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alstry (35.38)

All Fools Should Prepare for 50% Paycut/Income Loss

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October 14, 2009 – Comments (9)

Still on the Job, but at Half the Pay

MECHANICSVILLE, Va. — The dark blue captain’s hat, with its golden oak-leaf clusters, sits atop a bookcase in Bryan Lawlor’s home, out of reach of the children. The uniform their father wears still displays the four stripes of a commercial airline captain, but the hat stays home. The rules forbid that extra display of authority, now that Mr. Lawlor has been downgraded to first officer.

He is now in the co-pilot’s seat in the 50-seat commuter jets he flies, not for any failure in skill. He wears his captain’s stripes, he explains, to make that point. But with air travel down, his employer cut costs by downgrading 130 captains, those with the lowest seniority, to first officers, automatically cutting the wage of each by roughly 50 percent — to $34,000 in Mr. Lawlor’s case.

In recent decades, layoffs were the standard procedure for shrinking labor costs. Reducing the wages of those who remained on the job was considered demoralizing and risky: the best workers would jump to another employer. But now pay cuts, sometimes the result of downgrades in rank or shortened workweeks, are occurring more frequently than at any time since the Great Depression.

State workers in Georgia are taking home smaller paychecks. So are the tens of thousands of employees in California’s public university system. The steel company Nucor and the technology giant Hewlett-Packard have embraced the practice. So have several airlines and many small businesses.

The Bureau of Labor Statistics does not track pay cuts, but it suggests they are reflected in the steep decline of another statistic: total weekly pay for production workers, pilots among them, representing 80 percent of the work force. That index has fallen for nine consecutive months, an unprecedented string over the 44 years the bureau has calculated weekly pay, capturing the large number of people out of work, those working fewer hours and those whose wages have been cut. The old record was a two-month decline, during the 1981-1982 recession.

“What this means,” said Thomas J. Nardone, an assistant commissioner at the bureau, “is that the amount of money people are paid has taken a big hit; not just those who have lost their jobs, but those who are still employed.”

http://www.nytimes.com/2009/10/14/business/economy/14income.html?_r=1&hp=&pagewanted=print

IF YOU ARE NOT PREPARED FOR A 50% PAYCUT....YOU ARE NOT PREPARED!!!!!!!

Why do you think Alstry has been focusing on restructuring debt....if you only bail out the bankers and cut the wages of the people, it will not be too long before the bankers own the people....and government too due to evaporating tax receipts.

If wages, factoring unemployment, shrink 50% in a service economy.....you have a pretty good idea that GDP will shrink 50% or more as well....think about that and trying to service $50 Trillion of debt at current interest rates plus rising taxes and government fees????

The real problem comes in with businesses and government...it will be very difficult for gov/biz adjust for a 50% decline in revenues without massive convulsions based on legacy and rising cost structures.......

We are now in a Catch 22.....crashing wages, high unemployment and rising expenses......unless we restructure soon, we are facing MASSIVE failures ahead due to impossibility of servcing interest on massive debt consuming much of the cash flow of the nation.

And with only a few trillion in the bank with tens of trillions of debt.....there is not enough savings to even come close to alleviating the problem without massive amounts of credit being extended at  much lower interst rates than currently being charged on existing debt.......

9 Comments – Post Your Own

#1) On October 14, 2009 at 9:17 PM, alstry (35.38) wrote:

If government tries to simply print/counterfeit currency to meet obigations as opposed to restructure....the dollar will collapse, Oil will ge to $200 per barrel, and much of America will shut down due to exploding costs against evaporating revenues.

At this point, the only choice is restructure.....or possibly go to war and take what we need since few will accept our currency/

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#2) On October 14, 2009 at 9:45 PM, alstry (35.38) wrote:

NOBODY IMMUNE FROM ZOMBULATION AS REVENUES EVAPORATE....

CONCORD, N.H. -- Up to 250 layoff notices are going out to state employees this week, but Bill Champagne thought he wasn't going to be on the receiving end of one.

Champagne, 63, put in nearly 24 years of service at the Department of Revenue. He said he's struggling to come to terms with the fact that he will soon be unemployed.

"I have to work, and this is the work I love," he said. "Otherwise, I wouldn't have stayed here for 24 years."

The layoff becomes effective as of Oct. 27.

"I would have bet the farm," he said. "I was confident that I wouldn't get laid off. Complete shock. I'm still in shock."

http://www.wmur.com/money/21298235/detail.html

IF WE DON'T RESTRUCTURE...MANY WILL BE IN SHOCK

AND NOW MANY WILL FEEL THE CRISIS........

SPOKANE - It's not a complete financial meltdown yet but Spokane County's budget is so far in the red that more than 200 of the county's 2,100 employees could be laid off, with nearly half of them in law enforcement.

The situation is so dire that guards at both the Geiger Correctional Facility and the Spokane County Jail could be laid off which means inmates would have to be released.

"There are huge public safety issues from these layoffs," Spokane County Sheriff Ozzie Knezovich said.

http://www.kxly.com/global/story.asp?s=11316835

HOSPITALS ARE ESPECIALLY VULNRABLE.............

Dozens of employees at the University of Toledo Medical Center received layoff notices, and others were told their hours will be reduced. UTMC administration says patient care won't be affected, but some employees don't agree.

UTMC administrators said they tried very hard not to abolish positions of primary patient caregivers, but no matter who you lay off union leaders say it will affect patients. Roughly 75 employees will either lose their jobs or face a reduction in hours. They are union and non-union. They are administrators, nurses and support staffers.

UTMC officials say the cuts were kept as far from the reach of patients as possible. Dr. Jeffrey Gold, UTMC Dean and UT Provost and Executive VP for Health Affairs, says, "We tried very, very hard to not abolish any position that are primary patient care givers." But the union representing the workers says primary care givers are affected. "Social workers, health techs, LPNs, RNs, occupational specialists, and physical therapists - these are people that actually put their hands on a patient," says AFSCME 2415 president Tom Kosek.

http://abclocal.go.com/wtvg/story?section=news/local&id=7064805&rss=rss-wtvg-article-7064805

IT DOESN'T TAKE LONG FOR THE NUMBERS TO REALLY ADD UP WHEN THE ZOMBULATOR IS ATTACKING IN PRACTICALLY EVERY CITY, COUNTY AND STATE IN THE NATION....

Imagine what will happen to medicare/social security/income tax receipts??????

If we don't restructure soon....public safety will be in jeopordy.

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#3) On October 14, 2009 at 9:49 PM, alstry (35.38) wrote:

BANKRUPTCY LOOMING?????????????

SPRINGFIELD, Ill. (AP) -- Gov. Pat Quinn's office says Illinois government faces a new $900 million budget deficit because of declining revenues linked to unemployment.

In an interview Wednesday with The Associated Press, Quinn budget director David Vaught said fixing the deficit will require more spending cuts, additional borrowing and quick action to raise income taxes early next year.

Vaught said he now expects income tax revenue to be $850 million lower than projected, largely because unemployment has continued to climb.

In addition, gambling revenue is now expected to be off $50 million because a Joliet casino was closed for several months after a fire.

The state budget already depends heavily on debt, unpaid bills and shortcuts to close a deficit that had topped $11 billion.

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#4) On October 14, 2009 at 9:52 PM, themanwon (< 20) wrote:

Stop querying Google, Bling, Altra Vista or what ever tools you use and get a life.  The sky is falling, the sky is falling.  There are those who take life by the hand and make things happen and there are those who wait for things to happen. Where do you fall?

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#5) On October 14, 2009 at 9:52 PM, themanwon (< 20) wrote:

Stop querying Google, Bling, Altra Vista or what ever tools you use and get a life.  The sky is falling, the sky is falling.  There are those who take life by the hand and make things happen and there are those who wait for things to happen. Where do you fall?

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#6) On October 14, 2009 at 9:57 PM, alstry (35.38) wrote:

Just blogging about what is happening..........

Now what do you think happens to nations that run out of money and their population is unware it is occuring while the bankers are looting the little that is left??????

You may want to brush up on history.....you too may be shocked.

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#7) On October 14, 2009 at 10:12 PM, alstry (35.38) wrote:

THE TRUTH CAN BE HARD SOMETIMES TO ACCEPT...

Retired and Broke

 

Hard-hit by the recession, today's 55-and-over crowd is the age group most likely to declare bankruptcy.

 

Older Americans are heading into and through retirement with a boatload of debt. They're carrying everything from mortgages and home-equity loans to big credit-card balances, and many are finding the burdens harder and harder to bear. In the last eight years, the over-55 crowd has become the age group most likely to declare bankruptcy, according to the AARP.

The statistics are unsettling. More than half of people 50 and older who carry debt spend most of their monthly income paying it down. An AARP study released before the worst of the current recession hit found that a quarter of those folks spend more than 75 percent of their income on their debts. Americans 65 and older who carry credit-card balances saw their average balance rise to $10,235, up 26 percent from 2005, according to Demos, a public-policy research group.

IT IS WHAT IT IS.....AND OUR ECONOMY WILL NEVER BE THE SAME....IF THE CONSUMER IS NOT SPENDING....LESS IS GOING TO GOVERNMENT AND BUSINESS......AND IF THE CONSUMER AND GOVERNMENT IS NOT SPENDING....THERE IS NOT MUCH BUSINESS.....

WE BETTER RESTRUCTURE SOON AS REVENUES EVAPORATE...OR THERE WILL NOT BE MUCH TO RESTRUCTURE

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#8) On October 14, 2009 at 10:44 PM, jatade1 (38.82) wrote:

Alstry may be a little over the top...but then again maybe he is just seeing the iceberg up ahead.  The everything is getting better mantra is not showing up in real #s anywhere. Let's have a look see at latest state tax revenues for all 50 state.  Here is a good Alstry headline -

New Fiscal Year Brings No Relief From Unprecedented State Budget Problems*

 http://www.cbpp.org/cms/?fa=view&id=711

 

Even has the word "unprecedented" that he loves.   At least you have all been warned.  I dont know if things are as bad as Alstry makes it appear...but then again...might want to prepare for the worst and hope for the best.

 

jatade

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#9) On October 14, 2009 at 10:46 PM, Starfirenv (< 20) wrote:

Hey Al, So, what do mean? What are you really trying to say?
Sounds to me like Chicken Little;s already on the grill.
Damn. Time to start a new one. Sucks for you.
10.31--- Zombulation.

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