533,000 Jobs Lost in November

Recession Snapshots

Florida, which used to lead the nation in job growth, has suffered tremendous job losses --156,000 gone in the last year alone. With the collapse of the housing market and significant drop in new buildings, construction has suffered tremendous blows. Tourism has also been hit hard. Westgate Resorts, one of Florida's biggest employers, has laid off nearly 25 percent of its employees since September.

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In Seattle, the diverse economy is being affected across the board – from the highest-paying white-collar jobs to blue-collar workers. The failure of Seattle-based Washington Mutual has sent a ricochet of layoffs across the spectrum. Even Starbucks, whose headquarters are based in Seattle, is feeling the burn, laying off workers from the company's headquarters.

Consumer Credit

Today's report presents an almost unprecedented challenge to the nation: How, in a world driven by credit and the consumer, do you counter the credit crunch and record-low consumer credit?

Even the most conservative economists are now saying the government must create a massive stimulus program with all due haste. And interest rates have to be almost zero -- money should be almost free to entice qualified borrowers, though gladiator capitalists have retreated to the sidelines.

The Federal Reserve System will almost certainly lower a key federal interest rate below the historic low 1 percent where it sits now. The governors meet in a two-day session Dec. 15-16 to craft their response to today's report. Could Bernanke & Co. be considering a cut before the meeting? They could. They've done so twice already this year.

The incoming Obama administration and Democratic-controlled Congress will almost certainly start fleshing out details of the Stimulus Act of 2009 in short order. Those in the know expect at least $1 trillion in direct fiscal stimulus during the next two years. It could be more; it's almost impossible for it to be less if lawmakers want it to be effective, according to the experts.

It also makes it that much more difficult for Congress and the Bush administration to turn the Detroit 3 away. They are currently in Washington begging for the $34 billion bailout. The estimate of jobs fallout if just one of the companies collapses is 2.5 million.