Bits Bucket For November 3, 2010
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The Housing Bubble
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Good grief, what the heck is “bold & risky” about this?
Fed to launch bold, risky effort to boost economy
WASHINGTON (Reuters) – The Federal Reserve is expected to announce a controversial new policy on Wednesday to buy billions of dollars in government bonds in an attempt to breathe new life into the struggling U.S. economy.
The well-telegraphed decision would be aimed at pushing down borrowing costs for consumers and businesses still smarting from the worst recession since the Great Depression, though there are doubts about its effectiveness.
With the U.S. economy expanding at only a 2 percent annual pace in the third quarter and the jobless rate seemingly stuck around 9.6 percent, the Fed has come under pressure to do more to stimulate business activity.
Economists expect a new round of Treasury purchases to total about $500 billion over a six-month period and to be accompanied by a signal that officials, who have been divided over the wisdom of the move, might ramp up the operation if needed.
The big risk is to the Fed’s reputation, should the effort not have an obvious, immediate and positive impact.
Combine that with a Congress which is less likely to offer more stimulus..
Someone is going to have to do the right thing(s).. the painful things.. and we know how politicians strive to avoid that option.
Its “bold and risky” because they know it will most certainly fail. The only thought being put into it is exactly which magnitude of criminally stupid they will be looked at through the retrospective lens of history. That’s the bold and risky part.
New FED Kool-Aid with “Bold New Flavor”.
Head for the mountains…
Its Risky, yet Delightfully Illegal.
They are out of ideas. The chance that lowering interest rates by another 1/4% will jump start the economy is about the same as Obama being invited to run the next DNC election planning conference.
They’re pushing on a string.
I guess all those offshored jobs did matter after all. Who woulda thunk?
“I guess all those offshored jobs did matter after all.”
As Carly Fiorina found out.
“As Carly Fiorina found out.”
… at the cost of many millions of her dollars.
(Here’s hoping she runs for another office so she can spend some more of her millions.)
I’m thinking that this election was a good economic stimulus for California. Hundreds of millions were pumped into the economy, not just by Meg and Carly, but by oil companies and utilities backing a proposition that would have suspended emissions standards until unemployment reached 5.5%. A lot of rich people spent a lot of money.
When you think “California”, think in terms of tens of billions. Anything less is just chump change.
“Anything less is just chump change.”
That’s not a very polite thing to say about Meg Whitman’s campaign spending.
PolitiCal Flashback:
Meg Whitman’s campaign spending shatters American political records
November 2, 2010 | 4:00 pm
Meg Whitman made it clear from the moment she declared her candidacy for California governor: She was prepared to spend whatever it took to get her message out to voters.
In the end, that number would end up topping $160 million, including $141.5 million of her own money. Whitman’s personal investment in the race topped the $109 million spent by Michael Bloomberg in his 2009 race for New York mayor.
…
“As Carly Fiorina found out.”
… at the cost of many millions of her dollars.
(Here’s hoping she runs for another office so she can spend some more of her millions.)
Unlike Meg, Czarly isn’t a billionaire. She was HP’s CEO only for a few years.
“in required Senate ethics committee filings, she estimated the couple’s net worth at somewhere between $30 million and $120 million.” - NY Times.
$160 million is what percentage of $140 billion? About 1.2%?
Meg is not an idiot. She knew she was not likely to succeed the first time around.
And the money wasn’t a complete waste. She bought name recognition. I doubt she’ll let that go to waste.
Brown will be 76 years old and totally frazzled by all the problems he’s heading for the next time he confronts her.
Meg is not an idiot. She knew she was not likely to succeed the first time around.
I disagree. Meg wholeheartedly thought she would win and she had a big lead at first.
Her negatives are very high and the reasons for them will be easily exploited in any election going forward. The Republican establishment knows this too.
She bought
name“TrueHypocrite™” facial recognition.Carly’s grave is shovel-ready.
Nixon lost his bid for Calif governor to Jerry’s father… and leap frogged into the White House.
President Whitman.. has a nice ring to it.
President Whitman.. has a nice ring to it.
For a ding dong…?
Whitman is part of the problem, not the solution. The fact that one individual within a company has amassed such a staggering level of wealth as compared to the lowest rung employee within that company shows just how distorted the distribution of wealth has become, and how sick the system is. These people are selling out the country for their own personal gain. I do not believe there is one person on this planet who is worth what she was paid. I’m very happy she lost.
ding dong is unlikely to stick.. it has no ring to it.
Linda Ronstadt, Jerry’s g/f at the time, was the one who tattooed him with “Moonbeam”.
Brown will be 76 years old and totally frazzled by all the problems he’s heading for the next time he confronts her.
Heck he may pull a Palin and quit mid-term.
Handing the governorship over to …..
Lt. Gov. Gavin Newsom.
I’m glad I left CA in 2006.
hehe.. yeah.. newsom
The two adjacent mayors now sit side by side in Sacramento. Ya think the Bay Area will get any special consideration in the next four years?
I’m glad I left CA in 2006.
2008, but I have mixed feelings on that subject.
“President Whitman.. has a nice ring to it.”
Can’t wait for the campaign. In the mean time, the Democratic party attack jobs should be able to line up their ammunition on her Government Sachs ties and her illegal immigrant problem. Maybe we Lilliputians will be able to figure out by then whether those nasty rumors about her son (and the $30m payment to Princeton) were truth or fiction…
Funny, most states went hard right this election. California, being the odd ball, went hard left. Gavin Newsom is about as liberal as they come. Expect to see some foreclosure moratoria and buyers credits in California soon!
Can’t wait for the campaign.
As a virtual unknown, she got over 41% of a very liberal state, despite a concerted, experienced and well funded opposition.
Considering that the country as a whole shifted right, and the reasons it did so will worsen over the next 24 months, she might give BO quite a run for his money.
As a virtual unknown, she got over 41% of a very liberal state,
LOL, 170 million dollar “unknown”.
u funny
only 41%?????? Now that IS funny.
Calm down. No reason to panic.. yet.
total votes was 7 mill. Brown got 54% and she got 41%. That’s a 13% difference.
one percent is 70K. 70 x 13 = 900K ..
Unemployed Californians number roughly 2,300,000. (12.4%)
500K additional unemployed people over the next 4 years (thanks to Jerry’s anti-business penchants) switching their vote to Meg is not all that big a deal.
“Whitman is part of the problem, not the solution.”
Really?
50% of all Venture Capital dollars land in CA, creating and growing companies like eBay (and Google, and Apple, and Bloom Energy, and Facebook, and Salesforce, and Oracle, and LinkedIn, and Zynga, and Intel, and, and). There is a reason that Zuckerberg didn’t stay near Harvard and packed his bags for CA. The solution to the problem is to create new jobs through innovation, experimentation, and risk taking.
Making all this possible is 1. Capital; 2. Brainpower; 3. Experience; and 4. PROFIT MOTIVE.
Or should we aim for managed capitalism/socialism where no one can create significant wealth for themselves and let the government chooses which ideas get capital to grow?
Is Sergey Brin or Larry Page’s wealth part of the problem? Or would we all prefer that they worked to create Google elsewhere in the world?
Is Don Valentine’s wealth part of the problem (for those who don’t know the name, an influential VC in silicon valley, who invested in Oracle, Apple, Atari, Cisco, YouTube, Google, Electronic Arts, etc.)?
And before you claim that the CEO is far less important than the engineers that created the product, I give you Steve Jobs. Remember, eBay was not some highly complex engineering feat. It was a simple idea. When Whitman started, there were other competitors in the space–eBay was just run better.
And, my last rant. Before people start in with the “CA is too liberal, ungovernable, and went left when everyone else went right”, read up on what happened with the propositions - No legalized pot, struck down higher taxes on business, struck down higher fees on residents, made it harder to raise revenues at the state level (needing 2/3 vote to increase fees), but easier to pass a budget with only a majority vote (it used to be 2/3 majority), and kept redistricting power away from the democratic majority. The only “liberal” proposition result was that the climate change law will not be put on hold–arguably a boon to green business in CA, at the expense of traditional business.
With Jerry Brown voters went with the known rather than the unknown. Many Republicans that I know are not entirely upset that Brown won–noting that he is at least pragmatic in his positions.
Of course lowering my Credit Card interest rate to zero is way out of the question.
Or Give Legal Americans a $1000 gift card to buy a new computer or laptop is out of the question….
50 million gift cards times $1000 equals a measly $50 Billion…
Not a dime to help renters out….
No money to extend unemployment for my electrician brother who is going to run out by xmas.
Well at least Ebay is offering Free listings and a buy it now this week…time to thin the junk to pay the rent. Thanks BURNackeee
Or Give Legal Americans a $1000 gift card to buy a new computer or laptop is out of the question….
You can get a damn decent laptop for less than $500!
Plus they are all made in China.
True but i need a bigger screen, memory 7200 rpm HD etc, for video and audio recording editing.
You can get a damn decent laptop for less than $500!
True but i need a bigger screen, memory 7200 rpm HD etc, for video and audio recording editing.
I’m in the same boat with the deejay. Any recommendations for (laptop) power-hungry people like us?
I’m in the same boat with the deejay. Any recommendations for (laptop)
MacBook Pro. Can run windows too, just a bit slower….They’re bout $400 more than a comparable PC but you might save much more than that over 2-4 years in Tech fees to fix viruses, worms, trojans, lost data, downtime etc.
If you’re taking any classes at community college, you save 10-15% with the education discount.
MacBook Pro. Can run windows too, just a bit slower….They’re bout $400 more than a comparable PC but you might save much more than that over 2-4 years in Tech fees to fix viruses, worms, trojans, lost data, downtime etc.
Thanks, Rio! I’ve been leaning strongly toward Apple.
I’m in the same boat with the deejay. Any recommendations for (laptop) power-hungry people like us?
I’m sorry, I don’t. I’ve been shopping for a replacement for my trusty old Toshiba Portege and I specifically don’t want a screen larger than 12″ or weight more than 3lbs.
The Asus 1215 has a 64-bit, 1.8Ghz dual-core processor - that’s an enormous amount of power. But if you need a bigger screen, you need a bigger screen - no amount of processing power can make up for that.
…but you might save much more than that over 2-4 years in Tech fees to fix viruses, worms, trojans, lost data, downtime etc.
Of course, I will be running Linux on whatever I end up with, unless I like the laptop Google is supposedly going to release this month with its “Chrome” OS.
I’ve only got a little more than two years on this Toshiba, and I’m wondering if I need to go shopping for yet another laptop. It’s absolutely ridiculous that I cannot use the CD/DVD drive which is spinning, but will not recognize discs nor show up in “My Computer” due to horrendous software problems. I am definitely going with an Apple product, as Microsoft is completely inept in it’s support for their operating systems. Their “Fix It” utility is a JOKE.
I am definitely going with an Apple product, as Microsoft is completely inept in it’s support for their operating systems.
I also recommend buying “applecare” when you do. 3 years hardware/software guarantee and 3 years tech support via phone. The support is great.
Grizzly, the problem is there could be several problems.
The DVD itself might have firmware problem. Did you check to see if the BIOS sees it?
It might be as simple as the connector got jogged. There are 2 separate cables to every device inside a computer. The power and the data. People don’t seem to realize just fragile laptops are. And the mfgs aren’t telling.
Did you try to delete and reinstall the driver?
I cannot use the CD/DVD drive which is spinning, but will not recognize discs nor show up
To expound on what ecofeco said, do you know how to access the BIOS menu when the computer boots up?
That’s the first place to look when you have a disk issue.
Usually, you press either Esc, Del or F1 right before (or as) you see the computer manufacturer’s logo, before you see any of the Windows stuff.
The manual should give you more info and you might try Googling for your model number plus a short description of the problem.
Good luck!
The first thing I would try to do to differentiate a hardware from a software problem would be to try to boot from a CD (e.g. a bootable Linux CD or a bootable MS installation CD).
If that works, you definitely have a software problem, not a hardware problem.
Second thing I would do would be to think about whether you have installed or uninstalled any software packages that would hook themselves into the driver stack for the CD drive. Did you recently install any DVD-burner/ripper packages, or any antivirus software? All of those hook into the driver stack, and some of them do not uninstall cleanly.
A full “in-place” OS “upgrade” (e.g. reinstall the OS, but choose the “upgrade” feature, so that it keeps your apps the same.
Grizzly, if you are willing to contact me directly, I might be able to help more…
Macs are great, and if you simply must use a PC platform for a particular reason, you can use Apple’s Bootcamp (already loaded on newer models) to switch between platforms, though after using the Apple interface you’ll find PC world quite creaky and annoying.
I’m reading this on a Mac - I just cannot bother with MS Windows. At work I use linux (CentOS) - after 20 years of hard study, I think I’m getting it.
your mileage may vary
dj … dj … you know the “little people” don’t matter, that is until they stop “consuming”.
Now go get a few menial jobs and resume your civic duty! Factories in China are counting on you!
“…Ebay is offering Free listings…”
Are thanks due to Meg Whitman as well?
Yes Mr. Bear, indeed they are!
Dear Meg, Thank you for that $169 Million dollar eBay Rebate to the citizens of California!
To Niki: Best wishes & good luck!
Or give SAVERS a break with perhaps special accounts paying, say, 5% on balances up to $250,000. That would only cost at maximum $12,500 per year per person, and would only go to persons prudent enough to have such a balance.
Helicopter Ben: “Screw the savers; every dollar saved is a dollar that isn’t spent on made-in-china crap.”
I don’t have any credit cards. I already have an adequate laptop. I am fortunate to still be employed. Is this stimulus proposal only for the less fortunate - those who are most likely to spend it?
I could always use a $1000, but I would like to spend it on something that meets my needs, if I choose to spend it. If it were issued as some kind of prepaid card so that people were forced to spend it, I could simply choose to save some other $1000.
This sounds a lot like the Bush $600 checks. Why stop at $1000? I could do so much more with $10,000.
“Why stop at $1000? I could do so much more with $10,000.”
Better yet: $1M for each and every citizen! We’d all be _RICH_!!!
Oh, wait…
I can never understand this hatred of ebay from some people. It’s a company that offers a service. If you don’t like the service or don’t like the company don’t use it. But I cannot fathom why there is the need to bash ebay left right and center. And I don’t mean you in articular. I’ve been hearing rants about ebay for as long as I can remember.
Personally I think ebay’s great. It sets the price of millions of products sold every day. Ultimate free market capitalism. Buyers and sellers meeting in the open market and setting a price.
Ever buy a used car? Want to know what the car is worth? Forget Kelly Blue Book. Forget Edmunds. Look up the year, make model on ebay, follow a few auctions, see what the winning bids are. That’s the value.
Joey, I think many of the rants come from the sellers. I don’t know first hand, but the theme is bait and switch on seller fees and terms of service - AFTER the seller has established a presence and is getting repeat business.
Sort of like the crack dealer market model. First couple of times it’s free. By the end of Year 1, after you have no more assets, crack dealer is also your pimp.
This latter is an analogy. I do not speak from first hand experience.
We can donate more than a few unemployed libodems from Ohio to pay obamma back for coming here so often in the run up to this vote; too bad the left and right coasts are still drinkin’ the kool aide. Jerry Brown for governor! How pathetic can you get? Now Californian’s get to experience the 20 year rust belt decline condensed into the next 24 months. Dont hold your breath for state bailouts by the feds. You will get more visits by the obominator, though. Thats how you can really tell that they’re just shilling for your votes. PM’s will rule because the only way to make houses sell for California prices is to knock down the $$’s value by 40 - 50 percent. So much for flyover country swallowing a 50 percent drop in RE values while bankers swallow multimillion boni.
Surely there is a kernel of truth in here somewhere. I’m pretty sure the Fed cares nothing about Mr. Consumer or the millions of unemployed who get swept into the dustbin with the fake unemployment accounting, nor Mrs. Little Business. None of them want to borrow money at any interest rate.
We do know that the big banks are on life support, and that the Fed does care for them. We suspect that the Fed does not control interest rates directly, but can bluff the market into slightly lower Treasury rates with such a program, and thereby the borrowing costs of the Banks, for a time. It is a slight edge they give the Banks, a postponement of rupture.
It is not likely to change the outcome of the tug of war between the 20 ton gorilla and the bulimic herneated banksters, but it makes for some distraction.
“the Fed has come under pressure to do more to stimulate business activity”
pressure from whom?
Wall Street.
A dysfunctional Congress.
MBS holders…
This will help ensure that this Greatest Depression earns its name.
We can’t keep handing out free money to the very people who did the worst possible with the previous batch of free money. Debts must be repaid. The longer that debts go unpaid, the bigger the interest racks up, or the bigger the losses. Interest and losses are not productive, so the Chinese will be given an even bigger industrial lead over the West.
Chinese will be given an even bigger industrial lead over the West ??
Yeah, until we decide to take the gloves off….
Until we wake up and stop buying their cheap crap. Then they will go back to the stone-age.
Bold and risky are traits associated with wartime generals, aren’t banks by nature supposed to be conservative and deliberate?
This morning I learned that a house in my old neighborhood is listed by the lender at prices just north of its sale price in…get this…late 1988! Even at today’s interest rates, the thought of buying something like it illicits a mere, meh. So no, another couple points ain’t gonna matter - sorry Boom Boom.
There is a 3,500 sq ft commercial building here for sale at $10/sq ft. Most recently a pool hall, it has a two story office/showroom wing and a high bay garage wing. Located on the main road just outside one of our mid sized towns. Looks to be in good condition and not all that old. No Swedish Sauna though.
3,500 sq ft commercial building here for sale at $10/sq ft. ??
$10. per square foot would not even cover the city fee’s to build this building around here…
aren’t banks by nature supposed to be conservative and deliberate?
Only when they have to eat their own losses, and that went out the window, um, with the repeal of Glass-Steagall?
Here in South Carolina we have our first women(r) governor. We have our first (since re-construction) black(r) conservative representative. We gave the boot to an old lib John Spratt(d), he’d been in D.C. since the early 80’s.
We narrowly defeated a sales tax increase in Richland county. Time will tell if this new batch of conservatism will have any effect, I have my doubts. Most likely they’ll get drunk with their newly found powers and go right on down the path we are on.
We defeated a sales tax increase here in the Tampa Bay area, too. For light rail. Screwbio got the Senate seat, I nearly heaved when he got the Godfather embrace from Jebbie. All the Senate choices were distasteful.
Next stop: the lame duck congress tries to shove shamnasty down our throats, just to get even. That’s what politics has come down to.
Congrats to the Aqua Buddha!
Given my choice of dream shove-downs, I’d take a public option. As long as we’re in a recession, there’s a bit of a breather on shamnesty.
Given my choice of dream shove-downs, I’d take a public option.
Me too.
And, given the way the health insurance companies are continuing to screw their premium-paying customers, that public option will come back with a vengeance.
Actually, you don’t want a public option. If we had a public option health plan in the process of implementation, the upcoming Republican House would be able to entirely gut it by refusing to fund it. The system that was set up does not require all that much explicit federal funding, so most of it will come into being without requiring a vote to appropriate the funds.
I have no idea if this was done knowingly or it is just an unitended consequence of setting up the system based on the MA legislation. I suspect that at the federal level it is a bit of an accident, but it might have been more purposeful when then Governor Romney ushered it through in MA.
In Tucson, a city sales tax increase went down by a wide margin. Ditto for the changes to our city charter, which were being pushed by a bunch of richie-riches from outside the city limits.
“Most likely they’ll get drunk with their newly found powers and go right on down the path we are on.”
More likely they will do their corporatist masters’ bidding, cuz if they don’t they won’t receive their support ($$$) next election.
True, the bottom line never changes, it’s all about the buck, and getting re-elected of course.
Of course, we may end up with a female gov in Florida yet. Rick Scott’s lead is razor thin and the 411 is that Alex Sink is lawyering up.
I see Rubio won, the Crist fellow needed to go away. Of course they never truly go away, they are always lurking somewhere.
My other post hasn’t shown up yet, but the Rubio-Crist thing was a tough one. I couldn’t decide which one I wanted more to see lose. Godfather Jeb was right on hand to embrace Rubio after his win, so the neocons got another of their people in. Gotta hand it to Jeb, though. He kept a pretty low profile, he knows when to keep his mouth shut and his bowels open.
By hook or by crook, Crist will get to Washington, never fear. Rumor is he’ll be offered a job with the Obama administration. He’ll be changing his party affiliation to Democrat any minute now.
Jeb Bush was not silent on Rubio/Crist. He pounded the last nails in Crist’s coffin.
http://www.tampabay.com/blogs/the-buzz-florida-politics/2010/10/jeb-bush-crist-should-be-ashamed-for-scaring-seniors.html
And on 10-29:
“Charlie Crist has been such a disappointment, because he will shift his position to– for his own personal ambition. It’s not that he’s serving anybody, it’s serving himself. He’s the most ambitious man I’ve ever met in politics. He believes in absolutely nothing other than– what’s the next step for him in a path,” Jeb Bush said on CNBC.
Posted on October 29, 2010
No, I think Crist is done.
Palmy, what were people in FL thinking, voting for a guy whose for-profit healthcare company committed Medicare (or was it Medicaid?) fraud?
Rick Scott is a sleaze bag, but he comes across as very personable. Sink is an ex-bank CFO who is good at math but has no personality.
Wow, just like Jr High.
LOL, Steve, you nailed it.
Yeah, and Both are Tattle-tales!
“Time will tell if this new batch of conservation will have any effect, I have my doubts.”
I don’t have any doubts of its effect: This is all part of this Fourth Turning thingy.
People have once again become interested in governmental affairs since the economy has gone to hell. I don’t think this sudden interest will change in two years because I don’t think things will be wonderful again in two years; Something to do with being laid off or having one’s wages being cut or not receiving much of the retirement money that was promised over the many years.
The politicians are now walking on thin ice, where they belong.
I think it is interesting how Rick Santelli has been elevated to guru status and how his opinions are being sought out by the MSM. A sign of the times, IMO.
I’ve seen MSM interview a goat. This is nothing new.
Alvin Greene got almost a third of the US Senate Race votes , and spent less then 5K . With a rather low IQ too. There’s still opportunity out there .
I was amazed by that, too. You couldn’t invent a bigger loser, yet he got 29%. On the other hand, DeMint creeps me out.
Yeah, DeMint is so proud of himself for winning. He should be humiliated that 29% of the voters preferred Alvin Greene to him.
That poor dumb fellow couldn’t put together one coherent sentence, nor could most of the people that voted for him, I would imagine.
That poor dumb fellow couldn’t put together one coherent sentence,
Maybe sometimes that traits that aren’t important seem right after.
Dollar Declines Against Higher-Yielding Counterparts on Fed-Purchase Bets
The dollar fell against higher- yielding currencies amid speculation the Federal Reserve will restart purchases of bonds today to spur the economy, increasing the supply of the U.S. currency in circulation.
The dollar was also near a 15-year low against the yen. It dropped against emerging-market currencies including South Korea’s won and the South African rand as gains in stocks gave investors the confidence to buy higher-yielding assets. The Fed may pledge to buy $500 billion or more in securities, according to 29 of 56 economists surveyed by Bloomberg News.
“All eyes are on the Fed today and that’s probably going to be the main driver,” said Lee Hardman, a foreign-exchange strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “If they surprise on the dovish side, that could add extra fuel” to the dollar weakness, he said.
It’s surprising to me that such certainty on the part of so many isn’t being questioned more.
My net worth just increased by 3 pennies so it must be working already!
Marijuana legalization measure loses in California
LOS ANGELES(AP) – California voters declined to make their trendsetting state the nation’s first to legalize marijuana use and sales, heeding warnings of legal chaos and that pot smokers would get behind the wheel and show up to work while high.
The legalization effort was losing by nine percentage points with more than two-thirds of precincts reporting. Backers showed support for the measure by gathering outside the campaign’s headquarters to watch returns come in — some of them lighting up joints to mark the occasion.
Looks like we have bozo the clown as governor in ca.
This is not unfamiliar, is it?
Bond subsidies and transfers have allowed states to avoid making tough decisions. It won’t last.
The threat posed by the state fiscal crisis in the U.S. is vastly underestimated and under-appreciated—because even today too few people understand how states have been managing their finances.
A clear example of this took place in Manhattan last week at the Economist magazine’s Buttonwood Conference, where a panel role-played the federal government’s response to a near default of the hypothetical state of New Jefferson. After various deliberations and simulated threats from the Chinese government, the panel reluctantly voted to grant New Jefferson an emergency bailout of $1.5 billion to cover the state’s debt payment.
What this panel and so many other investors fail to appreciate is that state bailouts have already begun. Over 20% of California’s debt issuance during 2009 and over 30% of its debt issuance in 2010 to date has been subsidized by the federal government in a program known as Build America Bonds. Under the program, the U.S. Treasury covers 35% of the interest paid by the bonds. Arguably, without this program the interest cost of bonds for some states would have reached prohibitive levels.
I was disappointed by this. “Reefer Madness” mentality rules.
Y’know, there’s something that’s been bugging me about the legalization movement. There’s this notion that once MJ is legal, it can be taxed.
Well, I have news for them. MJ is very easy to grow. Matter of fact, the stuff grows all by its lonesome without needing any human help. And drying it and smoking it aren’t exactly rocket science.
So much for taxing it.
Whiskey isn’t hard to make either.
Try making whisky at home and see how long it takes the BATF to break down your door and haul you away.
I think that’s his point, it’s not hard to make whiskey or automatic rifles at home, but it’s fairly rare because there is very aggressive enforecment of the taxes associated with both.
Promising enhanced tax revenue is just a ploy. Like promising money for education was with gambling.
Gambling is a tax on people who are bad at math.
Tobacco grows all by itself too, and drying it and smoking it aren’t rocket surgery either.
Has anyone ever tried to buy tobacco seeds or starter plants? I really don’t know the answer to that.
Growing tobacco is legal in the states now. (don’t you remember the big huge campaign that occurred in 2005? Me neither )
http://edis.ifas.ufl.edu/aa260
Has anyone ever tried to buy tobacco seeds or starter plants? I really don’t know the answer to that.
Yep, …eBay
MJ is very easy to grow. Matter of fact, the stuff grows all by its lonesome without needing any human help. And drying it and smoking it aren’t exactly rocket science.
Lots of things are easy to grow. That hasn’t stopped supermarkets from selling any of them, however.
Water costs almost nothing, but bottled water is a billion-dollar business.
I have no problem believing that growers, retailers and accessories makers could sell enough stuff to decently increase tax revenue.
Marijuana legalization measure loses in California ??
So chalk a victory up for;
California Law enforcement
California District attorney’s office
California Prison & County jails
California BAR association
California association of REHAB facilities
California Liquor Lobby
California Pharm Lobby
California association of illegal drug dealers
Mexican Gang Coalition
The producers of “Cops”
So chalk a victory up for;
California Law enforcement …+ O/T & Pension
California District attorney’s office…+ O/T & Pension
California Prison & County jails…+ O/T & Pension
California BAR association
California association of REHAB facilities…+ O/T
California Liquor Lobby
California Pharm Lobby
Obama to GOP: ‘I won’
By JONATHAN MARTIN & CAROL E. LEE | 1/23/09 1:25 PM EDT
Updated: 1/24/09 12:37 AM EDT
President Obama listened to Republican gripes about his stimulus package during a meeting with congressional leaders Friday morning - but he also left no doubt about who’s in charge of these negotiations. “I won,” Obama noted matter-of-factly, according to sources familiar with the conversation.
The exchange arose as top House and Senate Republicans expressed concern to the president about the amount of spending in the package. They also raised red flags about a refundable tax credit that returns money to those who don’t pay income taxes, the sources said.
But perhaps taking a cue from Obama’s “I won” line when Democrats were asked if they were concerned about Republicans blocking the package, Senate Majority Leader Harry Reid had a swift one-word answer: “No.”
Pelosi suggested that the package, currently at $825 billion, could become even larger.
“It has grown,” Pelosi said, “and we’re still in the process.”
http://www.politico.com/news/stories/0109/17862.html - 92k
Pelosi suggested that the package, currently at $825 billion, could become even larger.
“It has grown,” Pelosi said, “and we’re still in the process.”
The good news is this bug-eyed moonbat is set to fly back to her cave.
“The good news is this bug-eyed moonbat is set to fly back to her cave.”
And she will be flying in style.
Nancy Pelosi’s Gulfstream Jet
Talk about arrogance. Even in the face of a Judicial Watch investigation spotlighting Nancy Pelosi’s abuse of military air craft, the House Speaker shows no signs of slowing down. In fact, Speaker Pelosi may have set a frequent flyer record for taxpayer-financed luxury jet travel.
According to previous documents uncovered by Judicial Watch, the Speaker’s military travel cost the United States Air Force $2,100,744.59 over a two-year period — $101,429.14 of which was for in-flight expenses, including food and alcohol. Seriously, review these documents for yourself and you can see that Nancy Pelosi repeatedly turned indispensible Air Force aircraft into congressional party planes.
http://clarionadvisory.com/?p=8392 - 99k -
‘For example, purchases for one Pelosi-led congressional delegation traveling from Washington, DC, through Tel Aviv, Israel to Baghdad, Iraq May 15-20, 2008, included: Johnny Walker Red scotch, Grey Goose vodka, E&J brandy, Bailey’s Irish Crème, Maker’s Mark whiskey, Courvoisier cognac, Bacardi Light rum, Jim Beam whiskey, Beefeater gin, Dewar’s scotch, Bombay Sapphire gin, Jack Daniels whiskey, Corona beer and several bottles of wine.’
They really like to mix it up!
Maker’s Mark whiskey,
A unique story in distilling history:
Kentucky whiskey family’s recipe goes back to the 1700’s but in the 20th century the recipe is destroyed to start over. Since whiskey needs to age for its final flavor to emerge, it can take decades to perfect a new recipe. Solution?
Make hundreds of loaves of bread with the proportion of grains of different whiskey recipes.
Determine which loaf of bread tastes the best and THERE is your new whiskey recipe.
His unique solution to this problem was to bake loaves of bread containing the exact proportion of the grain contents of each proposed recipe. The one judged to be the best-tasting was adopted for his new Bourbon. The one selected contained no rye whatsoever, which was replaced by more barley and red winter wheat. wiki
Courvoisier??
They had to drink it all up before entering a Muslim country, where alcohol would be an insult to Islam.
This is what I want to know; these people are flying on a private jet, they can order whatever drink they want. Who’s the d**** a** that orders Corona?
Hey Ben, probably the same dufus who ordered Gallo brandy (E&J) when cognac is in the offing.
Corona is Spanish for “Coors” I believe. Pacifico and XX are far superior.
Corona is Spanish for “Coors” I believe. Pacifico and XX are far superior.
When it comes to cerveza Mexicana, I’m a Modelo Negro drinker.
I prefer the refreshing tangy taste of TTT tea heavily laced with a shot of denial. Please drink responsibly.
Courvoisier??
- The Lady’s Man
LOL. He was dizz-gustin’!
repeatedly turned indispensible Air Force aircraft into congressional party planes.
So did Cheney-Shrub, but with different results!
Talk about mixing-it-up!
http://costofwar.com/
If you include down the road treatment of soldiers, etc, it’s more like $3 trillion. Nothing’s too good for our guys and gals in the Gulf Streams!
‘September 15, 2006…Jay Coupe, who died Wednesday at 65, was a long-serving, large-living spokesman for America’s Armed Forces. He saw to it that his international consultancy brought him frequently to Italy, and was a member of the Washington branch of L’Accademia Italiana della Cucina, a select band of gastronomes including Richard Perle. L’Accademia liked to host special guests like Justice Scalia at its opulent repasts, where diners tried culinary arcane like deep-fried basil leaves, and rated chefs severely.’
‘Coupe was also a member, along with talk show ringmaster John McLaughlin and TV comic Mark Russell, of a select drinking club known respectfully as the Cogswell Society’
http://www.nysun.com/obituaries/jay-coupe-65-naval-officer-sang-for-pavarotti/39719/
I can just see Perle and Cheney flying into Bagdad. “Cheney: What’ll it Be Perle? A: 1992 Screaming Eagle.”
“Cheney: I don’t like that fruity stuff. Give me another PBR tall-boy.”
I’m not at all surprised with the election results. Would have nice if the libs/progressives had held Illinois and PA, but it won’t really affect the makeup of the Senate.
Boehner has a tough job ahead of him. As we on HBB have been saying for months, this economy is in for a double dip, and now it’s on Boehner. I think we should give him a nice one-week grace period to bring back the jobs, and then he’s fair game for attack.
I’m not sure how Boehner will live up to his promise of cutting spending AND creating jobs. If there were a way to do that, Obama would have done it two years ago. [Contrary to popular belief, progressives don't like deficits or debts any more than conservatives do.]
My hope is that Congress will dust off that dead bill that raised taxes on companies that outsourced. Senate Republicans filibustered it last spring, but now that they have some power and visibility, perhaps they will pass it, even if only to claim that it happened on THEIR watch. Whatever. Just stop the job bleeding, perhaps bring back a few. I don’t care who crows about it.
One last note: Tea Party, watch out. CNN said that 47% of seniors supported Tea Party candidates. The Tea Pary is going to die out, one way or another.
“The Tea Pary is going to die out, one way or another.”
I doubt it. It’ll change shape, though. I was glad to see the Tea Party emerge, even though it isn’t exactly a party. But to see third, fourth, even fifth parties is a good thing for the country. The choice between sh*t and sh*t on toast is getting real old.
the GOP is scared t death the tea party will go 3rd, so the latter has some leverage.
The tea (Palin) party just lost the four high profile senate races…
Alaska
Nevada
Colorado
Delaware
If you can’t beat Reid this year you never can…If a write-in (first in 50 years) topples your candidate in your own state seems to me that you are more toxic than powerful…
If you voted for:
Harry Reid
Barney Frank
Nancy Pelosi
Any of the above you should put a plastic bag over your head and squeeze it tightly around your neck. Who the hell votes for these hopeless losers?
Who the hell votes for these hopeless losers?
Your alternative was Angle…Hence, my statement “If you can’t beat Reid this year you never can”…Just run a middle of the road republican and you win by a landslide… Instead, they run a Wacko…
Just run a middle of the road republican and you win by a landslide… Instead, they run a Wacko…
Most Americans are NOT wacko. Just the wacko ones are.
“Just the wacko ones are.”
Yes. How wacko do you have to be to elect a committed Marxist like Coons? How wacko do you have to be to send Harry Reid back to the senate from a state that still has 15% unemployment and the highest foreclosure rate in the country? How wacko do you have to be to send the poster child for elitism Barbara Boxer back to the Senate? How wacko do you have to be to write in an establishment candidate like Murkowski who refused to take her licks and go home?
Be afraid.
How wacko do you have to be to send Harry Reid back to the senate …?
Just a tad less wacko than those who voted for her opponent.
Just think. Those with the bag around their neck: There is no estate tax this year. hahahahahaha
If you look at Governorships, House of Reps and States Legislatures the Democrat Party got their a$$ handed to them. Not sure how many of those races the tea parties had an effect on, but I am not sure you can whitewash the results by touting those very contentious senate races.
Take a look at the county red/blue maps, they are very telling…You have states that are completely red with a couple blue counties that contain the larger cities. I think fear and rejection of the progressive agenda played a greater part than party preference in the red counties.
I think fear and rejection of the progressive agenda played a greater part than party preference in the red counties.
Fear yes. Rejection of the “progressive” agenda? I’m not sold. First of all what “progressive” agenda? My single payer health-care? More worker’s protection? A real jobs bill. What possible “progress” have I seen for the American people?
I am actually surprised the Democrats did as well as they did in the federal election. 10 months ago, I had thought the economy would have improved more than it has.
Right now we are in a “greater depression”. The fact that the Dem’s maintained control of the Senate is pretty astounding in the face of that. Things are bad and when things are bad, the ruling party is usually thrown out of both houses.
For example, lets look to the 1994 mid-term “Republican Revolution” where the Repubs took control of BOTH the House and Senate. BOTH. And things were booming in 1994 compared to now.
The Republicans need to ask themselves why could they not take the Senate in such a terrible economic environment. It was theirs to lose.
“The Republicans need to ask themselves why could they not take the Senate in such a terrible economic environment. It was theirs to lose.”
cough…Tea Party..cough,cough
The tea (Palin) party just lost the four high profile senate races…
The Tea Baggers are not about winning. They are about destroying the Republican party from the inside.
I hope they succeed. I want to be a Republican, only without the religious superstition, self-hatred and homophobia.
I hope they succeed. I
wanthope tobevote for a “Lincoln” Republican, only without the religious “TruePurity™”zealot-propaganda, self-hatred and homophobia. For example: when they advocate ACTIONS that follow thus: “with MALICE towards none, with CHARITY for ALL…“47% of seniors supported Tea”
Unless you pass this off as the stupidity of people over 50, who are irrelevant, it might be interesting to consider why.
If it is because they are angry and have a perspective that the silver spoon fed middle bulge is lacking, then I can assure you that there is are reinforcements in progress in the younger generation. I realized this last night walking to the polls with my 25 YO son. He is hard working and living a cash as you go life, to the bone. His concise comments about the regime that he was about to vote against were chilling.
The heroes of entitlement and self serving irresponsibility must be brought to heel.
Could you give us some of the comments? And a few more statistics than one young person? There is no Reagan for hordes of youngsters to flock around.
It might be interesting to consider why a hard-working young man has to live a cash-as-you-go life. In the past that was plenty enough to make a good living, but no more.
One of his comments was “They need to understand that spending lots of made up money isn’t fixing anything.”
I take it as a distillation of the conversation on the assembly line with his peers, so maybe a little more noteworthy than one data point. I do accept that the manufacturing wage earning worker in his age bracket is not the whole sample.
At his age in the 70s I also spent only cash already earned. Credit was not much available beyond a couple hundred on a gas card. So after 30+ years of intervening unbounded credit he arrives in the same place, at a lower wage. No wonder he and his peers see the debt faith based spending activity of our leaders in DC as dangerous lunacy.
My point is that it is not just some of us (impotent as you may imagine) geezers that see this, there is a groundswell of younger folks who do or will from their own experience.
Not sure about that. Spending lots of made-up money is retaining jobs, including thousands of state-level jobs and GM dealerships.
The problem is the jobs. Every job brought back or created has a triple effect — the gov doesn’t have to pay UI, the gov gets taxes, and the wages go toward consumer good. If we had the flippin’ jobs we the spending would be much less.
You are of course arguing with the wrong person. You asked for a snippet of his thoughts, which are what they are.
That GM dealership job saving does elicit a smile though, having the one to the north of us closed as well as the one to the south of us by mandate. Small business is bad business.
Those state jobs saved, isn’t that kind of like saving the job of redundant tax collectors through higher taxes? How that benefits the society in the long run I wouldn’t appreciate.
The heroes of entitlement and self serving irresponsibility must be brought to heel.
It will be interesting to watch a movement that demands the government stay out of Medicare, take on the ‘heroes of entitlement and self-serving irresponsibility’. What will they do when they meet the enemy, and realize it’s themselves?
Prediction: Possibly fatal cognitive dissonance. Fatal for their scapegoat, of course- that’s how it usually works.
Probably what the Dems are counting on. The GOP will go after SS and Medicare and threaten to dismantle them, and the pendulum will swing back.
It will be interesting to watch a movement that demands the government stay out of Medicare
The retired folks I have talked to are scared to death Obama will mess up their Medicare/SS.
They got theirs - screw the rest of you suckers.
No way the Repubs can even mention anything less than expanding those two programs.
“They got theirs - screw the rest of you suckers”
An oldster actually said this to me recently. Well, his answer when I said I had supreme doubts whether there’d be anything left when my husband and I retired was that he’d be dead and it wasn’t anything that would be worrying him. This was after I said reform was coming and he declared it was what he was living on and they’d better not touch it.
We used to chat every day we were in the same location. Now we stay well away from each other. There’s was something about the “screw you, I’ve got mine” that’s left a sour taste in my mouth.
We used to chat every day we were in the same location. Now we stay well away from each other. There’s was something about the “screw you, I’ve got mine” that’s left a sour taste in my mouth.
Which is why Yours Truly has absolutely zero interest in joining the AARP. Too much of that mentality in the over-50 crowd.
Well, I am 61 and remember well when that attitude started to take over my mother’s generation. They were teens when SS started and figured it was a promise to them specifically.
I’m still trying to keep an open mind, and be ready for whatever happens. But the older I get, the harder it is to be objective.
Well, I’m in my early 30’s and there is no way in hell I will ever support anyone or anything from the tea party. I’ve yet to meet a single person under the age of 50 who has any interest in the movement. The results yesterday were plain and simple: Old people vote and young people ( in my age group) stay at home.
I just read that, compared to 2008, the younger-set vote was down by 8%.
Just goes to show those youngsters. We 50-plus-ers can still kick butt. With our Medicare-funded motorized scooters.
…. and at the same time apparently voting was up by 9% for those in the 50+ age group. Again- this midterm was settled by elder Americans. If younger people like me want to whine- they only have themselves to blame for not voting. Its not like there’s even an excuse not to vote. I received a ballot in the mail weeks ago. Took me 5 minutes to fill out and stick back in the mailbox. Simple.
I received a ballot in the mail weeks ago. Took me 5 minutes to fill out and stick back in the mailbox. Simple.
Took me a bit longer, what with the Arizona ballot being rife with propositions.
So, clearly staying at home and not voting is doing wonders for fixing things in a way that would benefit you, huh? How’s that working out?
You don’t vote, you get stuck with the results that you failed to participate in. Feels pretty crappy, huh?
Well, don’t complain about it until you start voting.
The (T)axed (E)nough (A)lready people won’t die out completely, there will always be folks that detest their tax dollars being pissed away year in and year out. Our two party system is a tough nut to crack.
Maybe the teabaggers should break out their nutcrackers.
Tea Party won’t die as soon as you think, oxide. Probably will die when Obama leaves office (2012 or 2016, depending on unemployment.)
Obama’s reelection got a lot easier last night. Tea party won’t matter much. There are still enough establishment people in both parties to carry the day when it counts. Tea party will be in sideline mostly. Good thing though; no bailout for failed states, Fed will get more scrutiny if Ron Paul gets his way.
The thing that bothermed me the most about last night was Sarah Palin. Each and every TV head was talking how she was the biggest winner. Thank you again Obama and Democrats, for making look Sarah Palin like a genius that she is not.
Technically she is the biggest winner. How much does she pull down each time her ghostwriter posts a tweet, or she screeches and sneers into a teleprompter?* I bet she can afford her own high heels now.
I disagree that Obama is making her look like a genious; it’s the MSM who can’t seem to get enough of her pretty face.
————–
*And I maintain that Palin is the real empty suit/teleprompter, not Barry Obama. When’s the last time they allowed somebody to interview her, other than trite softballs from Fox News? That intelligent Katie Couric interview?
Palin is the opposition party’s dreamdate. Every single candidate she backed lost with the exception of the SC governship.
Keep talkin’ Sarah…. keep talkin’.
Both are, except one has ivy league diploma.
“Every single candidate she backed lost with the exception of the SC governship. ”
CBS implied Rubio was one of hers. I don’t think so.
She’s a winner alright!
“Sarah Palin said,…”
“Sarah Palin said,…”
“Sarah Palin said,…”
Has their “TrueGoal™” changed?:
Cha-Ching $$$$$$$$$$
Cha-Ching $$$$$$$$$$
Cha-Ching $$$$$$$$$$
I don’t think she was a winner at all…
I hope you’re right, because she’s using up a lot of oxygen. The left and the MSM want everyone to think she’s the idol of the Right, when most the buzz is about Christie right now..
Oh, lay off Mrs. Palin, you guys are just mad you can’t get any. I think she would make a GREAT precedent. I am going to do everything I can to make sure she get on the ballot in 2012 to beat that Nazi socialites, NObama. Tea Party won!
Ha ha ha HA 2U!
Hugs,
GWB
In former White House speech writer Matt Lattimer’s book, Speechless, he wrote about Bush’s reaction to Palin being chosen as McCain’s running mate.
To put it mildly, GWB thought that she was highly unprepared for the VP spot. Ditto for her family. Bush thought that they were even more unprepared than Ms. Sarah.
Would you pour me a cup of whatever you are having this morning?
Had my cup o’ irony, this AM, full with Boehner’s tears. The “right” now owns the mess that will be the next two years, and Obamanites will be making hay of this unintended gift to their 2012 campaign–which begins… today.
The PR/advertising industry bailout continues.
(hic)
GOP has to vote to get rid of Obamacare, Cap and Trade, any stimulous, and earmarks. After Obama vetoes them vote to override. When Dems won’t support override, point out to voters. Get rid of them in 2012.
GOP has to vote to get rid of Obamacare, Cap and Trade, any stimulous, and earmarks. After Obama vetoes them
You know about the US Senate right? And how it works with the House? It’s like where the opposite party’s House bills go to die a very slow death.
Obama had his moment and he squandered it.
He wasted a ton of political capital bailing out banks and other failed institutions — AIG, Citigroup, GM, FNM, Chrysler. Instead of acting like a responsible adult, outlining the challenges of over indebtedness, and leveling with the public, he went on a Keynesian debt fueled spending spree.
We trusted him in ‘08 and he didn’t deliver. People really expected change not fanciful man behind the curtain fed induced illusions and certainly not Ministry of Truth handling of facts. He didn’t return the trust.
It could be argued that we were not really ready for a dose of reality.
+1. I believe if BO had done what the right claims they want, they’d be all over him when the economy got even worse.
He wasted a ton of political capital bailing out banks and other failed institutions — AIG, Citigroup, GM, FNM, Chrysler.
And he wasted another ton on passing a health care reform bill that’s highly unpopular on the right and the left.
And he wasted another ton on passing a health care reform bill that’s highly unpopular on the right and the left.
Maybe Pres. Obama’s political capital was not wasted but rather it was spent on the only thing it could purchase at the time.
Near universal coverage (by any method) needs now to be part of any congressional debate, even debate to dismantle the current law.
This was not the case before the Obama health care plan became law.
There was no debate on the Obama Healthcare Bill.
There was no debate on the Obama Healthcare Bill.
I don’t know if you are responding to me but if you are:
Of course there was debate. For over a year. The Republicans made a choice not to join the debate in good faith. It backfired and that got them really mad.
But even if you are correct that there was “no debate”. How does that change the perception and observation of my post in regard to the debate going forward?
I don’t know Rio, but it seemed that there was just a lot of buzz and posturing and arm twisting. The thing was poorly crafted and totally misaimed IMO. I would support a do over without hesitation.
I agree that it is a Frankenstein’s monster. There are some good provisions. I would have preferred single payer to be part of it. It would have forced some real competition on the insurance companies. I might even have favored a 50 state solution. Let each state choose what to cover and what not to. New York might choose to cover abortion. Most southern states would not.
I liked Oregon’s solution to controlling costs that was shot down by the Supreme Court several years ago. They ranked conditions using treatment costs and outcomes. Some were covered and some were not. It makes sense to me that we should all have access to basic and emergency care. Basic should cover things like infectious diseases that threaten the well being of the community. Emergency should cover things like accidents, where we have no meaningful opportunity to exercise choice in treatment options or providers. Let the free market cover everything else.
“It backfired”
I think Pelosi would beg to differ. IMO, the HC aspect is what crushed the Dems this election and gave the House to the R’s.
I liked Oregon’s solution to controlling costs that was shot down by the Supreme Court several years ago. They ranked conditions using treatment costs and outcomes. Some were covered and some were not. It makes sense to me that we should all have access to basic and emergency care. Basic should cover things like infectious diseases that threaten the well being of the community. Emergency should cover things like accidents, where we have no meaningful opportunity to exercise choice in treatment options or providers. Let the free market cover everything else.
This is EXACTLY what needs to happen.
It can’t happen if for profit companies are making decisions on what get’s covered and what doesn’t. Single party payer with this power and the right of all to purchase suplemental to cover the less effective more expensive therapies would cut our countries medical bill in half.
“It backfired”
I think Pelosi would beg to differ. IMO, the HC aspect is what crushed the Dems this election and gave the House to the R’s.
I think Pelosi knew that was a real possibility but she bit the bullet and did it anyway. She and the Democrats actually showed political courage with HealthCare. Many knew they would go down but Pelosi got the votes. No other speaker has been able to do that. None.
I’ve never been a fan of hers but I think history will judge her more kindly than she is being judged today.
“My hope is that Congress will dust off that dead bill that raised taxes on companies that outsourced.”
Okay, just how many times did I post that the repubs VOTED DOWN, just this last September, a bill that would have repealed the tax breaks for offshoring jobs. A bill that would have also given those tax breaks to local buinsesses to hire… locally.
And the electorate just voted them into more power because… they were out of work.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
Pass the popcorn. Here comes the good part… you ain’t seen nothin’ yet.
We’re referring to the same bill. Repealing tax breaks and raising taxes are the same thing.
How did the Repubs vote it down when they didn’t control the House, Senate, or White House?
Go back to eighth grade. Seriously.
Oxide, you need to do some research before mouthing off:
Senate GOP blocks bill that would promote less outsourcing
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/28/AR2010092802768.htmlF
I know this is late, but my point stands that the GOP can still block something if they don’t have control of the Senate. They can filibuster.
The listed Dems are a bit slimy. (Not sure why Tester voted to block.) Nor do I understand how this bill makes “puts the nation at a competitive disadvantage” as Baucus said.
The Pubs said “raise taxes on the job creators.” Well DUH!!! If the jobs are being created in India, the companies aren’t really job creators, are they??
The repubs can’t vote anything down ! Wake up.The Dems jammed everything down as they controlled both House and Senate.
Oxide - bitter much?
It generally goes down better to attempt to give the appearance of statesmanship, in contrast to resorting to one’s preprinted 3 x 5 card in search of the politically correct apologism, upon dimly discerning that the trough may shrink.
Your country was just about stolen out from under you. And you are shrilling encomia for the thieves? Careful. That chip on your shoulder may someday throw you off balance.
True. It’s a hard world out there. I wouldn’t want to face RIFS from a unionized job either. Perhaps we will all need to learn how to become useful in skills other than bureaucracy. I don’t think that’s a bad thing.
I’m glad the GOPs regained the majority in Congress, let’s see them conjure up all those jobs. I’m waiting, it’s already been 24 hours!
Democrats Still Push for Win With Deceased Candidate on Ballot
A win for deceased candidate Jenny Oropeza will launch a special election
CNBC
Deceased candidate, Democrat Jenny Oropeza is still holding strong, early ballot data shows that she has nearly a 7 percentage point lead over Republican candidate John Stammreich.
Despite the death of 53-year-old incumbent Oropeza, she still has a likely chance to win the race for State Senate in the 28th district. Because her death on Oct. 20 was within 10 days of the election, her name remains on the ballot.
A week after her death, Democrats sent out mailers to residents, calling for voters to still reelect Oropeza. The mailers featured Secretary of State Debra Bowen and Democratic Party general counsel Martha Escutia
Reminds me of when Ashcroft lost a Senate race in 2000 to Carnahan one week after Carnahan died in a plane crash. Ashcroft conceded, Carnahan’s wife was appointed to the seat, and Bush appointed Ashcroft Attorney General.
http://www.cbsnews.com/stories/2000/11/06/politics/main247248.shtml
Yesterday, Carnahan’s daughter was trounced by Roy Blount for a Missouri Senate seat.
More mixed signals for jobs
NEW YORK (CNNMoney.com) — The job market continues to show mixed signals, as two separate reports released Wednesday showed that companies added more jobs in October, but announced more staff cuts to come.
Private-sector employers added 43,000 jobs in October, according to a report by payroll processing firm Automatic Data Processing — much better than 23,000 additional jobs expected by economists polled by Briefing.com.
The increase follows a revised one-month decline in September of 2,000 private sector jobs, and seven previous months of increases.
Speaking of jobs, a buddy of mine is in a management position where he has to hire folks for a part time gig. It’s not a bad gig, pays a decent base wage (for Florida) plus regular bonuses based on easily reached quotas. It has its drawbacks, but it isn’t bad for a student or someone looking to make ends meet. He’s having a rough time of it, though. I hate to say it, because I don’t like to down younger folk, but just about everyone under 30 he’s interviewed recently and offered the gig to, hasn’t even shown up for the first day. Weird thing is, they’ll accept the job, but then not even call to say they changed their mind.
I dunno what they want, maybe they’re looking for jobs as video game testers, or think they should all be Facebook CEOs or something.
Palmy:
Probably because there is a major disincentive to work any temp, fluky flaky job while collecting extended unemployment. Those tiers… lose job they re-figure your bennies and it can drop a lot.
http://unemployed-friends.forumotion.com/forum.htm
Have noticed the same. It’s like they shun the corporate world, whic may be a good thing. But their social media and general apathy towards real world isn’t going to put food in the tables.
It’s not going to support inflated house prices either. I’d hate to be in the position of someone looking to fund their retirement through the sale of their house right now.
The music stopped, where’s your chair?
That surprises me. My sons and their friends have been willing to do anything to make a buck. They have 23-year-old friends who work at Wendy’s and Carl’s Junior, and are now applying for temporary holiday retail work. Of course, they aren’t living with their families, so have to pay the rent.
Probably have no UI bennies to lose, either. That would make your choices pretty clear.
Sorry, Palmetto. I’ve heard all that before, for some fairly suspect or bad jobs. Sales, really. They tend to all be jobs aimed at SELLING. And all sales are based upon deceit. All of them are.
The modern employer doesn’t return our phone calls and in fact acts in the rudest ways imaginable. So we don’t owe them any callbacks either. Respect is a two-way street.
If I was in a position to do so, I wouldn’t even give any notice to the usual employer. I’d just leave. So why even tell another near-fraudulent employer that I’m not going to even show up when I have another gig lined up? I’m not.
My unemployed sister is finding this out. Hundreds of job applications filled out, all online, no one wants to see an applicant in person or even talk to them on the phone. The few “jobs” where the employer expresses any interest are commission-only. Who would give up their unemployment check for that?
my wife is an unemployed forensic accountant. she was on a partner track with a large accounting firm before she got laid off.
anyhoo…she applied for a job with the FBI which would be a huge pay cut but a pretty cool job. they told her the interview could be by phone or in person. she told them she wanted to come down in person.
after the interview…they told her that every single other candidate elected to interview by phone.
i could not believe…that in this competitive job market…none of the others interviewed in person. it doesn’t take a rocket scientist to realize that a face to face interview is better than over the phone.
Michael, sorry to hear about your wife’s job woes. So, who got the FBI job?
she just interviewed for it on Monday. she was confident that they would make her the offer but it requires 50% travel and she made it pretty clear that she could not do that.
she applied for another job with them in the same office for the same pay and no travel. the interviewer told her she recognzied her name and that she is pretty sure they will call her to interview for the other position.
thanks to HBB and other sites…we were well heeled for one of us to lose our job and she is enjoying the time with our son so no worries.
she applied for another job with them in the same office for the same pay and no travel. the interviewer told her she recognzied her name and that she is pretty sure they will call her to interview for the other position.
I’m rooting for her to get this job!
Commision only jobs are a crock unless you are a great salesman. Otherwise you are wasting your gas money.
Commission only jobs are a crock, period.
Unless you work for yourself.
My youngest son just got back on after two month layoff…I hope he gets on full time…I bothers me to see him depressed about being able to find a good job…
Keep up the encouragement Mr. scdave…
(from way,way, back-in-the-day,…when Hwy found himself under-employed (part-time job only) So, eyes some how ends up volunteer coaching for a lil’ league team, turns out that it was a great experience for learning about parent-child “relationships” as well as transferring ballgame knowledge. Bonus, we had a winning season & lots of fun!)
ends up volunteer coaching for a lil’ league team ??
I coached youth baseball for 14 years…I am still close friends with many of them…They still won’t wear their baseball cap on backwards in front of me and still call me coach…
FYI:
Ex-Tigers manager Anderson placed into hospice:
DETROIT (AP)—Former Detroit Tigers and Cincinnati Reds manager Sparky Anderson has been placed in hospice care at his Thousand Oaks, Calif. home for complications resulting from dementia.
Anderson’s family said in a statement Wednesday that they appreciate the support and kindness that friends and fans have shown throughout the Hall of Famer’s career and retirement. No further details were released.
The 76-year-old Anderson was inducted into baseball’s Hall of Fame in 2000, culminating a major league career that included one nondescript season as a player and an historic run as a manager.
He won 2,194 games as a manager, which was the third-highest total in major league history when he retired, trailing Connie Mack and John McGraw. He now stands sixth, also trailing Tony La Russa, Bobby Cox and Joe Torre. Anderson was the first manager to win World Series titles in both leagues and the only manager to lead two franchises in career wins.
DETROIT (AP)—Former Detroit Tigers and Cincinnati Reds manager Sparky Anderson has been placed in hospice care at his Thousand Oaks, Calif. home for complications resulting from dementia.
A family member may well be experiencing the same thing. My heart goes out to Sparky’s family.
About 25 years ago new employees for my contracting buisness became 100% Mexican immigrants.
I have been in the hiring mode for the last couple of months but I am loosing more employees then I am hiring. The violence in Mexico seems to be calling some of them home to help relatives.
I am now hiring Caucasian workers again but they are very few and hard to find.
No-one wants to work these days, 99 weeks is a good gig for many.
Where are you, Charlie? California? I’m sorry, but if nobody wants to work for you but illegal immigrants you must be offering terrible jobs. Describe the pay, hours, benefits, work,etc.
And a lot of young people aren’t eligible for unemployment benefits. You can’t collect if you haven’t worked. As I said in an earlier post, the young people I know, many of them college educated or currently enrolled in school, are taking jobs in restaurants, as receptionists, factories, loading docks, retail, hamburger joints, etc. My niece is pulling straight A’s in organic chemistry and physics while working parttime as a house cleaner. My nephew is washing dishes and getting As in engineering. Blue Sky’s son is working on the line.
Your jobs must really suck.
My college age daughter works at Old Navy while in school. She doesn’t like it, but it pays for her gas and other expenses.
starting pay is $10-$15 / hour no benifits
unitil 08 top average employee was making $65k with top guy making $100k.
now top guy gets 50k with others being somewhat sesonal.
work is installing building insulation and gasketing for air sealing.
me, my friends and 2 cousins did this work and we found the jobs to be good jobs with good pay. pay rate is dependent on your production. one of my cousins put in 30 years and has a pension from this work.
my jobs don’t suck they do require hard work in order to earn good money.
Charlie is in Mammoth California….
Propane in Mtn. areas is prohibitive,…ask me how I know.
propane is the major source of heat here, what do you mean?
what do you mean?
Good that your’re insulating things,… as propane is costly $$$$$$$$$$$$
He’s having a rough time of it, though. I hate to say it, because I don’t like to down younger folk, but just about everyone under 30 he’s interviewed recently and offered the gig to, hasn’t even shown up for the first day.
I’ve seen the same sort of thing. I’m a member of a group that volunteers to help with events at the University of Arizona’s business school.
This past weekend, I volunteered to judge a business math competition. My group of judges had six presentations to judge, but only five of the teams showed up.
Same thing happened back in September at the business school’s admission interviews. My interviewing partner and I had six candidates to interview. But only five showed up. (Something about this 6/5 ratio, isn’t there?)
In neither of these cases did we get calls from the students. They just plumb blew us off.
In neither of these cases did we get calls from the students. They just plumb blew us off.
Could this be what happens to a society when the society’s social contract has been broken between workers, government and employers?
When employers and government show how they feel towards employees, would not many new employees change their feelings towards their employers?
I agree with you, Rio.
However, in defense of the UA business school, it does try to impress on students that showing up on time for pre-arranged commitments is important.
I find it interesting that companies are being treated with disrespect (no phone call, email, anything) when an interview date can’t be met, and wonder if it may have anything to do with the reciprocal lack of communication from a company when a position is filled, or upon receipt of a submitted resume.
It was endlessly frustrating to me when I was seeking employment to not even get a simple email to let me know that a position had been filled, or that my resume had been considered but I had been found wanting.
And I’m thinking in terms of the public relations aspect of all of this.
Say I’m looking to hire someone. I think I’d do a lot better on the PR front if I were to respond to every applicant, even the ones who don’t get the job.
Even a “Thanks, but no thanks!” type of message is better than none.
Same here, I once interviewed 3GS, one of them they even flew me to NYC. They never found the to tell me definitively that I didn’t get the job.
It’s the entitlement generation. They don’t want to work. Sorry, correction. They don’t know what work is.
It’s the entitlement generation.
I thought yours was the “entitlement” generation. Or mine if it’s not the same. Or maybe it’s my mom’s because she has socialized medicine. (And she’s very happy that the government is running it and maybe she has a sign that says)
Keep the Cato Institute’s hands off of my Medicare
It’s the entitlement generation. They don’t want to pay. Sorry, correction. They don’t know what a living wage is.
Fixed that.
He trying to hire under 30 and not enough money.
Problem solved.
Companies of all stripes better plan on more ‘pressure’ from China. Their middle class is exploding, with a current estimate of 300 million ballooning to twice that in the next decade.
Solar-Panel Maker to Close a Factory and Delay Expansion
SAN FRANCISCO — Solyndra, a Silicon Valley solar-panel maker that won half a billion dollars in federal aid to build a state-of-the-art robotic factory, plans to announce on Wednesday that it will shut down an older plant and lay off workers.
The cost-cutting move, which will reduce the company’s previously announced production capacity, is a sign of the notable shift in the prospects for cutting-edge American solar companies, which now face intense price competition from Chinese manufacturers that use more established photovoltaic technologies.
Just seven weeks ago, Solyndra opened Fab 2, a $733 million factory in Fremont, Calif., to make its high-tech solar panels. The new plant was supposed to be the first phase of a rapid expansion of the
I appreciate the sentiment of the post, but it isn’t a good example. Solyndra is a laughing stock in the industry. Their technology sucks. One thing they are good at is getting their hunk of the government cheese.
“One thing they are good at is getting their hunk of the government cheese”.
Well they are good at something I guess!
I don’t know anything about this particular company, but I do know the folks in China are busting ass to climb the ladder, a friend of mine has a son that’s been working over there for few years now and some of his reports are amazing, in as far as expansion is going.
With an almost 10% expansion in the economy each year, busting ass almost assures advancement.
In this country, busting ass assures nothing… except maybe being played for chump.
Thank you for the report, Blue Skye. I wonder how they got government cheese.
IIRC they won a $500 million grant from the DOE almost immediately when the stim program started. It surprised me as their novel technique wasn’t very promising relative to what some others were working on.
It’s all in the grantwriting.
Anybody know what technology or company one should use for solar ?? I am going to go offgrid on my personal residence next year…
You can google reviews and recommendations.
Can someone explain to me what we lose by importing cheaper Chinese solar panels, or what we gain by subsidizing an automated factory? Are these robots union workers?
I would not buy solar panels made in China. They’re probably shoddy construction and toxic to boot.
You are not supposed to eat them.
Nobody ate Chinese drywall, and look at what it did to houses built with it.
That’s a good point Joey . I guess we gain cheap energy ,but if
robots are the future work force than jobs aren’t created .Why wouldn’t industry move the way of the robots if possible ? Cheap foreign labor will become a thing of the past in favor of robots .
why doesn’t industry move to automation? Whoever can afford the investment, and has the market to sell a large enough quantity of product, does use automation.
Most products just don’t justify the cost.
Either low product demand doesn’t make a robot cost effective, or it would be too complex and expensive, or humans can do it better and/or faster.. or just cheaper.
Robots (or automated assembly lines) are very job-specific and have plenty of other serious limitations.
It’s not just labor. Electricity is much cheaper and dirtier in China.
umm… they are manufacturing solar panels. I don’t think electricity would be too much of a concern.
It really isn’t a big cost anyway. Probably close to the cost of hiring one person to run miles of assembly line.
Yes, absolutely, electricity is used significantly in semiconductor manufacturing, not to mention all of the toxic waste that is also generated (no EPA in China). No OSHA, unemployment insurance, Social Security payments, etc. either.
So it will always be cheaper to manufacture just about anything in China, even if wages on on par with ours.
“Can someone explain to me what we lose by importing cheaper Chinese solar panels”
Well, for starters the trade deficit gets even bigger.
While the American plant is highly automated I suppose:
1) They buy supplies and raw materials from American suppliers.
2) They hire American engineers to run the plant as well as some other folks. I really doubt that its a “lights out” factory.
3) The factory pays local property taxes: funding roads, schools, etc. A factory in China funds nothing in the US.
4) An American with a decent job is an American that isn’t collecting unemployment or welfare.
Someday, solar will actually turn a profit… maybe. But in the meantime, I much prefer that some foreign government subsidize it.
How well are those Chinese Christmas lights woriking for ya? If you get one season out of them its a bonus. Do you really want to buy disposable solar panels?
you remember that eh..
well, the LED strings have one lamp every three inches. Right now, on the two 25 foot strings, I’d guess about 10 have burned out. One string has 4 side-by-side that all went dark.
They used to be a very bright white.. but took on a slight yellow tint after about 6 months. I’m sure they are over-driven and the circuit wasn’t designed to work 24/7.
Maybe lost about 15% illumination.. but still plenty of light.
——
Disposable solar panels.. If they are cheap enough, why not?
“Disposable solar panels.. If they are cheap enough, why not?”
-Wow, that’s really green. You sir, are a model American conusumer. Gold star for you.
lol!
hey.. I’m a visionary.
They’re already working on all sorts of new things, like solar roof tiles and even solar paint. That stuff takes a real beating from the elements and will have to be cheap enough to be “disposable”.
Those huge, delicate expensive inefficient glass panels (and similar) we’ve come to know and love just don’t cut it.
If that disposability includes all the costs, sure why not.
But if they’re cheap enough to be disposable, as a result of externalized costs - meaning they don’t include the cost of pollution in manufacturing and disposal, deforestation, government subsidies - then I’d be opposed to their “disposability”.
no reason why they can’t be biodegradable..
it don’t take a genius to see a remarkable similarity between the leaves of a plant and a solar panel.
StreetTalk With Bob Lenzner
Nitty Gritty Numbers Suggest Downward Spiral
In housing, the Case-Shiller home price index fell almost 3% on an annualized basis in August and September, the weakest performance since May of 2009 when the recession still going on. In 19 of the top 20 cities, prices were down on a seasonally adjusted basis. During the July, August, September period sales of new homes fell at a sickening 41% annual rate to 293,000 units the lowest level ever recorded going back to 1963, when the figures were first kept.
In unemployment, emergency benefits to extend 99 weeks (almost two years) of unemployment benefits are running out or for some 4 million to 5 million people from December through April. This is proof positive that we are on the cusp of a deepening poverty at the very moment of political stalemate. Rosenberg says government handouts are responsible for 20% of disposable income in the country, so pray for the stability of the Social Security system. In personal Income, this loss of unemployment benefits means a loss of income equal to about $300 a week, or about $80 billion totted up, unavailable for consumption.
wmbz,
do you have a link to the most current chart?
Cotton is going up.
“They are taking purchase orders from the retailer and having this conversation with them, saying, ‘Look, I can’t deliver this garment for a dollar this year when it cost me a dollar twenty-five to make it up,’ ” said Andrew Tananbaum, the chief executive of Capital Business Credit, which finances apparel makers and other importers. “ ‘So would you take this garment if it had not cotton but acrylic?’ ”
http://www.nytimes.com/2010/11/03/business/03cotton.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fbusiness%2Findex.jsonp
Acrylic is made from oil.
It’s been harder and harder over the last decade to find decent all cotton clothes outside of the overpriced mall.
Will the government outlaw your 401(k) plan? It seems like an absurd possibility, yet earlier this month two Democratic senators, Sen. Tom Harkin, D-Iowa, and Sen. Bernie Sanders, I-Vt., held a hearing on Capitol Hill exploring the possibility of doing exactly that.
On Oct. 8, the two senators from the Health, Education, Labor and Pensions (HELP) Committee held a hearing on “Retirement (In)security in America.” Among the proposals discussed was “Guaranteed Retirement Accounts,” or GRAs.
The purpose of the GRA proposal is simple: To force Americans to stop putting their retirement savings money into private 401(k) accounts and send their money to the government instead.
GRAs would “eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary,” according to a letter signed by House Minority Leader John Boehner and 12 other Republican representatives.
The letter urged opposition to the proposal and was sent to Treasury Secretary Timothy Geithner and Labor Secretary Hilda Solis in May. The Harkin-Sanders HELP committee hearing shows Democrats are ignoring critics of the GRA proposal.
Testifying at the hearing in favor of GRAs was Ross Eisbrey, vice president of the Economic Policy Institute, a liberal economic think tank located in the same building as the liberal Center for American Progress. (Both organizations have been funded by left-wing billionaire George Soros.)
In February, President Obama released the “Annual Report of the White House Task Force on the Middle Class.” GRAs are among the proposals recommended in the report “for further study.” The task force’s executive director is Jared Bernstein, EPI’s former head.
Read more at the San Francisco Examiner: http://www.sfexaminer.com/opinion/columns/Unions-target-your-private-retirement-savings-1398118-106409193.html#ixzz14DxFUTvq
“Liberal economic think tank” = OXYMORON, just like “military intelligence”.
No doubt a large body in government would love to get their greasy mitts on peoples retirement money. They have proven so well through the years what wonderful money managers they are. There should be great resistance to any type plan like this, I would hope.
Sad part is there are plenty of Americans who would gladly hand it over, so that big nanny could take care of them.
As opposed to turning it over to Gollum Sachs?
Kind of sad when the best option is the mattress.
It’s been the mattress for a long time.
But if I HAD to choose between Wall St and the government, I’ll take the government every time.
Because I know Wall St. will “take” me, EVERY TIME.
Cobalt, this was the first I read of this. I googled “Guaranteed Retirement Accounts Harkin” and got back three pages of right wing blogs touting how Harkin and Sanders are trying to steal our 401Ks. Found one left wing site offering an alternative explanation.
http://articles.sfgate.com/2010-05-13/business/20896015_1_teresa-ghilarducci-retirement-insurance-company-annuities
Frankly, as one who is lucky enough to have a defined benefit pension, 401K and plenty of cash savings, I feel sorry for people who have only a 401K for their retirement savings. These have been co-opted by middle man financial companies who “invest” in the crooked stock market and skim fees without sending coherent statements to employees. The vast majority of people with 401Ks have lost a lot of money over the past ten years, and I have no confidence that the next 10 years will be any better.
Wall Street will be hurting if this income stream goes away. The will put up a fight. It will never happen.
If annuities’ returns weren’t so historically worthless (while having high mgmt fees to guarantee those lousy returns), then more people would have them and more companies would offer them.
If you have a large stash of money, they are ok. I mean, bonds are much better (and cheaper) but if you need an alternative, there you are.
As it stands, I’ll take my chances with my 401k in Fidelity and Vanguard. I may not get very good returns, but then again I don’t have to pay that much for failure.
I have all but a little of my retirement (and, boy, I hate that word) money with Vanguard. Very little of it is in the stock market. I heeded the HBB-ers’ warnings back in summer ‘08 and pulled most of my money out of the casino, er, stock market.
As for the rest of my retirement buckaroos, they’re being extricated — ever so slowly — from TIAA-CREF. This company is like a boa constrictor when it comes to holding onto people’s money. If you have the choice not to deal with them, then don’t deal with them.
Well we know 401k isn’t as good as defined benefit, but it’s all most of us have access too. That and IRAs. Not all of us left the money in equity funds during the crash, either.
What I like is they’re exempt from execution in my state. I’m quite solvent now but who knows what will happen in the future.
I feel sorry for people who have only a 401K for their retirement savings. These have been co-opted by middle man financial companies who “invest” in the crooked stock market and skim fees without sending coherent statements to employees.”
yes you have to read the propectus and see what the fees are
small companies get bad deals generally lots of 12b fees crap like that.
I’ve worked at over 10 different companies and always read the prospectus most are with Fidelity these days not a bad place. never meet a HR person who knew half of what I do about mutual funds and figuring out the fees. That’s a problem.
over 1% fees I decline to join unless there is a match and at RFMD for example they took away the match. I don’t know if its back now… probably yes ? but it shows companies can change the deal on a whim.
And make sure you trust the company to really be sending your deduction to the mutual fund or whatever the investment is. I recall reading about companies that decide to hold back the 401K employee contribution for months at a time. Bad
I don’t think plans can have compnay stock as the match with no other option these days although L3 only had matching company stock but I think after 5 years? you can switch out of the company match of its own stock. Companies that match their own stock are somewhat lower on the retirement savings plan IMO sort of Blue collar
I don’t have any match here where I work now so thats worse I guess. we get pre-IPO stock options which the company can change at a whim as well. No good deals these days
I’ve never ever had more than a 3% match BTW big deal
defined benifit pension plan whats that ? I’ve had them briefy but they alwyas cash me out. here’s your 2000 dollars
yes it’ s getting worse out there in work- a -day world and I’m 50 so I’ve seen my share of it.
“I feel sorry for people who have only a 401K for their retirement savings”
Feel sorry for the millions who don’t have any kind of retirement because of the job market destruction and insecurity over the last 30 years.
I’ve brought this up on several occasions on the HBB already.
I was called a liar by several people.
The only reason my husband and I have 401Ks is for $42,000 per year of federal tax deferral. I would prefer to put this money in tax-deferred IRAs and manage it ourselves, but we make more money than the IRA income limits for tax deferral. That proves to me that the whole 401K concept is a Wall Street boondoggle. Financial companies like State Street and Fidelity are bleeding these accounts. There is no way that people who retire in the next 20 years will be able to live off them.
REhobbyist,
I could not agree more. I would hate to give my money to a GRA but I don’t think Fidelity is any better.
Currently I am using the money to get a better education for my kids and save for college. I can’t think of any better way to invest. All other options such as:
Mutual Funds
Stocks and Bonds
Savings Account
Real Estate
IRAs
401Ks
Have been rendered worthless. Either they have a return of 0.07% or they are too volatile and not worth the risk.
The only reason my husband and I have 401Ks is for $42,000 per year of federal tax deferral. I would prefer to put this money in tax-deferred IRAs and manage it ourselves, but we make more money than the IRA income limits for tax deferral. ”
5K a year in a IRA per person thats not much compared to your 42K
many people I work with can’t contribute to a IRA and 401K and some that can have been given bad tax advice so they think they can’t
My new plan is to max out my 401K and make up the cash flow deficeit with savings I got by selling my Townhome.
I can barely cash flow now with only 10% 401K
but feel it maybe better to have the money in a retirement account than cash in a mutual fund in case I get sued or somthing. besides I doudt I will use it to buy back in to the RE market which was my original plan. RE is way to FUBAR for me
“To force Americans to stop putting their retirement savings money into private 401(k) accounts and send their money to the government instead.”
Where that money can be used to help underfunded union pensions.
…or bailout a destructive, criminal, hypocritical financial system called Wall St.
Fed siphons $100 billion from savers
November 3, 2010
Attention, savers: Ben Bernanke owes you $100 billion.
That’s how much interest income Americans have foregone in the two years since the Federal Reserve slashed short-term interest rates to zero, according to one reading of the national personal income accounts.
Hey, deep pockets!
As it happens, the inspiration for that analysis comes from a Fed economist, Kevin Kliesen of the Federal Reserve Bank of St. Louis. He tots up the pros and cons of the Fed’s embrace of low rates in the latest edition of the St. Louis Fed’s Regional Economist column.
Those are worth considering once again because the Federal Open Market Committee is expected to vote Wednesday to take yet another step to hold down interest rates, in the form of a plan to buy Treasury securities its second round of quantitative easing, dubbed QE2. Among the leading proponents of QE2 has been James Bullard, Kliesen’s boss
No problem, those same savers have probably collectively spent less (by a sum greater than $100B) in the hyper-consumer economy they’re so desparately trying to resuscitate. Of course that can’t really be measured outright since they never had the money to spend - but QE2 is all the evidence needed to show it isn’t going the way they want.
” Ben Bernanke owes you $100 billion.”
He only owes me about $10k, he owes my mom a lot more. On the bright side, my 2 LLs have put $40k tax free in their pockets during this time frame.
“Kevin Kliesen of the Federal Reserve Bank of St. Louis”
+1000!!!
Will Washington stop wasting so much darn money propping up the housing market in order to keep homes unaffordable?
Not as long as the Banksters have anything to say about it!
Exactly.
“I’m confident that once the American people drill down and look at the previsions in health care [reform], they’re going to be, they’re going to be as continued as supportive as they are right now. But, we got to make sure that happens. We’ve got to make sure we know what’s in the bill before we start talking about repealing or changing it in any dramatic way,”
~ former Senator Tom Daschle (D) said on MSNBC.
Maybe we have to repeal it to know what’s in it?
Blue Skye,
LOL, my thoughts exactly! Why not, worked on the way ‘in’?
..look at the previsions
Noun
prevision (plural previsions)
1. Advance knowledge; foresight.
2. A prediction.
Verb
1. To predict or envision the future.
Daschle is slimy enough to have used that word deliberately.
No, it was transcribed incorrectly. Look at the video. Daschle said “provisions.”
That said, I hate Tom Daschle.
It’s not a bill, Tom. It’s a law now.
“In politics, nothing happens by accident. If it happens, you can bet it was planned that way.”
~Franklin D. Roosevelt
My Congressman, Walt Minnick (D-Idaho), notoriously introduced Steny Hoyer as “Mr. Speaker” a few months back at a local fundraiser. He later said his statement was an accident.
Didn’t help him any. He got rolled yesterday by GOP candidate Raul Labrador, who became the first Hispanic member of Congress from Idaho.
2 black congressmen, one hispanic female governer, one east indian female governer, numerous women candidates. Say what you about tea party (I have my own qulams about it), the MSM narrative doesn’t fit.
I agree, and I have my own reservations about it, too.
Idaho is so conservative that the Tea Party split here.
The national Tea Party Express endorsed Walt Minnick - the only Democrat to be so endorsed in the entire country.
The local Tea Party endorsed Raul Labrador.
What the heck is that all about?
“Idaho is so conservative that the Tea Party split here.”
Into Protestant Fundy and LDS wings?
And Minnick got trounced by Raul Labrador who won the GOP primary by beating the establishment candidate with heave tea party support.
But wait a minute how could that be? Labrador is Hispanic. And conservatives would never vote for him. Must be a fluke.
Or maybe not. Other tea party backed winners last night….
- Marco Rubio (R-FL) new FL Senator (and VP Nominee in 2012)
- Nikki Haley (R-SC) Indian-American, new SC governor
- Allen West (R-FL) Black US Rep from Miami area
- Tim Scott (R-SC) First Black GOP congressman from the South since 1870
- Brian Sandoval (R-NV) beat Harry Reid’s son to become Nevada’s first Hispanic governor
- Susana Martinez (R-NM) first Hispanic woman elected governor of any state
- Jaime Herrera (R-WA) Hispanic, new US Rep
Not that the MSM will tell you about any of these. After all the tea party is racist and is only for and by old white guys who only vote for old white guys and of course hate anyone who isn’t old, or white.
The average age of the people I mentioned above is about 40. The Dem worst nightmare….young, minority conservative Republicans who win elections. Bring on 2012!
Eddie, well said.
FDR was right.
Same goes for Corporate America. And that’s not ideology. I’ve personally seen it.
i’m kinda/sort of/but not really in the market for a mini van. my wife talked to a lady at a honda dealership a couple weeks ago to ask her about the newer models. she calls my wife yesterday to tell her they just got a new one in that is “fully loaded”. my wife goes to the dealership and test drives the car. the sticker price on the fully loaded van was $ 43k. here is what the sales lady told my wife:
- honda is not making many.
- the apple is ripe and people are picking.
- people are paying $ 3 to 4k over sticker.
- and…since there are not that many…we may not have choice of color.
now…i am not interested in top of the line/fully loaded/brand new but man i wish i could have been there to tell that women what she could go do with herself.
michael-
Did she mention to your wife, she could “flip it” for a profit, and did the saleslady mention her former career was a UHS? What an insult to your wife’s intelligence.
I paid $41,000 for a condo last month. Does the van have a bathroom and kitchen?
no…but i did tell my wife that for that kind of money it better come with the “hookers” option.
me too..
i read all the reviews, and comparison shopped the various manufacturers, and the 2008 or later (Generation V) Grand Caravan with the bigger engine (3.8 L ?) would be my first choice. You can lay a 4 x 8 sheet of plywood in it with the seats folded down. Clean ones go for anywhere from $12-20K or so.
I second Joey.
We have a 2006 loaded T and C picked up for 7500 used. You can take the other 33k plust tax and insurance payments and buy a sports car for yourself, or a small car for around town and still have change to spare. I bought an electric car for around town for 14k.
My guess is the price of used minivans will fall again when gas prices go up. You might make a better deal down the road a bit.
tell the sales lady to proceed with self fornication.
if it was that good a deal the sales lady would have bought and flipped them all.
43k for a friggin mini-van? Is she drunk?
Honda dealers think they piss perfume.
LOL, I remember when the previous gen Honda Odyssey came out. We went to the dealer to look at one. At the time I had read that some early models had transmission problems, so I asked the sales droid if that had been addressed yet.
Boy, oh, boy! Was he ever offended! He claimed to know nothing about any tranny issues. He also had an “I’m doing you a favor by even talking to you” attitude.
Needless to say, we did not buy a Honda that day.
Yup, the transmission issue has not been addressed. I was shopping for one too, last summer, and Odyssey seemed to be the best-in-class but they were all so expensive, or they were 10 years old with 110k+ miles…and then I found out about the transmission problem. And yeah the sales reps all play dumb.
I went with a 2006 Grand Caravan. Newer minivans are hard to find, since so many models have been discontinued.
We still have a first generation Odyssey and I have no complaints with it. When we started looking for something newer for our primary road trip car my wife ended up buying a cheap, lightly used Mercedes R-class, which got her the AWD she wanted plus an amazing interior for less than a Honda. I was skeptical at first, but I’m really starting to like it.
The one with car doors (as opposed to sliding minivan style doors)?
Yes in both the Honda and Mercedes case.
“At the time I had read that some early models had transmission problems, so I asked the sales droid if that had been addressed yet.
“Boy, oh, boy! Was he ever offended! He claimed to know nothing about any tranny issues.”
I guess that’s a way of saying “No, the problems haven’t been fixed”.
It is. Because you can bet your bottom dollar (and that’s exactly what you’ll be doing) that he knows about the problem.
43K for a damn minivan!
You HAVE to be stupid to pay that price!
Insane!
Just like she did with the sexual assault case against Schwarzenegger after he won, Gloria Allred can now drop that idiotic illegal hiring case against Meg Whitman now that she lost..
Illegal immigrant labor is great, so long as you stay out of politics.
Meg Whitman: My ex-maid should be deported
Republican gubernatorial candidate Meg Whitman of California says that, though it breaks her heart, her former housekeeper should be deported.
The former eBay chief executive has called for tougher sanctions against employers who hire illegal workers, but she’s been accused of knowingly employing an undocumented immigrant for nine years.
“Well, the answer is it breaks my heart, but she should be deported because she forged documents and she lied about her immigration status,” Whitman said in an interview with Greta Van Susteren on Fox News. “And it breaks my heart … On Nov. 3, no one’s going to care about Nicky Diaz. But the law is the law and we live in the rule of law. It’s important.”
…
she no longer threatens your livelihood or pension, pb .. let it go already.
You should be worried about Brown. I did some reading on that guy’s former stint as Gov and he did more than one about-face. Ticked off a whole lot of supporters..
He admitted to changing his views on Prop13 in order to get reelected in a very close race.
Seems like you are the one having a problem letting go, Joey. I was just opportunistically goading you — couldn’t care less.
And her failed election bid has no bearing on my finances…
Allred probably dropped the Schwarzenegger case because it was “he said, she said.” Allred and Diaz are suing Whitman for $6210 in overtime pay. Allred could probably have gotten Whitman to settle without suing, but this way Allred gets to sue deep pockets for legal fees. I’m going to follow this one to find out if 1) Diaz gets deported, and 2) Allred drops the case.
i believe the case against the Governator was so weak her best hope was a judge didn’t throw it out before the election.
Schwarzenegger
Schwarzenegger = CA Democratic Senator 2012
Why, is Fienstein done amassing welath for herself and her husband?
‘Homebuilder PulteGroup Inc said orders for new homes fell 12 percent in the third quarter, showing demand remains soft. The second-largest U.S. homebuilder also posted a bigger quarterly loss, hit by a $655 million goodwill impairment charge from its purchase of rival Centex Corp last year. ‘This telegraphs that Pulte materially overpaid for Centex,’ said Morningstar analyst Mike Gaiden’
‘What we saw in the third quarter was an industry where demand continued to move along the bottom as buyers elected to remain on the sidelines,’ said Chief Executive Officer Richard Dugas.’
‘Pulte said its third-quarter loss had widened to $995 million’
http://www.reuters.com/article/idCNN035564520101103?rpc=44
‘Pulte materially overpaid’ Ha ha! Knife catchers!!
“ha ha”
http://vodpod.com/watch/844562-the-simpsons-i-said-ha-ha
Sounds like the homebuilder stocks are due for another contrarian rally today?
‘The bad housing news has hit home. Quadrant says it is laying off 45 people; a 20-percent reduction in what Quadrant calls its associates. Quadrant is the state’s largest single-family home builder. Realtors are philosophical. Realtor Mona Spencer says it’s scary if you watch the news. ‘Think of it this way. Would you rather have your money in real estate or the market? I’d rather (in) real estate,’ Spencer said. ‘Spoken like a true realtor! ‘But it’s true,’ she said.”
“Builders say some of the extravagances and sameness that marked the first generations of McMansions are going by the wayside. ‘People think: ‘We’ve got 28 rooms in our house, what do we need with that?,’ said Scott Van Duzor of Van Duzor Construction. ‘You’ve got these subdivisions full of these monsters. There were so many cookie-cutter $2 million houses, it was just goofy. The last few buyers would rather play it down than play it up. They’re almost embarrassed by those words ‘McMansion.”
“There’s still plenty of housing inventory to work off, interest rates are down, pricing is at ‘rock bottom,’ and consumer’s aren’t yet confident they should buy, despite the fact it’s ‘an unbelievably good time’ to purchase a home, said Pulte Homes CEO Richard Dugas.”
“‘They’re not making anymore land last time I checked,’ Dugas said.”
http://thehousingbubbleblog.com/?p=4948
Quadrant is like the Wal-Mart of houses. I looked through some new ones a few years back and they reminded me of 1970’s-era government housing. Very institutional and “cheap” - vinyl siding, no upgrades (the big master bath had only a toilet, one sink and bath/shower combo however there was lots of empty space so they could “sell” you the “upgrades” to fill in the rest of the bathroom.
Also 4-foot florescent tube lighting have no place in residential construction - these houses had one or two in the kitchen with the cold-white bulbs installed and along with the cheap finishes made for a very depressing look like being in prison or a mental ward…
The natural light bulbs take care of the sterile feel.
Hold on a minute now! Here in mostly-cloudy Seattle, you can install the full-spectrum daylight bulbs ($8-10 per tube) in those fixtures and have built-in light therapy. I have these tubes in all of my bedroom closets, as they render the colors of my clothes accurately.
I’m sick of builders placing the recessed can lights EVERYWHERE . . .
“There’s still plenty of housing inventory to work off, interest rates are down, pricing is at ‘rock bottom,’ and consumer’s aren’t yet confident they should buy, despite the fact it’s ‘an unbelievably good time’ to purchase a home, said Pulte Homes CEO Richard Dugas.”
Never been a better time to catch yourself a falling knife by purchasing a white elephant McMansion.
And BTW, I have recently noticed along my daily commute path signs of renewed construction activity at North County housing developments which pretty much sat untouched from around 2007 to the recent past. The housing market must have recently bottomed out in San Diego, as proven by the fact that new physical inventory will soon once again start coming on line.
Check out this beautiful waterfall.
Gold hammered. Only black gold seems to savor the prospect for a ‘bigger-than-expected’ QE2 announcement.
If gold is purchased primarily by bears, why is it sold as bullion?
Because it is condensed bear soup.
That’s funny, it looks to me like gold is just where it was before the announcement.
I guess those hammers don’t work as well as they used to.
Good news!
Freddie Mac posts $4.1 billion loss for third quarter, seeks additional $100 million in aid
WASHINGTON (AP) — Government-controlled mortgage buyer Freddie Mac on Wednesday posted a narrower loss of $4.1 billon in the third quarter as it asked for an additional $100 million in federal aid — substantially less than the $1.8 billion it sought in the second quarter.
Freddie Mac’s loss attributable to common stockholders for the July-September quarter works out to $1.25 a share. It takes into account $1.6 billion in dividend payments to the government. It compares with a loss of $6.7 billion, or $2.06 a share, in the third quarter of 2009.
Better than expected! Freddie is turning the corner. A few small accounting tricks is all it takes, people. Don’t give up.
ACORN files for Chapter 7 bankruptcy
(CNN) – ACORN, the community group from which a mighty oak of political controversy grew, announced it is filing for Chapter 7 bankruptcy by the close of business Tuesday. In March, it began bringing its national operations to a close.
“For over 40 years ACORN has fought the good fight,” said CEO Bertha Lewis, today, in a statement on the group’s website. “The ongoing political onslaught caused irreparable harm.”
That onslaught began two years ago with allegations the group condoned fraud in its work registering voters. ACORN denied the allegations, but the drumbeat grew stronger when a young conservative activist, James O’Keefe, released highly-edited videos purporting to show ACORN staffers condoning illegal activities. Congress blocked federal funding for the organization, which began shrinking soon thereafter.
Filing for Chapter 7 means liquidating and selling off all remaining assets and closing up shop.
Obama is King Midas of Turds. Everything he has touched turns to $hit.
As mentioned before, I’m a bit of a neighborhood activist here in Tucson. A few years ago, I was at a meeting of my fellow activists and one of them was sounding the warning about ACORN.
Seems that they were canvassing neighborhoods, claiming that there was no neighborhood association, but ACORN would be *happy* to help people start one.
Well, ACORN neglected to do its homework because they were canvassing in a nabe just north of mine. That nabe has an association that represents its residents. And the guy who was sounding the warning was an officer in that association.
Neighborhood associations are annoying. They should never be allowed to do more than suggest block parties.
Actually, my neighborhood association is pretty good. A little too heavy on meetings, and not enough partying, but Yours Truly is about to fix that.
At our next meeting, I’m going to announce the start of the Quality of Life Committee. And our first event will be a neighborhood welcome to all participants in Cyclovia Tucson 2011.
Doesn’t have to be anything fancy. You want to have a yard sale? Well, offer things that Cyclovia riders can carry with them. Want to play your guitar and busk for tips? Well, tune ‘er up and play for the bicyclists.
Or perhaps you’d like to join the riders as they pass by. Well, any old two- or three-wheeler will do. Or, if you’re a skateboarder, a four-wheeler.
Me again.
Aw, darn. Cyclovia won’t be going through my nabe next spring. I’m really bummed.
James O’Keefe was later arrested for breaking and entering a Senator’s office for the purposes of bugging it. He was eventually convicted of federal trespassing, beating the greater charge of felony phone tampering and wiretapping federal official. (Nixon anyone?)
The ACORN video was later proven to be a fraud and James O’Keefe was/is being sued for libel.
Triton Group files for Chapter 7 bankruptcy
Joel Goodman’s fight to keep his home-building companies alive has failed, according to documents filed in U.S. Bankruptcy Court.
Goodman’s company, Triton Group LLC, filed for liquidations of his eight subsidiaries under Chapter 7 of the federal bankruptcy code last week. The companies built and sold moderately priced townhomes as well as managing rental units in Des Moines, Omaha, Kansas City and Fayetteville, Ark.
Court documents disclose that the group had $203,029 in assets at the time of filing and $2.8 million in liabilities.
In June 2009, Goodman reduced his operation by placing new construction on hold in hopes that home sales would return. But records show that the companies had no income in 2010 and lost $3.1 million in 2009 and $1.1 million in 2008.
Since 2002, when the company started, Triton Homes has built about 1,200 homes in the Des Moines area.
Triton’s homes, priced under $125,000, were marketed to first-time homebuyers who struggled to qualify for loans as lenders moved away from 100 percent loans. Banks tightened lending requirements in response to a credit crisis that pulled the country into a recession.
Can anyone fill me in on why the DOC excludes homes that have gone through foreclosure but are not yet on the market from its vacancy rage calculation? If the reports that something like 600,000 homes are in this limbo status are accurate, it seems like a more accurate calculation of the ‘vacancy rate of owner-occupied houses’ would be:
(2.69/2.09)*2.7 = 3.5%.
Does this simply amount to yet another porcine beautification mechanism built into the statistical calculation, or is it just that there have never been 600,000 foreclosure homes not on the market before, so no need to reflect them in the statistic?
U.S. Vacancy Rate Increases as Banks Seize More Homes (Update1)
February 02, 2010, 12:02 PM EST
By Kathleen M. Howley
Feb. 2 (Bloomberg) — The share of homes vacant and for sale rose in the fourth quarter after banks seized property from borrowers who defaulted on mortgages.
The homeowner vacancy rate increased to 2.7 percent from 2.6 percent in the third quarter, the U.S. Census Bureau said in a report today. There were 2.09 million empty properties on the market, up from 1.99 million, according to the report.
…
IMHO, vacancies should be easy to calculate.
You could do it via active utility accounts in a given area. Reason: Vacant houses usually aren’t taking water, sewer or power service.
You could also do it by mail delivery. Say what you will about the USPS, but the mail carriers are pretty observant about which houses are occupied and which are empty.
“…vacancies should be easy to calculate.”
My thought exactly. So why the mystery shrouding the DOC’s apparent undercount?
So why the mystery shrouding the DOC’s apparent undercount?
Maybe the PTB don’t want to admit what we’re all seeing with our own two eyes. Namely, there are a LOT of vacant houses in this country.
Filed under: “Anything you can do, we can do almost as well…”
repubicans strategy previously:
“TrueDoNothing™ / “TrueObstructionists™ / TrueGridLokers™”
democrapts strategy upcoming:
“TrueDoNothing™ / “TrueObstructionists™ / TrueGridLokers™”
Wall St.: American “Jobs! Jobs! jobs!, …matter not to us”
MarketWatch News Break
Nov. 3, 2010,
Collender: Brace for gridlock, stalemate, shutdown
“With the election over, budget guru Stan Collender thinks Washington may now veer toward gridlock, stalemate and shutdown — with the potential for Herbert Hoover-like economics. He tells John Wordock Wall Street may also wake up and realize gridlock is not good this time around.”
I’m sure that in pre-Bolshevik Russia that the PTB didn’t care that the masses were starving. We all know how that ended.
Yeah, recall what happened to the Russian royal family in the basement of the Ipatiev House. Even the family dog got shot to death.
Funny how the elite never learn from history. I guess even they fall for the old canard of “This time it’s different”.
Sociopaths always mistake cunning for intelligence.
Anyone else tuning into to Obama’s press conference? Oh, does he look like a whipped puppy dog!
I wonder when they all get back into their new sessions if middle ground can or will be found, or does it turn into a log jam? I am so used to politicians saying one thing and doing another. I never count on much good coming about.
By middle ground you mean spending like drunken sailors
Who were the big losers on Election Day? Aside from Congressional Democrats and a few prominent Tea Party candidates, you can make the case that it was the deficit hawks.
Here are seven reasons why:
1. Recent History: In the past 20 years, there have been two deficit-reduction deals. But Congressional Republicans weren’t a significant party to either one of them. In 1990, Republican president George H.W. Bush and the Democratic Congress agreed to higher taxes and spending cuts — a deal that was largely denounced by the then-minority Republicans in Congress. In 1993, Democratic Congress and President Clinton passed another package of spending cuts and tax increases over the united opposition of then-minority Congressional Republicans.
2. Hawks Fly the Coop: Several self-professed deficit hawks on both sides of the aisle have left. Republican Senators Judd Gregg of New Hampshire and George Voinovich of Ohio, and Democrat Evan Bayh of Indiana, who each stepped down before the election, generally talked a good game about deficit reduction while approving plans to increase the deficit. The departure of Senate centrists decreases the potential for deal-making. In the House, conservative Blue Dog Democrats — who would frequently buck their own party on spending issues — suffered sharp losses. The remaining Democrats in Washington are more liberal — and hence more opposed to cuts in entitlement spending.
. Revenge of the Establishment: In 1994, Republican revolutionaries, led by Newt Gingrich, grabbed the reins of power. This year, plenty of winning Tea Party candidates, including Rand Paul of Kentucky, have proposed ambitious spending cuts. But the Tea Party has helped restore establishment Republicans to positions of power. Mitch McConnell, Senate Minority Leader, and John Boehner, the next Speaker of the House, are veterans of last decade’s Republican majority that created the Medicare prescription drug benefit with no payment mechanism, funded wars on an emergency basis, and sharply increased discretionary spending.
. Deficits Don’t Matter, Reprise: Whether it’s Dick Cheney saying deficits don’t matter, or Democrats urging more stimulus, politicians on both sides of the aisle have made it clear that they don’t care much about deficits. The consensus against deficit reduction may have just become more hardened. Today’s Republican orthodoxy on budget matters can be expressed as follows: Don’t touch defense, Social Security or Medicare. Revenue lost via tax cuts doesn’t need to be offset with spending cuts. Tax cuts pay for themselves.
5. The Fragile Economy: The tax cuts enacted in 2001 and 2003 are slated to expire in less than two months. Given the economy’s unsatisfactory growth rate, there’s not much appetite — on either side — for letting them expire. Republicans, and many Democrats, want to extend all the tax cuts, without offsetting reductions. President Obama and most Democrats want to extend them for all but families earning $250,000 (and individuals earning $200,000), without offsetting reductions. The negotiation positions, then, are a choice between adding about $3.2 trillion to the national debt over 10 years or adding $4 trillion. Splitting the difference would mean about $3.6 trillion in new debt over the next decade
. Elusive Cuts: Not surprisingly, the overwhelming majority of candidates — on both sides — refuse to specify significant cuts they’d like to make. Republicans have been talking up the possibility that they’ll call for $100 billion in discretionary spending cuts. But $100 billion is a drop in the bucket, and the overwhelming majority of government spending remains enormously popular. Programs like food stamps, the National Institute of Health and national parks have lobbies and supporters dedicated to their preservation. And advocating for harsh cuts in popular programs will give embattled Democrats something to defend.
7. Outsourcing Doesn’t Always Work: Much of Washington seems to believe that tough choices on deficits can be outsourced to the bipartisan Deficit Commission, which is scheduled to submit its findings in December. Reports suggest the Commission might propose raising more revenue by reducing tax expenditures — i.e., by repealing popular tax breaks. Given the state of the housing market, and the influence of the lending, banking, and real estate lobbies, do you think it’s likely Congress will vote to eliminate or reduce the home mortgage deduction?
There are no quick, easy fixes for large-scale deficit reduction. Continuing economic growth and the payback of bailout money have the capacity to reduce the deficit by small margins. But those gains can be easily overwhelmed by policy choices. And in the absence of a crisis or extreme brinksmanship — the threat of defaulting on the debt, a spike in interest rates, a government shutdown — it’s difficult to see how the realignment of power in Washington will lead to a significant deficit-reduction deal in the coming months.
Yahoo Finance.
‘the deficit hawks’
I’m not sure these exist in DC any more. As much as I don’t like what has happened with govt borrowing, I also don’t see much that has resisted it. There is never any punishment from the electorate. Actually, spending borrowed money has proven politically popular. Same with the bond/currency markets; no hesitation or risk seen. Sure, this will blow up eventually, but we’ve know that for decades. IMO, the time to act on this was 10-20 years ago. Now it’s too big to pay off, and anyone with a calculator should know that.
Even the author couldn’t identify any real deficit hawks.
Several self-professed deficit hawks on both sides of the aisle have left. Republican Senators Judd Gregg of New Hampshire and George Voinovich of Ohio, and Democrat Evan Bayh of Indiana, who each stepped down before the election, generally talked a good game about deficit reduction while approving plans to increase the deficit.
So the big loss of deficit hawks consisted of three who talked about deficit reduction but continued spending anyway.
Historically he could count exactly 2 occasions
In 1990, Republican president George H.W. Bush and the Democratic Congress agreed to higher taxes and spending cuts — a deal that was largely denounced by the then-minority Republicans in Congress. In 1993, Democratic Congress and President Clinton passed another package of spending cuts and tax increases over the united opposition of then-minority Congressional Republicans
This sounds like a nice little ‘make work’ project…Just in the wrong country.
US to spend $511 million to expand Kabul embassy
KABUL, Afghanistan – The U.S. government will spend $511 million to expand its embassy in Kabul, the U.S. ambassador said Wednesday, describing the work as a demonstration of America’s long-term commitment to Afghanistan.
“We make this commitment by commemorating the recent award of a $511 million contract to expand the U.S. Embassy here in Kabul,” Ambassador Karl Eikenberry said during a ceremony at the construction site that marked the formal announcement of the contract.
“We’re going to get a day when that embassy’s up and there’s not going to be these barriers out there, there’s no barbed wire, there’s not going to be all kinds of obstacles out there,” Eikenberry said.
US has priorities in right places. No doubt.
And I am sure it counts as how wonderful job Hilary is doing. She is so competent you know.
There is no Green Zone in Kabul. It’s a fortress, not an embassy.
Just like Iraq I suspect a very large portion of these building projects in countries like this end up as a kickback to politically connected types in DC. How do you ever audit such a building. If you know the country will be cut loose down the road you can keep all the cash and just build a shell of a building.
Our new Iraq embassy cost $600 MILLION.
That’s right. Over half a BILLION dollars. Most of it going to… Haliburton. Whose headquarters was moved from Houston to Dubai.
That does seem very expensive. And then I remember that’s only three days worth of expenses for Obama’s trip to Mumbai.
http://www.denverpost.com/realestate/ci_16457083
There just aren’t enough Denver Broncos I suppose.
“There just aren’t enough Denver Broncos I suppose.”
Didn`t Forrest Gump say that? Oh that`s right he said…
Sometimes I guess there just aren’t enough rocks. …
Same thing in my neck of the woods, local groups are saying they getting many more food help & toy requests this season.
Thousands register for Christmas help from Wake Salvation Army
More people seek help from Salvation Army
Raleigh, N.C. — The Wake County Salvation Army has about 1,500 more applications for its annual Angel Tree program this year compared to 2009, said Haven Sink, Salvation Army director of public relations.
Sink estimated that about 25 percent of the 7,000-plus children registered to receive Christmas gifts come from families who have not sought aid in the past.
About 5,000 children got gifts from the Angel Tree last year, Sink said.
Thousands.
Geez….
$13,713,087,906,377.36 is the public debt, having shot up sharply since last week. Congress still has $687 billion on the credit card so Washington can go on a-borrowing into 2011, but then what? $14.3 trillion is the debt ceiling and the newly structured Congress may be persuaded by irate Americans to quit the charade, bite the bullet, and start the tedious job of returning to a sane fiscal policy. It won’t be fun, but it’s necessary for survival.
3. Revenge of the Establishment: In 1994, Republican revolutionaries, led by Newt Gingrich, grabbed the reins of power. This year, plenty of winning Tea Party candidates, including Rand Paul of Kentucky, have proposed ambitious spending cuts. But the Tea Party has helped restore establishment Republicans to positions of power. Mitch McConnell, Senate Minority Leader, and John Boehner, the next Speaker of the House, are veterans of last decade’s Republican majority that created the Medicare prescription drug benefit with no payment mechanism, funded wars on an emergency basis, and sharply increased discretionary spending.
From Yahoo finance.
My guess is the borrow and spend crowd on both sides will suddenly find compromise when it comes to spending.
Dang, wombatz, this hadn’t popped up when I posted below. NBC’s late coverage of the results touched on this. I’ve got friends all over saying, no compromise with Dems, no-how, no-way and that Repubs need to hold to their *cough* “principles” on fiscal policy. (yes, one said that with a straight-face)
I’m all for it, but I’m guessing there’s more can-kicking ahead.
BB will be popping out of his hole soon, sure hope he kicks into high gear and we get a trillion QE2! Instead of a measly 500 billion, da-street has already factored that in.
With the elections in Brazil on Sunday and the Elections in the USA yesterday sometimes I get wrapped up in things and forget what’s really important in life.
Like:
MY BUTTERMILK STARTER CULTURES FROM AMERICA JUST ARRIVED IN THE MAIL 10 min ago!!! (US Intl. Priority mail)
Cheers!
PS. There is no Buttermilk in Rio.
PS. There is no Buttermilk in Rio.
Dang Rio,…another “bidness” opportunity in…Brazil!
Dang Rio,…another “bidness” opportunity in…Brazil!
I wish, but I think not. Brazil is a funny country. Because of the beautiful girls and tiny bikinis and sexy reputation, much of the world thinks Brazil is very open-minded and open to new ideas but it really is not that simple. It is and it isn’t.
Brazilians walk in lock-step more than the world imagines. It is my perception that they do not “think out of the box” as much as Americans.
It’s hard to explain but since there is “no buttermilk” in Rio and never has been, that means that it would be VERY HARD to create a demand for it.
Because of the beautiful girls and tiny bikinis and sexy reputation, much of the world thinks Brazil is very open-minded and open to new ideas but it really is not that simple.
Another example is that many Americans think Brazilians go topless on the beach or there are a lot of nude beaches in Brazil. This is not true. 99.99% of Brazilian women wound NEVER go topless or go to a nude beach. How could they? They are good Catholics.
But they will wear the tiniest bikinis that you could ever imagine.
“Weasles” Those bikinis are called “Weasles”
It’s a brand name.
Brazilians walk in lock-step more than the world imagines. It is my perception that they do not “think out of the box” as much as Americans.
It’s the same thing I’ve heard about China.
Matter of fact, I just spoke with a guy who recently went to China with his wife. Both were there to teach English.
He told me about going to a restaurant and trying to order various items, none of which were offered together in any sort of “package deal.” Couldn’t be done. Ordering a la carte was totally against the restaurant’s rules.
He had a similar experience when trying to rent a meeting room for his fellow teachers and their students. He found a restaurant with an empty room.
Would they like to rent it on several different occasions to groups of American teachers and their Chinese students? Nope, no way, couldn’t be done.
Contrast that with an American restaurant with an extra room that’s big enough to be used for meeting space. The management would be falling all over themselves to make a deal.
Election Analysis: Generation Greed wins, younger and future generations lose, the details to be adjusted slightly.
Ie. future generations will be screwed somewhat less by higher taxes that preceding generations received, and somewhat more by a deteriorating infrastructure, lost health insurance, and diminished benefits in old age compared with what Generation Greed arranged for itself.
The election itself was a loud cry of “I want for me now!” Like most recent elections.
Totally agree. I love how all these old folks who for all practical purposes got to live in times of plenty with stable jobs, more affordable housing, and so on are always saying that ” we are bankrupting our grandchildren!” Well… guess what? Its already happened.
The party that voted down repealing tax breaks for offshoring jobs was just given more power because people are… out of work.
HAHAHAHAHAHAHAHAHAHAHAHAHA
Truly, we have the government and society we deserve.
Examiner to WaMu Investors: Give Up
WILMINGTON, Del. (TheStreet) — Washington Mutual shareholders who had been clinging on until the bitter end were delivered a devastating blow on Monday: Even an impartial third-party examiner “sympathetic” to their cause shot them down.
Joshua Hochberg, a court-appointed attorney who examined the outcome of WaMu’s bankruptcy proceedings, met with equity representatives several times and held discussions with them as recently as a few weeks ago. In a 369-page report released on Monday, Hochberg said he was “sympathetic” to the scores of people who lost “lifetimes worth of savings” in WaMu stock.
However, he doesn’t think there’s any chance they’ll recover those funds. In fact, he thinks they should just stop trying.
“Simply put, there is no clear litigation path which would result in substantial recoveries beyond those to be paid to the debtors under the settlement agreement,” Hochberg, a partner at McKenna, Long & Aldridge, writes. “Indeed, a possible result if the settlement fails is that the debtors will end up with the deposit accounts and nothing more. The amounts required to reach common equity are simply too large, and the likely recovery too speculative, to justify rejecting the proposed settlement.”
‘…scores of people who lost “lifetimes worth of savings” in WaMu stock.’
Housing bust bagholder identification process continues…
So much for using the stock market as a place for long-term savings.
So much for using the stock market as a
placemanipulated mechanism for long-term savings.I’m all out,…Thanks For-d-mustang!
“Hochberg said he was “sympathetic” to the scores of people who lost “lifetimes worth of savings” in WaMu stock.”
D-I-V-E-R-S-I-F-I-C-A-T-I-O-N, people!
Kim,
Thanks, had a client that wanted to “pick up” 10,000 shrs. just before they went completely in the tank. All you can do is talk until you’re blue in the face.
“Lost their life savings” is pretty standard language among class-action/securities lawyers. Nothing gets a jury’s attention quite like that phrase. Went thru same w/ Enron/PGE up here in the great NW.
And BB sez….
Fed to Spend $600 Billion More to Spur Economic Growth- Reuters
The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling economy. The central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.
“It said it would regularly review the pace and size of the program…”
Does this mean that a couple of 1% down days on Wall St. and they might make it $1T after all?
1T 2T 10T whatever it takes.
Any early predictions of how Boehner and friends will vote regarding that little debt ceiling problem coming up early 2011?
Here’s the spin.
The american people want us to work with the president……
Agreed. I already have a few friends backpedaling from this. I’m fine with them taking a stand against fiscal irresponsibility and I’m okay with them going hardline and saying no to raising the ceiling.
That probably means default or inflation and some nasty short-mid term pain and/or HUGE cuts in public spending.
Personally, I think it needs to happen (the pain). So, bring it. But if you do, don’t complain about the pain. If you don’t, then, well, it appears nothing’s changed. Again.
sleepless,
Since everyone else has had their turn in the barrel.., I openly wondered if flat-lining a lot of the Fed/State employees ( for a brief period/s ) might not do the trick?
Unpaid furloughs, etc. If we truly ‘are’ in this together there’s no time like the present. To show my heart is in the right place, as long as we’re not “called up” I would Drill for The Guard for r/t mileage and lunch. That way I’m not going in the hole. Fair enough?
‘Somebody’ has to get the ball rolling. Now if they call you up and send you here send you there and you lose your civ. job, that’s a different matter.
Well here’s the first report from the Fed meeting.
WASHINGTON (Reuters) - The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling economy.
The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.
The central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.
http://finance.yahoo.com/news/Fed-takes-bold-risky-step-to-rb-2946256215.html?x=0
“The Federal Reserve launched a controversial new policy on Wednesday,…”
How can it be new if they already did it before?
Well, it is smaller than before. That’s new.
I wonder what they have the will to do when the SHTF.
Best news in a while:
slate dot me slash cON153
My wife and two sisters were up sail boat racing in Sheboygan last month. They had a down day due to 40 knots winds & heavy swells so they went and toured the Kohler plant. They went on and on about it, in particular the bath rooms. Anyway doesn’t look like sales are doing to well…
Major layoff at Kohler Co., as 350 lose jobs in Sheboygan County
Gannett Wisconsin Media • November 3, 2010
Kohler Co. announced today it has eliminated 750 employees across its American operations, including 350 workers in Sheboygan County.
Spokesman Todd Weber said the total includes 450 permanent administrative and production employees who were given notice today. The remaining 300 were temporary workers who were reduced over the last few months.
The cutbacks come as the company remains in negotiations with United Auto Workers Local 833, which represents nearly 2,000 active workers in Sheboygan County. The two sides have been at the bargaining table for 11 weeks in all and five weeks since mutually agreeing to extend the old contract past the original Sept. 30 deadline.
Now, I enjoy a good plumbing project as much as the next household do-it-yourselfer, but permit me to say something about Kohler’s business model:
I think that, in the past decade, they over-expanded. They, like a lot of other companies in the bathroom fixtures biz, thought that the housing bubble would just go on forever. And that people would be HELOC-ing those bathroom remodels until the end of time.
We know how that turned out.
+1 Slim.
Bubbles lead to false demand, which gives companies false signals to expand; this is mal-investment. Them getting back to the appropriate size for a sustainable level of demand is part of the healing process.
Covance closing Vienna facility
The drug manufacturing services firm Covance will close its Vienna facility and lay off more than 200 people after more than 60 years in the community, Covance officials said Wednesday.
Melissa Thompson, spokeswoman for the company, said Covance officials notified the 220 employees at the Vienna facility Tuesday that the company will be closing its doors.
The facility in Chantilly will remain open, but Covance has withdrawn its plan to build a $175 million drug development laboratory in Prince William County, which would have housed existing employees from Northern Virginia as well as created an additional 100 jobs.
Thompson said company officials chose to close the Vienna facility because of a decline in demand in the toxicology market. The Vienna facility is one of the company’s older ones, she said, so it is more costly to maintain.
So what country are they moving too?
‘We’re Greece’ in a Few Years: Sen. Gregg ~ CNBC.com
If the US government doesn’t act soon to reduce the deficit and debt, it will become like Greece in a few years, Sen. Judd Gregg, (R-N.H.), told CNBC Wednesday.
“This nation is on a course where if we don’t do something about it, get federal situation, the fiscal policy [under control], we’re Greece. We’re a banana republic,” said Gregg.
“Our status as a nation is threatened by what we’ve got coming at us in the area of deficit and debt. And it’s only a few more years, at the most, that we have to work with here before the market says, ‘Sorry, your currency is something we can not continue to defend.’ ”
Gregg and Senator Evan Bayh, (D-Ind.), debated on CNBC the results of the midterm elections, in which Republicans took the House, while Democrats retained a razor-thin majority of the Senate.
“I happen to think the Tea Party is in the mainstream of where political thought is right now,” Gregg went on to say. “[It’s to] Get the deficit under control, get the debt under control and pass on to our children a country that is prosperous and secure. We’ve had a radical explosion in the size of government in the last two years: You’ve gone from 20 percent of GDP to 24 percent of GDP headed toward 28 percent of GDP. That has to be brought under control or basically we’re going to bankrupt the country.”
“You’ve gone from 20 percent of GDP to 24 percent of GDP headed toward 28 percent of GDP. That has to be brought under control or basically we’re going to bankrupt the country.”
No argument against that. The real question is how do the Elephant boyz n grilz propose to get the budget under control? Will they reduce military spending? Or will they just stick it to the middle class via a VAT?
Get the deficit under control, get the debt under control and pass on to our children a country that is prosperous and secure.
How if there are no jobs? How? And why are there no jobs? Why?
That has to be brought under control or basically we’re going to bankrupt the country.
Who cares if we are NOT bankrupt if there are no jobs and opportunity for our people? I mean big deal.
Is it going to be like:
Wow, I’m broke making 8 bucks an hour part time at the
$1$2$5 Store, I have no benefits because America ain’t Europe. I’m living in my mom’s trailer’s basement which I’m really digging but I have this bump in my armpit but being uninsured I have to wait until the library reopens next spring to check on the internet what’s wrong with me BUT we’re lucky because I just read they are going to cut Social Security and entitlements and pay for it by lowering the capital gains tax.Going to be? We passed that point years ago.
Republican takeover improves chances for the housing market to return to normalcy within the foreseeable future.
WSJ Blogs
Developments
Real estate news and analysis from The Wall Street Journal
* Real Estate News: Freddie Mac Reports $2.5 Billion Loss
* November 2, 2010, 6:24 PM ET
How Election Results Could Shape Housing
By Nick Timiraos
If the polls and pundits are to be trusted, Republicans will take back at least the U.S. House of Representatives in Tuesday’s elections. What will that mean for housing over the coming year?
Housing subsidies: A deficit commission could try to scale back hugely popular deductions on mortgage interest, which economists say have led to over-investment in housing. Such a move would generate a flurry of protest from the real-estate lobby. It’s hard to say whether Tea Party activists would embrace such a move as a debt-reducing measure or if they would reject it as a tax increase.
Analysts say that Republican gains, meanwhile, could put the brakes on any effort for a massive refinance of homeowners. Some economists have urged policy makers to remove constraints to refinancing in a bid to stimulate the economy, and one proposal would allow anyone with a loan backed by a government entity to refinance mortgages at today’s rates, which are at 60-year lows.
Such a program, however, could be expensive, raising costs for future borrowers because it would force mortgage investors to take a big hit. Banks, meanwhile, might require government agencies to give up the right to force them to buy back defaulted loans. Those repurchase demands have made banks much more cautious.
“With a Republican House, these types of ideas would have even less reception,” says Mahesh Swaminathan, senior mortgage strategist at Credit Suisse.
Fannie and Freddie: Republicans have introduced legislation that would wind down Fannie and Freddie over the next five years before letting the private market take over. “The ideological purity of Republicans on this is pretty firm,” says Howard Glaser, a former Clinton administration housing official.
…
Housing subsidies: A deficit commission could try to scale back hugely popular deductions on mortgage interest, which economists say have led to over-investment in housing.
Oh, sugar. I’m agreeing with the Wall Street Journal.
Fannie and Freddie: Republicans have introduced legislation that would wind down Fannie and Freddie over the next five years before letting the private market take over. “The ideological purity of Republicans on this is pretty firm,” says Howard Glaser, a former Clinton administration housing official.
And this my friends will be the bottom.
You can guarantee that when these MBS are privatized that we are at the bottom.
So Long, Tim Geithner
Wednesday, 3 Nov 2010 | 11:02 AM ET
By: John Carney
Senior Editor, CNBC dot com
We’re starting a Tim Geithner death watch.
That sounds a bit morbid. So let’s be clear. We do not think President Barack Obama will murder Tim Geithner following the devastation of his party in the midterm elections. He’ll just toss the guy out of the Treasury Department.
There will be heavy pressure from within the Democratic party for the Obama administration to make changes that will both publicly mark a change of direction for the administration and privately send a message to party insiders that the White House is accepting its share of the blame for the loss of the House of Representatives.
Geithner is a clear candidate to play the fall-guy. In exit polls, six in 10 voters said the economy is the nation’s No.1 problem. Around four in 10 believe their family’s financial condition got worse since Obama took office. Geithner is the nation’s chief economic official. A large share of the blame for last night’s results will likely fall on him.
…
Aw, poor little Timmy, if he does get the boot, he’ll just shoot back over to w street as a high paid consultant.
You think he’d kick out his renters?
I hope not. Geithner is one of the few competent people in the WH. Larry Summers was the other one.
“…Summers…”
I can see why you would admire him. He seems just like your kind of guy.
Incoming economic advisor: “Let them eat pollution.”
January 2, 2009
Harvard women’s group rips Summers
By Marcella Bombardieri, Globe Staff | January 19, 2005
Ex-employee says she warned Harvard of risky moves
Endowment staffer fired after letter to president
By Beth Healy
Globe Staff / April 3, 2009
How Larry Summers lost Harvard $1.8 billion
Nov 29, 2009 17:54 EST
Troubled TARP
Obama & Co. have bungled the bailout
Sunday, October 31, 2010
By Jack Kelly, Pittsburgh Post-Gazette
Treasury Secretary Timothy Geithner is all that remains of President Barack Obama’s original economic team. Budget Director Peter Orszag and Christina Romer, chairman of the Council of Economic Advisers, are long gone, and Lawrence Summers, chairman of the National Economic Council, plans to be back at Harvard in January.
…
Looks like it’s time for Timmy to walk the plank.
Just a little refresher here, since so many tea party folk think Obama was the TARPmeister:
The Troubled Asset Relief Program, commonly referred to as TARP, is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector which was signed into law by U.S. President George W. Bush on October 3, 2008. It is the largest component of the government’s measures in 2008 to address the subprime mortgage crisis.
Has anyone else ever wondered whether RioAmericanInBrasil was really Aladinsane, unable to stay away after saying good-bye a couple of years back?
I’ll readily admit, it could be my imagination…
I consider my Aladinsane neural recognizer to be quite good. I don’t think it’s him at all.
Their “fists” are very different.
NFW
Ok, obviously I was mistaken…
QE2 blunderbuss likely to backfire
By Mohamed El-Erian
Published: November 3 2010 20:12 | Last updated: November 3 2010 20:12
Given the high market expectations, the US Federal Reserve had no choice but to announce a second tranche of quantitative easing, nicknamed QE2. But the measure is an inevitably blunt instrument for the difficult task of restoring growth and generating jobs. The benefits accruing to America come with burdens for other countries, and both could soon be swamped by the unintended consequences of this unavoidably imperfect policy approach.
By signalling its intention to purchase another $600bn of longer-term Treasury securities by the end of June 2011, the Fed hopes its injections of cash will lower interest rates, bolster asset prices, increase wealth and encourage households and companies to spend and hire. Moreover, by noting the possibility of doing more if the data disappoint, it is also hoping that markets could price in the institution’s future asset purchases, turbo-charging the direct policy impact before those purchases have even been specified.
While willing to act, the Fed is acutely aware that the potential benefits come with the certainty of collateral damage, and the likelihood of adverse unintended consequences.
The Fed faces three problems, with its solo role being the first. Having warned in late August in Jackson Hole that “central bankers alone cannot solve the world’s economic problems”, Ben Bernanke, the Fed’s chairman, is now leading an institution that is virtually on its own among US policymakers in meaningfully trying to counter the sluggishness of the US economy and the stubbornly high unemployment.
Other government agencies are paralysed by real and perceived constraints, seemingly happy to retreat to the sidelines and let the Fed do all the heavy lifting. But liquidity injections and financial engineering are insufficient to deal with the challenges that the US faces. Without meaningful structural reforms, part of the Fed’s liquidity injection will leak right out of the US and result in yet another surge of capital flows to other countries.
…
Fire on the left too:
With Quantitative Easing, Fed Continues War on Small Savers
Me again. Here’s an interesting reader comment on the Firedoglake story that I just posted:
My nephew runs a credit union.
Sez I: So, are you sitting on cash refusing to lend it?
Sez He: Nope. I’ve got tons of cash, which is why I won’t pay anything for deposits. But nobody is coming in asking for a loan.
Sez I: So, if somebody came in and asked for a loan and qualified, you would lend to him?
Sez He: Sure, I’m in business to make money.
The issue with bank lending is the same issue we have throughout the economy – a lack of demand. Businesses don’t need loans to expand until they have enough customers. Customers first, then loans, then jobs.
This is what makes the end of a credit cycle different from a business cycle recession. The people still working don’t have savings to spend, and can’t service any more debt, so they can’t jump-start the economy. Monetary policy doesn’t work. It just blows bubbles.
“Without meaningful structural reforms, part of the Fed’s liquidity injection will leak right out of the US and result in yet another surge of capital inflows to other countries…”
“…meaningful structural reforms …”
…which means transforming our economy from a consumer-based economy into some other form of economy.
Our consumer-based economy means our economy is based on consumption, which implies other economies must be based on production in order to balance things out.
If the Fed’s answer to our woes is to feed our consumer-based economy money then the money flow will travel from here to somewhere else. Goods travel from where they are produced to where they are consumed. Money spent to buy these goods travels from where they are consumed to where they are produced. Whatever the direction goods flow, money travels in the opposite direction.
If dollars flow out of this country and into another country then this country will end up starved for dollars while the other country will end up with an abundant supply of dollars. Starved dollar supplies makes for deflation. Abundant dollar supplies makes for inflation.
If we consumers who inhabit our consumer-based economy are to buy stuff from this other country then we are going to have to pay higher prices for this stuff. That’s because the buying power of our dollars will be diminished due to the abundant supply of dollars flowing into this other country.
But at the same time there will be less dollars floating around in our own country to pay for this imported stuff. That’s because the dollars keep leaking out of this country and are ending up in that other country.
Until this situation - this consumer-based economy situation - is fixed we will contine to send our wealth in the form of dollars to other countries.
Dollars are claims on assets. Because there is a shortage of dollars in this country those with dollars will be the ones who call the shots when it comes to financial transactions involving dollars - whether the holders of dollars live in this country or live in another country.
IMHO.
Those exported Dollars get returned to purchase from the Treasury,which then pays the Fed, which turns around and buys assets from corps. outright, so the corps. can pay the workers higher salaries, so the workers can pay for the higher priced goods and continue to pay for local services,… which creates higher employment.
It all works as long as they ratchet up the printing of Dollars, ever more.
When it stops, poof.
No?
Blowing up a deflating balloon with a hole, with a hose duct taped to the hole, and… comedy insert goes here X.
The result being inflation.
What’s his angle? I read somewhere that PIMCO would have made a killing if states like CA are bailed out by the feds. No wonder he was griping about dreaded gridlock this morning.
Until Wall St. is brought to heel, you can forget about ANY reform or improvement in your lifetime.
We are speaking the same language.
Whitman, Fiorina and McMahon: Spending big, failing bigger
By Jason Horowitz
Washington Post Staff Writer
Wednesday, November 3, 2010; 6:46 PM
LOS ANGELES - Meg Whitman, Carly Fiorina and Linda McMahon had a lot in common.
All sharp, successful businesswomen who made millions as executives in the private sector, they identified 2010 as an apt historical moment for a Republican candidate with no political experience to break into politics. In pursuit of higher office, each committed considerable resources - more than $200 million combined - to challenge seemingly vulnerable Democrats.
Each risk-taker came up far short of her goal.
…
California is stuck on stupid. In a way I’m glad Moonbeam won. When Cali finally achieves 3rd world status in the next few years, he will be the one remembered for pushing the state over the finish line.
I’m glad Moonbeam won. …he will be the one remembered for pushing the state over the finish line.
Yep. For about one election cycle.
“…he will be the one remembered for pushing the state over the finish line.”
At least by uni-eyebrowed, extra-low-hairlined Republicans, who wouldn’t have a clue about the lagged effects of a failed Republican governor’s administration…
Meg didn’t bother to vote for 28 years. Then she decided, hmmmm, got all this CEO dough, let’s go shopping and buy a governorship. Even GOPs didn’t vote for her…..
You shouldn’t worry about Jerry Brown so much, will give you a permanent frown. He has a pretty good track record of frugality and isn’t a wannabe.
http://articles.sfgate.com/2010-09-04/news/23988848_1_jerry-brown-california-working-families-budget-impasse
Most of the country went hard right this election. In California, they went hard left. You don’t get more liberal than Gavin Newsom. I would suspect homebuyer credits, foreclosure moratoria, and increased payroll taxes are on the way.
“…homebuyer credits…”
Sounds to me like more of a Republican program:
03/25/2010 GAAS:195:10 FOR IMMEDIATE RELEASE
Governor Schwarzenegger Signs $10,000 Homebuyer Tax Credit Legislation
Governor Arnold Schwarzenegger today returned to the La Ventana Homes project in Fresno where he kicked off his campaign to extend and expand the hugely successful homebuyer tax credit to sign legislation that will do just that. AB 183, authored by Assemblymember Anna Caballero (D-Salinas) and Senator Roy Ashburn (R-Bakersfield), will provide a tax credit of up to $10,000 to Californians who are buying their first home or purchasing a brand new home. This legislation, part of the Governor’s larger California Jobs Initiative, will play a key role in getting our economy moving again by encouraging home ownership and stimulating job creation.
“I have been up and down the state pushing this important housing bill that will get people off the fence and into homes while creating jobs and stimulating our economy – and today I am proud to take action and put it into law,” said Governor Schwarzenegger. “Creating jobs is my number one priority and I am glad that I have been able to sign two job-creating bills in two days. I applaud the legislature for their great work and encourage them to keep it up and pass the remaining job-creating elements of my California Jobs Initiative.”
…
“…foreclosure moratoria…”
Another Republican brain child:
Schwarzenegger proposes 90-day foreclosure moratorium
November 5th, 2008, 2:51 pm
Gov. Schwarzenegger today unveiled plans to halt some of the bleeding in the housing market and keep people in their homes, including a 90-day ban on foreclosures. He also proposed changes to the way home loans are made to avert another housing bubble.
“…increased payroll taxes…”
California Gov. Arnold Schwarzenegger increases personal income tax withholding
by Ted
Withholding. will increases by 10%, effective for wages paid after October 31, 2009. Similarly, withholding on supplemental wages increase from 6% to 6.6% effective for supplemental wages paid after October 31, 2009.
..Each risk-taker came up far short of her goal.
that’s one way to spin it..
otoh, they came out of nowhere, and shook the establishment to it’s core.
Women suffer an unfair disadvantage in the political arena. Being female is an exploitable prejudice the country has yet to rise above, imo.
otoh, they came out of nowhere, and shook the establishment to it’s core.
Shook? They’re still shaking laughing at those three.
Women suffer an unfair disadvantage in the political arena. Being female is an exploitable prejudice the country has yet to rise above, imo.
Maybe a bit, in the Republican party.
liberal women have an advantage over conservatives counterparts.
A liberal promises to nurture, feed and care for her children. The conservative mom tells them to go get a job. People much prefer the former.
liberal women have an advantage over conservatives counterparts.
Because they’re better at math?
each committed considerable resources - more than $200 million combined
See how Stoopid CA voters are…could’ve been CONvinced by good looks & $$$$$$$$$$$$$,….but noooooooooooooooooooooo, they saw thru the repubican CEO rouge.
When the Mongolian real estate bubble pops, it will make the U.S. bubble collapse seem like a tea party.
Boomtime on China’s grasslands
Inner Mongolia was once one of the poorest areas of China. Not anymore. The Inner Mongolian city of Ordos now has the highest per capita GDP of any city in China. This rags-to-riches story has come to symbolize the rapid development of a nation as a whole. But it’s come with some growing pains. Rob Schmitz reports.
…
Workers put the finishing touches on the new city of Ordos. You see, Ordos has so much money that city leaders want to move the population 15 miles away to a location with better access to water. The government spent a billion U.S. dollars to create an entirely new city, called Kangbashi. It’s got an enormous public square, museums, concert halls and row upon row of high-rise apartments, just waiting for people to move in. Problem is, nobody seems to have gotten the memo. Just 30,000 people live in a city built for 300,000.
Tang Lina is one of them. She admits living in a city the size of Pittsburgh that’s largely vacant is starting to become spooky.
…
..and row upon row of high-rise apartments..
seems like heaven on earth.
i don’t get how they build a city to fit 300K people for a billion bucks. Is it made out of cardboard?
Make way for the QE2-fueled inflationary poor tax on food. It’s all good, so long as Superman Ben Bernanke manages to avoid kryptonite deflation.
* BUSINESS
* NOVEMBER 4, 2010
Food Sellers Grit Teeth, Raise Prices
Packagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies
By JULIE JARGON And ILAN BRAT
An inflationary tide is beginning to ripple through America’s supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades.
Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they’ll try to make consumers shoulder more of the higher costs for ingredients.
For food executives, how quickly to pass along higher costs presents difficult choices. Missteps could be costly when the economy remains weak. Many Americans, nervous about high unemployment, have pledged allegiance to their pennies and are willing to trade down on brands, switch supermarkets, opt for Burger King over Applebee’s, or stop dining out altogether to save money.
“The big challenge will be, how much can we swallow and how much can we pass along?” said Jack Brown, chief executive of Stater Bros. Markets, a 167-store grocery chain in southern California.
…
* The Wall Street Journal
* OPINION
* NOVEMBER 4, 2010
Milton Friedman vs. the Fed
The Nobel laureate would never have endorsed increasing inflation to stimulate the economy.
By ALLAN H. MELTZER
Would the late Milton Friedman have endorsed the Federal Reserve’s plan to make large-scale purchases of long-term Treasury bonds? The idea here is to pump more money into and thus jump-start the economy, reducing unemployment. Some people, including this newspaper’s David Wessel in a column last week, believe the great Nobel laureate would favor this inflationary program. I am certain he would not.
Friedman’s main message for central banks was to maintain a monetary rule that kept the growth of the money supply constant. In his Newsweek column, “Inflation and Jobs” (Nov. 12, 1979), for example, Friedman emphasized that “unemployment is . . . a side effect of the cure for inflation,” so that if a central bank “cured” unemployment by inflating, it “will have unemployment later.” In other words, don’t try it.
Friedman’s Newsweek column for July 28, 1980 (”Improving Monetary Policy”) came with the unemployment rate rising past 7%. His proposals for improving policy made no mention of using monetary expansion to reduce unemployment. He proposed rules for stable growth to achieve target “dollar levels of monetary aggregates.”
Friedman served on President Reagan’s economic policy advisory board. His memos on monetary policy repeat the themes he made familiar to Newsweek readers and others all over the world. There is not a word suggesting that monetary policy should try to raise the inflation rate in order to reduce the unemployment rate.
…
The Wall Street Journal
* November 3, 2010, 3:20 PM ET
The Lone Dissenter: Thomas Hoenig Hits Seven
By Sudeep Reddy
It’s seven for seven for Thomas Hoenig, president of the Federal Reserve Bank of Kansas City. Hoenig’s dissent kept his streak alive at today’s Federal Open Market Committee meeting with an objection to his colleagues’ move to buy more Treasurys to support the economy.
Hoenig, the lone vote in the 10-1 decision, has held his ground throughout the year as the rest of the committee moved further away from him — first by keeping rates near zero, against Hoenig’s wishes, then by reinvesting proceeds of the Fed portfolio and now through another round of Treasury purchases.
In a statement after the meeting, the Fed said Hoenig “believed the risks of additional securities purchases outweighed the benefits. Mr. Hoenig also was concerned that this continued high level of monetary accommodation increased the risks of future financial imbalances and, over time, would cause an increase in long-term inflation expectations that could destabilize the economy.”
Hoenig has been employing sharper language throughout the year to highlight his disagreement. Last month, he called attempts to boost the economy through monetary policy “a bargain with the devil.”
“There are those who advocate that we add additional quantitative easing … and have more of the economy searching for yield, therefore willing to make more investments that will hopefully stimulate the economy,” Hoenig said. But “if you think it through,” it is “a very dangerous gamble.”
…