We've been hearing lots of commentators say that US unemployment will peak at around 10% and that the recession is over.

But former Merrill Lynch economist David Rosenberg says unemployment will hit 13%, the highest since monthly records began in 1948. According to this report, Rosenberg says the rising unemployment will create massive problems for the Democrats as the GOP continue to gain ground. The problem, he says, is that the banks aren't lending money so companies can't expand and put on workers. "While we may be getting close to a bottom in terms of employment, the jobless rate is very likely going to be climbing much further in the future due to the secular dynamics within the labour market."

Janet Yellen, president of the Federal Reserve Bank of San Francisco has told reporters that US unemployment may remain high for many years.

And that again is further evidence that Obama's stimulus packages are not working as intended. They need fine tuning. When you are spending billions of dollars, it needs to be better targeted.