Posts Tagged ‘public workers’

Labor Day Insanity from Clinton’s Secretary of Labor

Mish disagrees with Robert Reich’s lessons of Labor Day… – Ilene

Labor Day Insanity from Clinton’s Secretary of Labor

Courtesy of Mish 

BY TONY ROBERT-HENRY. DR. PINEL LIVED FROM 1745-1826. INSANE ASYLUM OUTSIDE PARIS. DR.PHILIPPE PINEL AT SALPETRIERE, INSANE ASYLUM

It’s Labor Day. The markets are closed. Those working for government, banks, schools etc have the day off. All totaled, 17.3 million citizens do not have a job today nor a job they can return to on Tuesday. Another 8.9 million will not work as many hours as they would like, this week, next week, or the week after that.

How NOT to End the Great Recession

In a New York Times Op-Ed, Robert B. Reich, a secretary of labor in the Clinton administration, and professor of public policy at the University of California, Berkeley comes to all the wrong conclusions about where we are, how we got here, and what to do about it.  (Robert Reich’s "The Real Lesson of Labor Day" here.)

Please consider How to End the Great Recession

Reich: THIS promises to be the worst Labor Day in the memory of most Americans. Organized labor is down to about 7 percent of the private work force. Members of non-organized labor — most of the rest of us — are unemployed, underemployed or underwater.

Mish Comment: When organized labor is at 0%, both public and private, we will be on our way to prosperity. Organized labor in conjunction with piss poor management bankrupted GM and countless other manufacturing companies. Now, public unions, in cooperation with corrupt politicians have bankrupted countless cities and states.

Reich: The Labor Department reported on Friday that just 67,000 new private-sector jobs were created in August, while at least 125,000 are needed to keep up with the growth of the potential work force.

The national economy isn’t escaping the gravitational pull of the Great Recession. None of the standard booster rockets are working: near-zero short-term interest rates from the Fed, almost record-low borrowing costs in the bond market, a giant stimulus package and tax credits for small businesses that hire the long-term unemployed have all failed to do enough.

That’s because the real problem has to do with the structure of the economy, not the business cycle. No booster rocket can work unless consumers are able, at some point, to keep the economy moving on their own. But consumers no longer have the purchasing power to buy the goods


continue reading


Tags: , , , , , , , , , , , , , , , , , ,




On the Other Hand, Sometimes You Can’t Retire Too Soon

TLP: On the Other Hand, Sometimes You Can’t Retire Too Soon

Courtesy of Jr. Deputy Accountant 

government retirement

Those government jobs just aren’t what they used to be. FurloughsIOUs and increased scrutiny of the cost of public employees. Now, a growing number of state governments are instituting requirements that new employees work longer before being able to retire with full pensions.

WSJ:

The change comes as foreign governments from France to Morocco have either decided to increase or are contemplating a rise in the age at which private and public workers can receive government pensions.

A federal commission studying long-term U.S. fiscal issues is also entertaining the idea of changing the retirement age as one way to shore up Social Security, said a person familiar with the matter. A report is due to President Obama in December.

Individual states, meanwhile, are moving ahead as they respond to the widening gaps between the obligations made to workers and the money expected to be available to pay them, thanks to investment losses and recessionary budget pressures.

"It’s a very positive change that the age for receiving full benefits is increasing," said Alicia Munnell, director of the Center for Retirement Research at Boston College. "Increasing the retirement age is the single most important thing [states] can do" to tame future pension costs, because it reduces the number of years the state is paying a benefit, she said.

Though lengthening lifespans have been expected to pressure pension systems, the looming fiscal predicament has emboldened lawmakers to demand more years from employees. Also, as many American states cut services, scrutiny has fallen on the compensation of public workers.

In Illinois, where state lawmakers voted in March to increase the retirement age for most new hires to 67 from 60, "it had everything to do with the financial straits the state is in," said Tim Blair, the executive secretary of the State Employees’ Retirement System of Illinois. "The scales have tipped."

Chalk it up as another one of those things that most people never gave much thought to when things were good. Most of all, state workers probably never thought the sweet deal would turn sour. Of course, as always, it could be worse. For some government workers, retirement comes extra early


Tags: , , , , , ,




New York Pension Story Gaining Attention in Mainstream Press

New York Pension Story Gaining Attention in Mainstream Press

Courtesy of Trader Mark at Fund My Mutual Fund 

Man with oversize playing cards

The study I highlighted yesterday on New York pensions has hit the mainstream this morning, with a quite massive write up in the New York Times. There is a lot more detail in the story so I encourage a read through for anyone interested. (story here) Recall I was looking for the ages of these retirees so there are some eye openers in the piece! I am always fascinated by public opinion as well, so for a look through of the avalanche of comments already washing ashore go here. 

As I’ve written for the past 3 years, I believe eventually  (if trend lines continue without any fixes) we’re going to see some social issues arise in the U.S. due to the growing inequity between the public v private sectors.   Especially since it appears a massive bailout will eventually be needed to "keep promises" to this select class.  Wherever you fall on this debate, any system that pays out MORE in pension than a person ever earned in a working year is beyond belief. But when you can game the system by adding a ton of overtime in your last year – it’s all just ‘dealing with the cards we were dealt’. (On a side note I did not realize pensions were FREE of state and local taxes – maybe it’s only a New York thing, I do not know)

Much like the deficit stood in shadows for years as some vague ‘issue’ (I still doubt 8 in 10 Americans could tell you the total debt within $2 trillion), I just don’t think most Americans have a clue yet about the growing problem – hence this sort of transparency we saw in the study is going to be an eye opener for those who don’t troll in certain financial blogs.

Via NYTimes:

  • In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with


continue reading


Tags: , , , , , , , ,




Fed Ponders What To Do If Recovery Fails; Risks to Growth All on Downside

Fed Ponders What To Do If Recovery Fails; Risks to Growth All on Downside

Courtesy of Mish 

Low angle view of a man rock climbing up a vertical cliff

While nearly everyone seems convinced that the economy is improving and buy-the-dip is the right strategy, the Fed is having increasing concerns about what to do if reflation does not take hold.

The Wall Street Journal discusses "What if?" scenarios in Fed Weighs Growth Risks.

Federal Reserve officials are beginning to debate quietly what steps they might take if the recovery surprisingly falters or if the inflation rate falls much more.

Fed officials, who meet next week to survey the state of the economy, believe a durable recovery is on track and their next move—though a ways off—will be to tighten credit, not ease it further. Fed Chairman Ben Bernanke has played down the risk of a double-dip recession and signaled guarded confidence in the recovery.

But behind-the-scenes discussions at the meeting could include precautionary talk about what happens if the economy doesn’t perform as well as expected.

"If events in Europe evolve so that they have a more severe and broad impact on financial markets, then the scope of the problems for the U.S. could be magnified," Charles Evans, president of the Federal Reserve Bank of Chicago, said in a speech last week.

Brian Sack, the head of the New York Fed’s powerful markets group, has talked about "two-sided" risks to the economy—in other words, the risk that growth and inflation could turn out to be lower than expected, as well as higher.

"The European sovereign-debt situation is serious, and there are many unanswered questions about how events will unfold," James Bullard, St. Louis Fed president, said in Tokyo on Monday.

Officials don’t rule out the possibility that markets could settle and the economy could produce a few months of strong job growth and solid consumer spending and business investment.

But there are other scenarios: if the recovery falters, or if inflation slows much further and a threat arises of deflation, a debilitating fall in prices across the economy. In such cases, there would be a few avenues the Fed could take.

One is asset purchases. During the financial crisis, the Fed purchased $1.25 trillion in mortgage-backed securities on top of buying debt issues by Fannie Mae, Freddie Mac and the U.S. Treasury. Mr. Bernanke has said the steps helped to lower long-term interest rates,


continue reading


Tags: , , , , , , , ,




Brown Wins – Complete Repudiation of Obamacare – What’s Next?

Brown Wins – Complete Repudiation of Obamacare – What’s Next?

Courtesy of Mish

Massachusetts Holds Special Election To Fill Kennedy Senate Seat

In the most liberal of liberal states, and in a complete repudiation of both backroom deals and Obamacare, Scott Brown pulled off the most stunning senate race upset in history. If you were for Brown, pour a cup of tea and celebrate. If not, cry in your tea.

Brown’s victory was not so much a vote for Brown, but a vote out of anger, anger of backroom deals, anger over jobs, anger over wars, anger over special deals for politicians and unions, anger over banks, and most importantly, anger because "Yes We Can" morphed into "Business As Usual, Only Worse".

Backroom Bargaining Give Unions, Politicians Sweetheart Deal

For a president who promised "no backroom deals" he unmistakably delivered "backroom deals".

Please consider the Wall Street Journal article Labor’s $60 Billion Payoff.

Democrats seem impervious to embarrassment as they buy votes for ObamaCare, but their latest move makes even Nebraska’s Ben Nelson look cheap: The 87% of Americans who don’t belong to a union will now foot the bill for a $60 billion giveaway to those who do.

Emerging from their backrooms [Mish note: Obama invited union leaders to the Whitehouse for a private session], Democrats have agreed to extend a special exemption from the Cadillac tax to any health plan that is part of a collective-bargaining agreement, plus state and local workers, many of whom are unionized. Everyone else with a higher-end plan will start to be taxed in 2013, but union members will get a free pass until 2018.

Ponder that one for a moment. Two workers who are identical in every respect—wages, job, health plan—will be treated differently by the tax system, based solely on union membership.

Politicians Exempt Themselves

Not that the deal not only exempted unions, politicians gave themselves special favors.

Without a doubt, Brown sent a message to Obama specifically and Democrats in general that the public is fed up. Indeed, this special election shows Obama’s message is as out of place as a bullfrog on the lead microphone at an opera.

Nonetheless, rest assured the music will fall on deaf ears unless you act.

Act Now!

Call your congressional representative Wednesday morning. Tell them Massachusetts is fed up and you are too. Tell them, you are fed up with…
continue reading


Tags: , , , , , ,




 
 
 

ValueWalk

Contrarian Signals (Or Why Romania May Be the World's Best Performing Market This Year)

By Michael McGaughy. Originally published at ValueWalk.

In my research and investing I stress three things: people, structure and value.  I look for companies that are controlled and managed by quality people, have corporate structures that align minority and majority shareholder interests and trade at valuations that are below fair value if not outright cheap.  This post is mostly about valuation and how bankers and financial experts take away the punch bowl just when an investment becomes attractive. Nedd3_89 / Pixabay

I’ve written before how doing the opposite of what the financial institutions are doing and recommend (see here). This post is in the same vein .

T...

more from ValueWalk

Phil's Favorites

Monthly Macro Video Mish with Gordon Long

Courtesy of Mish.

Roughly every month, but on no particular day or date schedule, I get together with Gordon Long to discuss the global macro picture. This month’s spotlight is on Europe: target2, elections, and Turkey but with a mix of discussion regarding the US and Australia.

Mike “Mish” Shedlock

Original article here.

...

more from Ilene

Zero Hedge

Pepe Escobar: Daesh, Creature Of The West

Courtesy of ZeroHedge. View original post here.

Authored Op-Ed by Pepe Escobar via SputnikNews.com,

James Shea, Deputy Assistant Secretary of Emerging Threats at NATO – now that’s a lovely title – recently gave a talk at a private club in London on the Islamic State/Daesh. Shea, as many will remember, made his name as NATO’s spokesman during the NATO war on Yugoslavia in 1999.

After his talk Shea engaged in a debate with a source I very much treasure. The source later gave me the lowdown. 

According to Sau...



more from Tyler

Members' Corner

More Natterings

Courtesy of The Nattering Naybob

[Click on the titles for the full articles.]

A Quick $20 Trick?

Summary

Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:

  • Last time out, Sinbad The Sailor, QuickLogic.
  • GlobalFoundries, Jha, Smartron and cricket.
  • Quick money, fungible, demographics, QUIK focus.

Last Time Out

Monetary policy is just one form of policy that effects capital,...



more from Our Members

Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Top Story: On health reform, Donald Trump followed Republican leaders into a ditch (Andrew Prokop, Vox)

The cancellation of the planned House vote on the American Health Care Act Friday is a devastating defeat for President Trump, marking the first major legislative setback of his administration.

Yet in some ways, it might also come as a relief to him — because the Republican health bill, crafted mainl...



more from Paul

Kimble Charting Solutions

Fund flows of this size could mark a top, says Joe Friday

Courtesy of Chris Kimble.

A year ago flows into ETFs were extremely low, actually the lowest in years, as many stock market indices were testing rising support off the 2009 lows. The crowd wasn’t adding money to ETFs as lows were taking place. In hindsight, this was a mistake by the majority. Below I look at ETF flows over the past few years with an inset chart of the S&P 500.

CLICK ON CHART TO ENLARGE

Nearly three months into this year, fund flows have surpassed mone...



more from Kimble C.S.

Chart School

Indecision Strikes

Courtesy of Declan.

It was no real surprise to see indices slow down in their recovery. Across the board doji mark a balance between buyers and sellers. The one index which bucked the trend a little was the Russell 2000. It staged a modest recovery which brought it back to former support turned resistance. However, technicals remain firmly bearish, and will stay this way even if there are additional gains.

The S&P closed on light volume with a doji below resistance. The narrow intraday trading range offers a low risk opportunity with a break and ...

more from Chart School

OpTrader

Swing trading portfolio - week of March 20th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



more from Bitcoin

Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



more from M.T.M.

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions

Biotech

The Medicines Company: Insider Buying

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

more from Biotech

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>