Economy update - mixed feelings

In these special times, referring to the current economic challenging environment, I would like to give an update on the US economy on three themes that have been very dominant in the US news.

First of all, the US national unemployement rate rose to 8,5% with another 600.000+ job losses figure in March. In 2009, more than 2.000.000 jobs were cut which makes this year one of the worst years of job losses in economic history. An interesting tool, the "economy tracker" by CNN, can be found clicking here. By selecting the month you will be able to see the US national and state unemployment rates.

Another hot economic topic is the auto industry headquartered in Detroit. The 12% unemployment rate there is the highest in the nation, and with the Big Three automakers (GM, Ford and Chrysler) all needing multi-billion dollar government bailouts in an attempt to stay afloat, the future isn't that bright. The American government rejected turnaround plans submitted by General Motors and Chrysler as inadequate. Barack Obama made it clear that he thought controlled bankruptcy might be the best answer to the two carmakers’ troubles. It seems that only major restructuring and/or filing for bankruptcy can (partly) save these automobile giants. Their 'supporting' banks don't seem to do much better, so they are not really being able to help I'm afraid. Some related facts:
- the New York Auto Show is about to start this week (Yes, I will go there!)
- the semi finals and final of the very important College Football Play offs are being played this weekend in Detroit, which might bring some happiness to that city

Furthermore, there is the performance of the stock markets which seem to have found a frugal way up, Dow gained 21.5% in the last 4 weeks, although no one dares to say that we've hit the bottom. Let's see if it holds in the weeks to come with first quarter financial results coming up...hopefully the great spring weather helps to find some needed optimism?!