Meanwhile, back on Main Street U.S.A., the picture is drastically different. Unemployment has doubled in a year, to 9.8% in September, and there are about six unemployed Americans for every job opening. Home foreclosure-related filings—including default notices, foreclosure auctions, and bank repossessions—are on pace to reach about 3.5 million this year, up from more than 2.3 million last year. Home prices are stabilizing, and sales of existing homes rose sharply in September, but much of the activity was spurred by the soon-to-expire federal tax credit for first-time home buyers. No wonder that 82% of Americans responding to an ABC News/Washington Post poll conducted Oct. 15-18 say the recession isn’t over.
Gap Between Leading, Lagging Indicators
It’s normal for Wall Street to recover more quickly than the job market in the wake of a recession.
