NEWS ALERT from The Wall Street Journal Dec. 5, 2008
Nonfarm payrolls plunged a larger-than-expected 533,000 in November, the U.S. Labor Department said Friday. The unemployment rate, which is calculated using a separate survey of households, rose 0.2 percentage point to 6.7%, the highest since October 1993.
Plus, this number doesn’t include people who have thrown in the towel and aren’t looking for work anymore.
Big bad domino effect coming.
Public services deteriorate, nation goes deeper into debt, potential civil unrest, and bailout of auto industry becomes imperative. Even if the bailout is a band-aid that falls off in a couple of weeks without healing an ugly scab. Even if the bailout is fiscally irresponsible when assessed by the gods of pure capitalism, which is Darwinism with money.
But why not give the auto companies a shot? Hank “Sleight of Hand” Paulson distributed hundreds of billions to former and future Wall Street colleagues, telling the American public the funds were to be used to clear the credit arteries. Then he gave a wink and a nod to the banks as they used the funds to shore up their own balance sheets and acquire other assets. All the while the patients the dollars were ostensibly intended for went into code red.
In the face of that, what’s a lousy 40 billion dollar wager with less than stellar odds to save a few million jobs?
A necessary gamble.