Why More Than 8% Unemployment Could Lie Ahead

Posted by on Feb 19, 2013 at 7:35 am
Barack Obama

Severe fiscal tightening in the U.S. will lead to no growth or a contraction in the first two quarters of 2013 and will push unemployment over the 8 percent level, according to Lombard Street Research.

The knock-on effect will mean pain for the business sector, with corporate profits falling after a hit to consumer spending power, the firm said.

“Our view that unemployment could rise above 8 percent and that profits will be squeezed reflects a forecast of nil to negative 2013 (first quarter) growth, and further stagnation in (the second quarter),” a Lombard Street report released on Friday said.

The view contrasts sharply with that of other analysts who are considerably more bullish on the U.S. economy.

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One Response to “Why More Than 8% Unemployment Could Lie Ahead”

  1. Delicious Kool-Aid Comrade on 19/19/13 at 1:05 pm

    But Comrade Dear Leader the Immaculate Christ Messiah has created 16 million jobs in 5 years. I bet that evil George W. Bush is up to something. He stole my teddybear when I was a child and gave it to that evil kapitalist pig Romney!