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It's time to live within our means once again
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The war on the middle class
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We Can't Just Sit Here Doing Nothing
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Corporate Citizen - An Oxymoron
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US oil supplies at a 36½ year low, SPR at a 39 year low; oil+products supplies at an 18½ year low
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Horrible March State Unemployment Numbers Out
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What Losing a Job Does to People
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It's time to live within our means once again
- 50450 reads
The war on the middle class
- 316207 reads
We Can't Just Sit Here Doing Nothing
- 60314 reads
Corporate Citizen - An Oxymoron
- 81084 reads
US oil supplies at a 36½ year low, SPR at a 39 year low; oil+products supplies at an 18½ year low
- 186417 reads
Horrible March State Unemployment Numbers Out
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What Losing a Job Does to People
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The Golden Rule
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Will the NY Attorney General Bring Doomsday Charges Against Wall Street? If So, How Long Will He Survive?
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New York Post Claims Census Falsifies Unemployment Figures
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How Many Jobs Are Needed to Keep Up with Population Growth?
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VAT or Value Added Tax is Getting a Look in D.C.
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U3 and U6 Unemployment during the Great Depression
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The war on the middle class
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House discusses 401k/IRA confiscation
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Tax Cuts for the Rich Do Not Generate Jobs
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I can think of at least 50 that should be on that damn island.
Oh I am gonna take a whopping for this. I know someone's gonna call me a fascist or a union buster, which I'm not. But here goes....
If this labor-version of a conglomerate won't do the right thing, then perhaps its time that a lot of the unions that make up this "company" need to secede and form a new organization. I'm sorry, but if I were a member, my number one goal would be to maximize the value of what I do. There are only so many jobs to go around, and increasing the supply of candidates for those jobs doesn't help. And if the folks who are supposed to support me are going to do what was just mentioned just so they can say they helped bring in a voter pool for a particular party, then it's time to say good bye.
I'm sure the IBEW and others can form a better organization. Is it that the heads of the AFL-CIO are out of touch with the worker on the ground? I just don't see how increasing the supply of workers helps. If I'm wrong here, please enlighten me.
First and foremost, let me me say that this was one fantastic post. This is why I come here, good stuff like this. You know, what you posted doesn't surprise me in the least. This has been a long time coming, you simply cannot continue with an illogical policy long enough without consequences. Warren Buffet, several years ago, did a little infomercial or something about this very thing. It was about two islands that traded with each other, actually one sold goods the other just gave them cash. Eventually the island selling the goods ended up literally owning the buying island.
The fiscal situation with our government is completely insane. While I'm dubious about these tea protestors (I still think it's a put up job using some paid lobbyists and a whole lot of suckers), they do make one good claim...the government spends too much. Look, we need some sort of healthcare scheme, same with a K-Doctorates education system. But I fear the way we go about our fiscal duties, we'll have neither. Obligations are obligations, the sale of our treasuries really marks us as another company per say in the market for capital. If you thought a company would not meet its obligations entirely, would you invest in that company? Would you purchase bonds or stock? We, sad to say, live in a system where a country is no different than a company, just another mark in a ledger.
To be honest, I'm sorta glad this is happening. Relying on foreigners to buy our debt was financial heroine. You have to break the addiction some time. The longer you keep it up, the worse it will be when you go cold turkey. We are going to have to make some hard decisions and face a reality that will not be kind to your political persuasion.
If you're a progressive, guess what a lot of what you regard as the commons or duties government should take up will have to be limited or abandoned.
If you're a conservative, guess what your taxes most likely will increase, and your military adventures limited or abandoned.
If you're a libertarian, the days of unfettered free trade probably will end because the government will only go so far in raising taxes and go to new revenue streams like tariffs (though probably would call them something else to avoid WTO rulings).
Hope of lower taxes or universal health care may bear witness to more waiting. We need to get our financial house in order. The results of our extravagance like illegal wars in Iraq to entitlements are showing up. Please take a gander to the score of numbers below.
What you see here are the actual prices for Eurodollar futures, one of the most liquid and largest traded contract on the planet. For the new folks out there, Eurodollars or more precisely Eurodollar rates are what banks charge each other and is often one of the benchmarks used for interest rates; that is LIBOR that you've all heard about. I could go into the whole "why it's got the Euro" part, but trust me it's a benchmark rate thats really the important part, and no it has nothing to do with the Euro currency. Now what you need to know to figure out the rate is very simple. See the prices above, each one represents a contract for "delivery", take 100 and minus it with the number you see. For example, for December 09, the price is 98.75, so subtract that from 100 and traders are expecting 3-month LIBOR to be
Once more look at the roster of prices, what do you notice? The prices are dropping. Market participants are expecting a rise in interest rates as time goes on. The last contract shown, for March 2019, they're expecting right now that interest rates will go to 4.145%. This could change, the price of Eurodollars changes. But I suspect that rates will continue to rise as the government borrows more money. If Uncle Sam cannot find buyers for bonds at a given rate, then expect our dear old Uncle to raise the rate until he finds a buyer.
Also, in case your are wondering, Europe and Japan are facing the same situation regarding rates. Euroyen and Euribor contracts show rates rising as well. If anyone was alive or read up about recent history, one will know that interest rates were in the double digits two decades ago. We just may be seeing history repeated.
I believe (electrical contractors) has said "screw you" to the AFL-CIO on this and tried to get enforcement first because they are getting undermined by illegal labor continually.
I think you're right, they are after dues and increasing the ranks, but on the other hand, ...that begets more illegals who will undercut their wages (as well as the supply/demand problem).
I think they should enforce employment law first and foremost and also fix the system....because addressing what to do about those already here and so on. i.e. piecemeal.
but this is really more about the business end of labor unions. Organized labor has been looking to expand its numbers. Here they have a potential pool of dues paying members.
I personally know unionized carpenters, machinists and such who are in dire need of a job. A lot of machinists who could not find work, and I'm speaking for around here, have gone back to school to learn things like auto mechanic work. Yet when they return to the work field, they...like their carpenter bretheren, are finding illigal immigrant labor being utilized. There was a garage right by me, just prior to the owner dying, who several years ago laid off his mechanics, when on vacation then returned and hired illegals.
The economic angle to this is classic supply and demand. Now I don't know what can be done with 14 or so million illegal aliens. Maybe I'm wrong at this point and we have no choice but to legalize them because the alternatives are either not available or worse. Yet one of the aftereffects that should be expected is an increase in the surplus labor. Actually, it's already here, just under the table if you know what I mean. Going back to the idea of surplus labor, this is now a global phenomenon, and its one of the pillars that keeps up the current version of globalization.
This also reminds me of the dellema with GM. What's good for business may not be good for the worker. For GM, sadly at this point, if I was a turn around specialist (and speaking as a devil's advocate here), I would go the BK route then take the new company to the Southern US unless I could get what I wanted from the UAW. Bloomberg radio reported that several reps from some southern states are already chatting with the beleaguered car company. For the execs at GM its about bringing in the revenue and profits first. I wonder if the same can be said right now for the AFL-CIO and dues?
but unfortunately after one gets into Congress, there is an absurd pecking order and an "inner circle" of power. That's where the real problem lies.
So many to choose from. Maybe there could be a subcategory, "Best of the Worst" for repentant bad actors, if there are any.
I'm surprised that NO ONE in Congress has invoked their rights to ultra free speech and torn into Wall Street and Geithner, Summers, Rubin for all of this. But that would be too much truth from that body.
That's an excellent collection. I'll bet they were most generous. These characters have gotten away with so much for so long, they think that they're invulnerable. They have no idea how aroused people are.
I had to laugh at the quote from Obama to the bankers - something like the only thing standing between you and pitchforks is me. My immediate response was "Why are you standing there Mr. President." But Obama got the pitchforks in London with those demonstrations. The corporate media acted like those people were protesting some abstract notion. It was the G-20 and Obama is G#1. All that nonsense with the queen was a mask. This is one of the worst receptions a president has received overseas since Nixon went to Venezuela.
They don't have enough money to prop up this much longer and they'll never stabilize the economy enough for the perps to go free. I found the Black statement (and larger interview) so on target. Dangerous man - knowledge and truth.
Geithner too. I was just giving the worker bees their due recognition. Congress and the appeals court have to show up for work now and then. Summers and Rubin just wander the halls of over valued buildings. Neat trick that these guys pulled. They ran the table.
Robert, I think this article serves as a good foundation for starting EP's "Hall of Shame," (sort of like Keith Oberman's Worst Person in the World.
Add to those two pieces of legislation (FSMA & CFMA) that the "Usual Suspects" who backed those acts also financed the InterContinental Exchange (futures speculation, anyone?) and Markit Partners, now Markit Group (artificial valuation of derivatives, anyone?), along with its Markit Wire (for doing the premier amount of credit default swaps on an electronic exchange), and the fact that the "Usual Suspects" are also those most exposed to derivatives (that is, junk paper) and the picture appears even clearer.
I believe the other two went up as well.
Well, one big thing lately was Joe's (GI Joe's, a local surplus store chain turned sporting goods store) got bought out by an investment company a year ago that ran them into the ground- they've now been turned over to a liquidator and laid off a bunch of staff statewide, with more layoffs coming in the next month or so.
Daimler Chrysler was also a big name in Portland for employment in the Freightliner plant, that's closed down now.
Intel's cutting back, they're a big name around these parts too.
Overseas competition, environmentalism, and Mexican Tariffs are cutting into the agricultural sector (though personally, I think that last is a good thing as we need to replenish the food bank shelves now that so many people are out of work).
Logging is down in the dumps again, with more land being designated wilderness.
Overall, it's just pretty bad here.
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Executive compensation is inversely proportional to morality and ethics.
This is great and yes it is a scary novel indeed. It reminds me of the vibrating water glasses in Jurassic Park. (I'd like to see Hank Paulson as the "Newman" character hidding in the port-o-potty...)
Bookmarking now. See you for Tea?
Now that mark to market is being tabled, a whole list of
GAAP steps can now come back into play.
I was in Shanghai 3 years ago, and couldn't believe how much excess housing had been built in anticipation of migrants from the countryside. It was done to prop up employment. Now, China has a similar issue to that of Japan in the 90s in terms of its real estate.
Nice start image too. I think you left out Larry Summers, Robert Rubin.
Is to get fired or laid off, and then negotiate with the next company.
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Executive compensation is inversely proportional to morality and ethics.
I don't have the citation at the moment but yesterday I read a projection that China's Real Estate market would drop by 50%. It's hyper inflated. I don't know if that was both commercial/residential or just one.
I know they are about 3rd last time I checked but the thing is, Oregon does not have a large manufacturing base and I believe a fairly varied economy so this is pretty astounding.
What is going on in Oregon to cause it to match Detroit in unemployment rates?
First let me appologize for the tardiness of my reply, just hectic here by me. Regarding China's claims, you know it may be true. But this is also the same regime who only a decade ago were also producing BS crop productivity numbers. It may be 6%, it could be 3%, hell it could be 18%. Emerging economies tend to have high growth rates relative to investment inflows. Yet, as you already know, as an economy "matures", growth rates shrink.
There are really three economies in China. The first is the State Enterprises, that is business operations officially owned by the government. Following this is what I'll dub the Metro-industrial sector, that is the almost micro-city-sized factories producing goods for export located mainly in the Eastern Coastal cities. Lastly, there is the Countryside, where at last check 60% of the populace still lives and provides the bulk of the Metro-industrial's labor pool through migration to the cities.
As you know, China is really a one-trick pony, they're the cheapest and growth comes through exports. While domestic consumption is growing with the emergence of a modern middle class, they are no where near the capacity to provide as a substitute to export-related income. In each of the three segments I've highlighted above, the growth rates varie. The State Enterprises, absent a minority of manufacturers, have been operating at depressed levels; if they were in the West they would be bankrupt or "zombie companies." Looking at the Countryside, the situation is almost the same, though recently some new industrial development has been happening, the situation still reflects the backwater nature. The real engine, since the 1980s, has been the Metro-industrial, since the establishment of the Shenzen Special Economic Zone in 1980. BTW, I can't take total credit coming up with these three economic units, in college we had visiting professors from Hong Kong who came up with between 3-7 different econ units.
The numbers quoted from China maybe a smoothed number, that is an average of these things. The exponential growth in the Metro-industrial part managed to make up for the slack in the other two. It should be interesting now, given that M-i is at the forefront of the layoffs, if you will still see those numbers.
If I may add one more thing. There is something else that is rarely talked about in regards to China's economy. That is their financial sector, primarily the banks. For all the madness going on here, it has been a long-held dirty open secret that the books in those banks are not only cooked, but that much of the loans are rotten. If China's banks that operate primarily inside China were to be examined, you'd have an armada of AIGs. I've also had the suspicion that their banks that operate outside the country kept two sets of books. I have no proof of this, and can be regarded as pure conjecture. But these banks that finance the exports and such are also the first one hit up by the government for loans. Something has to give.
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