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alstry (35.42)

There is just no money!

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July 26, 2009 – Comments (4)

SACRAMENTO, Calif. — California officials are warily awaiting the next round of state revenue figures, concerned that their latest budget-balancing efforts may not be enough to end a seemingly endless stream of deficits.

"We are still in troubled waters; there are still uncertainties," the Republican governor said. "We don't know how much longer our revenues will drop. We don't know if we may not be back in the next six months to make further cuts."

"It's entirely likely we will ultimately see further declines in revenue, which will almost certainly require further budget action," said Assembly Minority Leader Sam Blakeslee, a Republican from San Luis Obispo.

http://www3.signonsandiego.com/stories/2009/jul/25/us-california-budget-072509/?california&zIndex=138183

No Kidding.

There is just no money and what little is trickling in is consumed immediately.  No money to pay expenses.  No money to fund the pension.  No money for welfare.  No money to do much of anything and pay interest at the same time.

These guys know revenues are evaporating....they get the preliminary reports.  They have access to Rockefeller Institute data.

How long do you think the market will continue to permit extend and pretend?  Under what terms will California be able to borrow money as all know it can't sustain its current debt?

Sure the Feds can guarantee the debt, but they are running out of money too.  Why should the Chinese loan Americans money when they can make those same loans to Chinese?

9.09  Will anything happen by that time?

4 Comments – Post Your Own

#1) On July 26, 2009 at 9:48 AM, alstry (35.42) wrote:

THIS IS A WORLDWIDE ISSUE....

Citigroup is projecting that unemployment in Spain will rise from its current 17.9% to 22% next year.

Spain's unemployment is largely driven by the bursting of its housing bubble.

Housing bubbles are now bursting in China, France, Spain, Ireland, the United Kingdom, Eastern Europe, and many other regions.

And the bubble in commercial real estate is also bursting world-wide. See this.

So - unfortunately - unemployment could be a problem globally.

http://www.washingtonsblog.com/2009/07/unemployment-not-just-problem-in.html

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#2) On July 26, 2009 at 9:57 AM, brwn8484 (89.55) wrote:

Imagine this... Every time we cut taxes, revenue increases and every time we increase taxes, revenue decrease.  Let's see... what should we do? 

I know... lets raise taxes!  DUH   Must be America. Report this comment
#3) On July 26, 2009 at 9:58 AM, alstry (35.42) wrote:

With the jobless rate hovering around 11.5 percent in California and inching above the 10 percent mark in San Diego County, the specter of unemployment is more threatening than it has been in decades.

But the official jobless rate tells only half the story.

Dig deeper and you'll find that one out of five Californians who want to work cannot find full-time jobs — nearly twice the official unemployment rate.

“The official rate is just the tip of the iceberg,” said Murtaza Baxamusa, research and policy director with San Diego's Center on Policy Initiatives. “There are a lot of part-timers in this city who cannot find full-time work. And there are some people who have gotten discouraged from looking for a job at all.”

The official unemployment rate does not include people who haven't looked for a job in the past four weeks. It also does not count people who are working part time because they can't find a full-time job.

Those people are tracked in what's called the U-6 unemployment rate maintained by the Bureau of Labor Statistics, which paints a darker picture of the nation's job market.

As with the official unemployment rate, the U-6 rate has been climbing steadily since the recession began in December 2007. It crossed the 10 percent mark in June 2008 and hit 16.5 percent last month, compared with the official rate of 9.5 percent.

In California, the U-6 rate has nearly doubled in the past three years, jumping from 9.1 percent in 2006 to 17.7 percent in the 12 months ended in June. And the figure has continued to worsen. This spring, the U-6 rate in California averaged 20.3 percent, according to a New York Times review of Census Bureau data covering April and May.

The vast majority of people included in the U-6 rate are part-timers who cannot find full-time jobs because of “economic reasons” rather than personal preference. In California, such part-timers constitute 7 percent of the work force, compared with 3.7 percent when the recession began.

Although the part-timers are working, they sometimes bring in less money than job seekers who are receiving unemployment.

http://www3.signonsandiego.com/stories/2009/jul/25/us-data-jobless-show-dire-situation/?business&zIndex=138172

Just wait for the government layoffs kick in.............

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#4) On July 26, 2009 at 10:55 AM, brwn8484 (89.55) wrote:

Alstry ....Yes and none of this (skewed data) is news to many Americans who realize what is going on.  The govt has been using statistics to their advantage for years.  As a former engineer (now no work) I can tell you that statistics can embelish a lie like nothing else.  This (increasing Unemployment) is exactly what happened in the great depression.  10 years after the jobs/works/federal bailout (great depression) unemployment was over 20%.  Nothing new here.  Yet we continue to follow the same old worn out paths of the past. 

In Ohio, our unemployment picture is not much better.  Manufacturing jobs have been declining for over 25 years.  when I graduated from OSU is 1982 there were over 4 pages of technical job opportunities in the Col's Dispatch.  Each year the number of jobs availalble has declined.  Now you are lucky to see one column of tech jobs.  Sad thing is, we have millions of well educated people with no place to go except soup line.   Here is the sad story...our pol's and leaders have been driving our business overseas for years.  First throughtrade negotiations that favor foreign countries through lax regulation and trade policies and also through price fixing ( either through additional repressive legislation at home (domestic) or through lax regulation overseas.  I remember sitting in a materials engineering class in 1977 and the professor indicated that we should never buy Ceramic housewares or food utensils from China since many were contaminated with lead.... Fast forward 30 years and we still have the same problem.  DUH......   Any how... enough of my rant.  I could tell stories of incompetence and business deals that favored foreign companies over US but what is the point.  We still have leaders in power that are lying to us and claiming that they are helping the business domestically.  I say Bu??Sh**. If you want to help business here, then quit passing flawed and one sided trade agreements that favor our enemies.  Get rid of red tape and pass legislation that will allow companies to compete on an even playing field.  I can give you a 1000 ways to even the playing field but whats the point.  we have  a beauracracy in Washinton with a complete bias against the middle class in this country.  They have never had to survive at the working class level under their own regulations.

Ever wonder why our politicians are paid more than 90% of population, but cant even run a congressional lunch room at a profit?  Yes thats right... the leaders of the free world telling us how to fix manufacturing and business but for over twenty years they havnt been able to run their own lunch room at a profit?

Go figure..  And we keep electing these supposed geniuses time after time.  I say we deserve what we get.  Someone (wise) once said, "If the same conditons continue to apply, the same results will continue to occur".   Well,,, guess what... we have the same contions and the same results.    Yes thats right... If we want to change the outcome, we have to do someting different..  Like cut taxes, reduce regulation, fund key business technology and industry, cut minimum wage scales, etc, etc.   Exactly the opposite of what is being done today.

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