On December 10, the House passed a plan to provide the auto industry will a $14 billion dollar loan to carry them into the new year, or into the next President. Capitol Hill thinks differently as Republicans look to filabuster anything that resembles what has passed in the House.
What Must Be Considered?
What must be considered in the December 5th report showing a 30 year low in employment as we have loss 533,000 positions in November and the unemployment rate rose to 6.7% from 6.5%.
Major employers include layoffs being announced last week from:
DuPont - 5,000 staff positions and 6,000 contract workers
AT&T - 12,000 positions
Sony - 8,000
Office Depot, 2,200
Some say that without an auto industry bailout, over 3 million potential positions may be loss. This estimate would be along with our already existed decline in employment.
What's Ahead?
Business Week's information from top economists from Wall Street, academia, labor and business predictions include optimists who see growth as soon as spring, with the economy losing an additional 750,000 more jobs between now and then. Pessimists predict continued job loss until next year or 2010 with additional jobs loss of well over 2 million to 4 million.
How it Can be Contained?
Alot depends on how effective Washington is in helping our dire credit crunch dilemma. Many economists believe that the President-Elect's plan of a $500 billion dollar stimulus could shorten the recession and reduce job loss. The skill the new administration will have to acquire is balancing the short term goals with the long term effects. Make shifts to get us through this phase will only cause disasterous consequences in the long run.
We will wait to see how it all fares for the Charlotte area and real estate.
http://www.charlotterealestateforeclosures.com/0048A0
