California unemployment rate hits 12.2% in August
Talking heads on TV complain that the US will hit over 10% unemployment by the end of this year and are concerned about the negative impact that will have on the economy, blah, blah, blah…… Yes, it is rough for everyone out there and we should all be concerned.
But want to know how things are playing out in our own backyard? California has hit 12.2% unemployment in August 2009! That’s the highest ever since such data was tracked.
“Only Michigan, Nevada and Rhode Island, at 15.2%, 13.2% and 12.8%, respectively, have higher unemployment rates than California. The national unemployment rate in August was 9.7%.”
As I have been saying repeatedly, until we can resolve this issue of unemployment, foreclosure will continue at records levels, unless we can address one of the root causes: unemployment . People simply do have have sufficient cushion in their savings to allow for sustenance during their unemployment. Luckily, the government is aware of this situation and have started talking about helping out the unemployed stay in their homes.
We will have to see how this effort turns out, but at least we are headed in the right direction.
[...] the high rate of unemployment in California and the current status of the Alt-A and Option ARM loans resetting in the coming months, I believe, [...]