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alstry (36.00)

Almost EVERY American... 30-70% Paycut????

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March 30, 2009 – Comments (9)

Many Pilots are making about 40% less than they used to a few years ago.

Many Auto Workers are making about half if you factor benefits.

Many Real Estate agents are making about 66% less than they did a couple years ago.

Graphic Artists, Advertising, Construction and on and on and on.....

Company after company in America are demanding workers to take paycuts.  Expect this trend to expand as we go forward. 

Recently IBM announced it is shipping ANOTHER 5000 jobs to India due to lower labor costs.  Manufacturers have outsourced millions of jobs in recent years.  Technology companies are doing it more and more.  Now, even radiologists and other medical specialties can be done overseas at a fraction of the cost.

The problem is that many of the above workers have not reduced debt as their wages decreased....as a matter of fact, many have had to increase debt simply to pay for health insurance and food for their families. 

As the debt has increased and the wages decreased.....more and more have had to say FU.....as the trend continues and the government only bails out the banks....expect millions more to say FU.

If your wage hasn't been cut....don't fret.....it likely will....Alstry is almost positive.  You see, revenues are drying up at almost every company and municipality in America.....NOT all yet....but definitely most.

I am talking to lawyers, doctors, and business owners who have seen their incomes drop hundreds of thousands  per year....these are people who thought their incomes were recession proof.  Let me inform you, under the Alstrynomic theory of Concentric Contraction....NO INCOME IS RECESSION PROOF!!!!

I have been warning you about this phenomenon for over a year.....I told you to prepare.  Pay down debt....raise cash.....and move to higher ground as the tsunami hits the shore.  It is very rewarding to hear that a number of you have prepared.....those that havn't there is still time.

If you think we are close to the bottom.......that is fine.....but Alstry is just starting to sip on his bloody.......as from this view on the hill........we must all make sacrifices to unwind the greatest debt bubble in history.....and judging on how relatively small the debt default has been so far... the sacrifices are just beginning.

Some of Alstry's Early Predictions...

Home Values would drop 70-80% from Peak.  We have already seen 50% and more drops in a number of locations.

Commercial Real Estate Values will Drop 80-90% from Peak....we are already seeing 50% declines at the early stages.

Stock Market Correction of 80-90% from Peak.....we are already at 50%.

Wage Cuts between 50-75%.  We have already seen cuts of 50% or more in a number of professions.  Expect a lot more to come.

This not something to fear...it is necessary so our wages can be competitive with Asia so the outflow of jobs stops.  And for those of you that don't think the Indians and Chinese are creative....it is obvious you are not very friendly with the natives like Alstry....and now that they are the repcipients of capital......you are about to find out just how creative they are.....

The world is flatening out....anyone with a bit of insight could have seen it coming....those that practice Alstrynomics have been warning people for the past few years.

Now CAPs is the exclusive place where you can read  Alstry's wisdom day after day.  Hopefully some of you will benefit.  I know Alstry has become a much much better trader from CAPs...for that he thanks you all.

PREPARE....DON'T FEAR.

 

 

9 Comments – Post Your Own

#1) On March 30, 2009 at 5:54 PM, alstry (36.00) wrote:

PREPARE....DON'T FEAR!!!!! 

GO TO JAIL.....if you can't pay

People are leaving their cars at the Dubai airport and fleeing the country because they can't afford to make their car payments and Dubai has jail consequences for failing to stay current with debt obligations.

But that is just some backward bass Middle East Country...no reason to worry in America!!!!!!!!

You think its much different here??????

DETROIT – The American Civil Liberties Union of Michigan asked for an emergency hearing today on behalf of an Escanaba woman sentenced to 30 days in jail because she is too poor to reimburse the court for her son’s stay in a juvenile detention facility.

“Like many people in these desperate economic times, Ms. Nowlin was laid off from work, lost her home and is destitute,” said Michael J. Steinberg, ACLU of Michigan Legal Director. “Jailing her because of her poverty is not only unconstitutional, it’s unconscionable and a shameful waste of resources. It is not a crime to be poor in this country and the government must stop resurrecting debtor’s prisons from the dustbin of history.”

In December 2008, Ms. Nowlin’s 16-year-old son was sentenced to the Bay Pines Center and Ms. Nowlin was ordered to pay $104 per month for his lodging. At the time of this order, Ms. Nowlin was homeless and working part-time with a friend after being laid off from her job. She told the court that she was unable to pay the ordered amount, however the judge found her in contempt for failing to pay. In addition, Ms. Nowlin’s requests for a court appointed attorney were denied.

Since March 3, 2009, Ms. Nowlin has been serving her sentence at the Delta County Jail. On March 6, 2009, she was released for one day to work. Once released she picked up her $178.53 check from work thinking that she now could pay the $104.00 to get out of jail. However, upon her return to jail that evening, the sheriff forced her to sign over her check to the jail to cover $120.00 for “room and board.” She was also charged $22 for a drug test and the booking fee.

According to the ACLU’s motion: “This country did away with debtors’ prisons more than a century ago. The imprisonment of Ms. Nowlin because she is too destitute to make payments to the court is a miscarriage of justice.”

In representing Ms. Nowlin, the ACLU of Michigan argues that the court unconstitutionally sentenced Ms. Nowlin to a debtors’ prison without assessing her ability to pay the court. Additionally, the court violated her rights by denying her request for a court appointed lawyer.

Recently, the ACLU of Michigan represented David Sutton of Detroit whose probation was extended because he could not afford his supervision fees. Mr. Sutton has no assets and his only income is the $262 monthly disability check he receives from the government. In 2003, Sutton was sentenced to probation for a year following a conviction in Wayne County Circuit Court. He performed community service and fulfilled all the conditions of his probation except one – he was not able to pay the supervision fee. Consequently, a Wayne County Circuit Court judge extended his probation year after year.

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#2) On March 30, 2009 at 5:56 PM, vriguy (80.00) wrote:

The take home lesson is - if at all possible, do not do a job that can be outsourced. Plumbers and electricians, and neurosurgeons and nurses will have jobs, but they will face pay cuts, and possibly increased competition. The rest of us are more vulnerable.

 

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#3) On March 30, 2009 at 5:58 PM, Seano67 (26.69) wrote:

Good freaking lord, Alstry...how in the hizzell do you manage to score over 17 points per CAPS pick you make????? Sorry that's off-topic to your thread, but I just noticed that, and damn dude, that's really impressive.

Anyway, I'm with ya. I don't think we're anywhere near the bottom yet either, unfortunately. IMO there are so many fundamental weaknesses and so much that is wrong both within the economy as well as within our government's attempts to 'manage it', that I get kind of creeped-out and highly anxious just thinking about the future.

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#4) On March 30, 2009 at 6:04 PM, Kenaida22 (< 20) wrote:

I guess i'll be holding my 200 shares of FAZ awhile longer.

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#5) On March 30, 2009 at 6:17 PM, motleyanimal (58.42) wrote:

You forgot to mention that the unemployed got a $25 raise with the last unemployment extension. Just like a bull market, there is always a rainbow somewhere. ;)

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#6) On March 30, 2009 at 7:18 PM, Varchild2008 (85.92) wrote:

See!!  This is how Pres. Obama is shrinking the Rich to Poor gap.  Soon everyone will be equally poor and isn't equal outcomes the absolute bestest thing?? fun...ya?

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#7) On March 30, 2009 at 7:43 PM, 119862913 wrote:

Geez, if we hadn't spent so much on the 911 war. Darn it. That darned Bin Laden said FU to America!!! I sure hope we don't trace that back to any, shall we say, organization other than Al Qaeda (chess players quite likely).  There might just be a BIG OLE FU on the way from Uncle Sam.

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#8) On March 30, 2009 at 9:21 PM, BullMktAg (< 20) wrote:

Alstry, I almost want to take you seriously.  Too many ellipses.

 I do like the way you think, though.  You're probably not far off from the mark.

 What do you make of Russia partially reverting to the GOLD STANDARD to ease their own woes?

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#9) On March 30, 2009 at 11:49 PM, thisthatother47 (89.05) wrote:

How about just switching to a 3 day work week?!

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