Daily Digest

Daily Digest 8/3 - The Desperate Jobless, Municipal Insolvency & Bread Lines

Tuesday, August 3, 2010, 10:50 AM
  • 99 Weeks Later, Jobless Have Only Desperation
  • Another Manic Monday – Greenspan Finally Agrees With Me
  • US And Greek Cities Refuse To Service Debt As Next Stage Of Solvency Crisis Shifts From Sovereign To Local Governments
  • Sinclair: The Death of Market Fundamentals
  • Why Japan Is Doomed (and the U.S. and E.U., too): Demographics, Low Savings, Ballooning Debt
  • Federal Reserve to start the deflation fight next week, expert claims
  • China Officially Enters The Gold Market: Full Release Of PBoC's Plan To Expand And Develop China's Gold Infrastructure
  • Oil Spill Officials Shift to Long-Term Concerns
  • P&J Oyster and the BP Oil Spill
  • Fears Mount On Food Price Impact Of Russian Drought
  • Britons To Pay More For A Loaf Of Bread As Wheat Prices Jump

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Economy

99 Weeks Later, Jobless Have Only Desperation (jdargis)

Ms. Jarrin is part of a hard-luck group of jobless Americans whose members have taken to calling themselves “99ers,” because they have exhausted the maximum 99 weeks of unemployment insurance benefits that they can claim.

For them, the resolution recently of the lengthy Senate impasse over extending jobless benefits was no balm. The measure renewed two federal programs that extended jobless benefits in this recession beyond the traditional 26 weeks to anywhere from 60 to 99 weeks, depending on the state’s unemployment rate. But many jobless have now exceeded those limits. They are adjusting to a new, harsh reality with no income.

Another Manic Monday – Greenspan Finally Agrees With Me (Ilene)

Another conservative darling who turned on his masters this weekend is Reagan’s OMB Director, David Stockman, who eviscerated current Republican fiscal policies in a NY Times Op-Ed this weekend, summing it up neatly with the title: "How the GOP Destroyed the US Economy," which is a must read but here’s a few juicy tidbits...

Deleted for partisan content.

US And Greek Cities Refuse To Service Debt As Next Stage Of Solvency Crisis Shifts From Sovereign To Local Governments (bandv)

"Fasoulas said his municipality was not seeking privileged treatment but wanted to renegotiate the payment of its debts, paying larger installments at a lower interest rate." Surely, he is fully entitled to his ludicrous demands after what happened in Europe in the first half of 2010, and in the US in the past two years. We are only surprised that our own bankrupt cities haven't figured out that the right approach is precisely this: refuse payments unless demands are met.

Sinclair: The Death of Market Fundamentals (hucklejohn)

If Government continues to spend, they eventually go bust from debt. If they head down the austerity path, you’ll never have enough GDP to SERVICE the debt. They’re cornered. Devaluation de facto or de jure (i.e. default) is the only possible outcome short of waiting for inevitable systemic collapse along with the hyper-inflation which will give you about as much warning as a Tsunami on your visible horizon. As Mr. Sinclair has related, “Gold is financial High Ground, when a Global Tsunami hits.” Prepare accordingly.

Why Japan Is Doomed (and the U.S. and E.U., too): Demographics, Low Savings, Ballooning Debt (pinecarr)

"It can't happen because it hasn't happened." Japan, the E.U. and the U.S. will all discover soon enough that the false logic of magical thinking cannot counter the reality of imbalanced supply and demand of capital.

Federal Reserve To Start The Deflation Fight Next Week, Expert Claims (pinecarr)

His comments follow those of James Bullard, president of the St Louis Fed, who last week said the central bank needs to equip itself with a plan for further quantitative easing should it be required, and after the latest US growth figures showed the American economy deteriorated somewhat in the second quarter.

China Officially Enters The Gold Market: Full Release Of PBoC's Plan To Expand And Develop China's Gold Infrastructure (pinecarr)

With China owning a mere 1,064 tonnes of gold (sixth in the world and well behind both France and the GLD ETF in terms of holdings), which represent just 1.6% of its reserve holdings, there is only one way to interpret this borderline revolutionary press release. China has now officially entered the gold market.

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Environment

Oil Spill Officials Shift to Long-Term Concerns (jdargis)

“BP intends to be active in the restoration of the Gulf Coast for the long term,” said Scott Dean, a BP spokesman.

“But,” Mr. Dean added, “there is going to be a natural transition from a short-term emergency response, skimming and cleaning up beaches, over time to a long-term recovery and restoration organization.”

P&J Oyster and the BP Oil Spill (jdargis)

The company is the oldest oyster distributor and processor in the United States. “We’re a fifth-generation company,” Sal Sunseri said the other afternoon in his office. His nephew was sitting at a nearby desk, but no one was working much, owing to the lingering effects of the BP oil spill. “We shut down our shucking operation,” Sunseri said. “We’re still paying our bills, or trying to.” He sighed. “I need a plan."

Fears Mount On Food Price Impact Of Russian Drought (pinecarr)

The UK is warning that Russia’s drought could cause a double-digit percentage rise in food prices before Christmas.

Britons To Pay More For A Loaf Of Bread As Wheat Prices Jump (pinecarr)

Britons face paying more for a loaf of bread after wheat prices leapt due to a scorching July in Russia and calamitous flooding in Pakistan.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

26 Comments

saxplayer00o1's picture
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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

"Fed officials meeting on Aug. 10 will consider whether to use cash the Fed receives when its mortgage-bond holdings mature to buy new mortgage or Treasury bonds, instead of allowing its portfolio to shrink gradually, as it is expected to do in the months ahead, the report said, without citing sources.

Buying more assets was one of several options Fed Chairman Ben Bernanke outlined in testimony to a congressional committee on July 21, when he was asked what additional steps the central bank could take to bolster economic growth if needed.

St. Louis Federal Reserve Bank President James Bullard said last week that the Fed should consider buying more Treasury securities, instead of promising an extended period of low rates to support recovery, if inflation drifts lower.

Bullard said he was worried about the risks the United States could fall into a Japan-style quagmire of falling prices and investment that is hard to get out of."

......................1A) Bullard Says Fed Must Be Ready to Confront Deflation

"WASHINGTON -(Dow Jones)- The U.S. plans to borrow less than it had initially forecast for July through September but intends to borrow more for the next three months.

The Treasury Department Monday estimated it would borrow $350 billion in the quarter, down from its May forecast of $376 billion. A cash balance at the end of the quarter is $270 billion. Treasury attributed the lower estimate to lower spending, Treasury said.

But Treasury expects to borrow $380 billion for the quarter October through December, with a cash balance of $270 billion at the end of the three-month period.

During April-June 2010, Treasury issued $344 billion in debt and finished the quarter with a cash balance of $290 billion.

For the first nine months of fiscal 2010, the federal budget deficit topped $1 trillion. Last year, the shortfall widened to a record $1.42 trillion, as the government lost tax revenues because of an economic slump that drove up their costs to give benefits to the unemployed. "

"Aug. 2 (Bloomberg) -- The millions of troubled U.S. mortgage loans are overshadowing a reduction in delinquency rates, according to Amherst Securities Group analyst Laurie Goodman.

The number of delinquencies, when borrowers miss two mortgage payments for the first time, has decreased each month since March, according to Fannie Mae and Freddie Mac, the mortgage-finance companies under federal conservatorship that own or guarantee more than half of the $11 trillion U.S. home mortgage market. This development provides trading opportunities in mortgage-backed securities, according to the July 30 Amherst Mortgage Insight note.

Still, about one in seven homeowners is missing mortgage payments, and about 7 million loans will default, Goodman said today in a radio interview with Tom Keene on “Bloomberg Surveillance.”

“The housing market is by no means healthy,” Goodman said. “The big problem is you have so many underwater mortgages, and you have so many mortgages that are already delinquent that haven’t been liquidated, which just causes this huge overhang.”"

"Aug. 3 (Bloomberg) -- U.S. Treasuries fail to provide safety or liquidity when it comes to managing China’s $2.45 trillion foreign-exchange reserves, said Yu Yongding, a former central bank adviser.

“I do not think U.S. Treasuries are safe in the medium-and long-run,” Yu, a member of the state-backed Chinese Academy of Social Sciences, wrote yesterday in an e-mailed response to questions. China is unable to sell the securities in a “big way” and a “scary trajectory” of budget deficits and a growing supply of U.S. dollars put their value at risk, he said. "

"The cost of pegging the Chinese currency to the dollar is “intolerably high” and threatens the welfare of Chinese people, Zhang Ming, deputy chief of the International Finance Research Office at the Chinese Academy of Social Sciences, wrote today on the website of China Finance 40 Forum.

“The U.S. government has strong incentives to reduce its real burden of debt through inflation and dollar devaluation,” he said. “Whichever way it is, the yuan-recorded market value of Treasuries will fall, causing huge capital losses to China’s central bank.” "

"The slump in commercial real estate in the US is emerging as another potential headache for local governments already suffering from falling tax revenues in the wake of the recession.

The downturn in the property market could mean higher borrowing costs for boom towns such as Las Vegas and the so-called rust belt – cities facing industrial decline, such as Detroit and Cleveland – over the next few years, a report released on Tuesday by Fitch Ratings predicts.

If the commercial real estate market worsens, which we think it will, there will be downgrades and financing costs will rise for municipalities with pockets of commercial real estate,” said Eric Friedland, an analyst at Fitch Ratings.

He added: “This commercial property issue is just starting to bare its teeth. The impact will be drawn out over the next few years.”

The market for hotels, retail stores, office buildings and apartment complexes tends to lag behind the overall US economic cycle. In spite of a general recovery, Fitch expects the commercial property market to continue to deteriorate over the next one to two years."

.....................5A) California commercial mortgage delinquencies double in Q2

.....................5B) Office vacancy rates rise in central Ohio, Downtown

"Aug. 3 (Bloomberg) -- Consumer spending and personal incomes in the U.S. unexpectedly stagnated in June, showing a lack of jobs is hurting the biggest part of the economy.

The little changed reading on purchases followed a 0.1 percent gain the prior month that was smaller than previously estimated, Commerce Department figures showed today in Washington. Incomes didn’t increase for the first time since September and the savings rate rose to a one-year high.

Demand may take time to improve as the unemployment rate hovers near a 26-year high, shaking confidence in the economic recovery."

  • Other news and headlines:

 

Economist predicts UK and US will be forced to print more money

Italy trapped in slow lane as political crisis deepens (Ambrose Evans-Pritchard)

Nebraska hits rough patch on road fixes

Fitch downgrades Spanish bank that failed EU stress tests

Why fears of hyperinflation won't die (CNN Money)

Mexicana Passengers Forced Find Other Flights

Moody's Downgrades Another $1.7 Billion Of Subprime RMBS

Schools brace for more funding cuts (Nebraska)

22 Statistics About America’s Coming Pension Crisis That Will Make You Lose Sleep At Night

Gilroy's $100K retiree club grows

Wells Fargo/Gallup Small Business Index Hits Record Low, Future Expectations Dip Below Zero First Time Ever (Mish)

BP Oil Spill Will Cost Gulf Real Estate $3 Billion

Cuba eyes more self-employment as massive layoffs loom ("slash as many as one million jobs")

Maine State Workers Oppose Proposed Pension System Fix

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Nasa scientists braced for 'solar tsunami' to hit earth

Nasa scientists braced for 'solar tsunami' to hit earth

http://www.telegraph.co.uk/science/space/7923069/Nasa-scientists-braced-for-solar-tsunami-to-hit-earth.html

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

The dollar is getting stronger then weaker then stronger and weaker again, I hear inflation then deflation.  Heres a chart about the dollar.

http://vinceseconomicblog.wordpress.com/2010/08/03/the-dollar-continues-...

Does anyone have any opinions on deflation vers inflation.  I was all set on inflation but now am not so sure.

 

 

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
bandvbandv wrote:

The dollar is getting stronger then weaker then stronger and weaker again, I hear inflation then deflation.  Heres a chart about the dollar.

http://vinceseconomicblog.wordpress.com/2010/08/03/the-dollar-continues-...

Does anyone have any opinions on deflation vers inflation.  I was all set on inflation but now am not so sure.

If we take a slightly longer view of the dollar than seen in the blog you posted, I see two things; first a possible "triple top" which could imply a lot lower values for the USD going forward but, second, that the dollar is a long way from its former lows and until it breaks those lows could also be considered to be in a trading band.

So is it inflation or deflation?  Hard to say which is why we continue to track these things on a daily basis especially over in the enrolled member areas.   If you're interested in learning more and staying abreast of recent developments you should consider joining.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Re: The Ed Shultz piece.

First, was very suprised to see such an obvious political piece on CM. Has the site changed moderators? Is it going in a different direction?

Second, if we're going to go there, the simple solution for the 99'ers would be to create conditions favorable to businesses creating small businesses, jobs, lower taxes, lower regulations, etc. Extending unemployment benefits is not going to help them anymore than extending welfare has helped citizens of the inner cities. And oped pieces like this one, telling the 99'ers to stand up and demand action is classic cloward pivens leftist revolutionary rhetoric.

I'll be watching carefully to see where CM.com goes with this type of information. 

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

99 Weeks Later, Jobless Have Only Desperation

Regarding the lady in this article, I know exactly where she is coming from.   Back in the 1980's, I was a computer test engineer working for one of the world's largest computer companies, ICL.  It was, at the time, the British equivalent to our IBM, and it had North American subsidiaries.   I got laid off in 1982 when the US computer industry collapsed, and my family and I went through hell.   I learned some important lessons back then.

The most important was to never allow my education to blind me to the realities of life.  Like most people who work in hi-tech jobs making large salaries, I was cocky, over-confident, and totally oblivious to the fact that our economy is nothing but an illusion of our own creation.  It can fall anytime, just as fast as it was created, and when it does, there is no guarrantee that you will be able to find a job that pays anything like you were earning before. Therefore, I changed my philosophy to one where I would use my education to benefit me, not an employer.

I never worked in the computer industry again after that experience, and I limited my employment to only those jobs that I could reasonably expect my local economy to support on a timely basis should I get laid off again.  I kept my means within the anticipated income from those jobs, and it worked.  Today I own my own home, I owe no one, and now that my kids have grown up and are out on their own, I can retire on a monthly expense of less then a couple of hundred dollars.  I will never sacrifice security over comfort again, and no one else should either, but that is everyone's individual choice.

Unlike today, jobs in other areas during the early 80's were relatively plentiful, so I could find something else in another field.  Today, unemployment is broadbased, covering all fields, leaving very little for people to fall back on in catastrophic conditions.  To be honest, I got off very cheaply, and I feel deep sympathy for those getting laid off today as they will have a very difficult road to haul over the next few years.   I give all of them my best wishes for a timely end to their fear, anger, and frustration.  I know what they are feeling.  The worst thought they can have is to blame themselves for some elusive problem they believe must exist in their work history that prevents them from getting a job.  This is a common problem with the unemployed, and it is devastating to one's self-worth.  The truth is, if they were honest, hardworking, and strove to better themselves while they were employed, then they did absolutely nothing wrong.  They didn't let our society down; our society let them down.

 

 

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
bandvbandv wrote:

The dollar is getting stronger then weaker then stronger and weaker again, I hear inflation then deflation.  Heres a chart about the dollar.

http://vinceseconomicblog.wordpress.com/2010/08/03/the-dollar-continues-...

Does anyone have any opinions on deflation vers inflation.  I was all set on inflation but now am not so sure.

 

 

Hi bandvbandv!

Welcome to CM.

Oh man! LoL deflation vs Inflation is a BIG topic here. Here is a start:

 http://www.peakprosperity.com/forum/definitive-inflation-vs-deflation-debate-and-what-do-about-it-thread/20794

You may be interested in looking at the gold/dollar ratio also.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

LoL @ Davos

Are you speechless?

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

China will allow its banks to export and import more gold as part of a programme to push forward the development of the country's market in the precious metal, the central bank said on Tuesday.

The People's Bank of China, in a statement on its Web site, also said that it would allow banks to hedge their positions in gold in overseas markets.

It added that it would urge banks to lend more to domestic gold firms looking to go abroad, while also actively developing more yuan-denominated gold derivatives.

In addition, Yuan-denominated equity linked products could be launched in Hong Kong by the end of this year as the city's role as an offshore yuan-settlement market continues to expand, a senior Hong Kong official said.

"We're expecting to see some kind of channel in which Hong Kong yuan deposits can be reinvested in China in investment vehicles," K.C. Chan, Hong Kong's Secretary for Financial Services and the Treasury, told Reuters, adding that it was "possible" such products would be offered this year.

"The idea is quite well researched and quite well accepted in China ... it shouldn't be very far away with some type of early experimentation," he added.

Chan said he expected China's Ministry of Finance to offer more yuan-denominated sovereign bonds in Hong Kong as early as this year after last September's maiden offering.

"We hope to see regular issues of sovereign bonds," said Chan, adding that such issues would help deepen the city's debt market while offering a useful benchmark rate for companies that want to issue debt in the former British colony.

Companies and banks that have issued yuan bonds in Hong Kong have previously taken their cue from official government bonds in the absence of an official yuan rate, and the regular issuance of sovereign paper will help for benchmarking purposes.

China last month eased rules on the sale of yuan-backed financial products in Hong Kong and gave banks and financial institutions greater access to yuan funds, as part of the country's longer term strategy to fully internationalize its currency.

The move helped solidify Hong Kong's role as a financial intermediary between China and the rest of the world, a position also coveted by rival Shanghai.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Dear Mr. President:
         During my shift in the Emergency Room last night, I had the pleasure of evaluating a patient whose smile revealed an expensive shiny gold tooth, whose body was adorned with a wide assortment of elaborate and costly tattoos, who wore a very expensive brand of tennis shoes and who chatted on a new cellular telephone equipped with a popular R&B ringtone.
        While glancing over her patient chart, I happened to notice that   her payer status was listed as "Medicaid"! During my examination of her, the patient informed me that she smokes more than one costly pack of cigarettes every day and somehow still has money to buy pretzels and beer. 
        And, you and our Congress expect me to pay for this woman's health care?  I contend that our nation's "health care crisis" is not the result of a shortage of quality hospitals, doctors or  nurses. Rather, it is the result of a "crisis of culture",  a culture in which it is perfectly acceptable to spend money on  luxuries and vices while refusing to take care of one's self or, heaven forbid, purchase health insurance.  It is a culture based in the irresponsible credo that "I can do whatever I want to because someone else will always take care of me". 
        Once you fix this "culture crisis" that rewards irresponsibility and dependency, you'll be amazed at how quickly our nation's health care difficulties will disappear.
     

  Respectfully,

        Doctor MD

Culture Crises or Health Care Crises LOL...

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

No JO the MORONS edited his post

V

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

lol, I deleted it, thought CM said it better.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Was just reading something related, idoctor:

 

26.7 percent of Americans obese

* Obesity costs $147 billion a year

* Policy changes needed to address issue (Adds quotes from briefing throughout)

By Maggie Fox, Health and Science Editor

WASHINGTON, Aug 3 (Reuters) - More than 72 million U.S. adults, or 26.7 percent, are obese, up 1 percentage point in two years, the U.S. government reported on Tuesday.

Obesity has become "a major public health threat" and is steadily worsening, the U.S. Centers for Disease Control and Prevention reported.

"We need intensive, comprehensive and ongoing efforts to address obesity," CDC director Dr. Thomas Frieden said in a statement.

"If we don't, more people will get sick and die from obesity-related conditions such as heart disease, stroke, type 2 diabetes and certain types of cancer, some of the leading causes of death."

The CDC examined data from the national Behavioral Risk Factor Surveillance System, which surveys 400,000 people and asks about height and weight, among other things.

Looking state-by-state, the CDC found that 30 percent of adults in nine states are now obese. "In 2000, not a single state had an obesity prevalence of 30 percent or higher," Frieden told reporters in a telephone briefing.

 

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Banks Continue to Suffer From Lackluster Revenue: Whitney

http://www.cnbc.com/id/38543114

Despite relatively strong second-quarter earnings, US banks are still suffering from poor revenue growth and will continue to do so at least into next year, financial analyst Meredith Whitney told CNBC Tuesday.

Meredith Whitney on Closing Bell
CNBC
Meredith Whitney on Closing Bell

"It was a quarter of real revenue shortfalls, real revenue weakness, and I think that is a persistent theme that we’re going to see throughout the next several quarters," said Whitney, a former Oppenheimer analyst who now runs her own firm, Meredith Whitney Advisory Group.

Deal volume in the debt and equity markets is down 40 percent, Whitney said.

"Wall Street didn’t make a lot of head count changes and I think what you’re’ seeing now is the revenues don’t support the expense structure."

As a result, banks will have to rely on further cost-cutting and layoffs to maintain earnings, she said.

Whitney told CNBC in May that investors should "avoid financials at all costs," primarily because of the financial reform bill. But she said Tuesday that a bigger worry now is the revenue shortfalls caused by the still weak housing market and by a lack of deals on Wall Street. For that reason, she still expects financial stocks to do poorly.

In Europe, stress tests designed to measure the strength of bank balance sheets "were arguably negotiated," and didn't address the fact European banks are sitting on a lot of overvalued sovereign debt, Whitney said.

"The stress tests did a lot to tell you the obvious, a lot was not taken under consideration," Whitney said.

For investors, Whitney recommends looking at financials in emerging markets such as South America.

"There are parts of South America, parts of the world, that are really growing and are new fresh markets," Whitney adding, adding that "they carry a lot of risk."

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Thank you... vilanodavis... your post gave me hope for maintaining quality of this site.

Quality of this site will fall dramatically if these kinds of posts aren't called out, but better yet, should never make it as a post on this site to begin with.

Peter Schiff wrote a book called "How an economy grows and why it crashes". He wrote this to the junior high school level. The hope being that maybe both kids and adults who prove themselves mentally handicapped, like Ed Shultz and Congressman, might begin to understand the rudemetary basics of economics; and thus hopefully reduce such defecations of their gray matter they persist to prove is comprehensively ignorant.

I'm not necessarily opposed to helping those in need, but it needs to be done responsibly without stimulating growth of poverty.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

I buy from this farm what I don't grow myself.  Will be sad if it goes away, because it's these kinds of local farms that may be very important in the future.

http://www.msnbc.msn.com/id/38509917/ns/us_news/

After 378 years, N.H. family farm goes up for sale

Eleven generations and 378 years later, his field-weary descendants — arthritic from picking fruits and vegetables and battered by competition from supermarkets and pick-it-yourself farms — are selling their spread, which is among the oldest continuously operated family farms in America

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
Woodman wrote:

I buy from this farm what I don't grow myself.  Will be sad if it goes away, because it's these kinds of local farms that may be very important in the future.

http://www.msnbc.msn.com/id/38509917/ns/us_news/

After 378 years, N.H. family farm goes up for sale

Eleven generations and 378 years later, his field-weary descendants — arthritic from picking fruits and vegetables and battered by competition from supermarkets and pick-it-yourself farms — are selling their spread, which is among the oldest continuously operated family farms in America

This will be so sad  : (       maybe the picture of Davos sitting on the beach was too tempting for them  Wink.  It is so hard  for farmers to take time off or go on  a vacation .   One gal I know gets city people to pay her money to come out and do the chores ... like move cattle , feed the horses and chickens .       Maybe they should have done the pick-it-yourself farm ?  But for sure if the kids hearts are  not in it the family farm, ( you have to love the smell of dirt !) and the city life is too  appealing ( you know chasing a ball around a  golf course or spending a day at the lake ) the farm  is sold  . Happens over and over ... got to have the generation thing going .

 I hope some big corp. farm does not buy it  !

FM

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

I mean no disrespect to Ms.Jarrin,but in response to the unemployed "99ers" article, that embodies everything that is wrong with our country and the entitlement mentality we have.I cant imagine having a car loan with a 56k salary(or finance a vacation when i had a car loan).where i come from 56k is not too shabby.i think a person can drive a decent car paid for with cash on 56k.also,i couldn't in good conscience take a handout if i had a nice car,cell phone, and a computer.Another thing..I have worked some terrible terrible jobs which i hated,but never thought about swerving my p.o.s. car into a tree to avoid it.I am self employed now and my employees drive nicer equipment than i do.i pity them because they will be the ones worrying about their car loans when i have to lay them off because i cant afford to employ them because i have to pay for people who instead of working a job they don't enjoy,would rather take the handout from me and you.

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
MarkWB wrote:

Thank you... vilanodavis... your post gave me hope for maintaining quality of this site.

Quality of this site will fall dramatically if these kinds of posts aren't called out, but better yet, should never make it as a post on this site to begin with.

Yes, thank you vilanodavis for maintaining the ideological purity of this site. 

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Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
vilanodavis wrote:

Re: The Ed Shultz piece.

First, was very suprised to see such an obvious political piece on CM. Has the site changed moderators? Is it going in a different direction?

Nope, sometimes things slip past during the content aggregation.  I've removed the content because this site is and will remain strictly non-partisan.

But things may slip past again, as they sometimes do, so please feel free to flag any content that seems inappropriate for this site and we will review it and pull it if necessary.

Thank you!

osb272646's picture
osb272646
Status: Silver Member (Offline)
Joined: Mar 14 2010
Posts: 120
Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

"They didn't let our society down; our society let them down."

Well, maybe.   Even hard working people need to understand personal diversification and living below their means during the good times so they can get through the rough times.  At the end of the 99 week handout period, the lady in the article should now be accessing her nest egg that was built up during good times.  I don't think she has one.  If she had, then she wouldn't be whining about running out of her two years of handouts.

The real victims in this recession are the savers who lived below their means to accumulate something for the future, only to see it eroded through inflation and low interest rates in order to subsidize the spendthrifts and slackers and banksters.

 

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...
osb272646 wrote:

 

The real victims in this recession are the savers who lived below their means to accumulate something for the future, only to see it eroded through inflation and low interest rates in order to subsidize the spendthrifts and slackers and banksters.

 

Unless of course they have stored their wealth in something that has "gone up" (read: held it's value) 400% since 2000 +/-. But I agree, saves should be investing in things to make the world better, they shouldn't be forced to loose or hoard.

And Taxed2Death: We too drive "beaters" bought and paid for. In fact, when one car died at 150k I put a new engine in it - myself. My only regret was that the vehicle design wasn't ideal for a hybrid electric conversion. Even if I become super wealthy one day I will doubt I'd buy a vehicle that does no more than the one I have does (get me there safely). I have friends who look at cars differently, I don't knock them for that. I have seen folks get into trouble because they have 2 leased or borrowed vehicles and one or two of their incomes hiccups. 

bandvbandv's picture
bandvbandv
Status: Bronze Member (Offline)
Joined: Jul 30 2010
Posts: 26
Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Heres another inflation deflation article and video

http://vinceseconomicblog.wordpress.com/2010/08/04/stranguflation-deflat...

vilanodavis's picture
vilanodavis
Status: Member (Offline)
Joined: Sep 18 2009
Posts: 21
Re: Daily Digest 8/3 - The Desperate Jobless, Municipal ...

Thank you for the thanks. It is good to be among people who can agree to disagree on idealogy and yet exchange facts and proposed solutions.

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