Chapter 5

http://www.theglobeandmail.com/globe-investor/markets/markets-blog/the-close-shrugs-over-unemployment/article977618/

Summary

The United States may dismiss employment numbers, with news suggesting that the economy may be stabilizing. The unemployment rate is currently at 8.5% and 5.1 million Americans out of work since the recession. Although the unemployment is still high, the good news is that the stock market index rose above 80 from 39.7. Also the Bank of America Corp. went up 5% as well as Ford Motor Co. which went up 11.7%. In Canada, the Royal bank of Canada rose 1.3% and the Toronto Dominion Bank rose 2.7%. However, gold prices plummeted after the price fell to below $900 (USD) an ounce, losing almost $12.

Connection

The connection with the chapter is unemployment and inflation. Inflation is a good way to measure and indicate the progress of the nation. With the economy slowly stabilizing, unemployment should decrease and more people should be seeking jobs. Also with inflation involved, most of those stocks and financials are bound to rise and fall. With that happening, it will cause unemployment rates to fluctuate as well.

Reflection

I think that with the market getting better since the recession will cause unemployment numbers to decrease. If the economy continues to improve and progress like this, it should not be long before the economy is back to normal. But with inflation in mind, I don't know how long it will take due to the fact that the market can take twists and turns. Its assuring to know that the economy is getting better from the recession. An example would be that the Canadian dollar is at par with the American dollar.