-6% (Taiwan just recently hit the high of the last recession). I.e. this graph is good for scaring you into buying 20-year Treasuries, but no one is buying (literally), esp. the Chinese.