Posts Tagged ‘schools’

Arizona Sells Supreme Court Building in 20 Year $300 Million Leaseback Deal for 3 Month’s School Aid

Arizona Sells Supreme Court Building in 20 Year $300 Million Leaseback Deal for 3 Month’s School Aid

supreme court of arizona Courtesy of Mish 

Going into long term debt to pay short-term operating expenses is fiscally unsound. Going into debt for 20 years for 3 months operating expenses is beyond the absurd. Nonetheless, that is exactly what Arizona did.

Inquiring minds are reading Arizona Sells Supreme Court Building in $300 Million Bond Deal.

Arizona, which sold state prisons and offices to raise cash six months ago, plans to borrow $300 million by marketing its Supreme Court building and about a dozen more properties through leaseback bonds starting today.

Investors will hold ownership of the court building in Phoenix, the fifth-largest U.S. city, and the Arizona Schools for the Deaf and the Blind in Tucson for as much as 20 years, with the securities maturing serially from 2012 through 2029, according to offering documents. Lease payments will back the debt, known as certificates of participation.

Arizona, whose foreclosure rate last year was ranked second-highest after Nevada by RealtyTrac Inc., will use the sale to pay for three months of school aid. The state raised $709 million for education payments when it sold and then leased back nine properties to investors in January.

“From an investor point of view, this is great,” state Treasurer Dean Martin, 35, said in an interview. “The state has to have buildings to operate and we’re the largest employer in Arizona.”

Wrong Point of View

Who gives a rat’s ass if "This is great From an investor point of view"?

Here’s what Arizona taxpayers need to decide: "Is this great from ataxpayer point of view?"

Obviously it is not. Just as with other states, this is more kicking the can down the road action in a bury your head in the sand mentality.

Arizona politicians need to accept reality: This economy is going to be weak for a decade thanks in part to refusal of politicians to address fiscal issues, union salaries, and union pensions now.

The problem is not lack of revenue, the problem is state spending gone rampant, with political hacks lacking the discipline to do anything about it. I do not care how favorable the interest rate or other terms are, going into debt for 20 years to get 3 months operating expenses is simply insane.

Mike "Mish" Shedlock

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Social Unrest Spreads to Slovenia and Spain; Images Around the Globe; US Not Immune to Protests

Social Unrest Spreads to Slovenia and Spain; Images Around the Globe; US Not Immune to Protests

Courtesy of Mish 

The wave of social unrest is spreading. A new round of protests has hit Spain with a public sector strike set for June 8. In Slovenia, students are protesting new rules that limit their work hours and pay.

"Luka Gubo" an economist from Slovenia writes:

Hi Mish!

First I must say that I love your blog. Great job!

I just wanted you to know that Slovenian students are protesting too.

The main reason for organizing protests is changes in law regarding student jobs. Current tax law makes average workers uncompetitive because businesses pay about 15% income tax for students and more then 35% income tax for average worker (average net income is 930€).

Bear in mind that the average time for a student to complete his higher education here is 6 years and that more then 20% of "students" do not to school at all. Instead, they just enjoy student benefits like lower income taxes, food stamps, etc.

I think that everyone would agree a new law is needed in Slovenia. However, the new will limit the maximum hours worked by students to one third of full work time, and put a limit on maximum hourly wage at 8€ per hour.

That one *ing great free-market solution, wouldn’t you agree?

Here is the Slovenian parliament building after 2 hours:

The protests went smooth for a while, but it did not last long. You can find a series of 39 images at

Luka Gubo

More Images

Greece, Spain hit by strikes over cuts

CNN Reports Greece, Spain hit by strikes over cuts

Public sector union ADEDY and private sector union GSEE called the strikes against the government’s austerity measures, in particular the pension reforms announced last week. The reforms include raising the retirement age, which varies in different professions.

It is the first major strike since May 5, when violent protests against the austerity measures resulted in the deaths of three people in the capital, Athens.

Spanish government workers were set to protest at 6 p.m. (noon ET) outside the Ministry of the Treasury in Madrid and outside the central government offices in their respective towns. Spanish government workers were set to protest at 6

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15,000 Illinois Protesters Chant “Raise My Taxes”

15,000 Illinois Protesters Chant "Raise My Taxes"; Unions Getting More Aggressive and Obnoxious; Record Turnout in N.J. Tells Unions to Go to Hell

Courtesy of Mish 

In Illinois, union protesters staged a huge rally in Springfield, demanding higher taxes for their self-serving agenda.

Please consider Thousands of protesters at Illinois Capitol to press for tax increase.

Thousands of protesters bused down by labor unions and social service advocates rallied at the Capitol today in an attempt to pressure state lawmakers into raising the income tax to avoid more budget cuts.

A spokesman for Illinois Secretary of State Jesse White estimated the rally crowd at 15,000, with more than 12,000 marching around the building. That would appear to make it the largest Capitol protest since the Equal Rights Amendment crowds a quarter-century ago.

Bus after bus pulled up on streets surrounding the Capitol complex and dumped sign-waving protesters clad in purple, green, red and blue shirts that represented a show of strength from a variety of public employee unions and dozens of groups that formed what they named the “Responsible Budget Coalition.”

"Raise my taxes! Raise my taxes! Raise my taxes!" they chanted, lined up shoulder to shoulder for a few hundred yards stretching a street in front of the Capitol.

Springfield Pro-Tax Rally

Save our Schools is a farce. Save our Salaries is what the protest is all about.

The union does not give a damn about the kids.

Click here for a series of 15 Tribune Images of the Pro-Tax Rally.

SEUI Union Thugs

Unions Getting More Aggressive and Obnoxious 

To appreciate just how obnoxious union thugs are in Illinois, please play the above video. I had to play it a few times to make out the key chant from a woman on a megaphone. Here it is.

What do we want?
More money.
What do we want?
We want more money.
When do we want it?
When do we want it?

The Ace of Spades blog commented on the rally in "Raise My Taxes! Raise My Taxes! Raise My Taxes!"

So chanted thousands of bused-in ACFSME union "grassroots" agitators to Illinois state congressmen, urging them to "raise [our] taxes!" so that their salaries and benefits wouldn’t be cut.

The rest of the public is finally starting to notice that,

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School Bills Due But State Can’t Pay: “There is No Money”; Let the War on Public Unions Begin

School Bills Due But State Can’t Pay: "There is No Money"; Let the War on Public Unions Begin

Courtesy of Mish

Two schoolgirls and boy (4-6) standing at table making paper chain

While the stock market marches on oblivious to the real world, things are rapidly approaching crisis mode in Illinois, and for that matter nearly everywhere you look. Please consider School bills are due, but state won’t pay.

Say the words out loud to get a feel for the size of it: Forty-five million, two hundred and six thousand, six hundred and fifty-four dollars, and sixty-one cents. That’s how much the state is behind in payments to your local schools.

When the quarterly payments came due at the end of the year, the state again missed its categorical and grant payments to all 871 Illinois school districts.

This money is supposed to fund projects like school buses, special education, reading programs and early childhood development. But the money’s not coming, instead getting added bill by bill to an already $4.5 billion IOU the state has for services from schools to homeless shelters.

But the same state that’s no longer paying for these programs legally requires them.

Unlike the usual budget bellyaching when political pressure can make money appear, this time is different, said state Rep. Linda Chapa LaVia, D-Aurora. There is no money. "This is not a false alarm. This is not someone pulling a fire drill. This is a fire," Chapa LaVia said.

The West Aurora School District plans to lay off teachers for the second year running. Last year, the district planned to lay off 120 teachers, but ended up only giving 55 the ax. The district didn’t have a change of heart — laying off all 120 would have pushed class sizes past the maximum in the teachers union contract.

There’s a fee the district can pay if they want to go past that limit by laying off more teachers. They’re considering it. "It’s cheaper to pay a premium than to pay a teacher," West Aurora Chief Financial Officer Christi Tyler said.

It’s not that the state is denying it owes this money. The Illinois State Board of Education, like many state agencies, is dutifully sending its vouchers to the comptroller’s office, where … nothing happens.

What usually is a bureaucratic delay where the comptroller gets the voucher and then cuts the check within

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Phil's Favorites

Wall Street and Mainstream Media Stench Engulfs Hillary

Courtesy of Mish.

The stench surrounding Hillary is so bad not even mainstream media can completely cover it up.

Moreover, leaked emails prove reporters and Wall Street executives are part of that stench.

Here is a synopsis, some even from mainstream media.

On October 9, Glenn Greenwald and the Intercept reported New Email Leak Reveals Clinton Campaign’s Cozy Press Relationship.

Internal strategy documents and emails among Clinton staffers shed light on friendly and highly useful relationships between the campaign and various members of the U.S. media, as well as the campaign’s strategies for manipulating those relationships...

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Zero Hedge

Why the Elite hate Russia

Courtesy of ZeroHedge. View original post here.

In our previous article The Secret Truth about Russia Exposed, we elaborated on how Russia is a convenient enemy for politicians and specifically the Democratic party, to create an enemy that really, well - doesn't exist to distract and confuse voters.  But like with any 'enemy' if you bomb a village, you may have some pissed off villagers.  As we explain in our best selling book Splitting Pennies - the world doesn't work the way you see on TV - in fact, it works more closely as seen on Zero Hedge.  ...

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Jury Nullification Frees Illegal Malheur Refuge Occupiers

By JOHN F. BANZHAF. Originally published at ValueWalk.

Malheur Refuge news stuns lay people and legal scholars

Jurors Exercise Fundamental Right They Cannot Even Be Told About
WASHINGTON, D.C. (October 27, 2016): In a stunning loss for federal prosecutors, the leaders of a 41-day armed standoff at the Malheur National Wildlife Refuge were acquitted of virtually all of the charges brought against them although the undisputed facts seemingly established their guilt.

The most reasonable – and perhaps the only – explanation for this shocking result is that the jurors exercised a right which, though fundamental, is one that lawyers cannot urge the jurors to exercise, says public interest law professor John Banzhaf.

Malheur Refuge

Photo by USFWS Pacific ...

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Digital Currencies

Needham Raises Bitcoin Price Target To $848: Here's Why

Courtesy of ZeroHedge. View original post here.

With bitcoin breaking out of its recent trading range as Chinese buyers once again flock to the currency as the Yuan slides (as we predicted over a year ago they would), even Wall Street analysts are starting to pay attention, and in a recent report by Needham's Spencer Bogart, the analyst has raised his price...

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Kimble Charting Solutions

London- 4th attempt to breakout in 16-years, results different this time?

Courtesy of Chris Kimble.

Four months ago the world seemed scared that the Brexit vote would be negative for Europe and potentially around the world. Four months later, almost the polar opposite deserves discussion.

Below updates the FTSE -100 Index on a monthly basis over the past few decades.


FTSE Index is now testing a resistance zone for the 4th time in the past 16-years at (1), as well as testing the underside of line (3) at the same time.

Monthly MACD has created a series of ...

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Market News

News You Can Use From Phil's Stock World


Financial Markets and Economy

Investors want out of the stock market (Business Insider)

Retail investors seem to have cooled on the stock market.

According to a note from Bespoke Investment Group, equity mutual funds have experienced their largest weekly outflows since August 2011.

National Living Wage Helps Boost Pay for Lowest U.K. Earners (Bloomberg)

The U.K.’s increased national minimum wage is showing signs of success.

The lowest-paid British workers had the strongest salary growt...

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Members' Corner


Courtesy of Nattering Naybob.


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

  • Rising Libor and Bond Yields
  • Negative Swap Spreads, Eurodollar Curve, Repo Effects
  • Compliance, Expectations, Liquidity, Fed Action

Last Time Out

"25-54 yr old prime earners peaking at 101083 in Nov 2007; today at 97628, for a net decline of 3.5M prime earning jobs during this "recovery". No real jobs, just McJobs for McPay."

"Above note, 55yrs+ in Nov 2007 at 26376, now at 34353, for a net increase of 8 million employed. Not for sheer enjoyment and mostly out of economic necessity. The above attests to no real jobs, just McJobs for McPay and work till you die?" - 08...

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Chart School

Tech Hold Breakout,.but S&P Wedge Bound

Courtesy of Declan.

It was a mixed day for indices. Large Caps remain bound by wedge support/resistance, but Tech broke upside yesterday from similar wedges and held those breakout today.

There was little change for the S&P over the last couple of days. The one technical change was the MACD trigger 'buy' as other technicals stayed on the bearish side.

Meanwhile, the Nasdaq cleared wedge resistance yesterday, and was able to hang on to the breakout despite today's loss. It too enjoyed a MACD trigger 'buy', but had an On-Bal...

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Swing trading portfolio - week of October 24th,2016

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 ...

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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...

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Epizyme - A Waiting Game

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

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...

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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...

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We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more! features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...

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