Charlie Gasparino: Job Losses Could Trigger Round 2 of Banking Crisis

[Crewleader]

Nov.10,2009
by Peter Gorenstein

The unemployment rate now stands at 10.2%, yet stocks are at a 2009 high. The bulls will tell you not to worry; the unemployment rate is a lagging indicator. True as that may be, Charlie Gasparino author of The Sellout, has a word of warning: the jobs data may be a leading indicator when it comes to the health of our banking system.

One of Gasparino's sources, Calyon Securities banking analyst Mike Mayo (who warned of the credit bubble before the crash) tells him, if unemployment rises to 11%, "there could be an issue where we have round 2 of this crisis."

Why?

http://finance.yahoo.com/tech-ticker/article/368866/Charlie-Gasparino-Job-Losses-Could-Trigger-Round-2-of-Banking-Crisis?ref=patrick.net

[rfranklin]

1. No kidding!

This is what I already figured out with my meager brainpower. No jobs, no recovery.

[marmar]

2. And honestly, I don't think banking crisis Round I is actually over.....

..... They've applied a lot of lipstick to the pig, but the rash credit card and personal account actions being taken by the big banks lead me to believe they really are "zombie" banks.

[AndyA]

3. There does need to be an increased emphasis on job development in this country.

I think American companies should be penalized for offshoring operations and jobs. We need to bring jobs back to this country. If we don't make anything, it's pretty obvious that's a path to failure. All that consumption has to be paid for in some way, and it won't happen without jobs.

Seems obvious to me, but I don't really see much being done about it.

[Crewleader]

4. A Squeeze on Customers Ahead of New Rules

By ANDREW MARTIN and LOWELL BERGMAN
Published: November 9, 2009

Banks are struggling to make money in the credit card business these days, and consumers are paying the price. Interest rates are going up, credit lines are being cut and a variety of new fees are being imposed on even the best cardholders.

http://www.nytimes.com/2009/11/10/your-money/credit-and-debit-cards/10rates.html?ref=patrick.net

[Sherman A1]

5. and squeeze on the workers everywhere

pay cuts, pay freezes, layoffs, do more with less (and less, and less, and less)

I think we are reaching the end of just what folks will be able to tolerate.

[Crewleader]

6. Sherman A1

I agree with you 100%! I and many others here did not want the first bailout for the Banksters.
The knowledge posted here keeps us informed and I really appreciate the comments from DUers, who are so helpful to many of us.

[Nay]

7. The Mr. Obvious Award goes to Gasparino.

no jobs = no salaries = no spending = no economy.

I don't know why this is so hard to understand.

[madrchsod]

8. obama has less than a year to create jobs

that`s going to be the issue in the 2010....if the people feel that the economy is`t any better and they or their friends are`t back to work they`ll vote republican or stay home.