Use access key #2 to skip to page content.

alstry (35.96)

Will Governments Layoff Millions??????

Recs

9

July 07, 2008 – Comments (7)

“With sales taxes and housing fees plummeting, cities across Riverside and San Bernardino counties are trying to cover the shrinkage of their main revenue sources by laying off workers, trimming services and cutting back on extras such as travel and conferences.”

http://www.pe.com/localnews/inland/stories/PE_News_Local_S_oddcuts07.448d151.html

It ain't hard folks.

State and Local Governments depend on property and sales taxes for a significant part of their revenues.......and revenues are evaporating.

The new fiscal year started July 1st for many municipalities.....do you think many of our elected officials are in for a rude awakening when they realize that their grand plans simply does not have the funds to be implemented?

They can't say Alstry didn't warn em......hopefully, you have contacted you local leaders...I have. 

With housing down, sales down, and incomes down.....we should not be surprised if revenues come in 20% below budget this year and maybe more next year.

The fallout will be unprecedented in job losses and government spending cutbacks.

Just as growth begets growth, contraction begets contraction until the excess is wiped out.

In this case.....we still have tens of trillions of dollars of debt to deal with.........and only a few trillion of cash to pay it off.......................uh oh.

7 Comments – Post Your Own

#1) On July 07, 2008 at 9:45 PM, alstry (35.96) wrote:

“With 1,500 homes in various stages of foreclosure in Manteca that represents about 1 out of every 14 single-family homes in the city’s housing stock.”

http://www.mantecabulletin.com/main.asp?SectionID=28&SubSectionID=58&ArticleID=58413&TM=16470.86

Approaching 10% of the total housing stock is in some stage of foreclosure in this California town......think about that for a second.......is any of our politicans thinking????????

Report this comment
#2) On July 07, 2008 at 10:36 PM, jester112358 (28.87) wrote:

And that puts muncipal bonds in trouble too, unless we can rely on our trusty "bond insurers" like ABK.  And that may put some doubt into short term credit which backs most money market funds which we all use for short term cash our investment accounts.  I'm watching to see if any of these funds drops below the standard $1/share they try to maintain.  That would be a very bad sign.   There's a lot of bad debt to be unwound-caused by living beyond our means for the last 20 years.

Report this comment
#3) On July 07, 2008 at 10:38 PM, alstry (35.96) wrote:

"There's a lot of bad debt to be unwound-caused by living beyond our means for the last 20 years."

That could be the understatement of the last 30 years.

Report this comment
#4) On July 07, 2008 at 11:44 PM, jesusfreakinco (28.97) wrote:

I guess you are right about commercial vacancies.

http://online.wsj.com/article/SB121540139050031905.html?mod=todays_us_page_one 

Report this comment
#5) On July 08, 2008 at 12:25 AM, jesusfreakinco (28.97) wrote:

When it gets bad in Vegas, you know things are bad...

http://www.independent.co.uk/news/world/americas/down-and-out-in-las-vegas-860513.html

 

Report this comment
#6) On July 08, 2008 at 12:47 AM, jesusfreakinco (28.97) wrote:

Al,

This would mean the de facto nationalisation of the banking systems in the US, Britain and Europe...

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/08/cnbridge108.xml

These guys are starting to sound like Alstry.

Report this comment
#7) On July 08, 2008 at 1:01 AM, alstry (35.96) wrote:

This is clearly something to pay attention to....because once the nationalization bandwagon starts rolling........who knows where it stops.

You are clearly reading news that sometimes doesn't make it across the ocean.

Report this comment

Featured Broker Partners


Advertisement