“My new goal is to become a manager at Lowe’s”

From the WSJ:

Working Two Jobs and Still Underemployed

For Richard Crane, the “new normal” in the labor market began when he was laid off from a New Jersey battery plant in the summer of 2006.

Mr. Crane had been earning more than $100,000 a year operating heavy machinery at Delco, a former unit of General Motors. He worked there for 23 years, since graduating from high school. But when he lost his job he was thrust into a netherworld of part-time gigs: working the registers at Taco Bell, organizing orders at McDonald’s, whatever he could find.

“I thought it would be temporary,” says Mr. Crane, 49 years old. Three years later, he is selling outdoor furniture by day and pumping gas by night, while worrying about his skills atrophying and spending scant time with his teenage son. He makes about a third of his former pay.

Mr. Crane is part of a growing group of underemployed — people in part-time jobs who want full-time work or people in jobs that don’t employ their skills. Since the recession began two years ago, the number of people involuntarily working part-time jobs has more than doubled to 9.3 million, according to the federal Bureau of Labor Statistics, the highest number on record.

State labor officials and economists generally label the underemployed as those who are working part-time when they would prefer full-time work, as well as people who are working beneath their skill level.

Federal figures on the underemployed, however, don’t count that second group — those who are overqualified for their jobs. Still, the government’s broadest measure of labor underutilization — known as the U6 — has more than doubled in the two years since the recession began to 17.5%, and it is up from 12% just a year ago, according to the Bureau of Labor Statistics. This means that nearly one in five people are either unemployed, involuntarily working part-time or “marginally attached” — they want jobs but haven’t searched in at least a month. It also counts “discouraged workers” who have stopped searching.

“The number would be much higher if we included the mechanical engineers working at 7-Eleven,” says Heidi Shierholz, who studies underemployment at the Economic Policy Institute, a left-leaning Washington think tank.

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231 Responses to “My new goal is to become a manager at Lowe’s”

  1. grim says:

    From the Star Ledger:

    N.J. budget gap forces state to withhold $20.7M in aid payments to towns

    To help close an unexpected budget gap, the state plans to withhold $20.7 million in aid payments to municipalities, a move that could force cuts in services or higher property taxes, according to three legislative sources briefed on the move.

    The decision to place the final aid installment in reserve rather than distribute it to towns is expected to be announced by the Corzine administration Tuesday along with other budget-trimming moves, according to the sources, who requested anonymity because they were not authorized to discuss it.

    The payment represents 5 percent of the total annual aid authorized for municipalities under the Consolidated Municipal Property Tax Relief Act. But that is enough to throw into turmoil the budgets of more than 400 towns that prepare their budget on the calendar year schedule, forcing them to scramble for last-minute cuts, said William Dressel, executive director of the state League of Municipalities.

    “There are towns that are going to be confronted with a serious cash flow problem,” said Dressel, who fears that other municipal aid accounts could also be cut. “I’m very much concerned that this is just the first salvo of many more to come.”

    Spokesmen for Gov. Jon Corzine and Treasurer David Rousseau did not return calls seeking comment today. Corzine has asked his departments to deliver $400 million in cuts by Tuesday.

  2. grim says:

    From the Record:

    North Jersey corporate costs fifth highest

    Corporate executives looking to cut costs in the wake of the recession are more likely than ever to flee or avoid New Jersey, according to Princeton firm that specializes in helping companies relocate.

    The Boyd Co. Inc. on Monday released a study that found North Jersey is the fifth most expensive place to site a corporate headquarters, costing $27.9 million a year to operate.

    New York City topped the list, followed by San Francisco, Stamford, Conn. and San Jose, Calif.

    John Boyd Jr., a company vice president, who compiled the report, said New Jersey’s high costs have deterred companies from expanding in the state for years. But the recession has significantly heightened the competition between states, to the detriment of those with a high cost of doing business, he said.

    “The corporate headquarters arena is the next big frontier for corporate cost cutting,” said Boyd. “And that’s big news for New Jersey.”

  3. grim says:

    From CNBC:

    Reducing Jobless Will Take Time: White House’s Summers

    President Barack Obama’s top economic adviser said on Monday that tackling high U.S. unemployment was vital but the problem would take time to fix.

    “I think recessions like the one we’re suffering now have very substantial costs,” said Lawrence Summers, director of Obama’s National Economic Council.

    “Addressing 10.2 percent unemployment is a matter of very great urgency. It is not something that is going to be fixed in a week, or a month, or a year,” Summers said in after-dinner remarks for a conference on innovation and the economy sponsored by Intel Corp and the Aspen Institute.

    He also firmly rejected any notion there was any silver lining to the country’s worst slump in 70 years.

    “One of the most damaging ideas in economics is … the doctrine of the cathartic recession. … Somehow it’s for the best if everyone suffers for a long time … (it) teaches everybody a very valuable lesson,” Summers said.

  4. grim says:

    From NJBiz:

    ‘We’re still bumping along the bottom’

    New Jersey employers slashed jobs and spending in the face of plunging sales and profits in 2009 — and see little hope for a quick turnaround in the year ahead, according to the annual Business Outlook Survey released last week by the New Jersey Business & Industry Association.

    The survey, now in its 51st year, surveyed 1,400 NJBIA member firms representing every major industry and all 21 New Jersey counties, and confirmed the view that this is New Jersey’s worst recession since World War II, offering only faint hope for a modest turnaround in the year ahead.

    A small manufacturer of precision metal products in Passaic County put it succinctly: “We’re still bumping along the bottom.”

    Survey respondents collectively reported the biggest drop in survey-data history for sales, profits and spending in 2009, while predicting a tight lid on hiring and spending in 2010.

    “Our member companies don’t believe the economy is going to bounce back quickly from this terrible recession,” said NJBIA President Philip Kirschner. As they have for years, respondents complained about New Jersey’s business climate, giving record low marks to the state as a place to expand.

  5. grim says:

    Better snatch up that 6000 sq/ft McMansion Grow House while you still can..

    From the WSJ:

    New Jersey Likely Next to Legalize Medical Marijuana

    New Jersey is poised to become the next state to allow residents to use marijuana, when recommended by a doctor, for relief from serious diseases and medical conditions.

    The state Senate has approved the bill and the state Assembly is expected to follow. The legislation would then head to the governor’s office for his signature.

    Gov. Jon Corzine, the Democrat who lost his re-election bid this month, has indicated he would sign the bill if it reaches his desk before he leaves office in January. It would likely be one of Mr. Corzine’s last acts before relinquishing the job to Republican Chris Christie.

  6. Schumpeter says:

    grim (5)-

    I think I will be “converting” my garden next Summer.

    I also seem to have gotten a pain in my back that just won’t go away…

  7. Schumpeter says:

    Medical marijuana shops can take up a good deal of vacant retail space. Great idea!

  8. Cindy says:

    A few notes from yesterday’s reading:

    @ 199 – Awesome job Scribe and Clot. I totally remember when you held onto SRS through the short sale ban.

    @246 – Thanks Nom for the report – glad you were able to attend as well.

    @254 – Al, I think the banks and FDIC coverage are the last thing to go in any scenario. It just isn’t going to happen – Just my two cents.

  9. serenity now says:

    Legalize and tax Pot, Cocaine, Prostitution, Coc fighting-
    NJ has plenty of untapped resources to raise revenue.
    Everything will be just fine.

  10. freedy says:

    nj has been a welfare state for many years.
    now its just becoming third world.

    walk around the streets,in any town now
    and look who’s here.

    most of them are picking the pockets
    of the NJ taxpayers.

  11. Shore Guy says:

    “NJBIA President Philip Kirschner”

    Didnlt this guy have a show in the 70s “Phil Kirschner’s Rock Concert”?

  12. still_looking says:

    Shore, 11

    I think it may have been Don Kirschner? I dunno….too early in the a.m. for me.

    sl

  13. Dissident HEHEHE says:

    How Larry Summers Lost Harvard $1.8 Billion

    Most people, if they’ve hired a legendary fund manager on a multi-million-dollar salary to look after investments and liquidity, would listen to the advice of that person. But most people aren’t Larry Summers:

    http://seekingalpha.com/article/175644-how-larry-summers-lost-harvard-1-8-billion?source=hp_wc

    Good thing he’s working for the common man in the White House

  14. Shore Guy says:

    Ahhhh, yes; Don. You are right.

  15. BC Bob says:

    “Addressing 10.2 percent unemployment is a matter of very great urgency. It is not something that is going to be fixed in a week, or a month, or a year,”

    [3],

    I’m confused. O told us the stimulus package would boost the economy and keep unemployment under 8%. Is it possible that our leaders are either lying or clueless?

  16. freedy says:

    Barry o is selling the US down the river

  17. House Whine says:

    16- To date, I have seen no coherent plan presented by the current administration to encourage job stimulation so of course it couldn’t be fixed in even a year. There has been to plan to do so! I await his jobs summit this Thursday to hear what the creative ideas are that they have to address this situation.

  18. Cindy says:

    16 – BC

    @15 – Two million extra government jobs…

    Not the direction we need to head.

    I thought this was funny – The article reads: “It’s worth nothing that employment is higher than it was a decade ago, but that’s only because the government has produced two million additional jobs during that stretch.”

    Do you think it is a Freudian slip? Did they mean to say “It is worth noting?”

  19. BC Bob says:

    Cindy [19],

    There is no real economic recovery. Any perceived recovery has been fueled by FASB.

  20. gary says:

    I await his jobs summit this Thursday to hear what the creative ideas are that they have to address this situation.

    I’ll translate for you: It’s imperative that the government have a steady stream of revenue to stimulate the economy which will save and create more jobs. This can be acheived by raising taxes on the willing workers to enable the underprivileged class.

  21. cooper says:

    Craig’s list ads for new jobs created by the Legalizing of Medical Marijuana-

    Wanted- Drug Dealers with connections-Must have a car & at least 2 years experience!!

  22. gary says:

    Two things we currently manufacture very well in the USSA: gossip and obesity.

  23. Asbury Bill says:

    Sorry but for some reason this really bothered me…

    In the article above the WSJ states that Mr. Crane is 49, lost his job in 2006 (presumably when he was 46), and worked at Delco for 23 years since he graduated high school. This guy graduated high school when he was 23?

  24. freedy says:

    right gary,, whats the latest on Tiger

  25. Dissident HEHEHE says:

    Gary,

    You need to keep the sheeple fat and stupid. It prevents them from paying attention to their getting robbed on a daily basis by the plutocrats and minions in government.

  26. Cindy says:

    http://seekingalpha.com/article/175861-ritholtz-where-to-next-for-stock-markets

    Ritholtz in Berlin – 5 minute video…
    wish it were longer – I want to know what he says next…

  27. Cindy says:

    http://www.ritholtz.com/blog/2009/11/berlin-keynote-address-barry-ritholtz/

    Found it @ The Big Picture.

    I need to go back now and listen. It appears to be broken up into about 5 minute segments.

  28. John says:

    Dirty Dozen – 12 worst performing stocks in S&P in 2009!! Some of these bad boys are going to really pop after tax loss selling, now only if Chifi could use his B-school knowledge to tell us which ones. Otherwise I need to use my trusty dart board to pick the winners from the losers

    Cephalon Inc -29.3%
    KeyCorp -30.2%
    Time Warner Cable Inc. -32.4%
    Kimco Realty Corporation -32.4%
    Allegheny Energy Inc. -34.3%
    Citigroup Inc. -36.2%
    Eastman Kodak Co. -37.5%
    Sunoco Inc. -40.9%
    Zions Bancorp -42.4%
    Huntington Bancshares Inc. -50.4%
    MetroPCS Communications -55.5%
    Marshall & Illsley -59.4%

  29. Schumpeter says:

    whine (18)-

    The best O, Bergabe, Summers and Eraserhead have come up with is to repeatedly bugger small businessmen like me and tax the middle class into oblivion. That should be good for a few green jobs.

    The vast majority of people in this country are being forced into a corner. The choice? Continue to bend over and take it, or come out swinging. Increasingly, I believe the latter will eventually occur. It’s now patently apparent that banks, pharma and insurance own the gubmint.

  30. Schumpeter says:

    John (29)-

    That list is like a petri dish full of syphilis.

  31. Schumpeter says:

    Starve the gubmint of money, and let’s see what happens.

  32. Kettle1 says:

    Grim

    unmod 33 please

  33. Fiddy Cents on the Dollar says:

    A little help from our board citizens who live in NY & PA please…..

    I am trying to figure out where the taxes in NJ are spent. How do these neighboring states pay for their school systems ??? Anybody know ??

    In NJ….schools are primarily funded by Real Estate Taxes. My town, Middletown, collects a hefty sum. They break down their budget into roughly 3 parts.

    Municipal (Police, Libraries, Leaf & Snow Removal) accounts for 20% of my tax bill.

    County (Road Improvements, what ever else) gets 19% of my tax bill.

    Local School System gets all the rest of the 61%, separate from the Municipal budget. I can’t find figures for any recent school budget, but at 61%…it’s got to be a whopper !!

    How do neighboring states pay for their schools ??

  34. lostinny says:

    34 Fiddy

    I believe that each state has it’s own formula. The only thing I am positive about is that the NYC system receives its funding from NYS. Funding is based on a very complicated attendance formula. Basically, and excuse the poor English, the more days the schools are open, the more funding the NYC system gets. This is the reason NYC rarely ever closes for snow days.

  35. safeashouses says:

    #30 clot

    You need to add Big Food to that list.

  36. Fiddy Cents on the Dollar says:

    So, NY State Income Tax is used to partially fund the Board of Ed budgets thruoughout the state ?

    I think NJ’s Income Tax sends a relatively small amount to the local BofEd, but most of our RE Taxes are used to pay for schools.

    The State keeps the Income Tax, the Sales Tax (and the Corporate & Business etc Taxes).

  37. danzud says:

    Clot,

    Heck, the signs only needs to change one word….

    Linens n’ Things store becomes Pot and Things

    Circuit City becomes Hemp City

    Levitz becomes Growlitz……

  38. Schumpeter says:

    Hang halogen lights from the rafters of abandoned Circuit City stores, and turn them into giant grow houses.

    Only problem is, when I look at what the gubmint does on a day-in, day-out basis, it seems as though they are all stoned around the clock already.

  39. Schumpeter says:

    The biggest meth lab in NJ is that building in Trenton with a golden dome.

  40. Schumpeter says:

    Speaking of gold, wonder how many limit orders there are at $1,200?

    December delivery should be interesting.

    Battle stations!

  41. safeashouses says:

    I wonder if I can extend my unemployment benefits and get the gov to pay for me to get retrained to become a medical marijuana farmer.

  42. lostinny says:

    37 Fiddy
    No. I cannot say that. I believe that in areas outside of NYC, most funding comes from property taxes as it does in NJ. What I am saying is that funding for schools in NYC comes from the State and is based on the number of days schools are open. I cannot say with certainty where exactly the State gets the funds to send to NYC. Well I could if I made a phone call. Excuse my laziness this morning.

  43. BC Bob says:

    Schump [39],

    LMAO.

    [41],

    Front month futures, Feb, 10′ traded over 1,200, very early today.

  44. Comrade Nom Deplume says:

    Tax news of the day:

    This one doesn’t seem to be anywhere on MSM. Wonder why?

    “Moving into their sixth day of marking up a healthcare reform proposal, Senate taxwriters on September 30 approved an amendment that would create for those 65 and older a carveout from a proposed increase in the itemized deduction threshold for medical expenses.

    Under a modified version of the mark offered by Finance Committee Chair Max Baucus, D-Mont., the threshold for medical expenses would rise from its current level of 7.5 percent to 10 percent of adjusted gross income. . . .

    The amendment, offered by Sen. Bill Nelson, D-Fla., would exempt seniors from the increase, allowing them starting in 2013 to continue to deduct medical expenses in excess of 7.5 percent of adjusted gross income. . . .

    Grassley and other Republicans instead voiced support for an amendment by Sen. Jon Kyl, R-Ariz., that would have pushed the threshold down to 5 percent. That amendment’s offsets would have made changes to the bill’s larger insurance affordability tax credits. “If it’s bad policy for seniors, it’s bad policy for everybody,” Kyl said. The Kyl amendment was defeated 14 to 9.”

    Sooooo, the Senate bill has a provision that raises the deduction threshold for medical expenses. That means you get less of a deduction, or lose it altogether, if your expenses don’t come to 10% of your AGI. As you can imagine, this hit seniors hard. It also hits the working poor and middle class as well, especially if they have substantial medical deductions.

    This is in the bill, along with the cap on FSA money, both of which will hit folks with heavier medical expenses, particularly lower earners. But it is NOT A TAX INCREASE. The One’s minions told us so, therefore it must be true.

    I guess when Obama pounded the rostrum and said 95% of americans would not see “one thin dime” of tax increases, he meant to say “I will not make any changes to the marginal rates at Section 1 of the Internal Revenue Code for earners under 250K.” That is an important distinction since there are over 9000 sections to the Code where you can whack the 95%.

    To be fair, it isn’t His tax increase until he signs the bill. Once he does though, he owns it. And he will get hammered for it, and all the other “stealth” tax increases that are in this bill and others.

  45. Ellen says:

    #34 Fiddy Cents

    Our schools are primarily funded through local property taxes. Our tax bill is line itemed out for us – county, municipal and school. Here’s my breakdown –

    County – $ 505
    Municipal – 382
    School – 3231
    Total – $4118

    That makes school about 78 percent of my property taxes. I know there is some small support from the state and the county for different services but I don’t know how much.

  46. Ellen says:

    re: #46 oops, I’m in PA.

  47. safeashouses says:

    #45 Nom,

    I’ve been saying that for years. The gov doesn’t need to raise taxes, they can just slash deductions. By raising deduction thresholds and eliminating or reducing deductions on things like student loan interest, property tax deductions, even interest on mortgages for primary residence the gov can increase revenues without raising tax rates.

  48. John says:

    You are one funny cat, I don’t have a student loan or a mortgage and AMT already crushed my property tax deduction. When they start doing it the middle class will get the hardest hit with their student loans and HELOCs mortgaged to the max in their POS 12K RE Taxes NJ capes, bring it on baby.

    Student Loans, safeashouses says:
    December 1, 2009 at 9:44 am
    #45 Nom,

    I’ve been saying that for years. The gov doesn’t need to raise taxes, they can just slash deductions. By raising deduction thresholds and eliminating or reducing deductions on things like student loan interest, property tax deductions, even interest on mortgages for primary residence the gov can increase revenues without raising tax rates.

  49. Cindy says:

    http://www.sacbee.com/capitolandcalifornia/story/2357268.html

    Nom – California cap in malpractice cases an issue – Sac Bee

  50. safeashouses says:

    John,

    Have you spent a lot of time in Lancaster county, PA? They have a cruller shaped donut full of custard named “Long John”. I thought it might have been in honor of you.

  51. Comrade Nom Deplume says:

    More tax news of the Day:

    Yeah, about that excise tax—WHOOPS!

    “CBO Sees Excise Tax Affecting 19 Percent
    Of Job-Based Health Insurance Policies
    The Senate’s health care overhaul legislation (H.R. 3590) debate began Nov. 30 with a new report from the Congressional Budget Office showing that nearly one in five employment-based health insurance policies would be subject to a 40 percent excise tax by 2016.
    Under current law, CBO said 19 percent of employment-based health plans would be affected by the tax on so-called “Cadillac” insurance plans as the cost of their premiums reaches the threshold levels of $8,500 for individuals and $23,000 for families.
    “For policies whose premiums remained above the threshold, the tax would probably be passed through as a roughly corresponding increase in premiums,” CBO said. “However, most employers would probably respond to the tax by offering policies with premiums at or below the threshold.”
    CBO and the Joint Committee on Taxation said they expect that the majority of the workers that would be affected by the tax would end up with plans that avoid the tax through some combination of higher out-of-pocket costs for policyholders to keep premiums down, coverage of fewer medical services, and more stringent benefit management. . . .”

    Don’t think this was what the Dems had in mind. And since they can’t shoot the CBO messenger for this one, they are shooting anyone who reads the report and comes away with the above view.

  52. Comrade Nom Deplume says:

    [50] Cindy,

    MSM won’t touch that one, but I expect it will get a lot of air play on the blogs. Eventually, it will get dropped as it is radioactive.

  53. Comrade Nom Deplume says:

    [51] safe

    I expect John will tell us he inspired it by dropping trou in Lancaster County once.

  54. lostinny says:

    Fiddy
    OK I made the call- this formula is insane. But generally, you are correct. Partially, the formula takes into account the number of days the school is open divided by the number of students enrolled and some other things I really don’t understand. But because of this formula, it doesn’t necessarily mean that more students equals more money. The NYC school system gets something like 6 billion in aid. There are something like 1.3 million students in the NYC system. The State gets the money from various taxes including income, lottery, sales, taxes, etc.

  55. frank says:

    Where’s the recession?? Buy a home now, before prices go up, way up.

    Pending Sales of Existing Homes in U.S. Unexpectedly Increase

  56. Mikeinwaiting says:

    Nom 52 Does that include gov entities school systems, towns & states.

  57. jamil says:

    45 com “This one doesn’t seem to be anywhere on MSM. Wonder why?”

    MSM has sent all fact-checkers to follow Tiger or Palin. Latest scoop is that Palin’s bus tour actually use a plane couple of times! thank god for all those State Media fact-checkers..No time to investigate secondary things like government takeover of health care of climategate fraud.

  58. Al Gore says:

    BY GARY FIELDS
    WASHINGTON—Highway-construction companies around the country, having completed the mostly small projects paid for by the federal economic-stimulus package, are starting to see their business run aground, an ominous sign for the nation’s weak employment picture.

    Tim Word, vice president of Dean Word Co., a heavy-construction company in New Braunfels, Texas, said his income is now coming mostly from projects that are winding up. He said that in normal times he has about $100 million of signed contracts in hand. But that number has fallen to $30 million, and the pipeline is empty. In the past two years, his work force …
    http://online.wsj.com/article/SB10001424052748703300504574568030523492914.html?mod=WSJ_hpp_MIDDLTopStories

  59. Al Gore says:

    * Commercial real estate bank-loan defaults hit 3.4 pct
    * Real estate bank loan defaults may peak at 5.3 pct

    * CMBS defaults reach 4.01 pct in October

    * CMBS defaults could top 8 pct in 2010
    http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN3043256420091201?pageNumber=1&virtualBrandChannel=0

  60. PGC says:

    #45 Nom,

    Some smoke smoldering on that strawpile.

    Currently the 7.5% matches the standard deduction 100% up to the $156k joint threshold.
    So yes, between 107K and 156K, there is a sliding scale of being able to deduct the extra $3900.
    The 5K FSA cap should be sufficient to co pays, deductibles, CVS over the counter and script plans.

    I would say that this would close the Boot0x Loophole. Would you pay for cosmet1c surgery to get above the itemized threshold to allow a better break on Mortgage Interest, state taxes and charitable contributions. This will automatically skew the benefit to the high tax states.

    I would be all for removing the FSA cap but limit cosmetic, Las1k and dental (except braces). If you want Silcone or teeth whitening, you pay full freight.

  61. Al Gore says:

    Shump,

    I placed an order for bullion last week. I will be placing more. Just too dam risky holding cash like this.

    American Gold Eagles unavailable. Start melting your jewelry.

    “The average American is still way underinvested in gold: probably 99 out of a hundred Americans don’t own any gold at all other than their jewelry and most people who have jewelry are selling it for cash-for-gold programs,” Schiff said.

    “We have a ways to go. Even all the way up to $2,000 an ounce you’re going to see a lot of retail buying. Once it clearly crosses the $2,000 level we’ll start to draw in a wider segment of Americans,” he said. “By the time it reaches $5,000, and it won’t be that long, it will be a lot more common for people to own gold.”

  62. John says:

    Al Gore, so Guidos from Brooklyn and Hindu 7/11 workers will one day rule the earth as they are the only people I know sitting on large amounts of physcial gold. In this new world will Mr. T be president?

  63. John says:

    teeth whitening is not allowable on FSA, already tried it.

  64. PGC says:

    #52

    So 89% of plans are not affected by the Cadillac tax. Thank you Thaler.

    If you want that Gold plated policy, I don’t have a problem if you write a check for it.

  65. Happy Daze says:

    63 John

    Don’t forget the hip hop set with their grills.

  66. yo'me says:

    Card Firms Add Inactivity Fees to Slow Revenue Loss on Defaults

    http://bloomberg.com/apps/news?pid=20603037&sid=aCLzni_O63h8

  67. Al Gore says:

    63.

    Farmers too.

    Davidowitz predicts “the noise will be taken out” about “strong” Black Friday sales in the coming weeks and a sobering reality will settle in: “People will look a stores closing and a rash of bankruptcies after Christmas. People will start to look at this and say ‘wow, this is terrible,'” he says.

    Regarding the health care bill. If it passes its over and I mean over for this country from a fiscal perspective nevermind liberties. There is no way we can afford that. No fing way possible.

  68. Noah says:

    My great uncle was just prescribed medical marjuana in NJ because he wasn’t eating. I didnt know that was legal.

    Also, just read Rich Dad Poor Dad conspiracy of the rich. Pretty much in line with everything posted here. Author recommended Dollar Crisis by Robert Duncan. Written like a text book. But very compelling evidence for failure of the $.

  69. BC Bob says:

    John [63],

    It could be worse, you could be holding USD that has lost 40% of its value this decade. One other item, it will continue to lose value.

    Let’s see, hold paper that is increasing at 7-10X, yoy or hold a tangible, which mined, has decreased 1% yoy.

    By the way, Hi-Ho.

  70. pete says:

    Some interesting reading.

    http://www.state.nj.us/sci/pdf/The%20Beat%20Goes%20On.pdf

    NJ is a joke. Nothing ever changes. Now is Christie’s chance.

  71. Al Gore says:

    63.

    In this new world yours truly will be president but first I must loot your country with a carbon tax that will be paid to my account at the UN.

    Have a nice day,

    Your friend,

    AL

  72. freedy says:

    well at least is was not in queens or
    elizabeth

  73. meter says:

    @70

    If you don’t mind my asking: from what source(s) are you buying physical gold?

    As mentioned before, I’m leery of the gold stocks and paper certificates.

  74. leftwing says:

    Fiddy

    Interesting tax bill breakdown regarding the home rule discussion yesterday.

    If the municipal portion of the tax is 20% of one’s total taxes, it is ridiculous to focus tax reduction efforts there.

    I have never seen two entities merge and find cost savings in excess of 10% of the total cost base. Merge your towns and find 10% total savings in the municipal budgets and you have reduced your tax bill by a whopping 2%.

    Once again, focusing on home rule to reduce your tax burden is sleight of hand to take your attention away from where your taxes are actually spent.

    Fix Trenton and the schools (Abbott) first.

  75. Al Gore says:

    75.

    Physical delivery. Im sure you could get a better deal at the Perth Mint but I am as skeptical as you.

  76. Al Gore says:

    Shump was right,

    Goldman Sachs Bankers Buy Guns to Defend Against “Populist Uprising”

    “I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.

    I called Goldman Sachs spokesman Lucas van Praag to ask whether it’s true that Goldman partners feel they need handguns to protect themselves from the angry proletariat. He didn’t call me back. The New York Police Department has told me that “as a preliminary matter” it believes some of the bankers I inquired about do have pistol permits. The NYPD also said it will be a while before it can name names.

    While we wait, Goldman has wrapped itself in the flag of Warren Buffett, with whom it will jointly donate $500 million, part of an effort to burnish its image — and gain new Goldman clients. Goldman Sachs Chief Executive Officer Lloyd Blankfein also reversed himself after having previously called Goldman’s greed “God’s work” and apologized earlier this month for having participated in things that were “clearly wrong.”

  77. Fiddy Cents on the Dollar says:

    Ellen :46
    Thanks for responding to my tax question. That’s a pretty hefty tariff for schools. I’ll have to ask my Bro-in-Law, he lives near Allentown. He’s always telling me how low his taxes are.

    LostinNY :55
    I’m seeing the pattern forming here. School Budgets are the big ticket item.

    My State Income Tax due was a nominal amount. After my CPA massages the numbers, I don’t consider that tax to be burdensome. Sales Tax, no biggie. There’s Sales Tax in almost every state……you pay it.

    But this Board of Education nonsense has got to be tamed. Middletown has a very vocal teacher’s union…..they pulled a strike a few years back to get their way. A county judge ordered them to jail, but the minimum security jail. It was a Country Club, except when the Press showed up for photo ops. I swear the teachers brought their own Orange Jump Suits.

    Middletown’s School system is top heavy with Superintendents, Asst Superintendents, Principals, Vice Principals, Asst Vice Principals, Guidance Counselors. All duplicated across several High Schools and Middle Schools. The rank & file teachers are not making big bucks….but there’s too many chiefs, not enough indians.

  78. BC Bob says:

    meter [70],

    I trade the futures and own an array of miners. At this time, I do not own the physical. If you buy, make sure you take delivery and store.

    You can buy futures and take delivery upon contract expiration. The contract size is 100X the actual.

  79. Al Gore says:

    Shump here is the link to the Goldman handgun story.

    Some of the best reading I have ever read.

    http://www.bloomberg.com/apps/news?pid=20601039&sid=ahD2WoDAL9h0

  80. chicagofinance says:

    51.safeashouses says:
    December 1, 2009 at 9:52 am
    John, Have you spent a lot of time in Lancaster county, PA? They have a cruller shaped donut full of custard named “Long John”. I thought it might have been in honor of you.

    bairen: If John buys SLV will that mean he is “Long John Silver”? ba-da-dup-dup…I’m here every night this week, thank you.

  81. John says:

    Considering I have bonds up 300% in the last 12 months I don’t see your point!

    BC Bob says:
    December 1, 2009 at 11:31 am
    John [63],

    It could be worse, you could be holding USD that has lost 40% of its value this decade. One other item, it will continue to lose value.

    Let’s see, hold paper that is increasing at 7-10X, yoy or hold a tangible, which mined, has decreased 1% yoy.

    By the way, Hi-Ho.

  82. Kettle1 says:

    Grim

    help on 82 in mod!!!!

  83. HEHEHE says:

    Hi-ho indeed, new high, new support. 22 here we come?

  84. BC Bob says:

    “I don’t see your point!”

    John,

    Hi-Ho.

  85. John says:

    What really happened was back in the 80’s I created the orignal Long John Cruller. I used to hit the second story couples only room at The Vault around 5am after clubbing on Saturday nights. The club was very very strict on the no exchange of bodily fluids rule. Since bakeries open early on Sunday morning we used to buy fresh crullers without custard. At the exact moment I was about to shoot my wad I would pull out and quickly fill up the cruller with my own special brand of custard. This kept me in line with the no bodily fluid exchange rule and sometimes I would pop out a bakers dozen and sell them for ten bucks a piece at the Pink P#ssy Cat Boutique to the erotic morning crowd to chew on while they enjoyed their NY Times.

  86. Al Gore says:

    The cost of the Afghan build up is 35 billion a year. Chump change.

  87. scribe says:

    #87

    I’ll never be able to look at a cruller again

    btw, coming to the GTG Friday night?

  88. Shore Guy says:

    B.O. says he will end the war in three years. We shall see.

  89. Shore Guy says:

    Scribe,

    Just dunk it into some hot coffee and watch it go soft.

  90. scribe says:

    #91

    :)

  91. Young Buck says:

    From CNN/Money:

    Junk mortgages: It just gets worse

    In 2007 we dissected one toxic issue. The horror story continues, but can we still learn from our mistakes?

    By Allan Sloan and Doris Burke
    Last Updated: December 1, 2009: 9:51 AM ET

    NEW YORK (Fortune) — Back two years ago when the mortgage meltdown was heating up, we wrote an article called “Junk Mortgages Under the Microscope” dissecting a particularly wretched mortgage-backed securities issue peddled by Goldman Sachs.

    We wanted to show how these complex securities really worked and how Moody’s and S&P, the rating agencies, aided and abetted the process by giving two-thirds of an issue backed by ultra-risky second mortgages the same safety rating they gave to U.S. Treasury securities.

    We thought this was a cautionary tale — but it’s turned into a horror story. All the tranches of this issue, GSAMP-2006 S3, that were originally rated below AAA have defaulted. Two of the three original AAA -rated tranches (French for “slices”) are facing losses of about 90%, and even the “super senior,” safer-than-mere-AAA slice is facing losses of 25%. How could this happen? And what lessons can we take away from it?

    Let’s revisit the way this security was put together, and how and why it fell apart. And for the first time, we can even estimate the value — low — of the mortgages backing it, thanks to a new service called ABSNet Loan HomeVal.

    Our tale begins in April 2006, when Goldman Sachs (GS, Fortune 500) sold $494 million of securities to institutional investors seeking yields somewhat above those that were available on U.S. Treasuries or high-rated corporate bonds.

    It was an especially hinky offering, because it was backed by second mortgages rather than by traditional first mortgages. A first mortgage rarely becomes completely worthless, because a house is usually worth something.

    But often all it takes is a decline of 20% in a home’s value to wipe out a second mortgage, which is typically piled on top of an 80% first mortgage. In our case, borrowers’ stated equity in their homes averaged less than 1% — 0.71%, to be precise. Even that was doubtless overstated because a majority of the mortgages were low-documentation and no-documentation.

    Despite these problems, the formulas used by Moody’s and S&P allowed Goldman to market the top three slices of the security — cleverly called A-1, A-2 and A- 3 — as AAA rated. That meant they were supposedly as safe as U.S. Treasury securities.

    But of course they weren’t. More than a third of the loans were on homes in California, then a superhot market, now a frigid one. Defaults and rating downgrades began almost immediately. In July 2008, the last piece of the issue originally rated below AAA defaulted — it stopped making interest payments. Now every month’s report by the issue’s trustee, Deutsche Bank, shows that the old AAAs — now rated D by S&P and Ca by Moody’s — continue to rot out.

    As of Oct. 26, date of the most recent available trustee’s report, only $79.6 million of mortgages were left, supporting $159.9 million of bonds. In other words, each dollar of bonds had a claim on less than 50¢ of mortgages.

    But even worse, those mortgages aren’t worth anything like their $79.6 million of face value, according to ABSNet Loan HomeVal. ABSNet, unveiled in October, combines a database from Lewtan Technologies of Waltham, Mass., that has a list of every mortgage underlying every mortgage-backed issue, with data from Collateral Analytics of Honolulu, which tracks individual home values. It gives you a snapshot of the value of the collateral backing a mortgage security.

    As of Sept. 26 — a slightly different date from what we’re using above — ABSNet valued the remaining mortgages in our issue at a tad above 20% their face value. Now, watch this math. If the mortgages are worth 20% of their face value and each dollar of mortgages supports more than $2 of bonds, it means that the remaining bonds are worth maybe 10% of face value.

    If all the originally AAA -rated bonds were the same, they’d all be facing losses of 90% or so in value. However, they weren’t the same. The A-1 “super senior” tranche was entitled to get all the principal payments from all the borrowers until it was paid off in full. Then A-2 and A-3 would share the repayments, then repayments would move down to the lower-rated issues.

    But under the security’s rules, once the M-1 tranche — the highest-rated piece of the issue other than the A tranches — defaulted in July 2008, all the A’s began sharing in the repayments. The result is that only about 28% of the original A-1 “super seniors” are outstanding, compared with more than 98% of A-2 and A-3. If you apply a 90% haircut, the losses work out to about 25% for the “super seniors,” and about 90% for A-2 and A-3.

    This was an especially bad issue, which we picked (on advice of some bond mavens who aren’t competitors of Goldman Sachs) precisely because it was so awful. According to Bloomberg LP, recent trades in the A’s were at less than 7% of face value. So the market is saying the losses are even greater than our estimates.

    Goldman and Moody’s declined to discuss this security. S&P told us that it had toughened its standards in 2005 and had discontinued rating second-mortgage securities in 2008. “Had we anticipated fully the severity of the declines in these markets at the time we issued our original ratings, many of those ratings would have been different,” a spokesman said.

    Now to the investment lessons: The first is, Don’t put your faith in rating agencies, even though some branches of the federal government, including the Federal Reserve, use ratings to determine whether certain securities qualify as collateral under federal loan programs to financial institutions.

    Our problem is that if things change for the worse after the original rating comes out, the agencies’ response is, “Oops, sorry about that,” and they revise the ratings down after you’ve already taken a hit. When lawsuits arrive, the agencies say all they did was issue an opinion that’s protected under the First Amendment, therefore they’re not liable.

    The second lesson is, No matter how fancy the name is on the offering statement — Goldman Sachs, the calumny being heaped on it lately notwithstanding, is still Wall Street’s alpha outfit — you’re on your own if the issue heads south.

    The final lesson is, Beware of the dangers of bottom fishing. It would have been tempting to buy this security when the original AAA paper traded down to the low two-digits — but any buyer that did that is sitting on big losses.

    Just as things often rise further than you think they will and stay there longer, they can also fall further than you think and keep on falling. Remember that when someone tells you that something is so cheap that it has nowhere to go but up.

  92. John says:

    Would be nicer if he said in 3 years we have won the war, I guess if other side wins by then he still met his goal.

    Shore Guy says:
    December 1, 2009 at 12:41 pm
    B.O. says he will end the war in three years. We shall see.

  93. Comrade Nom Deplume says:

    [61] county,

    “Currently the 7.5% matches the standard deduction 100% up to the $156k joint threshold.
    So yes, between 107K and 156K, there is a sliding scale of being able to deduct the extra $3900.”

    No quibble there. Is your point that the tax hit is de minimis, therefore it is not a violation of the pledge?

    “The 5K FSA cap should be sufficient to co pays, deductibles, CVS over the counter and script plans.”

    Actually, it’s slated to be 2,500. Most FSAs are lower, so again with the de minimis argument, I guess.

    “I would say that this would close the Boot0x Loophole. Would you pay for cosmet1c surgery to get above the itemized threshold to allow a better break on Mortgage Interest, state taxes and charitable contributions. This will automatically skew the benefit to the high tax states.”

    That’s a tax distortion issue. Depends on the procedure and whether moving it from Year 2 to Year 1 gives a tax benefit. Agreed on the disprportionate benefit, though not sure why that’s relevant.

    “I would be all for removing the FSA cap but limit cosmetic, Las1k and dental (except braces). If you want Silcone or teeth whitening, you pay full freight.”

    That’s policy. You can get to the same place by limiting Section 213 deductions but not capping FSAs, but is that any less of a tax hit to those affected?

  94. frank says:

    “Working Two Jobs and Still Underemployed”

    Move to China or Australia, they need people with no skills.
    Don’t waste your time in the old USA.

  95. John says:

    Comrade, move to England if you want flat chested girls with grey crooked teeth, I for one like my girls hot and if it is a bit of tax break so be it.

    “I would be all for removing the FSA cap but limit cosmetic, Las1k and dental (except braces). If you want Silcone or teeth whitening, you pay full freight.”

  96. Comrade Nom Deplume says:

    [65] prince georges,

    “So 89% of plans are not affected by the Cadillac tax. Thank you Thaler.”

    Check my math, but 100-19=79. And I am pretty sure a good chunk of that 19% are union members. You want to tell them to write a check?

    “If you want that Gold plated policy, I don’t have a problem if you write a check for it.”

    Actually, no one will write checks. That’s the point. Instead, policies will be democratized, which was one of the goals of the legislation (and of ERISA and Subchapter D of the Code, BTW). This also means that employee shares go up, copays go up, and plans that used to cover a lot, now cover less. But at least the poor feel better, knowing that the rich don’t have any better benefits than they do.

    Ironically, it may give rise to a larger nonqualified supplemental health care insurance industry for executives that is outside of ERISA. Thus, you wind up in the same place generally but with no excise tax.

  97. Comrade Nom Deplume says:

    [97] john

    That was county, not me.

  98. Comrade Nom Deplume says:

    [87] john

    I started that. My bad, everyone.

  99. Shore Guy says:

    “Would be nicer if he said in 3 years we have won the war, I guess if other side wins by then he still met his goal. ”

    I wonder if he promises Michelle, “This will al be over in 5 minutes, dear. One way or another.”

    It is better to achieve somethine positive before leaving, than just to pull out because “it is time.”

  100. Shore Guy says:

    something

  101. Shore Guy says:

    By pull out, I meant Afghanistan.

  102. Shore Guy says:

    John,

    This is something that might appeal to you. From what I have heard, it sounds like the party-crashing couple was, um, cozy, cough, with some B.O. Administration staffers.

    Who wants to lay odds that something comes out in the near future about the crashers and some of B.O.’s staff being involved in a wife-swapping/sex group in the D.C. area?

  103. Shore Guy says:

    Mitch McConnell must be licking his chops t the prospect of such a thing.

  104. Shore Guy says:

    “By raising deduction thresholds and eliminating or reducing deductions on things like student loan interest, property tax deductions, even interest on mortgages for primary residence the gov can increase revenues without raising tax rates.”

    Even better, they do this while cutting rates a small bit so that at the same time they raise nearly everyone’s taxes they get to crow about slashing taxes.

    Duplicity and politicians, perfect together.

  105. Schumpeter says:

    Shore (72)-

    Note to self: cancel medical tourism visit to Argentina.

    Rumor has it they shot that lady full of the stuff that’s inside John’s cruller.

  106. meter says:

    @89 “Check my math, but 100-19=79.”

    Please report back to third grade.

    Sorry, you did ask for that.

  107. Shore Guy says:

    http://www.cnn.com/2009/POLITICS/12/01/afghanistan.vietnam/

    Just try finding something as catchy as “Hey, Hey, LBJ. How many kids did you kill today” to go with B.O.

  108. Shore Guy says:

    Maybe B.H.O.

  109. Mikeinwaiting says:

    Clot SRS at $8.42 it is almost time to pull the trigger.

  110. Shore Guy says:

    These 60’s protesters are dressed better than most people going to church nowadays:

    http://i.cdn.turner.com/cnn/2009/POLITICS/12/01/afghanistan.vietnam/t1larg.vietnamprotest.afp.jpg

  111. Schumpeter says:

    mike (111)-

    I don’t have a spare penny to throw at SRS right now.

    Did a reload yesterday on hi-ho, shiny and miners.

    Thinking that the time right between Xmas and New Year’s could be a nice time to start switching over to SRS. The retail numbers for Xmas season are gonna be wretched. SPG is gonna be crucified, and my guess is that it’ll take the IYR with it.

  112. Shore Guy says:

    “Hey, ho, BHO. Out of Afghanistan we need to go”

  113. Shore Guy says:

    Gator,

    How id Little Gator enjoying the zoo?

  114. John says:

    Michelle has man hands, nuff said.

    Shore Guy says:
    December 1, 2009 at 1:34 pm
    “Would be nicer if he said in 3 years we have won the war, I guess if other side wins by then he still met his goal. ”

    I wonder if he promises Michelle, “This will al be over in 5 minutes, dear. One way or another.”

    It is better to achieve somethine positive before leaving, than just to pull out because “it is time.”

  115. Mikeinwaiting says:

    Clot Hi-Ho ?

  116. John says:

    TMZ is reporting that Jaimee Grubbs has told Us Weekly that she had a 31-month affair with Tiger Woods. According to TMZ, Grubbs claims to have voicemails and text messages to corroborate her story.

  117. reinvestor101 says:

    I monitor liberal publications for subversive talk. Here are a few damn liberals who voted for “That One” who don’t have jobs. Guess what? I don’t feel sorry for them because they should have voted for Mac and Sarah then they would have had a damn job. Some of these people need to be watched as they’re resentful and questioning capitalism.

    Tell ‘The Nation’: Recession Stories
    By Our Readers

    November 23, 2009

    Our Readers: In response to Lizzy Ratner’s “Generation Recession,” young readers from across the country wrote to The Nation to share how the recession has impacted them.
    Letters Our Readers & Corey Robin
    Letters Our Readers

    Clinging to Idealism

    I graduated with a degree in Environmental Studies in 2008, with plans to change the world (of course). I was eager to put my earnest idealism toward enacting positive change within a world that I’d been taught had run completely off course. A few months later, the economy collapsed, along with my dreams of a job that wouldn’t destroy my conscience.

    I’m currently living on $800 a month, working part-time in a glorified data-entry gig. I’m completely uninsured and unable to pay back any of my $20,000 in loans. Even if I could get a job at an “evil corporation” that might pay my bills, I still wouldn’t be able to force myself to take it, as clinging to my principles is the only thing I can do to stay a little sane. I think more than anything else, I’ve completely lost faith in the capitalist system as well as the government that enables it. I’ve watched many other well-intentioned peers find themselves completely unable to both put their college educations to work and live out their principles in doing meaningful things in their careers. I consider graduate school occasionally, but I’ve seen too many people with masters degrees pouring coffee to make spending another $70k seem worth it.

    In college I learned to be wary of capitalism; now I’ve experienced its flaws firsthand, and remain completely unsure about where to turn from here.

    Emily May, 24
    Portland, OR

    Overqualified is the New Underqualified

    While in graduate school, with loan checks coming into my bank account, the recession was a boon. My income didn’t suffer, and suddenly all my travel and gift-buying around the holidays was significantly cheaper. It was wonderful, and I still believed that I, with two graduate degrees and a reasonably impressive résumé, would be able to start a great job after my graduation and coast through this recession with some budgeting and careful allotments of my paychecks toward loan payments.

    Five months after graduation, I’m still underemployed, with a folder of 150+ job applications on my desktop. For every job I’ve applied and interviewed for, there are literally dozens of other overqualified candidates breathing down my neck just offstage. I graduated into the worst job market in my lifetime, and even my moderately fancy education won’t save me now. No one cares that I finished a MA and a MBA in two years; no one cares that I have eight years of professional experience. There are approximately six jobs open in my market for someone in my field, and six hundred or more applicants are looking for the same positions I am.

    I’m now working a part-time retail job for $9/hr, going without health insurance, and having to take an economic hardship deferment on my loans. This “economic recovery” is meaningless to me at the moment, as a decreased rate of job loss still does not mean that my rate of job-getting has changed in the least.

    Dana Horst, 27
    Chicago, IL

    A Vet Comes Home. To What?

    I am 29 years old, a veteran of the US Army, North Dakota Army National Guard, and the war in Iraq. I have a Bachelor’s degree in sociology with a minor in criminal justice from the University of North Dakota. I graduated from college in December of 2007. Perfect timing (note sarcasm). Since then I have had two jobs lasting a total of 5 months. I currently am living in my parents basement, where I have to share time on the PS3 with my 55 year old also unemployed father. Today for excitement and fresh air I went around picking up sticks in our yard.

    I have plenty of stories from my exciting life over the past two mostly unemployed years and have nothing but free time to write about it. If you would please get back to me and let me know what happened to America I would greatly appreciate it.

    Joseph Blaker, 29
    Maple Grove, MN

    http://www.thenation.com/doc/20091207/recession_stories

  118. Mikeinwaiting says:

    John 118 There go the endorsements.

  119. #119 – re – Some of these people need to be watched as they’re resentful and questioning capitalism

    What is this “cap-i-tal-ism” you speak of? I grew up in the US.

  120. FTAlphaville has some excerpts from SocGen’s strategy presentation. Loads of fun.

  121. reinvestor101 says:

    You don’t know when to leave well enough alone do you? I think you’re a damn subversive. Don’t be surprised if you’re hauled in for questioning.

    121.toshiro_mifune says:
    December 1, 2009 at 2:09 pm
    #119 – re – Some of these people need to be watched as they’re resentful and questioning capitalism

    What is this “cap-i-tal-ism” you speak of? I grew up in the US.

  122. confused in NJ says:

    Luckily, the Gold Plated Cadillac Health Plan Restrictions, only apply to Private Sector Jobs. The Public Sector, as they should, will still continue to have Platinum Plated Plans paid by Tax Increases. This is only fair, as Public Service is much more valuable.

  123. PGC says:

    #95

    I am agreeing that AGI between $107K and $156K with high medical expenses are the ones that are hit here. Personally I would rather see itemised deductions removed as is really only benefits high incomer earners. While that may pull more into AMT, that is a seperate discussion.

    Safe points out correctly that playing with the deductions hits the revenue without touching the taxes. But on the back of that should student interest and Mortgage interest be deductible in the first place. In your words why should I be made to pay for your 2% student loans.

    FSA should be included as it covers a lot of items outside 213 such as over the counter supplies.

  124. PGC says:

    #98

    100-19=81 so we both get an F.

    I don’t think the union medical would be hit more than the rest. Their big benefit is no out of pocket where non union will get hit with 10-25% of the cost. The union policy will probably come in under the 23K. I’m sure we can pull the GM numbers from somewere

  125. Chrysler’s sales came in at 65k for Nov, down %25 for the month. Only 14k of those sales were cars. Seriously, just kill them now, relabel the dealerships Fiat/Alfa Romeo and get it over with.

  126. Ellen says:

    #125 PGC –

    Personally I would rather see itemised deductions removed as is really only benefits high incomer earners.

    I don’t why you’d think that. Because of phaseouts and the AMT, itemized deductions have little effect on high income earners. Although I think removing itemized deductions would bring this country to its knees, it would barely be a blip on the radar screen of this high income earning family.

  127. PGC says:

    GM $5 billion a year in medical bills
    Coverage for 800,000

    Comes out to around $6,300 per person.

    Medium Healthcare plan in the US is around $12,000

    Medicare is around $7,500

  128. Mocha says:

    Mr. Crane has a HS degree, doesn’t he belong pumping gas and not a 6 figure job?

  129. Shore Guy says:

    “John 118 There go the endorsements.”

    I can see it now. Making lemonade from lemons:

    “Hello, I’m Tiger Woods for Motel 6. Do you ever suddenly find yourself in the need for a clean room in an out-of-the-way part of town — say, away from the media pool? I know I do…”

  130. PGC says:

    #128 Ellen

    Without itemized deductions, there is less chance to maneuver yourself out of AMT. I will defer to the Tax expert on this. Like I said AMT is a discussion on its own.

  131. prtraders2000 says:

    134

    Your itemized deductions are what causes you to pay the difference in AMT 99% of the time. One guy I prepare a return for submits nothing but his w-2 and he gets hit with AMT. His NJ state income tax is the culprit.

  132. Shore Guy says:

    The AMT (and the prospect of ever-more taxation of the professional class) has unintended consequences. Mrs. Shore and I have traditionally given away tens of thousands of dollars each year. I for one know what it is like to be poor, and we like to think that the better off have an obligation to help the leww well off.

    With the AMT destroying our ability to get benefit of itemizing, and with threats of ever-more taxation on those of us deemed to be rich (but not really rich) to support all manner of government spending, we have cut WAY back on charitable giving. Better to save the money to help pay our extra taxes than to get a few cents off the tax bill for each dollar given away.

    It saddens us, but, we must look after our own financial interests too.

  133. Comrade Nom Deplume says:

    [125] pgc

    “Safe points out correctly that playing with the deductions hits the revenue without touching the taxes.”

    Where does that revenue come from?

    If you can convince me that taking more out of me in taxes at the end of the year by eliminating deductions, while leaving marginal rates alone is not a tax increase, well, there is a place for you in the administration.

    [129] PGC

    “GM $5 billion a year in medical bills
    Coverage for 800,000
    Comes out to around $6,300 per person.”

    First, I assume by that metric that GM is self-insured.

    Question: Is the 800K the portion of the GM workforce that is covered, or all of GM? If it is the latter, there is a pretty good argument to be made that a percentage of them (part-timers, young people, married folks on other spouse’s plan) are not on the GM health plan. Enough to move the needle into Cadillac? Highly doubt it, but I again have to ask why this is relevant, other than that we removed GM from the 19%?

    Perhaps a better measure is what NYC cops and firefighter benefits cost? Other civil servants? Teachers? (wasn’t that Manalaplan cost pretty close, if not over the personal threshold?)

    Fact is, some unions don’t like this. Why?

  134. Alap says:

    Does anyone know how to get the monthly returns on 10-Yr Treasuries. Price, not yield.

  135. Comrade Nom Deplume says:

    [125] pgc

    “In your words why should I be made to pay for your 2% student loans.”

    You don’t. First, because I suspect you are not a net payer. Second, student loans (and mine were 9%) are below the line deductions, subject to the AGI haircut and phaseout.

    So no, you never did pay my loans.

  136. Schumpeter says:

    Shore (136)-

    As somebody who sits on boards and does a fair amount of fundraising for non-profits/charities, I can assure you that you’re not alone in that sentiment.

    Nor can I blame you a bit for your approach. I’m doing the same thing.

  137. chicagofinance says:

    frank says:
    December 1, 2009 at 1:16 pm
    “Working Two Jobs and Still Underemployed”
    Move to China or Australia, they need people with no skills.
    Don’t waste your time in the old USA.

    Agreeing with Frank and Mocha:
    How exactly is the guy in the article underemployed? All I see is someone making less than to what they are accustomed. If they don’t adjust their expense profile, then they are just being stubborn.

  138. lostinny says:

    79 Fiddy
    I can’t speak for Middletown as I don’t know the ins and outs of the school system. But as a guidance counselor, I ask you please don’t lump us in with administration. I’d rather poke my eyes out then become an administrator.

  139. Comrade Nom Deplume says:

    [136] shore

    “It saddens us, but, we must look after our own financial interests too.”

    Be not sad. You are still doing your part to uplift the downtrodden.

    Not voluntarily mind you, and in reality at the metaphorical point of a gun, but you are doing a lot more than most.

    As am I.

  140. Schumpeter says:

    I see all these “death of capitalism” articles lately.

    Capitalism is dead. It died years ago. What we practice now is corporate soci@lism/outright fascism.

    I’m ready for a capitalist revolution.

  141. Schumpeter says:

    Time to crank up the Soylent Green machines.

  142. Schumpeter says:

    Can anyone explain to me why Citigroup still exists?

  143. Anon E. Moose says:

    My tax strategy will mirror a good BlackJack stategy when the deck goes cold — hunker down, bet the min. until it turns around. That means relocating to a lower cost-of-living area, sacrifice no lifestyle (actually, I believe that I will be net positive disposable income) on a lower salary that avoids being considered “Rich” in the world according to BHO.

    Four years hence, there will be an opportunity to get back in the game if achievement is no longer punnished.

  144. Comrade Nom Deplume says:

    [136] shore,

    In fact, I had suggested that a great protest for HENRYs and others about to get whacked, would be to go on an anti-charity drive as a way to pressure the administration.

    Problem with that is the obvious bad press the public faces of any such initiative would get. Would make Scrooge look good.

    In any event, I cannot justify any giving right now, unless there is a compelling reason. So when the fundraisers call, I tell them “I gave at the office.”

    This is depressing me. Back to work.

  145. Essex says:

    142. Administrators in schools are an interesting breed. Not really “managers”, but more like baby sitters for aging teachers and a liaison for frustrated parents…Not much of a job if you ask me.

  146. Essex says:

    Oh and John….you and your “food fixations” are really fascinating.

  147. lostinny says:

    149 Essex
    I don’t know what schools you’re referring to, but most of the administrators that I have met, either haven’t spent any or haven’t spent enough time in a classroom or in a school system at all. They go through a training program but have no practical experience. They manage poorly and babysit no one.

  148. Shore Guy says:

    So, between the Shores, Clots, and Noms, we have three reasonably-successful families who, I suspect, are doing better than 95%, or more, of the population and who feel squeezed to the point of breaking. I have no doubt that those who are above us are doing everything possible to put cash offshore.

    During the Marcos Dictatorship, rich families in the Phillipines used to load up on jewels and wear their wealth out of the country.

    Solid gold laptop computer anyone?

  149. Essex says:

    Sure Shore. My homestead is current on all the big stuff. I think the malaise is infectious though.

  150. Essex says:

    But I am very grateful for cashflow now. Nothing for a rainy day though. Cept a very rich Uncle.

  151. confused in NJ says:

    Sounds more like a Permanent Welfare Program?

    WASHINGTON – As unemployment spikes, the cost of compassion is going up too.

    By as much as $100 billion.

    That’s the potential price of a push by Democrats in Congress to continue providing extra help to the jobless beyond the core 26-week unemployment insurance package provided under permanent law.

    The jaw-dropping numbers combine the approximately $85 billion cost of continuing emergency benefits through 2010 for the long-term unemployed — jobless more than six months — plus an estimated $15 billion to continue subsidies to help pay health insurance premiums.

    Even before the last new round of extended benefits in November, the cost of unemployment compensation was estimated by the White House to exceed $140 billion for fiscal 2010, which began in October. Just two years ago — when the unemployment rate was 4.8 percent in contrast to the current 10.2 percent — the cost of unemployment benefits was only $43 billion.

    Extending unemployment benefits again is an obvious solution to Democrats preaching compassion for the long-term jobless, as well as to economists who say cutting off the flow of money could harm the economy.

    “This is the most effective way to get money into the economy. It’s given to people who are simply out of money,” said Rep. Jim McDermott, D-Wash., a key supporter. “They’re spending it. They’re not socking it away in a mattress somewhere.”

    Several temporary benefit extensions dating from mid-2008 are set to expire Dec. 31. In January alone, an estimated 1 million people will lose benefits as their extended coverage runs out. By March, 3 million people will have lost benefits averaging about $315 a week.

    Also expiring is a program subsidizing 65 percent of insurance premiums for unemployed people who sign up for a continuation of health benefits formerly provided by their employer under the so-called COBRA program. The nine months of COBRA subsidies and the additional weeks of unemployment benefits were both core pieces of February’s economic stimulus plan.

    The COBRA health insurance subsidies expire Dec. 1 for those who signed onto the program when it first started last winter, though people who get fired before Jan. 1 are eligible for the full nine-month subsidy. People on unemployment would be able to finish out their present “tier” of benefits but would be ineligible for any of the recently passed additional coverage.

    The benefits extension is under discussion among top Democratic leaders. While there’s no agreement on a specific plan, there’s a lot of sentiment behind a full-year extension, congressional aides say. The staggering cost, however, could preclude passing it.

    With the budget deficit spiraling out of control, deficit hawks are certain to balk at the measure’s price tag. And the White House, which is signaling that it is going to focus next year on trying to rein in the deficit, is not endorsing a full-year extension of benefits. Budget office spokesman Tom Gavin would only say the administration supports some extension beyond Dec. 31.

    “We’re past the point where anything can be deficit financed without some plan to pay for it,” said Maya MacGuineas, president of the Committee for a Responsible Federal Budget. “It has to come with offsets.”

    Many economists say increasing or extending unemployment payments is among the most efficient ways to jump-start the economy. It’s easy to do and the people getting the benefits typically spend the money quickly. With the economy in a fragile recovery, cutting off benefits could be harmful.

    “It would significantly raise the risk of falling back into recession next year,” said Mark Zandi, chief economist at Moody’s Economy.com.

    Not all economists agree, however, especially if the benefits are financed by adding to the nation’s $12 trillion debt. There’s also evidence that unemployment insurance actually raises the jobless rate slightly because some people don’t look for work as diligently as they do when they’re on it.

    “The longer you extend unemployment benefits, the longer you extend average job searches,” said Ken Mayland, president of ClearView Economics. “It makes it more comfortable for people to be unemployed.”

    While most Republicans supported a recent bill adding 14 to 20 weeks of extra benefits for those who had exhausted payments lasting as long as a year and a half, many are likely to resist the upcoming measure.

    “Calling more government spending and more debt a ‘jobs package’ is laughable, and the Democrats’ frantic push for more of the same is yet another acknowledgment that their trillion-dollar stimulus isn’t working,” said Minority Leader John Boehner, R-Ohio.

    The startling price tag of extending the benefits is due to two factors: the sharp spike in the jobless numbers and several layers of additional weeks of benefits that have been approved by Congress since June 2008.

    The core benefit is 26 weeks, with up to 20 additional weeks in states with high unemployment. States collectively are already projected to run a $57 billion deficit in the core program in 2010. The federal government is already obligated to lend them the money to cover that gap.

    Additional tiers of benefits were added in 2008. February’s stimulus measure not only renewed those benefits but added $25 a week to every unemployment check.

  152. frank says:

    #118,
    No wait, I had 36-month affair with Tiger Woods, not her.

  153. PGC says:

    #137

    Revenue comes from Individuals before expenses and corporations after expenses. Reverse that equation and you will solve most of the rest of the issues.

    Until we find out who is in the 19%, you can’t assume it’s unions with the Cadillac plans.

    AS usual GS shows up.

    The high-cost insurance plans that the tax would affect generally offer unusually generous benefits that are not available to most Americans. The executive medical and dental program at Goldman Sachs, one of the nation’s largest banks, has become the poster child for lavish health insurance plans. Goldman’s top executives participate in a medical and dental plan that costs $40,543 a year for each participant’s family — three times the national average, according to the New York Times. Paul Fronstin, director of the health research and education program at the Employee Benefit Research Institute, suggests that such extremely expensive plans are likely to have no co-payments or deductibles, no limits of virtually any sort on doctors or procedures, and no requirements for referrals.

    #139 I seem to recall you bragging that you had refi’ed your federal loans to a consolidated 2% rate. Does that hit the revenue or expense side of the gvmt finances.

  154. Shore Guy says:

    Instead of a bill to extend unemployment more, perhaps a special sub-minimum wage is in order. If a business can document that an applicant has been unemployed for more than 26 weeks, they can provide employment — and with it the dignity of work — at a rate below the current minimum wage. Or, at minimum with a subsidy to the business. At least that way we are paying people to work and remove any incentives to sit around watching TV.

  155. PGC says:

    “The longer you extend unemployment benefits, the longer you extend average job searches,”

    I thought the lack of jobs was the biggest factor in extended job searches

  156. PGC says:

    #158 Shore,

    I’m fine with that as long as there are safeguards to stop the employers churning staff to lower the wage base.

  157. Shore Guy says:

    I knew there was a reason I have always felt right at home in Baltimore. It must be the smell of corruption (from the NY Times):

    IAN URBINA

    Published: December 02, 2009
    BALTIMORE – A jury convicted Mayor Sheila Dixon on Tuesday on one count of embezzlement for stealing gift cards that were meant for poor residents, but it acquitted her of three other charges, including the most serious felony theft charge.
    Ms. Dixon, whose conviction may force her from office, faced five theft-related charges, and the jury failed to reach a unanimous decision concerning one of the charges, which prompted the state prosecutor to say he was undecided on whether to refile that charge.
    “The city will still continue to move forward,” Ms. Dixon said as she left the courtroom after the verdict, adding that she was headed to City Hall to get back to work. “This city will continue to run.

    snip

  158. reinvestor101 says:

    WTF??? You know what’s shocking here?? That this wild eyed radical can make the statement below along with assorted other statements about revolution and all manner of subversiveness on a damn daily basis (sometimes hourly) and no one says jack shlt.

    I’m going to give you all a second chance. Repudiate him and do it now.

    144.Schumpeter says:
    December 1, 2009 at 3:39 pm
    I see all these “death of capitalism” articles lately.

    Capitalism is dead. It died years ago. What we practice now is corporate soci@lism/outright fascism.

    I’m ready for a capitalist revolution.

  159. John says:

    GM CEO Fritz Henderson to step down: source
    REUTERS — 8 MINUTES AGO
    DETROIT (Reuters) – General Motors Co Chief Executive Fritz Henderson will leave the automaker, a source familiar with the matter said on Tuesday.

    The planned departure comes after a meeting of GM’s 13-member board of directors in Detroit.

  160. John says:

    I always feel funny giving to charity, when I was dirt poor in a house with no heat my Mom was never offered a nickle and never asked for a nickle she pulled herself up by her bootstraps. All the poor people I knew never was offered a penny from these so called charities.

    Shore Guy says:
    December 1, 2009 at 3:27 pm
    The AMT (and the prospect of ever-more taxation of the professional class) has unintended consequences. Mrs. Shore and I have traditionally given away tens of thousands of dollars each year. I for one know what it is like to be poor, and we like to think that the better off have an obligation to help the leww well off.

    With the AMT destroying our ability to get benefit of itemizing, and with threats of ever-more taxation on those of us deemed to be rich (but not really rich) to support all manner of government spending, we have cut WAY back on charitable giving. Better to save the money to help pay our extra taxes than to get a few cents off the tax bill for each dollar given away.

    It saddens us, but, we must look after our own financial interests too.

  161. A.West says:

    Re101, thanks for posting those sob stories from The Nation. Love to taste their tears of sorrow, especially from environmental sdtudies grads who refuse to work for corporations. I guess Al Gore’s private equity corporations would be ok with her?

  162. A.West says:

    Schump,
    I second your call for a capitalist revolution, and suggest Atlas Shrugged as the Capitalist Manifesto.

  163. Alap says:

    Anyone hear of the class action lawsuit filed against KHOV?

  164. WHYoung says:

    Regarding school taxes…

    In New York you include information on the school district you reside in on your tax returns.

    Not sure how they calculate amounts that get sent back to a particular district.

    Have a friend who works for the Board of
    Ed who says more BIG cuts are coming.

  165. BC Bob says:

    50.5,

    Your game is becoming antiquated.

    There are no 2nd chances. The system has broken/is breaking down. The experts have blown this charade to oblivion. Revolution? Hell that’s the least of our worries.

  166. Anon E. Moose says:

    157.PGC says:
    December 1, 2009 at 4:34 pm
    #137

    #139 I seem to recall you bragging that you had refi’ed your federal loans to a consolidated 2% rate. Does that hit the revenue or expense side of the gvmt finances.

    PGC,

    My fed. student loans were consolodated in 2005 around 2%, now 1.625% based on 36-mo payment history. As much as I want to clean up my personal balance sheet, I wouldn’t pay off a 1-5/8% note with your money (OK, maybe I might). I’m paying less than half the public-consumption headline inflation number, and am as a result can actually make money sleeping on my cash.

    Veering back into the tax discussion, I have long since been means-tested out of deductibility for my student loan interest. Interesting pitch – go to college and we’ll let you deduct your student loan interest, unless of course your college degree leads to a lucrative job, in which case forget it. What was the point of college again if not to keep the education industry gainfully employed? Subsidy for frat boys and vapid bubble heads studying kegology while I was crunching numbers in engineering.

  167. Comrade Nom Deplume says:

    [157] georges

    “Until we find out who is in the 19%, you can’t assume it’s unions with the Cadillac plans.”

    Then why are the unions upset about it?

    When I look out my window and see folks carrying open umbrellas, it’s reasonable to conclude that it is raining. I don’t go outside to see if I get wet. When unions complain about the cadillac plan tax, it’s reasonable to assume they will be affected.

    “AS usual GS shows up.”

    And that’s news? I had no idea that GS accounts for nearly 20% of plan participants out there. No wonder they are so pernicious. They’re everywhere! And they’re armed!

    (FWIW, if I were getting a GS bonus, I could easily buy that plan, thank you).

    “I seem to recall you bragging that you had refi’ed your federal loans to a consolidated 2% rate. Does that hit the revenue or expense side of the gvmt finances.”

    I have no idea WTF you are talking about.

  168. jamil says:

    136 shore:
    “With the AMT destroying our ability to get benefit of itemizing, and with threats of ever-more taxation on those of us deemed to be rich (but not really rich) to support all manner of government spending, we have cut WAY back on charitable giving. ”

    This is a intended feature, not a bug, under Obambi administration, but at least you got what you voted for.

  169. schabadoo says:

    Four years hence, there will be an opportunity to get back in the game if achievement is no longer punnished.
    In fact, I had suggested that a great protest for HENRYs and others about to get whacked, would be to go on an anti-charity drive as a way to pressure the administration.

    So many John Galts for one site, no?

  170. chicagofinance says:

    Some commentary regarding Sorkin.

    First off, last night was an abridged version of the Charlie Rose interview on 10/19/09. Go to home page and at the right is “Recent Shows”….scroll down the list (54 minutes).
    http://www.charlierose.com/

  171. lostinny says:

    168

    Regarding school taxes…

    The formula for deciding which districts get how much of the pie is incredibly convoluted. I was speaking with someone I am very close with (who works in the budget dept. at the DOE) at length today regarding the formula that state and the city use. It is not simply a straight “we pay more taxes so we should get more aid” or “we have more students so we should get more aid” type of formula. There was a lawsuit that was settled a few years back because even though NYC had more students then anywhere else in the state, NYC did not get the same amount of funding per student.

    And yes, your friend is right. BIG cuts are coming. It’s just a matter of who and when.

  172. Comrade Nom Deplume says:

    [157] prince,

    “Revenue comes from Individuals before expenses and corporations after expenses. Reverse that equation and you will solve most of the rest of the issues.”

    Yow. Let’s drop that one in the tax policy cooker and see where we come out.

    Hmmm. What effect on the macro economy if we eliminate employer deductions for expenses? Hard to say offhand, but I can safely predict that we will have a lot fewer tax issues related to domestic multinational corporations in years to come.

  173. chicagofinance says:

    Sorkin:
    Great question from Rose near the end……what have the bankers learned? ……really nothing……in fact they are fighting regulation as we speak. Also, according to Sorkin they really do not acknowledge that the public saved them. No contrition at all.

  174. Comrade Nom Deplume says:

    [173] schabadoo,

    True. Lot of Randism here. But we have plenty of Guevaras here too, comrade. I find myself sparring with them regularly.

    Coming to the GTG???

  175. jamil says:

    176 comrade: “but I can safely predict that we will have a lot fewer tax issues related to domestic multinational corporations in years to come.”

    i think we can safely say we have a lot fewer multinationals in this country in a few years. Let’s just wait until the government takes over Pfizer and Apple. Can’t wait for that new cancer drug and iphone v 5.0 coming out from Senate Committee of Unintelligent monkeys.

  176. Barbara says:

    my lord, these GTGs must be the most annoying liquor fueled bullshit sessions ever. Imagine, all this without the hassle of typing it all out.

  177. PGC says:

    #170 Anon

    Petty much what Mrs PGC said coming out of Grad school. Three years of Ramen noodles and she might as well have gone into Enginerring with her bachelors.

  178. PGC says:

    #171

    Maybe it was NJPatient with the 100K law school loans at 2%, planning a very long repayment schedule.

  179. PGC says:

    #176

    I see corporate personhood only goes so far.

    If you shut the loopholes to get corporations to actualy pay their tax, as opposed to deferring, hiding etc, then the big revenue number goes up.

  180. schabadoo says:

    Coming to the GTG???

    Me? Doubtful. So busy with work.

    But it’s all for the greater good. Bankers need their bailouts!

  181. chicagofinance says:

    More Sorkin:

    I was talking to Nom DePlume and asked him why the f— would they have given this kid so much access? I think nom has it right…fear of liability, litigation, or being otherwise held culpable….whether such legal or financial attachment occurs through Sarbanes Oxley or some other channel.

    To the extent an entire corroborated story is out there, there is less chance of hearsay, multiple account etc.

    I really get the feeling that Sorkin hits it down the middle. If anything, the rage and petty jealousies of his NYT peers only gives Sorkin an imprimatur of plausible NEAR-objectivity. Petty jealousy of their precocious peer, as well as a long standing enmity of their grossly overpaid neighbors.

  182. OhComeOn says:

    #180

    my lord, these GTGs must be the most annoying liquor fueled bullshit sessions ever. Imagine, all this without the hassle of typing it all out.

    Post of the day, IMHO.

  183. chicagofinance says:

    re101: the military vet is OK…they other two need to be euthanized ….

    reinvestor101 says:
    December 1, 2009 at 2:03 pm

  184. Fiddy Cents on the Dollar says:

    Another one of the Extreme Makeover Shacks going into foreclosure….

    http://tv.yahoo.com/blog/another-extreme-makeover-home-edition-family-facing-foreclosure–834

    This article makes it seem like they leave the homeowner with a huge mortgage. What’s the point of the show ??? They fix your house….but leave you with a toxic loan !?!?

  185. chicagofinance says:

    strump……so clot-esque classic….can I hire you to open-fist punch some of the people who call me?

    “But if you don’t understand what you’re getting into, you’re gambling, and you’re a dope and you should lose all of your money.”

  186. Al Gore says:

    162. He isnt a wild eyed radical nor are you. If you arent pissed off there is something wrong with you. Historically this has been seen before. It doesnt end well.

    Rasmussen.
    Seventy-one percent (71%) of voters nationwide say they’re at least somewhat angry about the current policies of the federal government. That figure includes 46% who are Very Angry.

    The latest Rasmussen Reports national telephone survey finds that only 27% are not angry about the government’s policies, including 10% who are Not at All Angry.

  187. chicagofinance says:

    even more Sorkin:

    We were in serious trouble in September 2008, and the media did not portray it well.

    We were at the point that MS, then GS, then GE would be gone, and then within another week after that, most small and mid-sized companies around the country would not have had the cash to make payroll.

  188. jamil says:

    183 PGC “If you shut the loopholes to get corporations to actualy pay their tax, as opposed to deferring, hiding etc, then the big revenue number goes up.”

    Agreed. Just look how things are in Cuba. We should just raise the tax rate to 100%!

  189. chicagofinance says:

    I was being taken out back to the woodshed last year……

    chicagofinance says:
    October 1, 2008 at 3:22 pm

    skep: I think I am fatigued of saying “companies” will be squeezed and people will be sorry, and being chastised for “platitudes” and arrogance. WTF? Look at %ucking GE!!!! Do people understand what is happen here!

    If GE is issuing stock and selling a preferred to Berkshire with a hellacious handle doesn’t get the message to you…..YOU JUST DO NOT WANT TO HEAR IT…..

  190. chicagofinance says:

    chicagofinance says:
    October 1, 2008 at 3:31 pm

    NOTE: GE is the gold standard in the CP market, and they are having serious difficulties turning over their stuff. They have suspended their stock buyback at a point where their stock is at multi-year lows.

    This situation is not Wall Street versus Main Street. Wall Street wins, Main Street loses…..PERIOD….any way you look at it. If the system goes nuclear or nook-yah-ler, then the super rich will just lay waste to everyone else. Is that so hard to understand? The way to exact revenge is to survive and prosper in your own lives.

  191. chicagofinance says:

    chicagofinance says:
    October 1, 2008 at 5:56 pm

    Clotpoll Says:
    October 1st, 2008 at 5:50 pm
    Chi (396)- The fact that the future viability of our economy now rests on a selection of the most palatable fraud- from an entire menu of frauds- is a prima facie argument that the whole show should be shut down.

    The chaos that comes now may be more savory than the monster we’re creating, to be unleashed at a future date.

    clot: Humans are adaptable. All they need is time. However, you cannot adapt while moribund, which is the path that you appear to advocate.

    I would rather save some joker’s job at the local corporation than have him rob my house six months later and shoot me to death……..what does $700B buy you, how about not having to put bars on your windows?

  192. chicagofinance says:

    #
    chicagofinance says:
    September 30, 2008 at 11:52 am

    Tom: Companies and decisionmakers that were prudent are going to deal with draconian consequences. Do not misunderstand me. These developments are not binary, and to draw conclusions in that manner is counterproductive. I am fundamentally committed to constant evaluation and rigor. In the grand scheme, I hate the idea of this action, but we do not have the latitude of anything other than a blunt force instrument.

    Are we going to have picketpockets as we walk through the crowd? Yes. Is this just? No. Just remember, these cretins are always there, they are just more visible that usual.

  193. Al Gore says:

    Chicago,

    where is that text from?

  194. Comrade Nom Deplume says:

    (183) Pgc

    I agree with the very simple premise that if you close loopholes and deem offshore revenues as earned and taxable even if not repatriated, there will be a 1 year jump in taxes.

    Maybe.

    As for year 2, well, I’ll let you know how that goes. As one analyst said, its real easy for a US corp with an irish sub to become an irish co with a US sub.

    ATEOTD, the company will do what saves it money. But I can predict that there will be more well known companies that will cease to be US companies.

    Congress has threatened to deem them to be domestic corps regardless. But if they are in a treaty country, how do we use extraterritorial jurisdiction without violating our treaty? And if they aren’t, do we invade Bermuda when they thumb their nose at us?

  195. chicagofinance says:

    Al Gore says:
    December 1, 2009 at 6:33 pm
    Chicago, where is that text from?

    The article posted yesterday that was written by scribe subject Leveraged ETFs…..

  196. jamil says:

    198 comrade “. But if they are in a treaty country, how do we use extraterritorial jurisdiction without violating our treaty? And if they aren’t, do we invade Bermuda when they thumb their nose at us?”

    Bawney Fwank and the Lunatic Left have found a war they support!

  197. PGC says:

    #198 Nom.

    I think it is a very easy fix. Just like the citizens are taxed to perpituity then so is the corporation. Send a sub back, tax the whole.

    Make it law that gvmt contracts (with strict exceptions) must be with a company domiclied in the US. At least a that point you are keeping the gvmt spent dollars in the country.

    Whats the chances Halliburton reconsider their move to Dubai.

    Here is an interesting take from back in Feb.
    http://louminatti.blogspot.com/2009/02/halliburton-leaves-dubai-returns-to.html

  198. jamil says:

    “Make it law that gvmt contracts (with strict exceptions) must be with a company domiclied in the US”

    PGC: Why not just make it a law that government must overpay for everything by 100% ?

    Besides, this would ge against all those international rules and values this government was supposed to uphold (and start a major international trade war).

    Besides2, many things are not manufactured by US companies so a lot of disasters would happen. But hey, things are going on great in Cuba so let’s follow their lead!

  199. Shore Guy says:

    “Revolution? Hell that’s the least of our worries”

    Nom,

    You may well remember that, compared to the Russian Civil War that followed, the Russian Revolution was a bloodless tea party.

  200. Shore Guy says:

    Blood lite, so to speak.

  201. PGC says:

    #202 Jamil

    Is Cuba the Glen Beck word of the day.

    I still waiting for your answer on Rudy Guiliani for senate.

    Great man with conservative values, lead our country in it’s darkest hour, or bleeding heart Liberal soft on gays and guns.

    Just want to be clear where you stand.

  202. jamil says:

    PGC, yes, we conservatives blindly follow Glen Beck for everything (is that the new mantra of the hard left?).

    I think Rudy is great candidate for Senate and I consider him great conservative too. He saved the liberal sh1thole of NYC from crime and taxes.

  203. Essex says:

    206. Rudy can do anything he wants. Best Yankees seats ever.

  204. Comrade Nom Deplume says:

    (201) County,

    Are we talking policy or law here? I’m a bit confused because it seems you are mixing what ought to be (year version) with what is.

    As for govt contracts, that is something that has been proposed in different forms over the years. Look at things like Davis-Bacon and the FAR. It is also one part of the reason why the USG pays 400 bucks for hammers.

    (204) Shore

    Don’t recall making that quote. I am however familiar with the travails of the white russians and the provisional govt, and how the USG abandoned them.

  205. Comrade Nom Deplume says:

    (206) Pgc

    Cuba is sooooo last century. Chavez is the new boogeyman (at least to his friends—he just locked up one of his closest wealthy backers and seized his banks).

  206. Noah says:

    Re gold purchase – I use goldmomey.com. I don’t take physical delivery but you can have 100g (like 4oz) mailed to you.

    About 3% commission for acquisition – no cost to sell.

  207. Al Gore says:

    I would love to hear SAS’s take on the Chavez/Columbia situation. That coupled with Cuban war games.

    Regarding Beck. You cant trust anyone in the mainstream media. He gets close to exposing the truth and then abandons the story leaving everyone hanging.

    I prefer judge Napolitano.

  208. d2b says:

    Al-
    Glenn Beck has a 3hr radio show and 1 hr(I think)cable show.

    He is main-stream media.

  209. yikes says:

    #

    #
    syncmaster says:
    November 30, 2009 at 11:59 am

    Every time i hear of teachers on this blog, they make 100k. Who are these people who all make 100k, I wanna meet em.

    me too!

  210. schabadoo says:

    I prefer judge Napolitano

    Straight shooter that one is. On Palin:

    Fox News’ Napolitano: Palin doesn’t have “the mental capacity to be President … she is a goofball”

    On military tribunals:

    The case against military tribunals

    It’s a violation of the Constitution to use the panels without a declaration of war — and just calling it a ‘war’ on terror doesn’t count.

  211. yikes says:

    Scribe – Good piece in SFO.

    Nice quotes, Clot.

    nice to see this board doing big things. keep up the good work.

    can we move the GTG to Princeton Friday? Any chance of that happening?

  212. PGC says:

    #207 Jamil.

    No that comes from your District 27 Dede Scozzafava was too left of the right to be a GOP candidate rant.

    Good luck with Rudi, I can’t wait to see you standing behind him.
    http://politicalhumor.about.com/od/election2008/ig/Election-Funny-Pictures/Giuliani-In-Drag.htm

  213. PGC says:

    #209 Nom

    Thats how you fix the exodus to Ireland, block the doors. It would be corporate personhood put to a good use for a change.

    We already have $400 hammers at least this way you might get a “Made in the USA” on it…… :*)

  214. PGC says:

    #217 yikes

    Princeton is too far for me.

  215. cobbler says:

    There is no reason to believe that the government currently can’t contract $400 hammers made in China. If we impose U.S. domicile requirement for all govt contractors we’ll probably pay more for the first year or two (collecting large part of what we’ve overpaid in taxes, anyway) – then the domestic capacity will get built up.

  216. yikes says:

    holy crap grim, this lead article up top from the WSJ is completely depressing

  217. Schumpeter says:

    chi (189)-

    Sure. Hell, I’ll do it for free.

    “can I hire you to open-fist punch some of the people who call me?”

  218. chicagofinance says:

    Mr. Ark: some-um no smell right; bid/ask spread may I ask? for something easy, they sure have a seriously fcuking confusing website…..only one answer….ass-rape…

    211.Noah says:
    December 1, 2009 at 8:30 pm
    Re gold purchase – I use goldmomey.com. I don’t take physical delivery but you can have 100g (like 4oz) mailed to you.

    About 3% commission for acquisition – no cost to sell.

  219. Schumpeter says:

    chi (195)-

    I stand by my ’08 statement there. Burn the MF’er down, and start all over. It’s all gonna come down anyway, and the longer the fraud is perpetrated, the harder the fall will be.

  220. chicagofinance says:

    I really miss Giuliani’s combover….

  221. chicagofinance says:

    clot: I challenge you to a Knob Creek drinkoff at the GTG. The first person to blow chunks that stick to grim’s chest hair wins!

  222. NJGator says:

    Shore – Thanks for asking. Lil Gator loved the zoo. The animals were a big hit, but being the son of Stu, I think he enjoyed thee Skyfari and People Movers as much as the animals.

    Today we went to the most awesome New Children’s Museum and Lil Gator is proudly wearing the kaleidoscope he made. We highly recommend it.

    Just touched down. Getting to work on time tomorrow is going to be a real b*tch. Back to reality (at least until Lil Gator and I leave for SF next week).

  223. chicagofinance says:

    222.yikes says:
    December 1, 2009 at 11:00 pm

    yikes: I made some kind of market call about 4-6 weeks ago in response to something you posted. I am just curious what I wrote. I can’t seem to track it down. I only remember saying that November would be up. I think the final tally was in the 5-6% range. I also said that retail would exceed expectations….which was wrong.

  224. Schumpeter says:

    chi (227)-

    Now I know for sure you went to Cornell.

    “The first person to blow chunks that stick to grim’s chest hair wins!”

    Sorry to wuss out, but have soccer Friday PM.

  225. Shore Guy says:

    “until Lil Gator and I leave for SF next week”

    Indeed, after a whole week back, it will be good to get away for a little R&R. At some point, you will learn how to relax a little.

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