Important News - Oct. 16 update 1
By Daniel at 16 October, 2009, 11:30 am
* 1) Number of Arizonans on food stamps at record high.
* 2) Mayor says Chicago finances so grim that layoffs, cuts in services, fare hike are possible
* 3) More.. currency.. interventions
* 4) (CNBC) Recession Will Be ‘Full-Blown Depression’: Strategist
* 5) FDIC bank fund in the red until 2012
“Even as regulators try to replenish deposit insurance fund, it will be over two years before it boasts a positive balance, warns agency chief.”
6) Worries over police, fire pensions could prompt special session (CHARLESTON, W.Va.)
“Current law requires the state Public Employees Insurance Agency to “bill” school boards for their share of the unfunded liability — more than $3 billion of the total state liability of $7.8 billion — even though there has been no attempt by PEIA to collect those charges.”
* 7) Pensions blamed in Boston Globe’s move
“The long-expected sale of the Boston Globe collapsed at the last minute after the Taylor clan lowered their bid in the face of the New York Times [NYT] Co.’s demand they take on more in unfunded pension liabilities, according to a person briefed on the situation.
The Herald reported last week that the Times wanted potential buyers to shoulder $115 million in unfunded pension liabilities - nearly twice the original $59 million demand - for the Globe and Worcester Telegram & Gazette.”
* 
Calpers Rocked by ‘Pay to Play’
“America’s largest public-pension fund, Calpers, revealed that a former board member had reaped more than $50 million in fees for arranging investments that could saddle state taxpayers with hundreds of millions of dollars in losses.’
* 9) State fears $1 billion shortfall next year (Iowa)
* 10) Patrick warns of 2,000 job cuts (Mass.)
“As many as 2,000 state jobs could be eliminated, Governor Deval Patrick warned yesterday, unless unions agree to concessions necessary to help close an estimated $600 million budget shortfall that could trigger spending cuts throughout state government.”
11) Hawaii state worker furloughs not enough to close budget gap
“The administration has projected a budget deficit of about $1 billion through June 2011.”
12) State eyes $1.1 billion in budget cuts in ’10 (Tenn.)
“NASHVILLE — Tennessee may have to slash as much as $350 million more from its budget next year on top of $753 million in already planned reductions.”
13) Muni Sales Fall to $7 Billion as Yields Jump Most Since January
“Oct. 16 (Bloomberg) — Municipal bond sales fell this week as the biggest jump in benchmark tax-exempt borrowing costs since January prompted state and local-government borrowers such as Hawaii to postpone deals.”
14) Big Layoffs in Puerto Rico Won’t Be Stopped, Governor Says
“Unemployment may surpass 17 percent next month, after 17,000 school teachers and other public employees lose their jobs Nov. 6. A large protest on Thursday remained peaceful.”
15) City projects $90M budget shortfall (San Jose)
“The city of San Jose is projecting a $90 million budget shortfall for 2010-2011, prompting City Manager Deborah Figone to warn employees of another round of layoffs.”
16) Tice: Gold Could Pass $3,000
“How far can it go?
“We don’t think it will end until we get to $2,500, $3,000 or so. And gold could go beyond that,” he says.
That’s because of inflationary economic policy, Tice maintains.
“We essentially are printing money. Quantitative easing is debasing our currency,” he says.
“Congress is spending like drunken sailors. The investigator general for TARP (the Troubled Asset Relief Program) has stated that it’s possible that the cost to the American taxpayer for all the bailouts, backstops, guarantees, etc. could exceed $23 trillion.”
That picture isn’t too pretty. “We’ve never seen anything like this in our history,” Tice says.”
16) Wall St. Is Winning: Elizabeth Warren “Speechless” About Record Bonuses
“I do not understand how financial institutions could think they could take taxpayer money and turn around and act like it’s business as usual,” Warren says. “I don’t understand how they can’t see that the world has changed in a fundamental way - it’s not business as usual. All I can say right now is they seem to be winning this argument.”
- saxplayer
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