From "Mish's Global Economic Amalysis"

Follow link for original and very useful charts. I'm afraid Krugman is right. We need a total overhaul of the financial system. The Republicans are attempting to lead us to total ruin - and are influencing policy too darn much.



The government is reporting 8.1% but a far better approximation is 14.8%. Many economists expect the "official" number to hit 10%. If and when that happens where will U-6 be?

The pattern is pretty unmistakable. In one year the official unemployment rate rose from 4.8 to 8.1 (3.3) while U6 rose from 9.0 to 14.8 (5.8).

Assuming U3 hits 10%, U6 is likely to be approaching 20%. How bad Michigan, California, Nevada, North Carolina, Oregon, South Carolina, and Rhode Island are by then is anyone's guess.

These are depression level statistics.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com