Daily Digest 2/1 - Cuomo's War on 'Permanent' Spending Increases, Construction Spending Low, Looking for 'Speedups'
- Andrew Cuomo Launches War on ‘Permanent’ Spending Increases
- Monday - Mubarak's Mood May Move Morning Markets
- Muni Madness: David Walker Says "Yes" to Bankruptcies, "No" to Bailouts
- When Will The Recession End? Part 139 Russia Admits It's Dead And Falling Apart
- Guest Post: The Road to Madness Is Paved With $100 Bills
- Construction Spending in U.S. Unexpectedly Fell to Decade Low
- Steve Case: Looking for 'Speedups,' Not Just Startups
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Every year, spending in certain segments of the New York state budget automatically increases a set amount — regardless of need, program efficiency, or the current level of inflation. So, for example, this year's budget includes an increase in spending on education and Medicare of 13 percent — even though the state is cash-strapped and inflation is actually closer to 2 percent. In an editorial printed in several state newspapers today, Governor Andrew Cuomo calls this system a "sham," and vowed to take it on.
This is what hyperinflation looks like folks - you're not supposed to pick 4 commodities and make over 100% in 60 days on what were not even particularly risky trade ideas. If everyone can make this kind of money, what good does it do you as it's just funny money being spit out by a broken system that will, eventually, become meaningless once that money begins to circulate again and people begin to realize just how much of it there really is flowing around (and how relatively worthless that makes it).
Now that the State of the Union has been addressed, let's turn our attention to the state of the states. Huge budget shortfalls in California, New York, Texas and Illinois - not to mention Meredith Whitney's appearance on 60 Minutes - have grabbed headlines and raised fears that municipal bonds will be the next debt shoe to drop. Meanwhile, a recent report by Moody's suggests other states such as Hawaii, Mississippi, Connecticut and W. Virginia are really in the worst fiscal shape when unfunded pension obligations are taken into account, asCNN reports.
A member of the Russian Advisory Council in the State Duma Committee for Regional Policy, Natalia Zubarevich, admitted that four large reasons will lead to the inevitable and inexorable death of the Russian Federation, as a result of which this country will cease to exist as a single entity and will be divided into independent states: "First, the quality of life is deteriorating in the Moscow metropolitan agglomeration due to growing infrastructure and environmental problems, while the population increases.
Indeed, all of Bernanke’s monetary policies and actions can be traced to his one core belief: that the US Federal Reserve didn’t do enough to stave off the Great Depression. Never mind that this belief is completely inaccurate (as the data clearly shows), it is the foundation of Bernanke’s entire academic and now monetary career. It is the lone road on his mental map of the world. It doesn’t matter that the road is leading us all to disaster, for Bernanke there is simply no other course of action to take. In his mind, the Fed failed to act in the ‘30s and so he MUST act regardless of facts, data, or consequence.
Mounting foreclosures and an unemployment rate that will average more than 9 percent in 2011 indicate homebuilding may take time to rebound. Non-residential projects also will slow as budget-constrained state and local governments restrict funding for public works such as highways. “Housing will remain lackluster for at least another year,” Harm Bandholz, chief U.S. economist at UniCredit Group in New York, said before the report. “The imbalances aren’t fully corrected yet.”
The campaign isn’t limited to early-stage companies or specific sectors or regions. “Our focus is as much on what we think of as ‘speedups,’ not just startups, says Startup America’s chair, Steve Case, best known as co-founder of AOL and an architect of its ill-fated merger with Time Warner. “Our primary focus will be on accelerating the growth of high-growth companies. They have to be demonstrating that they’re pursuing some product or service that really has the potential to scale. With the capital or mentoring or partnerships or what have you, they can break through and go to the next level.”
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