7 Million Jobs Could Be Lost. Will Your’s Be One of Them?

It’s a 2008-2009 recession. Last month, according to the Bureau of Labor Statistics, 146.3 million Americans were employed. 7.6 million weren’t. That’s 7.6 million, folks. That ain’t a small number.

Obviously the housing industry has a lot to do with the number of unemployed, i.e., construction, retail, manufacturing, and any related industries. But it could get worse before it gets better, even if we’ve already fallen down most of the cliff.

The financial sector will continue to take a beating. Morgan Stanley says it could lay off another 5% of its employees. Bear Stearns cut 7,000 of its players as it integrates with JP Morgan. Another one million plus could be out of jobs in the banks, brokerages, and real estate industries soon enough.

Retail has remained flat over the past year, and with gas at over $4.00 a gallon and rising, there’s sure to be less consumers driving to the mall to spend that mad money. Starbucks, of which I own some stock and lost some money, has been letting people go, as has the

Home Depot and Sears. And let’s not even think about any pleasure trips to Disney or anywhere else outside of our own little universe, because getting there right now without paying an arm and a leg are almost impossible.

What does it mean? Well, the more people out of work, the higher the gas, the less money going around, it all means less money going around period. If you aren’t paying for that luxury vacation, then the hotel owner isn’t paying his employees, then those employees aren’t going shopping. And if you’re the shopowner, well, guess it just goes in a full circle. Things are tough. And who knows when they’re going to get less tough.

Even Warren Buffett and George Soros, whose wisdom has made them rich beyond our wildest dreams, see a long, drawn out recession. And unfortunately, I trust their instincts more than my hopes.