Have We Hit Bottom?

I remember my Holiday party last December. An annual event, I invite literally everyone I know for iced cookies, Cava, colorful candies for the kids and empanadas on what always turns into a wonderful crush and mix of friends.

Even six months ago, on this wintry night, talking about the economy was front and center. Many of my friends are business journalists and we all started speculating on what number unemployment would hit:

"Does anything think we're talking about 10 percent?" one friend asked.
"Well, let's not get dramatic," scoffed another.

And yet....

Numbers released yesterday indicate that really it's unlikely that you now don't know someone who is unemployment — or underemployed. Underemployment is that sneaking situation not being reported in the official unemployment numbers where someone may have a job, but not with enough hours, or has a paycheck that has been cut, and is not making ends meet anymore either.

At 9.5 percent official unemployment, a 26-year-high, we're now slowing approaching 10 percent — a number even I admitted I derided that night. And I have to say, it's extremely sobering. And while I'm worried that these numbers will only make those still looking for work feel even more frustrated and discouraged — I'm also wondering what effect that number will have on those who still do have jobs — the other 90 percent (although I think that number is likely lower when factoring in freelance, part-time and those who just have stopped looking...) who are still fully employed.

What economists fear is that those who are still holding down the fort, will close the wagon loop so to speak. In other words, they'll stop spending, start saving intensely, which puts less money into stores and companies, forcing some of them to shutter doors — and let more people go.

But how can you blame anyone for that? It's understandable that people are wavering about going out to dinner at a fancy restaurant, or splurging on a new dress when the next door neighbor is having a hard time paying the mortgage, or a friend hasn't found a job in eight months. What if next week.....it's you?

How is everyone out there faring? How are those of you with jobs reacting to this news? And for those of you looking to find work -- how do these numbers affect your search efforts?

Whatever situation you're in right now, I'd really love to hear from all of you. Please share your stories below...especially anything that's helping you not react too.