On Monday Greenspan Predicts Colts Will Win On Previous Sunday

Former (and fallen) Fed God Allen Greenspan goes on the record to predict that employment will pass 10%. Given the year long move upwards, with the current number at 9.8%, one begins to understand why his predictive clarity (about the danger of over-inflating the economy) was a bit faulty in the past. No doubt Greenspan also thinks a bunch of people will lose their homes soon too.

Greenspan told the ABC program "This Week" that he expected 3 percent growth in the third quarter, up from the 2.5 percent he previously predicted. However, he said a "pretty awful" September employment report released Friday showed the jobless rate continued to climb.

A slowing or halt in job losses is different from reversing the rise in unemployment, Greenspan noted, adding that the nation's unemployment rate -- currently 9.8 percent -- is "going to penetrate the 10 percent barrier before heading down."

That prediction matches previous comments by President Obama and others, who say that unemployment is a lagging indicator in an economic recovery.

Obama said Saturday his administration would focus on job creation, and Greenspan said he supported that approach. However, Greenspan said it was too soon to consider another economic stimulus package or other major spending plan.

(C.N.N.)

Someone needs to ask Greenspan if the sun will rise, or if Christmas will come. Those are things we really worry about.

We've assumed for a long time that 2009 will be a year long mess of job and home deflation, and it takes a while for actions announced by corporations to show up in the stats.  Anyone fretting over unemployment numbers at this stage is just not paying attention to where we were last year, and how long it takes for layoffs to work through the system. It's a sorry state when someone like Greenspan is pointing out the obvious and such is printed as news.