Posts Tagged ‘union’

Padded Pensions and What to do About Them

Padded Pensions and What to do About Them

Courtesy of Mish

The New York Times article Padded Pensions Add to New York Fiscal Woes has been making the rounds. At least 20 people sent me the link. Let’s take a look at few snips, then a look at a followup Times article on addressing the problems.

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 a base pay of about $74,000 a year. His pension is now $101,333 a year.

It’s what the system promised, said Mr. Tassone, now 47, adding that he did nothing wrong by adding lots of overtime to his base pay shortly before retiring. “I don’t understand how the working guy that held up their end of the bargain became the problem,” he said.

According to pension data collected by The New York Times from the city and state, about 3,700 retired public workers in New York are now getting pensions of more than $100,000 a year, exempt from state and local taxes. The data belie official reports that the average state pension is a modest $18,000, or $38,000 for retired police officers and firefighters. (The average is low, in part, because it includes people who worked in government only part time, or just a few years, as well as surviving spouses getting partial benefits.)

Some will receive the big pensions for decades. Thirteen New York City police officers recently retired at age 40 with pensions above $100,000 a year; nine did so in their 30s.

The Times article is 4 pages long so please give it a closer look.

Legal Theft

Undoubtedly Mr. Tassone is not as stupid as he sounds. He knows full well he gamed the system, but it was legal.

Tassone argues he held up his end of the bargain. Excuse me for asking what end is that? Public unions are legalized mobs. They coerce votes from corrupt politicians willing to buy there patronage.

There is no "public end" because there is no one working on the public’s behalf. Indeed the public in general has been crucified with never ending tax hikes to support union thugs who pack every school board in the country, and promise Armageddon if police or firefighters get laid off.

The public is

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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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Defense Contractor Employee Chimes in on Boeing and the Need for C-17s

Defense Contractor Employee Chimes in on Boeing and the Need for C-17s

Courtesy of Mish 

Boeing C-17 Assembly Workers Go On Strike

In response to Inside the Self-Destructive Minds of a Group of Idiots, an article about Boeing C-17s and failed union negotiations, I received an email from "TT" a defense contractor employee who has some thoughts to share.

"TT" Writes


You are so right on the Boeing strike. What makes it even more stupid is that the same union pulled the same stunt in Washington a couple years ago. We now have a brand new 787 plant under construction here in non union Charleston, SC because of it.

These guys just don’t have a clue. I was at Boeing in Seattle when the last strike took place, and I can tell you that a lot of the rank and file knew better, but they had to follow the union’s marching orders.

As for Gate’s comment about airlift, I’d like to see him come the Charleston Air Force base and say it, while the US government leased Russian AN-124s taxi past loaded with equipment headed for the middle east.

The truth is that we don’t have enough airlift capacity or tanker capacity, or fighter capacity… to be the world’s big brother.

The better solution is to quit being the self appointed nanny to the world.

And yes, I work for a defense contractor.

Best regards,


Thanks "TT".

Yes, it is perfectly clear the US absolutely needs to "quit being the self appointed nanny to the world" even as the union apologists cry about the loss of jobs. The US simply cannot afford to be the world’s policeman.

I would cut military spending in half, and call that "a start". I am sick and tired of blowing up the world because it supposedly creates jobs. Moreover, those jobs are an illusion in the first place, as the rest of the economy suffers mightily.

To pay for military spending, taxes have to go up or the dollar has to sink.

That’s a piss poor tradeoff for everyone not in on the scam, especially the poor soldiers who needlessly get their heads blown off so defense contractor CEOs can make hundreds of millions of dollars, some of which are used to buy votes of war-mongers in Congress wanting still more guns and ammo, every day of the year.

Enough is enough.

Mike "Mish" Shedlock

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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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Union Battles In Las Vegas, Simi California, Hawaii, Massachusetts

Union Battles In Las Vegas, Simi California, Hawaii, Massachusetts

Courtesy of Mish

Union battles over benefits are starting to appear all over the place. Here are a few stories from the past two days.

USA, Nevada, Las Vegas, The Strip at dusk, elevated view

Las Vegas: City firefighters launch campaign against cutbacks

Las Vegas’ firefighters union has taken a hard stance against the city’s budget cuts, alleging that reductions will hurt emergency responses along with fire insurance rating for homes and businesses.

City officials, meanwhile, said the union is engaging in irresponsible “scare tactics” at a time when the city is facing economic difficulties.

The back-and-forth comes as the city readies for a series of town hall meetings scheduled from January to March to hear resident feedback on what city services are most important.

It also comes as the city is considering back-to-back 8 percent salary rollbacks and freezes for all employees, including firefighters, although a union official declined to comment today on the union’s positions on these wage proposals.

The union has created a Web site as well as a radio advertisement warning that cuts could increase response times, result in fewer people on duty, reduce the city’s ability to respond to disasters and hurt the city’s fire insurance rating, which is at the highest level.

This discussion is just one part of the ongoing wrangling over the city’s budget, which has seen an ever-widening deficit since the economic downturn began.

The city has already cut operating costs, eliminated vacant positions and announced some layoffs. City management has also proposed an 8 percent wage rollback in each of the next two budget years to avoid layoffs, a proposal being evaluated by the unions that represent city workers.

My recommendation to Las Vegas is to declare bankruptcy and let the unions see what they can get in court.

Simi California: Simi, police union agree to contract

The Simi Valley City Council on Wednesday approved a new agreement with the Simi Valley Police Officers’ Association for an 18-month employee contract that includes a 3 percent salary decrease for sworn police officers and sergeants.

The unanimous approval came after the council went into a closed session meeting late Wednesday afternoon with attorneys and representatives from both the city and police association.

Significant provisions of the MOU approved Wednesday include:

For fiscal year 2009-2010, the base

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Ariel Investments September 2016 Commentary

By VW Staff. Originally published at ValueWalk.

Ariel Investments commentary for the month ended September 30, 2016.

H/T Dataroma

Equities had strong returns in the third quarter of 2016, and predictably the urge to sell U.S. stocks is rising. One group advances the “take some chips off the table” strategy. After small caps of the Russell 2000 Index leapt +9.05% and the S&P 500 Index’s large caps advanced +3.85% this quarter, they wish to capture gains by going to cash. Others make a valuation argument: the S&P 500 Index has a price/earnings (P/E) ratio approaching 25x, above the long-term average of 16x. From this perspective, equities are expensive and are likely to revert toward the mean. These views are common: more than half of professional investors ...

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Zero Hedge

Meanwhile, At The White House...

Courtesy of ZeroHedge. View original post here.

Presented with no comment...



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Phil's Favorites

Weekend Reading: Time To Be A Contrarian?

Courtesy of Lance Roberts of

In yesterday’s post, I discussed Howard Mark’s view on being a contrarian:

“Resisting – and thereby achieving success as a contrarian – isn’t easy. Things combine to make it difficult; including natural herd tendencies and the pain imposed by being out of step, particularly when momentum invariably makes pro-cyclical actions look correct for a while. (That’s why it’s essential to remember that ‘being too far ahead of your time is indistinguishable from being wrong.’)

Given the uncertain nature of the future, and thus the difficulty of being confident your position is the rig...

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Market News

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Financial Markets and Economy

Crude Rally May Clinch Top Stock Market Status for Canada in ’16 (Bloomberg)

Gold’s best run since 2010 pushed Canadian equities to the top spot among developed-market stocks this year. Fifty dollar crude will give them an opportunity to stay there.

Would Cutting Corporate Tax Rates Really Grow the Economy? (The Atlantic)

One of the things Hillary Clinton and Donald Trump disagree most strongly about is how to stimulate the economy. Donald Trump has one idea that conservative economist...

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Kimble Charting Solutions

Bio-Tech; In more trouble if this fails, says Joe Friday

Courtesy of Chris Kimble.

At one point in time, actually for years, Bio-Tech (IBB) was a market leader. From the 2009 lows to 2015, IBB out gained the S&P by more than 250%. Since the summer of 2015, Bio Tech has remained a leader, a “downside leader!” IBB has lagged the S&P by over 35% in the past 15-months.

Is the downside leadership over for IBB? Below updates the pattern on IBB


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Members' Corner

The Orlando Massacre Part 3

Courtesy of Nattering Naybob.

A continuation of a Naybob of IT's Natterings from Part 1 and Part 2...

While many Christian churches expressed grief and offered free funeral services for the victims of the Orlando shooting, the fundamentalist Westboro Baptist Church held an anti-gay protest during the funeral of the victims.

But the Westboro Baptist Church's protest rally was blocked by about 200 people who formed a human barricade on the main street in downtown Orlando, ...

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Chart School

Neutral Day for Indices

Courtesy of Declan.

Markets were unable to build on premarket gains, but did manage to finish the day where they started.

The S&P closed with a narrow range doji, a doji which finished below Friday's bearish black candlestick. The pattern of the last five days is playing more in bears favour, but with support around 2,115 holding there is still a chance a broad swing low is in play; confirmation comes on a move above 2,160. Trading volume sided with bulls on a confirmed accumulation day.

The Nasdaq was able to push above Fri...

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Swing trading portfolio - week of October 17th, 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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Digital Currencies

Gold, Silver and Blockchain - Fintech Solutions To Negative Rates, Bail-ins, Currency Debasement and Cashless

Courtesy of ZeroHedge. View original post here.

By Jan Skoyles

I was so pleased yesterday by the announcement that I have joined the Research team at GoldCore as it meant that I could finally start talking about it and was back in a role that lets me indulge in my passion by researching and geeking out on all things gold, silver and money.


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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.   

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