Global Economy Bursting?

[berniek]

Sometimes it's the only and best way to go.

Vallejo, Calif., once bankrupt, is now a model for cities in an age of austerity

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

 

[berniek]

Fed's Beige Book Sees Moderate Expansion

The U.S. economy expanded at a moderate pace between early April and late May, though turmoil in Europe and political uncertainty in the U.S. worried some employers, the Federal Reserve said in a report released Wednesday.
The economy expanded at a moderate or modest pace in the central bank's 12 districts, the Fed said in its latest beige-book report, based on anecdotes collected from business contacts and economists spread across the nation.
Hiring was steady and manufacturing continued to expand in most districts, with particular strength in auto and steel manufacturing, the Fed said in the report.
"Economic outlooks remain positive, but contacts were slightly more guarded in their optimism," the beige book noted. For instance, while manufacturers experienced gains in production and new orders in most regions, "contacts in a number of districts were concerned that a slowdown in Europe and domestic political uncertainty may affect future business conditions.".....


http://www.foxbusiness.com/news/2012/06/06/fed-beige-book-sees-moderate-expansion/

 

[berniek]

Hollande's First Step Backward

Lowering the retirement age puts France closer to another downgrade.

French President François Hollande made good Wednesday on his campaign pledge to lower France's minimum retirement age to 60 from 62. The 2010 law that lifted the retirement age was Nicolas Sarkozy's most important domestic-policy achievement, and it was sold as a way to keep France's public spending under control amid the Continent's then-burgeoning debt crisis.
That was more than a year before France lost its triple-A credit rating and moved squarely into the "at risk" camp. What a difference an election makes.......


http://online.wsj.com/article/SB10001424052702303665904577450091425854140.html?mod=googlenews_wsj

 

[Workbox]

I smell a campaign rally.

 

[Randolph Kinney]

California's Pension Watershed

http://online.wsj.com/article/SB10001424052702303753904577450483323985606.html

Government reformers notched several victories on Tuesday, including two in California, of all places. Voters in San Diego and San Jose—the state's second and third largest cities—overwhelmingly approved two of the most aggressive pension reforms the country has seen in recent years by a more than two-to-one margin.

Both cities have laid off hundreds of workers in recent years to pay their soaring pension bills, and bankruptcy is possible without reining in benefits. Voters in San Diego sought to avert insolvency by shifting new hires to defined-contribution plans, which will take taxpayers permanently off the hook for future workers' pensions. San Jose's ballot measure created a bigger splash because it reduces benefits for current workers; most state and local pension reforms have only affected new hires. Employees will have to choose between accepting a lower level of benefits going forward or paying up to 16% more of their salary to keep their current plans.

Because the unions couldn't stop these reforms at the ballot box, they'll try to block them in court. The unions argue that reducing the pensions of current employees violates California's constitution, which forbids governments from impairing contracts. What is unclear under state law is whether workers' contracts include their unaccrued benefits in addition to those they've already earned.

 

[Restrain]

Re, Fed Beige Book forecast. Actual figures show that the economy is slowing and may be contracting. Money supply is contracting, economic activity is declining, and, when factors applied, shows a negative growth trend. Fed remains optomisic, but, again, they live in their Ivory Towers. If you want some real info, look up the Dallas Fed Branch comments.

 

[William K]

Re, Fed Beige Book forecast. Actual figures show that the economy is slowing and may be contracting. Money supply is contracting, economic activity is declining, and, when factors applied, shows a negative growth trend. Fed remains optimistic, but, again, they live in their Ivory Towers. If you want some real info, look up the Dallas Fed Branch comments.

Ask any of them how much a gallon of milk , a loaf of bread or a dozen eggs costs and they get the "Deer in Headlights" look.:Eyecrazy:

 

[Big ole Boy]

Chrysler sales up 30% due to sub-prime loans

http://www.autoblog.com/2012/06/05/chrysler-sales-growth-fueled-by-subprime-loans/

I have noticed a lot of fast and furious credit offers floating around lately. I looked up a blog that references Chryslers latest 30% increase in sales attributed to "pre-recession" sub-prime loan offers .....

... why would you need to have any aversion towards lender risk when your company is backed by the US taxpayer ...

... the shenanigans just keep on coming ......

... the Chicago Tribune indicated that all automotive sales for May were lower than expected .... this is not the headline you get from the fluffy newscasts ...

..... another thing to ponder is ... how much is Chrsyler spending on "incentives" to get these numbers?

.... I wonder what a car really costs that is sold in the US? .. If you factor in all the bailout money and plug that figure into the purchase price of the vehicle it is probably $100,000 to $200,000 a piece for the car.

.... What GM and Chrysler are selling is a car price that is subsidized to the point of obsurdity ....

 

[Big ole Boy]

leaking the secret meeting to stave investor fears

... the latest bandaide tactic is to leak out information that 12 senators are having secret meetings to avoid a January economic collapse ...

.... this leak comes out just as the Bernanke goes to the hill ...

.... the whole thing is another way to misdirect public sentiment and attempt confuse and settle the stock markets

... I had my crystal ball in the shop ..... but I got it out of hawk last night

.... just smoke and mirrors

 

[huntercharlie]

Sometimes it's the only and best way to go.

Vallejo, Calif., once bankrupt, is now a model for cities in an age of austerity

[url]http://www.washingtonpost.com/business/economy/vallejo-calif-once-bankrupt-is-now-a-model-for-cities-in-an-age-of-austerity/2012/05/23/gJQAjLKglU_story.html[/URL]

Vallejo a model city? How depressing.