US Unemployment may hit 15% in 2010

Unemployment can go as high as 12 to 15 percent in the United States next year, as the economic situation will get worse and more banks will go bankrupt.

Second Credit Crunch Coming?

"We expect the (unemployment) numbers to increase… we believe that going into the fourth quarter we are going to see increased unemployment and I also think that in 2010 we are going to see somewhere between 12 to 15 percent in the US," Harajchi CEO at N1 Asset Management told "Worldwide Exchange."

Liquidity will start being withdrawn from financial markets, making things more difficult, he added.

"We are very pessimistic on 2010 because this is when we think that all that liquidity that has been pushed into the markets by the central banks and by the Fed, at some point they're going to come and they're going to need some of that money back," Harajchi said.

Three banks went bankrupt in 2007, 25 in 2008 and this year the number of US banks that went bankrupt is nearly 100.

"We think that 2010 is going to be a much worse year," he said.

In Europe, the banking sector, which has rallied 162 percent since March, was among the top losers Friday on concerns over the growth picture.

The G-7 meets this weekend in Istanbul. So what’s on the minds of these leaders of the top industrialized countries of the world?

They’re all worried about currencies. Specifically, how currencies will impact their own recoveries and the recovery of the global economy

Since March …

The euro has jumped 21 percent against the dollar,

The Canadian dollar has gained 17 percent,

The British pound has risen 16 percent,

And the Japanese yen has climbed 11 percent.

Most of this currency strength is explained by an improving global economic picture, which has translated into general weakness in the U.S. dollar. That’s because global capital has reversed back out of the safe haven appeal of the dollar and moved to the rest of the world.

But this dynamic has brought a sharp rise in these currencies and has become an extra threat to what is an already fragile economic recovery.

Canada has said that the strength of the Canadian dollar could derail economic recovery. Both the central bank governor and the finance minister have verbally threatened to take action on currency strength.

Keep well,

This morning on BBC world service from singapore:

France,Japan, Arab states and China had a secret meeting to stop using USD for oil trading.This sent USD spiralling down and the Gold UP.

USD = Trouble?.

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Sunny Leone a true Canadian DESI now back in India !.

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Originally posted by Vandematram
This morning on BBC world service from singapore:

France,Japan, Arab states and China had a secret meeting to

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