Daily Digest

Daily Digest - October 31

Saturday, October 31, 2009, 9:57 AM
  • Data Likely to Credit Stimulus for 650,000 Jobs
  • Energy-savings project leaves Army in the cold
  • Dead Government Walking
  • Stocks Sizzle As China Debuts Nasdaq- Style Stock Market 
  • Americans Becoming Increasingly Disheartened 
  • 650,000 Jobs Created/Saved By Stimulus? There’s No Way to Know 
  • California To Withhold A Bigger Chunk Of Paychecks Starting Sunday 
  • Nine U.S. Banks Seized In Largest One-Day Haul  
  • Do Banks Have Something To Hide?

Economy

Data Likely to Credit Stimulus for 650,000 Jobs (SteveS)

Obama administration officials expect new reports Friday to show that the government's fiscal stimulus program helped create or save about 650,000 jobs, a figure officials are prepared to tout as a sign of stimulus success. As mandated by Congress, the reports cover only $150 billion of the $339 billion stimulus spending that has occurred through Sept. 30.

Energy-savings project leaves Army in the cold (Livio S.)

Army officials say they are stuck with a system that consumes more energy than before. Over the 25-year life of the project, the Army could lose more than $100 million, according to internal Army documents. "There were no savings at all," said Army auditor Nayer Mahmoud, former chief of internal review at Ft. Richardson.

Dead Government Walking (Claire H.)

In case you failed to catch it in our previous articles this year, we thought we’d state it outright for our readers this month: the United States Government is on a trajectory to default on their obligations. In its current financial condition, it will not be able to fund its forecasted budget deficits and unfunded Social Security and Medicare promises on top of its current debt obligations. This isn’t official yet, and we don’t know when the market will react to it, but there is no longer any doubt about the extent of their trajectory. There simply isn’t enough taxing power, value creation or outside capital willing to support its egregious spending.

Stocks Sizzle As China Debuts Nasdaq- Style Stock Market (M.W.)

The ChiNext stock market, China's long-awaited Nasdaq-style second board, debuted on Friday with a speculative surge that more than doubled the price of all 28 stocks during intraday trade -- a good sign for companies lining up to list on China's stock markets.The bubbly open to a market that hopes to turn local start-up firms into budding Microsofts or Intels.

Americans Becoming Increasingly Disheartened (M.W.)

The new economic statistics put growth at a healthy 3.5% for the third quarter. We should be dancing in the streets. No one is, because no one has any faith in these numbers. Waves of money are sloshing through the system, creating a false rising tide that lifts all boats for the moment. The tide will recede. The boats aren't rising, they're bobbing, and will settle. No one believes the bad time is over. No one thinks we're entering a new age of abundance. No one thinks it will ever be the same as before 2008. Economists, statisticians, forecasters and market specialists will argue about what the new numbers mean, but no one believes them, either. Among the things swept away in 2008 was public confidence in the experts. The experts missed the crash. They'll miss the meaning of this moment, too.

650,000 Jobs Created/Saved By Stimulus? There’s No Way to Know (M.W.)

“One can search economic textbooks forever without finding a concept called ‘jobs saved’,” said Allan Meltzer, a professor at Carnegie Mellon University. “How can anyone know that his or her job has been saved?” The disparate estimates come down to the multiplier effect.

California To Withhold A Bigger Chunk Of Paychecks Starting Sunday (M.W.)

Starting Sunday, cash-strapped California will dig deeper into the pocketbooks of wage earners -- holding back 10% more than it already does in state income taxes just as the biggest shopping season of the year kicks into gear. Technically, it's not a tax increase. You'll get the money back eventually.

Nine U.S. Banks Seized In Largest One-Day Haul  (M.W.)

U.S. authorities seized nine failed banks on Friday, the most in a single day since the financial crisis began and the latest stark sign that substantial parts of the nation's banking industry are being crippled by bad loans.

Do Banks Have Something To Hide? (M.W.)

Even experts have a hard time getting a handle on how bad losses might get as the commercial real estate market implodes.

21 Comments

SteveS's picture
SteveS
Status: Gold Member (Offline)
Joined: Sep 6 2008
Posts: 358
Stimulus creates 650,000 jobs

If you take the amount of spending that has occured and divide by the number of jobs....

$150b/650k =~ $231,000 per job.

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
Re: Stimulus creates 650,000 jobs

Yeah, if you look here you can see the stimulus by state.  Lets see, DC got $2.7B and created/saved 2274 jobs.  That's $1.2M/job.  I guess we get to see how efficient DC is at this. YellI was working on a letter to send to the opinion column of our local paper pointing out the math.  What's really bad is the statment I found in the article that some of the jobs were only created for days or a few weeks....

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Re: Daily Digest - October 31

They could just give me the $231,000 directly.  I promise to spend it immediately.  Cool

Viva -- Sager

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: California to withhold an extra 10%

The link to the LA Times for the Article on The state of California withholding an extra 10% does not go to an article that discusses the new state tactic.

I am familiar with this new shell game they are playing though since my income will be effected. They will withhold an  extra 10% from state taxes for everyone on a payroll. They claim it is a legal manuver since you can get the overpayment back when you file your next tax return. However, the last time the state was issuing IOU's for tax refunds. I am sure they will do so again next year. So those that over paid taxes will have a difficult time getting it back.

I wish I had not already paid my quarterly taxes to the state.Yell

 

Ken

 

old_school_blue's picture
old_school_blue
Status: Member (Offline)
Joined: Jul 13 2008
Posts: 1
Re: Stimulus creates 650,000 jobs

If they were employed to sit, doing nothing, then that would be a valid measurement. However, they are doing something, so there is a benefit for their work. If they are building bridges, the result is not just a job, but also a bridge that is being paid for.

On the other hand, I worked as a software engineer. Including salary, benefits, office space, equipment, etc. That is about what it cost the company to employ me. So, perhaps it isn't out of line.

madhouse's picture
madhouse
Status: Member (Offline)
Joined: Mar 17 2008
Posts: 3
Re: California to withhold an extra 10%

I found this one... It looks like a 1% hike.

cheers,

http://www.nbcsandiego.com/news/business/Hey-California-Your-Paychecks-About-to-Get-Smaller.html

VeganDB12's picture
VeganDB12
Status: Platinum Member (Offline)
Joined: Jul 18 2008
Posts: 731
Re: California to withhold an extra 10%

I guess the state of CA  will give the refund via IOU like they did this year

http://turbotax.intuit.com/support/kb/state-taxes/state-issues/7541.html

 

I think this is called "stealing"

Headless's picture
Headless
Status: Gold Member (Offline)
Joined: Oct 28 2008
Posts: 363
Re: Daily Digest - October 31

Hey Arnold,

Re: Taking more of my money

See if you can find the accidental code in the following refusal of your offer:

F*** YOU!

.'s picture
.
Status: Silver Member (Offline)
Joined: Oct 22 2008
Posts: 167
Re: Daily Digest - October 31
Headless wrote:

Hey Arnold,

Re: Taking more of my money

See if you can find the accidental code in the following refusal of your offer:

F*** YOU!

 

complete lack of class

Tycer's picture
Tycer
Status: Platinum Member (Offline)
Joined: Apr 26 2009
Posts: 601
Re: Daily Digest - October 31
. wrote:
Headless wrote:

Hey Arnold,

Re: Taking more of my money

See if you can find the accidental code in the following refusal of your offer:

F*** YOU!

 

complete lack of class

So Period, I take it you do not live in California.

I don't either, and even though the extra 10% rape is not unexpected, it ticks me off too.

Granted it's a crass vent, I don't blame Headless one bit. If I lived there I'd be fuming.

Tycer's picture
Tycer
Status: Platinum Member (Offline)
Joined: Apr 26 2009
Posts: 601
Re: California to withhold an extra 10%
kenc wrote:

The link to the LA Times for the Article on The state of California withholding an extra 10% does not go to an article that discusses the new state tactic.

http://www.latimes.com/business/la-fi-state-tax31-2009oct31,0,2028140.story

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - October 31

idoctor's picture
idoctor
Status: Diamond Member (Offline)
Joined: Oct 4 2008
Posts: 1731
Re: Daily Digest - October 31

Headless's picture
Headless
Status: Gold Member (Offline)
Joined: Oct 28 2008
Posts: 363
Re: Daily Digest - October 31

. said: "Complete lack of class."

I make every effort to distinguish myself from what is commonly considered to be the class with "class," as Goldman Sachs has proven that class ain't what it used to be.

Just in case you haven't seen it or heard about it: http://blogs.sfweekly.com/thesnitch/2009/10/chance_that_schwarzeneggers_i.php

I actually like Arnold, but I couldn't resist the coincidence of factors (the gov saying "F*** you," and the timing of the tax increase) to make the joke; yes, it was a joke. 

rowmat's picture
rowmat
Status: Gold Member (Offline)
Joined: Nov 15 2008
Posts: 358
Re: Daily Digest - October 31

Yes indeed, don't blame Headless.

Arnie said it first...

"I'll be back...... then I fuck you!"

 

Headless wrote:

. said: "Complete lack of class."

I make every effort to distinguish myself from what is commonly considered to be the class with "class," as Goldman Sachs has proven that class ain't what it used to be.

Just in case you haven't seen it or heard about it: http://blogs.sfweekly.com/thesnitch/2009/10/chance_that_schwarzeneggers_i.php

I actually like Arnold, but I couldn't resist the coincidence of factors (the gov saying "Fuck you," and the timing of the tax increase) to make the joke; yes, it was a joke. 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Daily Digest - October 31

It's impossible for the banks to take a loss because they never loaned anyone anything.  Truth be known when all these loans go bad, all they do is gain through the foreclosure process.

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Daily Digest - October 31

What's the big upset about California using IOU's?  That is what we use for money right now.

horstfam's picture
horstfam
Status: Bronze Member (Offline)
Joined: Sep 6 2008
Posts: 71
Why won't all states do what Cali did?

Please forgive my lack of economic/taxation theory/law, but what is to keep all states from doing what California has done. In the state legislators' minds, they are simply "borrowing from their citizens now, and then pay them back next April- interest free". If this is such a "good idea", I am guessing that other states (and why not the Feds?) will do the same.

What action can be taken by the citizenry to stop the potential for every citizen to become a "lender" to the state? And, if the state should declare bankruptcy, does every citizen lose (or does Geithner write us a check, ha, ha)?

Also, I am curious why California thinks they are going to have $1.7 billion next April that they don't have now?

If anyone has information that can shed light on this, I would appreciate it.

 

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: Daily Digest - October 31

What action can be taken by the citizenry to stop the potential for every citizen to become a "lender" to the state?

Currently every citizen is a borrower from the banking system to the state.  Whenever the state can't raise money through taxes it has to sign a bond(loan) and pledge collateral(your property) to the private banking system.

If you want to stop this you'll have to support legislation like the MTA.  Read from bottom to top.

For more information on the MTA visit www.wealthmoney.org (the author of the bill and his website).  He has a lot of great white papers available.

Moderator Jason's picture
Moderator Jason
Status: Moderator (Offline)
Joined: Dec 23 2008
Posts: 98
Re: Daily Digest - October 31

I'd like to remind everyone that we have a forum policy against swear words.  This is to prevent the website from being blocked by private firewalls.  We want to ensure that this website remains available to everyone.

.'s picture
.
Status: Silver Member (Offline)
Joined: Oct 22 2008
Posts: 167
Re: Daily Digest - October 31
Headless wrote:

Hey Arnold,

Re: Taking more of my money

See if you can find the accidental code in the following refusal of your offer:

F*** YOU!

 

Someone has taken the above quote and edited it  from the original post on Saturday afternoon with the "uck" letters being removed. 

I would hate to see this website degenerate to the level of so many others on the internet.

Thank you.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments