Mish: Job Losses To Continue

“The biggest slump in U.S. consumer spending since 1942 will extend the recession and push the jobless rate to the highest level in a quarter century, according to economists surveyed by Bloomberg News.

Household spending will drop 1 percent in 2009, the biggest decline since after the attack on Pearl Harbor, according to the median estimate of 51 economists surveyed Dec. 4 through Dec. 9. By the middle of next year, the economy will have shrunk for a record four consecutive quarters, the survey showed.

“It’s a serious recession, and there’s a good chance it will break the 16-month record since the Depression,” said James O’Sullivan, a senior economist at UBS Securities LLC in Stamford, Connecticut. “We’re at the stage where the weakness is feeding on itself. The next few months look pretty rough.”

On the jobs front I do not think the November report is an outlier. I expect to see at least 4 months next year where job losses hit 500,000 or more. That's 2 million jobs right there. Obama wants to create 1.5 to 2 million jobs. If he pulls it off, he will still be in the hole. Expect to hear more of the other "D" word, depression.”

- Mish, http://www.howestreet.com/articles/index.php?article_id=8149

Prepare yourselves, folks...