Mish's Global Economic Trend Analysis |
- Mush for Brains in California; Ohio Union Negotiators Picket Union Teachers in Contract Dispute; Oregon Nickeled to Death by Bus Union
- Rosenberg says "ISM Flunks Sniff Test "; Cashin calls ISM "an Outlier"; ADP, Other Data Does Not Confirm
- State Tax Revenues Slowly Rebound, But ...
Posted: 02 Sep 2010 07:15 PM PDT One might think that a salary of $111,000 negotiating contracts for teachers was more than ample pay, especially when teachers themselves have been forced to make contract concessions. Yet, One would be wrong. Greedy negotiators walked off the job even though 80% of the workers make over $111,000 a year. The Columbus Dispatch reports Teachers union has labor trouble of its own Ohio's largest teachers union is having labor problems of its own.The appropriate response from the Teacher's unions would be to fire the negotiators, thereby saving $12 million dollars a year. Anyone making over $100,000 and goes on strike in this environment deserves to lose their job, their home, and their lifestyle. Salem Oregon At Double-Dip Risk Please consider Analysts: Salem at risk for double-dip recession According to the economists, Salem is one of 22 U.S. cities at risk for a double-dip recession. There are 76,000 state employees in Oregon and 21,500 of them work in Salem. That's almost a third of the entire state government workforce in the capital city.Nickeled to Death by Bus Union Oregon Live reports Trimet and taxpayers: Bus riders' dismay grows one nickel at a time It's only a nickel. The latest fare increase from TriMet won't bankrupt anyone, not even the job seekers, college students and low-wage workers who make up a big portion of the Portland metro transit agency's ridership.Abolish Tri-Met It is time to send Tri-Met packing. The correct response is to put the bus contract out to bid and take the lowest offer. It is absurd for bus drivers to have $2,200 per month health care costs at public expense. Bear in mind that pension costs are on top of that. It's no wonder Oregon is falling apart. Schwarzenegger Targets Pensions The Sacramento Bee reports Schwarzenegger targets pensions in budget press conference Gov. Arnold Schwarzenegger left little doubt today that cutting state employee pensions remains one of his top priorities in budget negotiations. He is demanding that lawmakers roll back pension guarantees for future state hires as a condition to signing the budget.While I welcome this stance from Schwarzenegger, it is a stance 3 years late in coming. California Budget Impasse in Third Month Bloomberg reports California Republicans Block Budget Plan Proposed by Democrats Republicans in the California Legislature blocked passage of a budget sought by Democrats who want to close a $19.1 billion deficit with higher taxes and less spending cuts than preferred by Governor Arnold Schwarzenegger.Republicans should hold out, forever if necessary. Whitman Leads Brown in California Governor Race Bloomberg reports Union-Led Group Halts Ads Attacking Whitman in California Race A union-funded group that spent almost $9 million on negative advertising targeting Meg Whitman, the Republican running for governor in California, has suspended its campaign, designed to help Democrat Jerry Brown.Indications The dropped union funded ads are indicative of one or more things.
All You Need To Know The way to access how to vote in any election is to look at the candidate endorsed by labor and vote the other way. No matter how much one likes or dislikes Meg Whitman, she is going to do a far better job than socialist Jerry Brown whose primary interests are to pander to public unions and raise your taxes. Mush for Brains If you intend to vote for Brown, you or your family are members of a public union, you are on welfare, you work for the state, or you have mush for brains. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
Posted: 02 Sep 2010 01:44 PM PDT When futures ramped into the close on Tuesday, with heavier volume, I had an inkling the ISM number would be hot Wednesday morning. Indeed, that was the case. However, a hot manufacturing ISM makes little sense (not that any economic numbers have to make sense except perhaps in the long haul). One thing that struck me right off the bat was how the monthly ADP jobs report does not confirm the ISM number. Nor do the regional Fed reports that I have been following, especially the Philly Fed report as noted in 58 out of 58 Economists Overoptimistic on Philly Fed Manufacturing Estimate; Median Forecast +7 Actual Result -7.7, a "Veritable Disaster". August ADP Employment Reports Shows Contraction in Manufacturing Jobs Inquiring minds are reading the ADP August 2010 National Employment Report for clues on strength of hiring trends. Private-sector employment decreased by 10,000 from July to August on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from June to July was revised down slightly, from the previously reported increase of 42,000 to an increase of 37,000.ISM Smell Test Rosenberg blasted the ISM report in Breakfast with Dave. STRANGE ISM NUMBER ... DOESN'T PASS "SNIFF TEST"Art Cashin says "ISM is an Outlier" For more from Art Cashin, please see 26 of Last 88 Trading Days have been 90% Days (Either Up or Down); 7 More Lean Years in Stock Market? Let's assume for a moment the ISM number is correct. If so, manufacturers are ramping up production just as the economy is dramatically slowing by nearly every other measure. I smell huge inventory problems coming up in the 4th quarter. In the meantime, let's party over a ramp in production with no buyers. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
State Tax Revenues Slowly Rebound, But ... Posted: 02 Sep 2010 09:22 AM PDT The Nelson Rockefeller Institute reports State Tax Revenues Are Slowly Rebounding. However, as always, the devil is in the details. Let's take a look. Preliminary tax collection data for the April-June quarter of 2010 show improvement in overall state tax collections as well as for personal income tax and sales tax revenue. However, revenue collections remain significantly below peak levels and are still weak in a number of states.Improvement Mirage Please see article for more charts, data, and analysis. The "improvement" in personal income taxes was a mirage caused by California speeding up collection of personal income taxes. California required payment of estimated taxes before money was even earned! Ignoring California, income tax collections actually declined from a year ago. Much of the improvement in sales taxes is a result of tax hikes, not increased sales. Those effects will soon wear off in year-over-year comparisons (assuming of course there is not another round of sales tax hikes, by no means a good bet). In simple terms that dramatic rebound shown in the first chart merely means things have stabilized but only vs. the rock bottom depressed level of second quarter of 2009. Gallup Polls and sales data from MasterCard Advisors paints the same grim picture. Please see Gallup Poll Shows Consumer Spending Pullback, Consumer Confidence Levels Below Depressed 2009 Levels ; Back-to-School Sales Bust Says WSJ for details. States remain in a world of hurt and the economy is slowing once again. I expect GDP contraction in the third quarter. Thus, states are going to have to address the problem of public union wages and pension benefits whether they like it or not. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List |
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