Fed chief less dour on economy – Stocks & economy- msnbc.comPosted: May 5, 2009
Here is another economic update. The Fed chief and Buffet both have said in the last few days that green shoots are starting to pop up in the economy. Bernanke stated that we will still see massive layoffs in the months to come. Continuing from my previous State of the Economy… we will see massive structural unemployment and a section of society disenfranchised. I saw the same happen in Finland during the last recession, when people lost their life savings and will probably never recover fully. Also the green shoots are on US soil. I believe that Europe will feel the effects of this recession well into 2010. With hind sight the Euro zone is no more resilient than the US market and less dynamic to rebound.
I have great concerns about the Mexican market, with an 80% hit on tourism due to the swine flu. I am also concerned with the ‘buy American’ sentiments and how that will further impact neighboring states. The fact is that even thought massive unemployment in this country is a reality we need to restructure to continue remain competitive with the rest of the world. I wonder what the production cost for a vehicle is in Detroit compared to the same car across the boarder in Mexico?
We need to provide jobs for those that have been laid off, but there should also be forward looking plans to re-educate and transform. BBC reported today that the US Army is lacking a cyber army. Instead on Fort Meade they should setup in U.S. Army Garrison-Detroit Arsenal in Michigan… setup a one year military style training program for future cyber warriors.