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alstry (36.34)

Why Don't We Outsource America????

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February 01, 2010 – Comments (2)

Now the MASSIVE wage cuts and job losses begin??????  We knew it was coming....right?

Nevada's budget outlook is so bleak that lawmakers doubt whether state government can remain afloat without drastic cuts to everything from prisons to schools to state parks and services for the poor and elderly.

Legislators met Tuesday with Republican Gov. Jim Gibbons to discuss how they will cope with a short-term deficit of about $900 million during an upcoming special session of the Legislature. Some Democratic lawmakers acknowledge options to bridge the gap probably won't include tax increases.

"It is important for all of us to understand how dire it is," Senate Majority Leader Steven Horsford, D-Las Vegas, said. "The things we attempted to protect are now going to be considered for reduction or elimination."

Assemblyman John Oceguera, D-Las Vegas, said pay cuts and layoffs for state employees are probably inevitable. "These are drastic, drastic cuts. I would be surprised if some folks didn't lose their jobs," Oceguera said.

Mark Taylor, deputy state controller, estimated that saving $1 billion through pay cuts, if implemented in March, would mean reducing salaries of state workers, teachers and university and community college faculty and support staff by 25 percent to 30 percent through June 30, 2011.

Taylor said such a cut would hit lower-wage employees extremely hard, especially because some lower-paying jobs are held by single parents raising children. There had been talks that salary cuts would be made only to employees earning more than $40,000 a year.

It would be much cheaper if all Americans simply moved to Mexico.....after all, if we keep firing half a million workers per week, it will not be long before most of America is not working.

New York City will have to lay off more than 10,000 public workers, in addition to 8,500 teachers, if the state legislature approves the $1.3 billion of cuts the governor proposed in his deficit-closing budget, Mayor Michael Bloomberg said on Monday.

The mayor, in a speech to the legislature, estimated 3,150 police officers would be cut, reducing the force's "operational strength" to 1985 levels.

About 1,050 firefighters would have to be let go, along with 900 correctional officers, and the city would have to cut its daily inmate population by 1,900, he said. The number of at-risk children that service workers monitor would fall to 2,700 from 9,000, Bloomberg said.

http://globaleconomicanalysis.blogspot.com/2010/01/massive-layoffs-coming-in-nyc-nevada.html

The recovery keeps getting better and better.....hurry and run out and buy houses.....pretty soon no one will want to as the Zombulator destroys the industrial economy.

2 Comments – Post Your Own

#1) On February 01, 2010 at 2:26 AM, alstry (36.34) wrote:

When an honest home builder can no longer compete in America.....it is time to outsource our economy.  Here is how public builders are reporting such nice numbers lately....notice it has nothing to do with making money building homes......

BEAZER HOMES

-In late summer and early fall, the company bought back $384 million of its bond debt for $220 million, boosting its net worth by $130 million after expenses.

-Thanks to the government's extension of the net operating loss provisions in the tax code, the company is expecting to receive a $101 million cash refund in the first quarter of 2010.

-Over the holidays, the company sold 18 million shares of new stock and $50 million shares of notes that will convert to stock in 2013, bringing in roughly another $153 million.

-And, most recently, in a rather unusual debt restructuring move, the company was able to take advantage of accounting rules to add between $54 million and $61 million to its net worth by simply swapping $75 million of junior subordinated trust preferred securities due in 2036 for $75 million in junior subordinated notes due in 2036.

While the new securities have almost the same terms as the old and they add no real new cash to the company's coffers, the move did trigger a mark-to-market accounting rule that requires the company to lower the value of the notes to their new value, effectively decreasing the company's book debt and increasing its net worth.

The exchange comes with a couple of other advantages. The new debt has a floor and a cap on interest rates, while the old debt floated after 2016 without caps, so now the company and the note holders have more certainty about the interest rates. Plus, should the company choose, it could buy back the debt at a discount.

"This is good for Beazer because it helps give them more runway so they don't blow covenants," said Tony Avila, of Avila Advisors, which helped Beazer negotiate the swap with the holders of the $75 million in debt. The task was difficult because it was syndicated among many investors after it was issued in 2006, and they had to agree to the switch.

http://www.bigbuilderonline.com/industry-news.asp?sectionID=363&articleID=1182218

Incredible....as hundreds of thousands of workers have lost their jobs in the homebuilding industry.......we permit this nonsense to continue as we manipulate debt and shut down our economy.

 

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#2) On February 01, 2010 at 2:33 AM, alstry (36.34) wrote:

BUS FARES GOING UP 25% FOR STUDENTS AND ELDERLY

SAN MATEO, Calif.—People who rely on buses for transportation in San Mateo County will soon have to begin paying a bit more.

Under increases approved in September by the San Mateo County Transit District board, one-way fares will go up 25 cents to $2.00 on SamTrans buses. The fare charged on the remaining express line the district operates will climb 50 cents to $5.

Youth fares will also jump a quarter to $1.25, while prices for seniors, the disabled and Medicare cardholders will increase by 25 cents to $1.

It's the second time in a year SamTrans has hiked its fees.

The higher fares come as the transit district struggles with a $28.4 million budget deficit. SamTrans has also reduced it service schedule by 7.5 percent and has made some administrative cuts, including layoffs.

WHILE CITIES ACROSS AMERICA ON THE BRINK OF BANKRUPTCY.....

Miami Leaders Fear a Financial Melt Down 

Pennsylvania Capital Ponders Bankruptcy

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