The official unemployment rate increased from 25.2 per cent in the first quarter of 2013 to 25.6 per cent in the second quarter. The youth unemployment rate has risen to 52.9 per cent during the first quarter of 2013 and is of particular concern.
And finally, to the extent that investors realise that credit and other risks are higher than they had previously thought, they might want more compensation for holding bank equity despite the efforts to make banks safer. These various effects are quite complicated and they will take time to play out.