Global Economy Bursting?

[Workbox]

The gold bubble is happening as I had stated in a past post. I wonder if this will cause/force money to go into Wall Street and push it up again and try to hit the 200 day moving average on the SPX. Just an observation.

 

[Restrain]

Gold and silver got hit by a margin call, not reflective of market. Investors had to sell to cover the margin. Look for an uptick next week

 

[Terrel L. Shields]

I agree that margin calls are impacting commodity pricing

We get a sort of roller coaster ride along the way

 

[Randolph Kinney]

Worried Greeks Fear Collapse of Middle Class Welfare State

http://www.nytimes.com/2011/09/25/w...future.html?_r=1&nl=todaysheadlines&emc=tha25

While banks and European leaders hold abstract talks in foreign capitals about the impact of a potential Greek default on the euro and the world economy, something frighteningly concrete is under way in Greece: the dismantling of a middle-class welfare state in real time — with nothing to replace it.

Since 2010, the government has raised taxes and slashed pensions and state salaries across the board, in an effort to rein in the bloated public sector that today employs one in five Greeks. Last week, the government announced it would put 30,000 workers on reduced pay as a precursor to possible termination and would cut pensions again for nearly half a million public-sector retirees.

Does anyone believe that could happen here? Social Security? Medicare and Medicaid? Unemployment payments? Food stamps? Military pensions? Postal pensions?

Don't forget the expiration of the Bush tax cuts in January 2013 - a $1.5 trillion tax increase across the board, and the bulk of it will fall on the middle class.

 

[Randolph Kinney]

The next Greece is about to happen

Gov. Brown unaware of state budget woes coming

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/09/24/BAR01L8BMA.DTL#ixzz1YyQHyMcC

Check in with legislative analysts - the state is on track to run out of money by Thanksgiving.

It turns out that the budget Brown signed had revenue projections that were ... well, I won't call them phony, but let's just say they've turned out to be several billion dollars short of accurate.

Plus, the courts stopped him from pulling in the money he was hoping to raise from redevelopment agencies across the state.

In other words, he's almost sure to have to pull the "trigger" on cuts to education and health and social programs that were included in the budget in case the state ran short of money.

I'm telling you, Brown is on the brink - and legislators are becoming concerned because they don't think he knows it.

 

[Randolph Kinney]

The California Meltdown

Last year alone, California lost 4,632 businesses — five times as many as in 2009 — according to an analysis by consultants at Idaho-based Economic Modeling Specialists Inc.

Numerous independent reports this year list California as having one of the nation's least business-friendly climates. Businesses in other states fear California's environmental regulations and government red tape.

Many business owners gripe that California's high taxes and fees, countless permitting hoops and other hurdles put companies at a competitive disadvantage compared to those operating in states considered friendlier such as Nevada, South Dakota and Texas.

California's corporate tax rate is 8.84 percent, while states such as Nevada, South Dakota and Texas assess no such tax.

High costs for land and environmental permitting requirements have boosted home prices in California, making it tougher for employers' workers to buy homes.

The Small Business & Enterpreneurship Council ranked California as having the seventh worst tax system based on 18 separate measures that included its 10.3 percent personal income tax rate, a 10.3 percent capital gains tax, and a 0.477 state gas tax.

High costs for everything from rent and gasoline to the lack of jobs has more individuals leaving to find work, and companies looking to thrive in the recession are more carefully weighing costs and options and moving to other states. For example, Intel will open a plant in Arizona and hire 4,000.

Gov. Brown insists on putting all of California's job-creating efforts into one green-colored basket. California needs jobs of all colors — green, blue, white or even purple.

 

[Terrel L. Shields]

47.7 ¢ state gas tax

....or roughly equal to what most states charge for both FEDERAL and STATE Motor fuel taxes.

 

[Randolph Kinney]

....or roughly equal to what most states charge for both FEDERAL and STATE Motor fuel taxes.

And ... California also has a sales tax which applies to gasoline at 7.25%. The $0.477 gas tax is an excise tax on a gallon of gasoline. At $4.00 a gallon, that's another $0.29 a gallon.

Service businesses get hit hard for their fleets of trucks that get crappy mileage.

 

[Riick]

• ...something frighteningly concrete is under way in Greece:
  • the dismantling of a middle-class welfare state in real time
  • — with nothing to replace it.

'The trouble with socialism is that eventually you run out of other people's money' -M. Thatcher
It certainly is a Pickle for the Greek people, but, it is a Pickle they themselves built.
I hope I don't sound like Gingrich when I'm reminded of this saying:
.......From shirtsleeves to shirtsleeves in three generations.

/

 

[Lloyd Bonafide]

Observing what is happening in Greece and the rest of Europe is like watching a gigantic slow-moving train wreck. And now the IMF may need a bailout?

There is no chance that this will end without Greece defaulting. It's just a matter of time. There is not enough money in the universe to bail them out, and the falling dominoes are going to be really ugly.