Global Economy Bursting?

[Randolph Kinney]

Wells Fargo Seizes Stockton California City Hall, Parking Garages; City Prepares Bankruptcy

http://globaleconomicanalysis.blogspot.com/2012/06/wells-fargo-seizes-stockton-california.html

 

[Terrel L. Shields]

Stockton is symtomatic of any number of towns...wait until the spector of bankruptcy hits a really large city. Are they "too big to fail" ? Maybe. Look at Atlanta. They are financially supposedly in good shape. But home prices there have fell. If property taxes fall by the 17% prices have....what impact upon a budget does it have? And most cities seem to think that prices will rebound and/or stay high enough to keep them afloat. Long-term I see property taxes as slow growth for generating revenues to cities. Sales taxes will rebound first.

 

[William K]

Anyone else noticing how the govt keeps revising prior months figures down more often. Oops our mistake

(I wonder, did they get that "idea" from NAR or did NAR get it from them?:icon_idea

 

[Workbox]

Anyone else noticing how the govt keeps revising prior months figures down more often. Oops our mistake

(I wonder, did they get that "idea" from NAR or did NAR get it from them?:icon_idea

All I know is that someone is going or is already burning in hell for that along with the inventor of aluminium siding. :new_smile-l:

 

[Randolph Kinney]

Solar Panel Payments Set Off a Fairness Debate

Fairness and who pays for the system fixed cost will eventually kill net metering

http://www.nytimes.com/2012/06/05/b....html?nl=todaysheadlines&emc=edit_th_20120605

In California’s sun-scorched Central Valley, the monthly electric bill can easily top $200. But that’s just about what George Burman spent on electricity for all of last year.

Mr. Burman says the credit system, known as net metering, is a “very nice benefit” for him. But it’s not such a good deal for his utility, Pacific Gas and Electric.

As he and tens of thousands of other residential and commercial customers switch to solar in California, the utilities not only lose valuable customers that help support the costs of the power grid but also have to pay them for the power they generate. Ultimately, the utilities say, the combination will lead to higher rate increases for everyone left on the traditional electric system.

“So why should a low-income customer have their rates go up for the benefit of someone who puts on a solar panel and wants to be credited the retail rate?”

In a closely watched decision that could influence the path of other states, California regulators decided last month to effectively double the amount of solar power capacity eligible for net metering. More than 60,000 people wrote to the Public Utilities Commission in support of raising the cap, which would allow new customers to continue being credited at a high rate for electricity they produce but do not use.

But representatives of the three major utilities that are covered by the decision said it would simply shift the fixed costs of maintaining the electric grid, which are embedded in electric rates, to other customers.

And as more solar customers, often big power users, pay the utilities less, the utilities say they will raise rates to recover their costs from a shrinking customer base.

Dan Skopec, a vice president at San Diego Gas and Electric, said that the transfer to net metering customers could add up to $1.4 billion a year by the time the state reached the new cap.

 

[Terrel L. Shields]

“So why should a low-income customer have their rates go up for the benefit of someone who puts on a solar panel and wants to be credited the retail rate?”

Exactly...Think if 90% of the people get on the solar grid...the remaining 10% would be paying for 100% of the infrastructure costs. They should be paid a wholesale price and still have to pay a minimum monthly charge to maintain the system.

 

[PropertyEconomics]

Less conventional demand less conventional production ... there may be a raise in rates because of the cost of solar but it most probably will not be as dramatic as indicated.

 

[berniek]

San Diego, San Jose voters embrace pension cuts

http://www.cbsnews.com/8301-201_162-57448189/san-diego-san-jose-voters-embrace-pension-cuts/

 

[Randolph Kinney]

San Diego, San Jose voters embrace pension cuts

http://www.cbsnews.com/8301-201_162-57448189/san-diego-san-jose-voters-embrace-pension-cuts/

Public employee unions that aggressively fought the measures weren't able to overcome the simple message supporters used to attract voters in San Diego and San Jose: Pensions for city workers are unaffordable and more generous than many private companies offer. The result is reduced public services in the form of such things as limited hours at public libraries and unfilled potholes.

In San Diego, two-thirds of voters favored Proposition B while the landslide was even greater in San Jose, the nation's 10th-largest city. With all precincts counted, 70 percent were in favor of Measure B.

San Diego's payments to the city's retirement fund soared from $43 million in 1999 to $231.2 million this year, equal to 20 percent of the city's general fund budget, which pays for day-to-day operations.

As the pension payments grew, San Diego's 1.3 million residents saw roads deteriorate and libraries and recreation centers cut hours. For a while, some fire stations had to share engines and trucks. The city has cut its workforce 14 percent to 10,100 employees since Sanders took office in 2005.

Gee, a wake up call? San Diego is broke, near bankruptcy. Tax increases go to pay pension and health benefits. Layoffs of city employees go to fund retirees. Services are cut to fund retirees.

 

[berniek]

http://www.washingtonpost.com/busin...of-austerity/2012/05/23/gJQAjLKglU_story.html