Jobless rate jumped to 8.1%, highest since 1983. U.S. Employers slashed 651,000 jobs last month. Once upon a time (in late 1998), higher unemployment rate triggered rallies in the stock market. The theory was that higher unemployment rate would force the Fed to reduce interest rates. Now, the interest rate is almost zero. As with all other long standing theories, this one also has gone in the air.

By looking at all these developments, I won’t be surprised if Nouriel Roubini’s prediction comes true. Dr. Roubini, New York University Economist, thinks that there is a 1 in 3 chance that, if appropriate policies are not put in place, current ugly U-shaped recession may turn into a more virulent L-shaped near-depression. If I keep thinking about it, I may get the dream of “U”s and “L”s. Whatever comes our way, we will deal with it!

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