Yesterday, every single index dropped quite a bit. The Dow erased an entire year of progress and the unemployment and underemployment rates climbed. Bond rates are awful. What does this all mean? The answer from me is: I don’t know on the macroeconomics side. What the unemployment numbers tell me is that things are not that good for the man on Main Street, let alone Wall Street.
I’m a bankruptcy lawyer, not an economist – still, it is obvious that we are still in an economic slump. My job is to pick up the pieces when things fall apart. The May revision to the median income showed a tick upwards,which gave me hope that things were over all improving.
What does this mean for clients and people considering bankruptcy or who are experiencing financial issues? If you are employed, be careful. Bad economics can mean instability for you. For the unemployed, the news that jobs are scarce is nothing new. Belt tightening is a good idea, but when you are strapped to the bone and trying to survive on unemployment or part time employment there is only so much to go around.
There may be more things falling apart. For my clients, though, it is my privilege to be there to help pick up the pieces.