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As budgets and profit margins deflate under the weight of the flagging economy, employers are turning to human capital as a cost-saver, creating a sky-rocketing rate of unemployment. GlobeSt.com took a poll to gauge the optimistic or pessimistic view of the unemployment situation. While 27% of people don’t believe the situation is getting any better, an equal amount feel it will turn around. However, an over-whelming 46% think it will get worse than it already is. Seth I. Rosen, vice president at Colliers Meredith & Grew concurs.

“What you have right now that needs to resolve itself before we’re likely to see any improvement macro-economically is this asset valuation issue. This is not just happening in commercial real estate, this is happening everywhere. You’ve got this really large disconnect between what the debt investors think the asset values are and what equity investors think asset values are.”

“The government’s trying to [mitigate the bid-ask gap] with TALF and TARP. It’s just going to take some time. If anything, I think, the low interest rates are going to buoy valuation and keep that gap smaller than it otherwise would be. But you still have a really big gap.”

“You’ve got the sellers that are willing to sell this stuff at [one] price and you have the buyers who are only wiling to buy stuff for this [other] price. And every time the sellers come down, the buyers come down too.”

“The misalignment between earnings and valuations is still quite sizable, less so than it was 12 months ago, but it’s still pretty substantial. As long as that disconnect of earnings and valuations continues to drop you’ll see unemployment.”

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