The Sky is Falling!

There was a rise of three tenths of one percent increase in the unemployment rate which now stands at 5%. According to Bloomberg,

"Since 1949 the unemployment rate has never risen by this magnitude without the economy being in recession,'' John Ryding, chief U.S. economist at Bear Stearns Cos. in New York, said in a note to clients. "We now put ourselves on recession watch.''

Until recently and as a result of Reagan's tax policies, (Bush I, Clinton and Bush II didn't change this policy much) this rate has never been below 5%. Prior to Reagan, a 5% unemployment rate was considered full employment. I gotta believe the old rules don't apply anymore, but watch out, the sky is falling!

For real context, read Jayson Javitz at Wizbang.