Spain jobless figure hit ‘astronomical’ 5.4 mn

Agence France Press
January 14, 2012

The number of people unemployed in Spain hit an “astronomical” level of 5.4 million at the end of 2011, Prime Minister Mariano Rajoy said on Saturday.

The figure is more than 400,000 higher than the level reached in the third quarter of 2011, when the unemployment rate hit a 15-year high of 21.5 percent, the highest in the industrial world.

“This year (2011) is going to close with 5.4 million people… who want to work but cannot,” Rajoy said, ahead of official unemployment data due to be published on January 27.

“It is an astronomical figure,” he said in a speech to supporters of his conservative Popular Party in Malaga, southern Spain, in which he reaffirmed fighting unemployment as his top priority.

“This is our challenge and all our efforts and all our policies are going to be dedicated to this,” he said.

Economists have warned that Spain may be back in recession with the economy likely to contract in the first quarter of 2012. The Bank of Spain said the economy shrank in the last quarter of 2011.

First Traitor who wants out: Tim Geithner considers leaving U.S. Treasury

Bloomberg
June 30, 2011

Treasury Secretary Timothy F. Geithner has signaled to White House officials that he’s considering leaving the administration after President Barack Obama reaches an agreement with Congress to raise the federal debt limit, according to three people familiar with the matter.

Geithner said speculation about his departure was being driven by his decision to commute to New York so his son can finish his final year of high school there.

“I live for this work,” he said at the Clinton Global Initiative in Chicago. “It’s the only thing I’ve ever done. I believe in it. We have a lot of challenges as a country. I’m going to be doing it for the foreseeable future.”

Geithner hasn’t made a final decision and won’t do so until the debt-ceiling issue has been resolved, according to one of the people. All spoke on condition of anonymity to talk about private discussions.

The Treasury secretary has said the U.S. risks defaulting on its obligations if Congress doesn’t raise the $14.3 trillion debt ceiling by Aug. 2. The administration and Republicans in Congress are at an impasse in negotiations to raise the limit, which is tied to efforts to cut the nation’s long-term deficit.

Moody’s Investors Service said on June 2 that it expects to place the U.S. government’s Aaa credit rating under review for a possible downgrade if there’s no progress on the debt limit by mid-July. Fitch Ratings said June 21 it would place the U.S. on a negative rating watch if no action is taken by Aug. 2.

Completing the Turnover

An exit by Geithner would complete the turnover in Obama’s original economic team, with Council of Economic Advisers Chairman Austan Goolsbee scheduled to leave in early August to return to the University of Chicago.

That would leave Obama with two key posts to fill as Republicans are seeking to turn the 2012 election into a referendum on Obama’s handling of the economy and as the recovery is slowing. The unemployment rate rose to 9.1 percent in May, according to the Labor Department, and the economy grew at a 1.9 percent pace in the first quarter, according to Commerce Department figures released June 24.

Jen Psaki, a White House spokeswoman, declined to comment.

“Geithner leaving may raise the level of uncertainty for the direction of economic policy, and that is never a positive thing for the markets and the recovery,” said Christopher Sullivan, who oversees $1.7 billion as chief investment officer at the United Nations Federal Credit Union in New York.

‘Shock Value’

Still, he said, it wouldn’t have too much “shock value,” especially if Geithner remains at Treasury until the debt ceiling is settled, “which is the most pressing concern anyone would have.”

Treasuries fell for a fourth day as stocks rose and a measure of U.S. business activity improved. The yield on the 10- year note climbed five basis points, or 0.05 percentage point, to 3.16 percent at 5:14 p.m. in New York.

Investors may be more interested in who would come after Geithner.

“The question in cases like this is always who will be the replacement,” said Jay Mueller, who manages about $3 billion of bonds at Wells Fargo Capital Management in Milwaukee. “You can’t judge if this is good or bad for the market until you see who follows.”

The market was “comfortable” with Geithner because he was “a visible player in trying to blunt the crisis,” Mueller said.

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