America’s Economic Health Check Up by CANADIAN Dr David Rosenberg

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Subject:	FW: America's Economic Health Check Up by CANADIAN Dr David Rosenberg
Date:	Thu, 11 Mar 2010 07:44:53 -0800
From:	Jas Jain

No comments needed! -- Jas

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David Rosenberg; 03/11/10:

To reiterate, there are other measures of economic health.

More than five million homes are behind on their mortgage.

There are over six million Americans who have been unemployed for at least six months, a record 40% of the ranks of the joblessness.

The private capital stock is growing at is slowest rate in nearly two decades.

Roughly 30% of manufacturing capacity is sitting idle.

Nearly 19 million residential housing units or about 15% of the stock is vacant.

One in six Americans are either unemployed or underemployed.

Commercial real estate values are down 30% over the past year.

The average American worker has seen his/her level of wealth plunge $100,000 over the last two years even with the recovery in equity markets this past year.

Bank credit is contracting at an unprecedented 15% annual rate so far this year as lenders sit on a record $1.3 trillion of cash.

Unit labour costs are down an unprecedented 4.7% over the past year and what has replenished household coffers has been the federal government as transfer payments from Uncle Sam now make up a record 18% of personal income (and the Senate just passed yet another jobless benefit extension bill!).

It's all very bullish, indeed.

If there is a lesson learned from the Japanese experience, it is that recessions or "double dips" come faster than you think. After going nearly 20 years without a recession at all, Japan then went on to endure one in every four years after its credit bubble burst two decades ago.

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"Highest CD Rates Survey"
 Current US Treasury Rates

CD Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
6 Month	1.36%	State Bank of India
1 Year	1.70%	Tennessee Commerce Bank
18 - Mo	1.83%	Aurora Bank
2 Year	2.17%	State Bank of India
3 Year	3.00%	PenFed CU  & 2.60% @ iGObanking
4 Year	3.25%	PenFed CU & 2.98% @ National Bank of KC
5 Year	3.50%	PenFed CU & 3.29%@ EverBank
7 Year	3.75%	Pentagon Federal CU aka PenFed
10 Year	3.63%	Discover Bank

3/8/10 Data