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alstry (35.70)

Anyone Have $4 Trillion Laying Around????

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January 05, 2010 – Comments (7)

We already know about the massive city, county, and state budget defcits.  And the liklihood that the Fed is going to need to borrow $2 Trillon this year alone....Now this?????

US Public Pensions Facing $2,000 Billion Shortfall

American's Job Satisfaction Falls to Record Low 

Bill Allowing NJ Municipalities to Defer Pension Payments Stalls 

AT SOME POINT....EXTEND AND PRETEND RUNS OUT OF MONEY.......

This money is supposed to fund projects like school buses, special education, reading programs and early childhood development. But the money's not coming, instead getting added bill by bill to an already $4.5 billion IOU the state has for services from schools to homeless shelters.

But the same state that's no longer paying for these programs legally requires them.

Unlike the usual budget bellyaching when political pressure can make money appear, this time is different, said state Rep. Linda Chapa LaVia, D-Aurora. There is no money. "This is not a false alarm. This is not someone pulling a fire drill. This is a fire," Chapa LaVia said.

http://www.suburbanchicagonews.com/beaconnews/news/1971602,2_1_AU04_STATEMONEY_S1-100104.article


FIRE??????????

Is that what it takes for a politician to undertand Zombulation?????   The point when you run out of income, savings, and access to credit.

7 Comments – Post Your Own

#1) On January 05, 2010 at 7:28 PM, alstry (35.70) wrote:

IT HAS NEVER BEEN THIS BAD....NOT EVEN CLOSE!!!!!!!

Already this school year, Oswego has borrowed about $3 million from its working cash fund to cover the missing school bus money, said Executive Director for Finance Tim Neubauer. "Major" cuts are planned in other areas.

Neubauer, who has worked in Illinois school finance for more than a decade, said it has never been this bad.

"No. Absolutely not. Not even close," he said.

AND WE ARE BEING TOLD THE RECESSION IS OVER????

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#2) On January 05, 2010 at 7:49 PM, wvillegas007 (< 20) wrote:

"We have in this Country one of the most Corrupt Institutions the World has ever known. I refer to the Federal Reserve Board... This Evil Institution has impoverished... the people of the United States... and has practically bankrupted our Government. It has done this thorugh... the corrupt practices of the moneyed vultures who control it."

Louis T. McFadden, 1932.

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#3) On January 05, 2010 at 7:57 PM, alstry (35.70) wrote:

wv,

It is amazing how Fools become deer in the headlights when they confront real numbers......my guess is they hope that the problems can just be printed away.

If that was the case, why does government tax citizens, why is there budget shorfalls, why is their poverty or recessions?????

I am not even sure if there is $4 trillion dollars in total savings in America.....and that only covers one year's deficit against a base of declining revenues and rising expenses.

These days remind me of the dot com days when money became eyeballs.....until people realized that eyeballs couldn't pay salaries or rent.

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#4) On January 05, 2010 at 8:03 PM, StatsGeek (29.95) wrote:

What's your new date of annihilation, Alstry?  If you live long enuf, you'll eventually get it right.  :)

FYI, I'm almost as big a pessimist as you but I know I can't time a market that is controlled by a printing press.

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#5) On January 05, 2010 at 8:17 PM, alstry (35.70) wrote:

Stats,

It is much bigger than timing the market.  I am now starting to go out and speak personally to business leaders, politicians, and judges on Zombulation.

Today I met with the CEO of a private equity firm with six portfolio companies.  Right now most of his businesses are having a tough time collecting receivables and revenues are contracting significantly at 5 out of six businesses....and at the same time, banks are sticking it to him shifting from lower cost commercial lending to higher cost asset based lending.  This person was a social acquaintance and I initiated the contact and meeting.  I told him if I tried to explain Zombulation to him a year ago....he would have not been able to relate.  He agreed and he has a law degree and been in business for over 25 years.  Now he understands both the implications and the consequences and appreciates the importance of being proactive.

If we as a nation don't prepare for what is coming......we are very ill  prepared structurally to react to it. 

RIght now, when you have two private parties to a contract, and the government bails out only one party, you put the non bailed out party in a very vulnerable position.  When you are bailing out a few banks and sticking it to tens of millions of Americans......you create a mess and a serious Equal Protection Constitutional issue that will effectively shut down the entire nation and potentially cause social unrest.

The Illinois article is representative of what is likley going to happen nationally....as cash flow keeps decreasing, our nation is going to continue shutting down at an accelerating rate as we proceed through the year.....it will only be when the pain threshold gets high enough that most will be aware....but at that point it may be too late.

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#6) On January 05, 2010 at 9:06 PM, alstry (35.70) wrote:

Shutting Down Accelerating.........................Tonight!!!!

CLEVELAND, Ohio --The Cleveland school district will close 18 schools under a sweeping "transformation plan" announced Tuesday by Chief Executive Officer Eugene Sanders.

Almost all of the schools are on the East Side, which has been hit hard by foreclosure and is littered with abandoned homes. The most notable names on the list are those of two high schools, South and East.

..... In all, Sanders wants to shake up or shut down more than a third of the system's 110 schools.

Notice we don't hear about  too many new schools opening anywere???  Blighted area areound the nation is growing as America  contunies slowing and  foreclosing.  It is very unlikely to be growing when we are shutting down so quickly and tax receipts evaporating.

Somebody is lying or unaware of true conditions!!!!!!!!!

It is amazing that our politicians and bankers are still getting full salaries when they are cutting so many off of credit and yet they are extending as much as they need to themselves.

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#7) On January 05, 2010 at 10:39 PM, oshiri (< 20) wrote:

Hey Al . . .

      My mother in the western suburbs is a recipient of PERA, the "Public Employees Retirement Association" public pension. I have recently read their Autumn 2009 newsletter and something really bothers me.

     While they, and other government worker's pension funds know they are underfunded, they are giving their beneficiaries a 2.5% increase in benefits for 2010! Like, um, WTF???

     This seems to be going on everywhere -- public pensioners are not taking in the shorts, we are :-(

     BTW . . . contrary to the declared Photoman cancellation, Saturday is still a go . . . our legal rescheduled . . . bring on 15 below!

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