Categories

Pragmatic Capitalism

Practical Views on Money, Finance & Life

SPANISH UNEMPLOYMENT – WORSE THAN THE GREAT DEPRESSION

By Walter Kurtz, Sober Look

The latest Spanish unemployment rate was published today. There isn’t much one can say about it other than to draw the following parallel.

Here is the chart of US unemployment rate going into the Great Depression: it maxed out at 21% – 22% (early to mid 30s).

US unemployment rate (source: Wikipedia)

This is Spain’s unemployment rate now: 24.4%.

Spain’s unemployment rate (source: INE)

Even with last night’s downgrade of Spanish government debt to BBB+, given these unemployment figures it is hard to see how these bonds could still be classified “investment grade”.

Sober Look

Sober Look

Sober Look was founded by Walter Kurtz, a New York based hedge fund manager and credit markets specialist.
Sober Look

Did you have a comment or question about this post, finance, economics or your love life? Feel free to use the discussion forum here to continue the discussion.*

*We take no responsibility for bad relationship advice.