Important News - Nov. 09
By Daniel at 9 November, 2009, 1:51 pm
Personal story: “Taking Control of My Life”.
“Nov. 9 (Bloomberg) — The U.S. unemployment rate may rise to a post-World War II high of 13 percent in the aftermath of the recession, said David Rosenberg, chief economist at Gluskin Sheff & Associates Inc. in Toronto.
“Nov. 9 (Bloomberg) — Stocks and commodities rallied and the dollar plunged after the Group of 20 nations agreed to maintain measures to boost economic growth and remained silent on the U.S. currency’s weakness. Gold advanced to a record.”
(Look at the number for the 52 week low and compare to today’s low)
“JAMES CHANOS, THE FAMED SHORT SELLER who was among the first to foresee the collapse of Enron, recently sounded the alarm on the municipal-bond market — in the hallowed halls of the New York Historical Society, no less.
The “cracking of state and local municipalities is coming,” he predicted at a recent meeting attended by Barron’s staffer Susan Witty, adding that he wouldn’t touch munis.”
“Distress among commercial real estate mortgages in New Jersey is intensifying, with more properties in the state going back to the lenders. Some industry insiders say a crisis may be in the works if the economy continues to falter.”
“New Jersey currently has nearly $3.6 billion of distressed commercial assets, according to Real Capital Analytics, a New York-based research and consulting firm. Distressed assets include those in foreclosure or bankruptcy, have been restructured or modified, or have been taken back by the lender through foreclosure.”
“NEW YORK (Reuters) - The joint venture that borrowed heavily to buy Stuyvesant Town and Peter Cooper Village in 2006 could be among the first to take advantage of changes in U.S. tax law that let borrowers seek payment relief, when it said last week that it could not keep paying interest on a $3 billion loan.”
“Slammed by huge investment losses in last year’s meltdown of financial markets, the nation’s largest public retirement plan faces questions about its long-term ability to make good on the benefits it owes more than 1.6 million workers, retirees and their families.
All Californians have a stake in the fund’s performance: If CalPERS’ $200-billion portfolio comes up short, and state and local governments refuse to cut workers’ benefits, the bill falls to taxpayers — many of whom have no guaranteed pension benefits of their own.
Already, CalPERS has notified state and local government authorities that their contributions to the fund will have to rise beginning in 2011 or 2012, reflecting the steep drop in the system’s assets during the markets’ crash.”
“Montgomery County officials, reeling from what could amount to a $500 million budget shortfall next year, have started to point fingers.”
- 9) Income tax revenues plummeting; lawmakers concerned (Connecticut)
“HARTFORD — Plummeting income tax revenues are threatening to undermine the already shaky foundations of the state budget.
This downward trend is a disconcerting development for Gov. M Jodi Rell and the legislature because the income tax represents one-third of this year’s $18.6 billion budget.
“We are all very concerned about it,” said Rep. Cameron C. Staples, D-New Haven, the House chairman of the tax-writing Finance, Revenue and Bonding Committee.
The income tax raised nearly $1.3 billion less than budgeted in the last fiscal year, which ended in a record $925.6 million deficit. The state government is covering that shortfall with borrowed money.
The current year is showing no signs of improvement.”
“A $76 million budget deficit, a standoff between the University of Hawaii’s administration and its faculty union, and fears of massive cuts to programs, departments and schools have longtime professors calling the situation at UH the worst money and morale crisis they have known.
“This is far and away the worst I’ve seen — I’m not exaggerating. For the first time, we are simply looking at the real possibility of damage to the whole institution,” said professor David Stannard, chairman of the American studies department. He has been at UH since 1979, and his views reflected those of several colleagues.”
“West Virginia officials are predicting deficits in the Medicaid program of $95 million in fiscal year 2013 and another $169 million in 2014 unless the economy improves and enrollment goes down.”
“Advanta’s bankruptcy comes just one week after another top small business lender, CIT Group, filed its own bankruptcy petition. Both companies were hit with a sharp rise in defaults as the recession deepened. Advanta’s default rate reached 24% in September, up from 11% one year ago, according to the company’s financial filings.”
“U.S. citizens are joining immigrants in store parking lots
In the latest sign of the Las Vegas Valley’s economic free fall, U.S. citizens are starting to show up in the early mornings outside home improvement stores and plant nurseries across the Las Vegas Valley, jostling with illegal immigrants for a shot at a few hours of work.
Experts say the slow-starting but seemingly inexorable trend is occurring nationwide.”
- 14) Unemployment Trust Fund Insolvent? (Nathan’s Economic Edge)
“Back in August of this year I did an article that showed how bad the math was with the unemployment system ( Unemployment Benefits – More Math that Just Doesn’t Work/ More Data Hiding? ). Well, the math is just getting worse… back in August the total 2009 outlays had already hit a record but were well under $60 billion. Now they are approaching $100 billion, already almost 5 times the amount paid out in the year 2000″
……….Come on, Nate! These guys have experts doing the math for the Unemployment Trust Fund!
This is based on 26 years in the Medical field and I warn you I am not going to pull any punches. I will not “pretty it up” so it sounds better as the media and our government is so adept at doing.. I am going to tell it exactly how it will be and how events will transpire.
- Saxplayer00o1
Good job ^_^