Thursday, September 10, 2009

An Interesting Chart On Job Losses, Revisited

Here is an updated chart from chartoftheday.com that I have shown and discussed previously, in my July 7 post:

http://www.chartoftheday.com/20090904.htm?T

There are other charts similar to this, from other sources...however, I find this chart particularly interesting as it incorporates the long-term averages of two other periods.

As I wrote in my July 7 post:

"As one can see, the current degree of job losses is rather atypical.

I would also like to highlight another issue as well. From a historical perspective, this (purported) recession, that the NBER has classified as having started in December 2007, is getting "long in the tooth" from a historical perspective. The following blog post does a good job of summarizing how long recessions typically last:

http://www.calculatedriskblog.com/2009/06/update-what-is-depression.html

As one can see, from a historical standpoint the severity of the job losses, as well as the length of this (purported) recession are atypical. Both have persevered in the face of very large amounts of intervention, including stimulus efforts.

As I have written about previously, the above is yet more evidence that we may well be in a "new (economic) environment" - with the associated implications..."

SPX at 1031.85 as this post is written

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