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alstry (35.90)

The Cutting and Slashing Continues...

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July 30, 2009 – Comments (11)

The company got a possible lifeline this month with a tentative deal to cut wages of union workers further. If approved, the pay of some 35,000 union members will be cut by an additional 5 percent -- following a 10 percent pay cut earlier this year. That will save the company $45 million to $50 million per month.

http://finance.yahoo.com/news/YRC-Worldwide-posts-huge-2Q-apf-2258278872.html?x=0&sec=topStories&pos=4&asset=&ccode=

NEW YORK (AP) -- Citigroup Inc., one of the biggest recipients of U.S. government bailout money, gave employees $5.33 billion in bonuses for 2008, New York's attorney general said Thursday in a report detailing the payouts by nine big banks.

http://finance.yahoo.com/news/New-York-details-big-bonuses-apf-477571682.html?x=0&sec=topStories&pos=1&asset=&ccode=

It should not be too longer now...pretty soon we will have cut so much, there will be not much left to cut.  Just wait until the city, county and state budget cuts kick in over the next few weeks.

I spoke with a local government analyst this evening....revenues are continuing to evaporate consistent with my recent links.  A primary place being cut is services to the elderly and poor.  I asked her if there is any safety net for these people....and she was unaware of any and wasn't sure how they will compensate.

What happens to America when millions upon million of its poor lose funding and there is not a safety net or social structure to absorb them??  Then add in tens of thousands of police officers being released, courts shutting down, and thousands of prisoners being set free with little prospect of jobs.

Somebody better wake up soon......or it will be too late.

Prepare....9.09 seems to be the time.

11 Comments – Post Your Own

#1) On July 30, 2009 at 11:18 PM, Judochop172 (33.62) wrote:

I isn't just California...

http://www.usm.edu/blogs/coh/2009/07/are-truly-staggering-budget-cu.html

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#2) On July 30, 2009 at 11:23 PM, alstry (35.90) wrote:

The CUTTING AND SLASHING is everywhere...and it will have a profound impact on public safety if the public is not prepared for what is coming.

And based on some of the comments I receive from some CAPS players, the public is seemingly clueless.

Add in the Zombulator and its Zombulation effects...and most of the pensions in America will be gutted.....

The stock market is showing signs of life, and the housing market's plunge may even be bottoming out. But when it comes to commercial real estate, things are bad and about to get worse, according to consultants for Oregon's state pension fund.

The implications are potentially ominous, not only for the Oregon Public Employees Retirement Fund, which has pumped billions of state employees' retirement dollars into a market that looks increasingly wobbly, but for the commercial property markets around the Northwest.

The Oregon Investment Council, a citizens board that invests the $45 billion state pension fund, held its annual review of its real estate investments Wednesday. The numbers didn't look good, and according to Nori Lietz, a consultant with the Partners Group who advises the pension fund on real estate investments, "there's still more negative news to come."

And ironically, Lietz said, bankers have been foreclosing on the best assets in their loan portfolios because properties that still have decent cash flows are easier to manage internally or sell. That leaves them with loans on more marginal properties that are far more difficult to manage.

Leitz believes the government's policies to help banks unwind their problems may end up exacerbating them. Earlier this year, the Obama Administration relaxed accounting standards that forced banks to reflect the fair value of their real estate loans on their books. In theory, that buys time for the commercial real estate market to recover, and potentially bail banks out of some of their problem loans.

But if the market doesn't bounce back, banks will be saddled with billions in nonperforming loans and remain reluctant to lend, anchoring the economy indefinitely.

http://www.oregonlive.com/business/index.ssf/2009/07/real_estate_woes_threaten_oreg.html

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#3) On July 31, 2009 at 12:07 AM, alstry (35.90) wrote:

UNTIL WE PURGE THE DEBT.....OUR NATION WILL NEVER CORRECT!!!!!

DENNINGER AND ALSTRY SEE THE WORLD THE SAME

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#4) On July 31, 2009 at 12:14 AM, alstry (35.90) wrote:

Tens of thousands of unsafe or decaying bridges carrying 100 million drivers a day must wait for repairs because states are spending stimulus money on spans that are already in good shape or on easier projects like repaving roads, an Associated Press analysis shows.

http://finance.yahoo.com/news/AP-IMPACT-Bad-bridges-passed-apf-2377033878.html?x=0&sec=topStories&pos=main&asset=&ccode=

To heck with the bridges.....once the poor and elderly loose funding.......guess where they will be going for food and shelter.

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#5) On July 31, 2009 at 12:32 AM, bullnada (< 20) wrote:

 I have always said americans are soft. Its good you prepare us.  I will be so glad if people have to realy work for a meal or shelter. It will give the hard working real americans a leg up instead of the soft pencil pushers doing nothing. this is the working mans chance. Good luck you soft orange county ca. girls.

  It is so funny how the world always fixes itself. If you mess with her enough she will slap you down. Lets see build a city below sea level hmmmmmm new orleans. Try and rule the world goldman. Goldman will be humbled it is coming......................

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#6) On July 31, 2009 at 12:38 AM, alstry (35.90) wrote:

Shhhh.  Donner still thinks things are turning around.

What he doesn't realize is that the crash has not yet begun.  Just look at Bernanke's response in the Denninger video above.  He basically wants to bend America over and and hand it on a silver platter to his bankng buddies. 

How can you purge the debt from the bank's balance sheets and not the citizens?

As  wages keep getting cut but debt remains, more and more families will fail economically.

Trust me.....the masses will wake up and  when the do they will be ape sh*t mad.  Bernanke knows this, so does Congress, that is why the likelihood of a major distraction is becoming practically a certainty as our nation moves farther away from reality.

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#7) On July 31, 2009 at 12:41 AM, alstry (35.90) wrote:

As an aside, sorry for the spelling.....when I go back and read this stuff sometimes, it is pretty sad.....especially if I haven't been drinking....simply no excuse but proof reading is not my forte.

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#8) On July 31, 2009 at 1:28 AM, awallejr (79.96) wrote:

Alstry I always forgive typos, especially since I blog enough under the influence of scotch; tho ironic that you seem to indicate that your typos are a result of a sober state.  Now content is a different ballgame.

Bernanke will continue to get kudos from me.  He is making decisions I know he hates but feels he has to.  And time will prove whether they are right or wrong.  And while there are millions of people struggling out there, they still are trying. I see it plenty through my line of work.  Can be heartbreaking, but I won't sell Americans short, like I think you do.

We WILL get through this. The thieves got away with it, but sobering times are occuring and changes are being effectuated.  Companies are doing what they must, and Government will have no choice but to cut and tax.  Those underwater will simply file for bankruptcy and that debt just gets "poofed."  Investors get screwed I suppose, but the debt still gets "poofed."  Amazing what the "magic" bankruptcy gavel can do.

You aren't going to see massive riots, which I know you want.  You aren't going to see a collapse of the US, which I know you want.  You aren't going to see Armageddon, which I know you want. 

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#9) On July 31, 2009 at 1:36 AM, alstry (35.90) wrote:

awa,

If that is what I wanted, I would shut my mouth and not blog.

What you fail to understand is that there is no jobs for the unemployed....and hundreds of thousands are becoming unemployed each week with millions more getting wage cuts.

Families can no longer make ends meet....and when they go bankrupt there is little hope right now for employment.  I am not saying it will be like this forever, but if you think we are close to the bottom.....you are very mistaken.

The cutting has just begun and the blood has just started flowing.  Pretty soon it will be rivers of distress directing this mess.

As far as Bernanke doing a good job, so long as he purges the debt from the banks and not the people....it will not be too long before the banks own all the people.

Now it appears that is what you want, an America in distress and total servitude to its bankers.

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#10) On July 31, 2009 at 1:56 AM, awallejr (79.96) wrote:

The word "bankruptcy" puts the fear into bankers, not the other way around.  And that is increasing, which is how much of the debt you cry about will be dealt with.  This is feast time for the bankruptcy lawyers.

As for the "bottom", nope I never said we are at it. You've read enough of my replies by now.  I've been pretty consistent.  I've said it is going to take years.  I have said that I think by early to mid 2010 we should peak in unemployment, which I've pegged at a U3 cap of around 12%.  But the actual recovery will take longer than many might think.

Of course I can wind up being wrong.  I am not omniscient.  But you are the one blogging 5 times a day saying pretty much the same message.  Go for it.  I won't tell you to stop.  But make no mistake, anyone who does that has to truly want Armageddon.

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#11) On July 31, 2009 at 4:12 AM, brocksamson (28.74) wrote:

http://moremortgagemeltdown.com/download/pdf/T2_Partners_presentation_on_the_mortgage_crisis.pdf

 

awallejr: U3 unemployment will not peak at 12%, I assure you of this.  Just do some basic calculations on what the writedowns will be based upon the foreclosure rates, average prices, and the total capitalizations of the various housing sectors.  Then compare those numbers to GDP...

With the U.S. treasury auction actually *failing* today, and the fact that the average maturity on the debt is around 3ish years, interest rates will inevitably rise.  We'll see higher than 1970s interest rates within the next decade for sure.  If things are this bad already, imagine what they would be if short-term rates went to 20%.

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