Bailouts, Stimulus Money and the Like (continued) .

The most scarce thing right now in the U.S. is JOBS. All else is irrelevant until we get the job situation under control (manageable). As some of the economists have pointed out some of the jobs which are the casualties of this recession will not be coming back to the U.S. If there are no jobs, how can this economy has a jobless recovery or any recovery for that matter.

As somebody I talked to mentioned it to me that all this corporate reports showing earnings are due to the fact that the productivity of the American workers have risen not due to any improvement in technology but by the fact that people are getting laid off right and left but the remaining workers are doing double duty filling up for the laid off workers and out of fear of their jobs. That is why the economy is now showing signs of recovery.

But another report now states that foreclosures are beginning to accelerate due to the continuous job losses. The only stimulus that we now need is for the creation of the jobs and that is where the Government can help by devising policies to help small business owners (the main engine of growth mind you) get through these tough times but giving them incentives to hire, not burdening them with more taxes or cumbersome rules.

If you have noticed something that rates are at the lowest in a generation but nobody (I mean financial institutions) are extending credit since the borrowers have been so financially devasted by this economy that they can not put up with all the requirements of the credit application that the banks are putting up.

Banks are already devastated with all the bad loans that they gave out in anticipation of higher returns. That was one extreme when you just need a job and they (banks) could have extended you the loans or whatever amount you wanted. But this is another extreme that even if you have money in the bank and good job they still want more information because they fear (sometimes true) that you may lose your job.

When confidence returns to the market and the so called main street and everybody takes a breather and take stock of the ongoing situation then we will see a real recovery, until that time every body should hold on to their dear wallets and purses.