1. Alstry is not a doom and gloomer. Yes he is forecasting 50% unemployment, but any idiot can see we are already OVER 30% using historical comparisons. U6 is over 16% and over 30 million Americans are collecting welfare which is approximately 20% of the working population. In The Great Depression, these people would have been considered unemployed because welfare did not exist. Further, recently, millions of Americans have simply had their status changed from unemployed to welfare recipient once their unemployment benefits ran out. [more]
The California Citizens Compensation Commission voted unanimously Tuesday to cut state legislators' monthly car allowances, fringe benefits and their per diem allowance by 18 percent. [more]
Asset values imploding [more]
Many businesses in the U.S. are struggling with excess capacity. From autos to airlines to houses, "there's a landscape of industries and sectors that are recognizing that they're going to need to scale down," says Nancy L. Rose, an economist at the Massachusetts Institute of Technology Department of Economics in Cambridge.
With no plant to process the birds they raise, local chicken farmers have no income to pay off debts. Months ago, the hundreds of cavernous, metal-and-wood chicken houses in the county were worth at least $200,000 each when filled with chickens, farmers say. Now, except for flies and old feathers, the structures sit empty and are virtually worthless. [more]
Expect to see more and more stories like the following: [more]
The number of California hotels involved in a foreclosure action or in default has risen 125 percent in the past 60 days. [more]
Struggling cities cancel Fourth of July fireworks [more]
CHICAGO — Household-products maker Kimberly-Clark Corp. said last week it plans to cut 1,600 jobs, or 3 percent of its global work force, as it slims down in the tough economy. [more]
Lebanon was the country that Jesus came to party and turned the water into wine at a wedding. [more]
Bloomberg Headline: [more]
“Joshua Hamann jokingly compares himself to the last human in a city overrun by zombies. He’s not suggesting his neighbors are zombies. The problem is, he has no neighbors.Hamann occupies one of only about 50 sold condos in his 49-story tower, out of 409 units. [more]
Otherwise known as CRAP!!!!!!! [more]
Late-night military helicopter flights over downtown Los Angeles this week are part of training exercises to familiarize military personnel with urban settings and prepare them for future assignments overseas, authorities said.
The Black Hawk helicopters, which have appeared nightly for almost a week, have attracted the attention of residents as they hovered over downtown landmarks like City Hall, or maneuvered quickly between office skyscrapers on Bunker Hill. Though many residents speculated that the diving and climbing helicopters were part of a movie shoot, authorities confirmed Wednesday that they were part of a joint exercise. [more]
A few random Headlines re KB Homes: [more]
From the former Chief Economist at the International Monetary Fund: [more]
I once made a few million bucks on an investment because I stuck with it when most of the other investors jumped ship.......I believed in the CEO and I believed in his plan......and in the end, I was right.......the money, no big deal.....half went to the government and I managed to make and lose it a number of times since..... [more]
"Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen ... within 180 days, but could be 120-150 days." [more]
What happens if we ACTUALLY audit the Fed and learn the whole system is a Ponzi Scheme simply functioning to help out a few banker buddies???? [more]
A payroll audit this month at Detroit Public Schools turned up 257 names that will be subject to an investigation into illegal ghost employees, officials said Tuesday. [more]
State controller John Chiang warned today that if legislators and Gov. Arnold Schwarzenegger fail to come up with a budget-balancing package in the next week, he would begin paying California's bills with IOUs on July 2. [more]
You Pick....... notice Bear Streans stock price in the second video.....is it just Alstry????? [more]
From Calculated Risk citing the Washington Post: [more]
NEW YORK (MarketWatch) -- Supervalu Inc.said Wednesday that earnings for the first quarter would be substantially below "First Call consensus earnings for the quarter." Analysts polled by FactSet Research estimated, on average, earnings of 65 cents a share for the grocer. Chief Executive Craig Herkert stated, "Consumers have become more value focused and cautious in their spending which has pressured sales and margins greater than anticipated. We currently estimate our identical store sales will be approximately negative 3%." [more]
Your life will change forever by 9.09........are you ready to leave the matrix?????? [more]
The city of Sacramento has cut off talks with the fire union - and as many as 68 firefighters will lose their jobs next week as a result. [more]
Without commentary one way or another.....this issue is likely to gain traction based on my initial review of the evidence. I have significant experience in accident cases including complex construction/design defect litigation. Although having yet to form a definitive conclusion..... this movement is building a case and changing perceptions....especially the over 700 architects and engineers supporting the thesis. [more]
From the WSJ:
CAMBRIDGE, Mass -- Harvard University, its endowment battered by the recession, said it will lay off 275 employees and reduce or change work hours for about 40 more. [more]
“‘This is not a normal recession,’ said Dan Hamilton, director of economics with the Thousand Oaks-based Center for Economic Research. ‘It is a recession that is accompanied by a financial meltdown. Unfortunately, those kinds of recessions last much longer than usual.’” [more]
Soup Kitchens running out of food as lines get longer.
People foregoing medicine and delaying medical treatment because the can't afford copays.
GS paying out record bonuses this quarter.......
HOW LONG DO YOU THINK IT WILL BE BEFORE RIOTING BREAKS OUT OR WAR ERUPTS TO DISTRACT THE POPULATION FROM THEIR DISTRESS......as most of OUR nations DWINDLING wealth gets transferred to a select few bankers??????? [more]
Things just more confusing for Alstry;) [more]
World Trade Center Building 7 was never struck by an airplane. Never in history had a steel framed building fallen due to fire, save WTC 1 and 2 of course. Building 7 contained documents pertaining to SEC investigations in a number of important cases......among other important financial information. [more]
Just random pick from sequential headlines on Yahoo: [more]
Is Benny B a terrorist against the American People and the United States of America????? [more]
We know the mainstream media is lying to us.....WE KNOW BENNY B IS LYING TO US.....we know land is worthless in some areas......we know thousands of houses are selling below $10,000 and crashing in price in all areas......we know more and more businesses are going bankrupt.......we know millions are silently getting wages slashed or jobs eliminated completely......we are now starting to see massive layoffs in government and health care as bankers accept unprecedented handouts while schools shut down. [more]
This is something the Institute of Alstrynomics predicted over a year ago!!!!!!!!!!!!!!!! [more]
Bernie Madoff was like a AAA rated bond to his investors, paying 10% like clockwork for decades. If you couldn't trust Bernie, you couldn't trust anyone in the community. Anyone who questioned Bernie's integrity was put down immediately and marginalized. Bernie was the man and no one questioned it.....period......after all, it was only a very exclusive group of very intelligent and successful individuals who had the privelege to invest with him. [more]
Headline and Contents from WSJ this evening: [more]
OVER 21,000,000 Americans work for Local, State, or Federal Government. [more]
Madoff, Petters, Stanford, Scrushy.......Bernanke?????? [more]
Soon....most of you will be seeing what Alstry has seen for a few years now.......much of our economy was simply a legalized Ponzi Scheme of people borrowing money to drive the economy and the economy generating taxes to feed an ever growing government which in turn spent trillions and supercharged the economy. [more]
Japan warns that North Korea may fire missile at U.S. on Independence Day
My friends it is been a rough tide for this Captain of the S.S. Alstrynomics......piloting this ship through rough waters from Dow 14,000 to now Dow under 9000. The ship has stayed intact with a focused message despite some big waves WHILE successfully predicting and navigating crisis after crisis. [more]
Because you get the accurate data months, even years in some cases, in advance of the rest of the public..... [more]
The American citizens have too much debt supressing income and spending and government needs all the income we got!!! [more]
If they wanted to solve the crisis.....it would be EASY!!!!!!! RESTRUCTURE!!!!! Wa La...it's over!!!! [more]
Since 2005....Alstry has been warning about the pending Financial Collapse from too much debt....vs. what your government leaders have been saying compiled at ZeroHedge: [more]
Greenspan lowering interest rates to 50 year lows permitting bankers to avoid income verification. At the same time encouraging borrowers to take out adustable rate mortgages. In total, banks loaned out trillions of dollars infecting the nation with more debt than it could afford to pay back. Then, just to bend over Americans and fully insert the baseball bat where the balls aren't pitched...... jacking up interest rates 17 times making it impossible for millions to pay back the debt. [more]
It is the role of the Federal Reserve to maintain a sound monetary policy......INDEPENDENT of political pressures. [more]
British Airways are asking their employees to work for free..... [more]
In order to grow you must adapt to a different environment......sometimes you must tear down to build up even higher. Such a process toward progress involves change.....the more radical the progress the more radical the change. [more]
Zombulation is defined as running out of savings and access to credit OR the government taxing 100% of your income and assets....in either case, you are broke. [more]
LONDON (AP) -- British Airways on Tuesday urged its staff to work for nothing in an effort to save the company money. [more]
The Obama administration has turned back pleas for emergency aid from one of the biggest remaining threats to the economy -- the state of California. [more]
How bad is it really out there?????? [more]
June 15 (Bloomberg) -- The Federal Reserve isn’t capable of offsetting the “flood” of U.S. Treasury borrowing with its bond-purchase program, which is helping to revive credit markets, Dallas district-bank President Richard Fisher said. [more]
You know Lucifer...aka....Satan, Beast, Belzebub, Deceiver....was he the one behind the rally from his favorite number 666??? Did he suck in the innocent simply to take their money away and prepare for eternal Zombulation??? [more]
WASHINGTON (MarketWatch) -- Manufacturers in the New York region said business worsened in early June, according to a report released Monday by the New York Federal Reserve Bank. The Empire state index fell to negative 9.4 in June from negative 4.6 in May, indicating the downturn broadened to more firms. Readings under zero indicate more firms said business was worsening than said it was improving. The new orders index improved marginally to negative 8.2 from negative negative 9.0. Economists surveyed by MarketWatch expected the headine index to fall to negative 3.0. [more]
As California housing prices went wild in the middle of this decade, hundreds of thousands of residents scratched their heads and moved to places where homes were still affordable, state and federal statistics show. When prices started falling and unemployment started rising, many continued to leave California for healthier job markets. [more]
TMFRhino wrote a great piece titled Dubai, How Bad Is It? which included the following: [more]
In the past five years, Californian's took out mortgages far exceeding their ability to service the debt. Now residents are suffering massive wage cuts and job losses.....many simply can't afford to make their mortgage payments and foreclosures are exploding.
The problem is simply not just home buyers who purchased homes, but the thousands who borrowed against their existing homes to sustain a "California" lifestyle:
The latest argument comes from Michael LaCour-Little, a finance professor at Cal State Fullerton. He is lead author of a new study, which found that during the housing boom some long-time owners borrowed against all their property's equity gain, or paper profits. They treated their houses like cash machines.
People who owe their bank as much or more than their home is worth are most vulnerable to foreclosure. When they suffer a job loss or other drop in income, they can't sell, because the sale price won't cover the debt.
It's long been assumed that home buyers who purchased at housing's peak with little money down are among the most likely to face foreclosure. They owed more than their property was worth once prices tanked.
But the study concludes 'cashing-out' is about as predictive of foreclosure for the same reason: negative equity.
Think of the countless number of elderly, small business owners, and others that survived over the past few years simply from extracting millions of dollars from perceived home equity......and now that the supplemental income has evaporated.....few can sustain their lifestyle and the equity is gone.
Many families are in financial distress and that distress is driving DOWN home values. Pricing projections are constantly being revised lower. Most recently, Fitch is calling for an ADDITIONAL 30% decline in California.
The projected losses also reflect an assumption that from the first quarter of 2009, home prices will fall an additional 12.5% nationally and 36% in California, with home prices not exhibiting stability until the second half of 2010.
With countless numbers unable to make their payments.....California is struggling with the torrent of foreclosures flooding its court system every month.....a court system already stretched due to budget constraints. Things have gotten so bad that lawmakers are suggesting a moratorium on foreclosures....
California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday.
The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing.
But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled.
However, the moratorium will accomplish little other than delay a growing problem of affordability....evidenced by the most recent federal moratorium's failure to slow the rising the tide once lifted.
Foreclosures occur as a result of insufficient income and savings to service debt and other obligations. Without good jobs, savings or easy access to the home equity machine......many more in CA face eviction. In addition, the state faces the loss of billions in property tax revenues at a time when it's $24 Billion in the hole.
If wages continue to evaporate and jobs sliced like limbs on a sepsis patient....pretty soon there won't be much left to cut in California. Few will be able to afford much of anything.
Due to budget constraints, California faces the biggest cycle of wage cuts and job losses in its history. Especially vulnerable are high paid government and health care workers(and those that support government)....the cuts could easily affect millions of residents.
As many know, to destroy home values, it doesn't take every house on a street to be in foreclosure to impact all homes.....just a few distressed homes in the same area can drop values dramatically.
The most extreme case right now is in Michigan where home median home prices in a number of municipalities have dropped below $10,000.....simply due to the fact that there are no jobs and/or very low incomes......
It has become so bad in some areas that the government is now leveling ENTIRE sections of towns to save money!!!!!
Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.
California will be no different, although not likely to reach Michigan extremes for a variety of reasons, if you think that CA home prices have come close to reaching a bottom......you may want to sit back, have a drink, and watch the spectacle. Fitch is only predicting an ADDITIONAL 30% decline, I am predicting at least 50% MORE.
If we continue down this path of government spending money it just doesn't have, few will consider supporting our uncontrollable welfare payments and interest rates will likely climb into double digits in very short order destroying affordability. Conversely, if we lower government spending to income, California could loose or cut wages on hundreds of thousands of jobs imposing MASSIVE pressure on an already stressed state.
The above exemplifies why we, as a nation, are stuck between a rock and a hard place!!!!!
Economists used to laugh when I predicted homes values would drop 50-70% a few years ago. We are already there in a number of areas across America. The problem is the problem is a BIG problem....and not very funny, especially for those getting evicted from their homes and families destroyed.
Now the distressed home issue has morphed into a state concern. Tax revenues are evaporating and the burden of taxation is being focused on fewer and fewer. If this process continues, soon there will be few left in California to support state services. I am already aware of a number of wealthier Californian's who have migrated from the state due to fear of draconian taxes. For confirmation, just give the Austin, Texas MVA a call and see how many of the new license applicants are from CA!!!!!
Without tax revenues, California's economy faces serious hurdles maintaining the states standard of living. Right now tax revenues are imploding. If the situation is not reversed soon, many of you may be surprised how many may leave California. And if you are surprised by the migration out of the state, you will really be SHOCKED how low home prices can go in a state with negative population growth.
For those of you who think Great Depression pricing is the bottom, you may want to talk to residents in Detroit. What receives little commentary is that in the 1930s, property taxes and insurance payments were insignificant. Ask yourself, how much more of a home could be purchased today if you didn't pay taxes and insurance on your house and deduct it from its current value.
Soon you will begin to understand that massive structural change is ahead. Alstry is confident of this and very confident of a very bright future. However, the change will be very convulsive to many existing paradigms and few are prepared.
Are you ready to leave the matrix??????
Let's hope our government officials don't take us on a path of WAR to distract us from the symptoms of change. [more]
After being led down the wrong path by the mainstream economists.....soon you will start to apply Alstrynomics. [more]
Zombulation is a term created by the Institute of Alstrynomics defined as the point when one runs out of money and extinguishes all access to credit OR when the government taxes you 100% of your income and assets. In either case, you economically lose everything. [more]
Let's not talk about green shoot or yellow weeds or nonsense like that...what are the facts. [more]
Cravath, Swain & Moore Firm Asks Incoming Lawyers to Delay Start a Year [more]
President Obama faces THE MOST DIFFICULT economic issue ever to confront an American President. [more]
A Fool which we shall not name to maintain civility stated the following: [more]
If you taxed every taxpaying American 100% of their income.....it is MUCH BIGGER!!!!!!!!
We are out of money folks......it has never happened before......PREPARE!!!!!
For you doubters of Alstrynomics.......soon you will learn......
Alstrynomics is all about the truth.........and being right.
Prepare.....you may not be ready for the truth.
Ask yourself....who will lend America money when it produces relatively very little in relation to the amounts it pays simply for welfare to its citizens? [more]
As you know, in addition to the millions of workers who have been fired creating the 9.4% reported unemployment rate.......there are now many tens of millions of Americans on Welfare, working part time, or not counted as unemployed because they are small business people or independent contractors. [more]
It is the role of the Federal Reserve to remain independent. Right now America faces the largest budget deficit in human history.....It is so large, that if you taxed its non government benefitted private citizens 100% of their incomes....it is not enough. [more]
It would be the only medical explanation I can come up with to try to understand why collectively so many see a second half recovery which seems so obviously ridiculous.....actually, I may be insulting the mentally challenged population by grouping Economists with them. [more]
Practically every city in America is on the brink of bankruptcy...especially if you factor pension liabilities.......the government is running a deficit that the income generated by every citizen and coroporation is simply insufficient to sustain..... [more]
Oakland city officials have discussed the possibility of declaring bankruptcy to deal with the city's massive budget deficit, according to the Chron. The idea has some merit, especially if the $67 million federal grant for policing doesn't come through. Oakland's main problem is high employee salaries and benefits that it can no longer afford, particularly in the police and fire departments. But the city can't cut worker compensation significantly without union approval. As a result, Oakland may be forced to lay off large numbers of people and make painful cuts in services. In fact, without the federal grant, Oakland may be have to lay off more than 200 cops, which is untenable in a city with so much crime. But bankruptcy could change that, allowing the city to get out of burdensome union contracts and avoid more layoffs and service cuts.
But there's a big downside to bankruptcy. It carries the stigma of failure, and it will further erode the city's reputation and its financial standing. As a result, the city shouldn't seriously consider filing for bankruptcy — unless that federal grant doesn't come through. The city should know the answer to that question in late August or early September. [more]
In a nation where the private sector's sales and profits supported the public sector in its first 230 years of existence........such support can no longer be provided. [more]
If you havn't received a paycut....expect one SOON!!!! [more]
Guo Shuqing, the chairman of state-controlled China Construction Bank (CCB), also said he is exploring the possibility of issuing loans to trading companies in yuan, allowing Chinese and foreign companies to settle their bills in yuan rather than in dollars. [more]
Sometime between today and the end of summer....9.09.......an event or series events will transpire that will change our lives foreever.......it will change the way we look at ourselves.
S&P 555 by 9.09......is it possible?????? Were we all Madoffed and Alstry was Markopolous warning your over and over again????
I have been reading a bunch of nonsense by Fools about Obama "inflating" his way out of this problem. When you are running a deficit that is about 50% of your budget against a backdrop of a contracting private economy.....inflation is not an option.....ONLY HYPERINFLATION is the end.... because you must print so much money to gap the exponentially growing deficits that money effectively becomes worthless. [more]
An AP analysis of economic data from around the country shows that economic pain in a county decreases as the percentage of government workers in its work force rises. [more]
June 5 (Bloomberg) -- Big banks in the U.S. say they’re on the mend. The five largest were profitable in the first quarter, rebounding from record losses for the industry in the fourth quarter. Share prices have jumped, with the KBW Bank Index doubling since March 6.... [more]
If my analysis is right....a major world conflict could break out before you ever find out.....oh well...cest le vie. [more]
As we know, the top 20% of income earners pay OVER 80% of the taxes........the bottom 50% pay basically no taxes. [more]
Should these to guys be tried as economic terrorists, but given competent counsel of course and the right to confront their accuser, the citizens of The United States, for the crime of intentionally and/or recklessly debasing the currency of America and Americans in order to bail out their NY Banking Buddies leading to the impoverishing and economic enslavement of the citizens of The United States???? [more]
When you permit banks infect a society with too much debt that mathematically can't be paid back.....then you bailout out the banks and NOT the people or private hard working entrepreneurs from the inevitable collapse.......pretty soon the people and private business go bankrupt(ZOMBULATED) and the SUBSIDIZED banks and government own the people and private business.......at that point they can control the wages of American citizens dropping them to subsistance levels and/or creating a dependency on welfare....... [more]
As a matter of fact....we will likely see a dramatic slowdown!!!!!!! [more]
Think of Alstry as the Markopolous of CAPs and many of the CAPs players like the SEC that just didn't want to listen after years of warnings by an expert....The Doctor of Alstynomics....the sythesis of the practical business rules to economics. [more]
For about a year and a half, Alstry and The Institute of Alstrynomics has been posting about the deteriorating jobs environment. [more]
ASK YOUSELF THIS QUESTION....WHAT PERCENTAGE OF AMERICANS NOW ARE ON WELFARE, UNEMPLOYED, WORKING PART TIME, OR WORKING AT A LOW PAYING SERVICE JOB LIKE WAL MART CASHIER OR SIMILAR....??? [more]
Job Losses LESS than expected but Unemployment Rate HIGHER than expected???? [more]
Right now our governmnet is running an ANNUAL deficit of $2 Trillion dollars. China's total holdings of US Treasuries is only $800 million...plus another $800 million of US demoninated assets. [more]
Bankruptcy filings rise to 6,000 a day as job losses take toll [more]