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American Jobs Disappear While The Stock Market Is Surging
By: Mike Young   Monday, October 26, 2009 5:38 PM

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Wall Street and Main Streets gap has never been wider. Yet investors are enjoying a vibrant market while the unemployed are enjoying long lines at their local unemployment office. To them the recession hits home and it hits home hard.

Americans in the wake of this recession, having lost their homes to foreclosure, have by enlarge gone home to live with relatives. Divorce is up, and so is suicide, and so is crime, and so is inflation. Yes inflation is here!

Even though there is no consumer market because of the high rate of unemployment, we are seeing the costs of all other goods and services rise. Yes Inflation is hitting everything but real estate.

Prices of every commodity but one are rising, the only commodity remaining sterile in this market is the assumed value of real estate, and that's because there is so much of it available that the prices are close to, but yet not at rock bottom. Besides the hundreds of thousands available and currently on the market another 7 Million are in the foreclosure process and with NO end in sight. This market has not yet hit bottom and may not for another year or two.

If the price of real estate is low, then what really is inflation?

Inflation is simply, the costs of goods and services pitted against the amount of currency in circulation. In other words inflation has been defined as too much currency chasing too few goods, which causes the price of the commodity to rise.

While we are creating large deficits to finance the bank and insurance bail out, and our two wars, inflation is surging behind a wall, a perfect storm brewing and waiting to hit land fall, and for many items it already has.

And yes the Stock Market is also inflated!

While unemployment in some parts of the country is double digit, the Stock Market has bounced over then under 10,000, is this realistic? Absolutely Not!

While the Dow has been moving upward, the unemployment rate has also been moving upward, from 8.5% in March to over 10% now.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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