Sunday, July 15, 2012

Three Cities Down With A Nation To Follow...L&C

Tired of seeing the Obama jobs ad? The one where the president claims that CEO Romney made jobs in China, India and elsewhere. Of course, challenger Romney counters with his ad saying, the president had a record stimulus and the results: poor job numbers, record deficits with no growth plan. Too bad that neither candidate knows how bad it really is on Main St.
Three Cities in Two Weeks
have defaulted in California, our leading industrial state. If the best can't make it, who can? Folks, it is not just California, it is happening and has been happening throughout the nation. If I were running for the highest office in the land, I'd have a plan to help and secure our future. What do we get? He said this on such-a-such date. Neither candidate understands the dangers of our economic situation that is becoming an epidemic with no answers to address the red flags of a serious virus that is spreading within our states.
Orange County
back in 1994 set off the early warning with its bankruptcy, but anyone suggesting future problems was drown out in criticism. When Jefferson County first flirted with bankruptcy and eventually fell into default, Meredith Whitney in 2010 was abused by the media for saying that she saw many more municipalities going bust in the near-term. Just last week, ex-New York State Assemblyman, Brodsky said these defaults are just a tip-of-the-iceberg. Know what? They are both right!
Wisconsin Recall
ended up being a plus for Governor Walker and a big negative for union labor. I agree that government workers do receive an excessive pay package when you add up all the benefits with pension on top of the list. However, this is not the cause for the financial problems that exist today. When you look under the hood, it is either a serious job loss or the housing bubble that has caused revenues to decline to a negative cash flow and either Wall Street or Washington or both is the root cause for these problems. Look at Central Falls, Rhode Island! They lost their textile plant. Now, they are losing their standard of living. Washington did not protect American workers! They do in every globalized nation except here. Scranton, Pa is in the cross hairs for the same reason. Guess what they are doing?
Taxes Up 80%
and all city workers receive minimum wage. Can't afford that. Can you? Did Obama or Romney address this situation?  How about Harrisburg, Pa.? They were rejected in bankruptcy court because the city was too small, but the state put them under a receiver. Personally, I'd take Welker of the Pats. He has great hands.
Mammoth Lakes, Vallejo, Stockton, California are all screaming the same tune. We cannot afford to live! These cities will continue to suffer because their states are also suffering for the same reasons. This is not new as the same thing happened during the Great Depression. Cities bought time by doing accounting tricks just like Washington is doing today with the budget and our national deficit. The only difference is local governments must balance their budget by law whereas the federal government gets a bye. During the depression the disease of financial engineering did not surface until 1934 or 1935. Whitney was right! Michigan has four cities under state management. Read financial tricks! The list of who is next has all our names on it. Chicago suffers because of the cost of its school system. Detroit because of autos. Warren, Wi. is using a state loan to hide the truth, but this has only increased the debt of the city, just like the Federal Reserve increases our debt on a daily basis making the D-Day only that much more severe. Miami just built a new ballpark, but still suffers declining revenues on real estate. The same thing in Providence,R.I. The same thing in Menasha, Wi. The same thing at different levels in every location within our nation even rich areas like Suffolk County, Long Island, where everyone pays at least $10,000 in real estate taxes and still there is budget shortfalls. Don't expect the two candidates to address this problem because then, they would have to reveal the truth which is to put America first.
LIARS and CROOKS: Wall Street and our media which puts a positive spin on the real status of our economy and the health of our corporations. Alcoa was the first to report. They lost money, but they made more than the estimates. Media praises company. Jamie Dimon of JPMorgan Chase gave a new estimate for the financial loss due to trading in the last quarter. First, he said $2 billion. Now, he says it is closer to $5 billion. Like I said when it was first reported that it will have to be more because it is an insurance derivative and these things don't end in a day or week. Many companies prereported lower incomes and when they meet these lower figures, Wall Street and the media gushes for joy. Where is the voice of truth? If they won't allow an opposing view, how will they achieve a creative response when the sad day arrives? Peace!