Showing posts with label Lifestyle. Show all posts
Showing posts with label Lifestyle. Show all posts

Happy New Year! Ready For Another Prediction? This Time Try 30-40% Unemployment Rates.

1/01/2009 12:35:00 AM

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2009-print-preview-blogSay goodbye to 2008.  Never to be here again and hello to 2009.  New Years Day, a new year, a new day, and a time for new hope.  And with that, why wait to begin the misery of what might be in store for next year.  What say you?

I happened across a strange prediction for our wonderful new year of hope.  It’s probably not what you want to hear, but hey, since when do I ever tell you what you want to hear, but instead write about what you should think about.

Now, I’ve never heard of this organization before.  I don’t know anything about them.  But.. well.. what they have to say is rather scary to even think about.

How about the notion of topping Great Depression numbers of 20-22% across the nation?  What if I said someone is predicting 30-40% unemployment by September 2009?  How’s that for scary?

This commentary comes from a “We Beat the Street” commentary, an Investment Strategy company, via KITCO.   The author is Roger Wiegand, who I’ve also never heard of before and don’t know too much about, other than his biography on We Beat the Street and a bio on IIC.  But , lets take a gander into his crystal ball, shall we? [Hat Tip to Nightblogger]

Our new president is determined to hand out $860 Billion to One Trillion dollars in a Herculean effort to literally buy a new economic recovery.  While some of his ideas are noble indeed the overall plan will have little effect and Great Depression II shall take hold in 2009 with crashing stock markets in May and September-October 2009.  We think the worst of the worst hits in late September 2009.

Hey, what do you know, the one year anniversary of when millions lost nearly all of their 401(k)s when the market dropped out.  What a time to choose!  But I’m getting ahead of myself… lets hear about spring.  A time of green, fresh air, and everything coming back to life.  But the death of the stock market according to Wiegand.

During the spring of next year we see:

(1)  A second larger wave of residential housing mortgage failures; [Now, to be honest, I heard about this about two months ago.  Its a different kind of mortgage than the ARMs but it’s more “deadly” to the market  and banks.  Good thing we don’t have to pay a mortgage!]

(2)  The first big wave of auto loan failures and repossessions; [I heard about this one too about two months ago.  But if people can’t pay their mortgages, the next big ticket item is their car.  Good thing we don’t have to pay a car loan or lease!]

(3)  Over $40 billion in credit card defaults, smashing the bank lenders; [This is already happening, and again, another “big ticket” item are peoples credit cards.  Good thing we’ve never EVER used them.  If you can’t pay for it in cash, you don’t need it.]

(4)  The first wave of commercial mortgage failures and foreclosures on shopping malls, office buildings and other commercials; [This too is inevitable.  It is estimated that over 16,000 businesses will fail in the next year, leaving a lot of empty space in malls, strip malls, and business complexes.  Already, Circuit City has left quite a few leases up in the air, due to them filing bankruptcy.  Whose next?]

(5)  And finally, the grand smashing finale of CDS Credit Default Swaps originated with No margin money or down payments!  We heard today the total is 500 trillion!  I cannot even fathom that number.  These five converging train wrecks could take the Dow from a dead cat bounce of 10400-10800 back to 7250, or even 6600, or 5600.  [My other half and I have said, the Dow will crash out around 5000 in 2009.  So much for our stocks.]

But if you think the Dow at 5000-6000 is bad, you haven’t heard it all yet.  The above is just in the spring of 2009.  There’s how many months in the year, and how many seasons?

Then, in late September and early October, the New York, London, Tokyo and Asian markets take a monster crash.  how low is low and how bad can it get?  We think the Dow could end-up on November 1st, 2009 anywhere from 5,600 to a low of 3,000 or even 1,500. 

Ouch…. and how interesting that it’s just about the same time that the stock market crashed in 1929.  But the best.. err.. worst is yet to come.  And the capitalization isn’t my emphasis, it’s Wiegand’s.

Unemployment nationally in the USA is now touching 16%.  The officially posted number is somewhere near half of that.  By the fall of 2009, American REAL UNEMPLOYMENT WILL BE NEAR THE ALL TIME 1930’S DEPRESSION HIGH OF 25% UNEMPLOYED.  SADLY, THAT IS NOT THE WORST AS IT GETS MORE DIRE.  WE PREDICT, USA UNEMPLOYMENT REACHES 30-40%.  IN THE RUST BELT STATES OF MICHIGAN AND OHIO, WHILE 40% IS NOT UNREALISTIC.

Great… wonderful.  Buy your tents, Coleman stoves and sleeping bags now.  And maybe a nice little 9mm and shotgun.  Aww heck, splurge for a Desert Eagle.  Size is intimidating!  Make sure to not forget the ammo!  And begin to stockpile food, you might need it.  This might be the “new” money and a good bartering tool, as long as people don’t kill ya for it.  And LOTS of stocking up on toilet paper and um.. ah… guys look away on this one… feminine items.  And don’t forget things like cold medicine, aspirin, and topical antibiotics!But more realistically, stockpiling at least two months of food is a good way to make sure you have a food supply and “other” items if you lose your job or have to choose between food and a house payment.

The American federal government departments for food stamps and the job of providing welfare provisions will be overwhelmed.  This will be a Katrina event for the hungry citizens of the United States.  Urban areas will see skyrocketing crime and in parts of some cities, life could become totally uninhabitable.

The last report we’ve seen on those receiving food handouts and related welfare amounted to 11 million USA citizens with 700,000 children going hungry each day.  We suspect the true amount of those needing food help will rise to 35 million with an untold tragic number of them being little, defenseless children.  Governments remain in denial and are not prepared for this national emergency whatsoever.  As things worsen, food riots and others with violence aimed at the “have” are common.

Did I happen to say that I am also professionally trained in sword fighting?  And raised by a Father who taught me to shoot a .38 & .45 around the age of 8 and a shotgun at the age of around 10?  Who would have ever thunk it that I would need those skills in my personal life!  And a chick to boot!

And as for that stockpiled food, didn’t I just say it was going to be the new “money”?  Dollars will be worthless. 

The number of bank failures over the next three years will be in the thousands.   In addition, the US Dollar’s valuation could break recent lows near 70.00 on the index, dropping to 46.00 by 2011 or 2012.  Inflation or potentially hyperinflation is quite real as the Federal Reserve and US Treasury strain to print and circulate cash to prod our stalled economy.  It is simply not working even with the dramatically lower interest rates of late.

But to continue, Wiegand says just like in the Great Depression, families are “renting” out rooms, or “bunking” up to pool their money.

Consumers are broke and going broker.  Households of interrelated families are doubling and tripling up even with several employed members being under one roof.  Basic costs of rent, mortgage payments, health care, food, utilities and taxes are too much to bear on stagnant and in some cases falling wages.  In some areas of America, there are entire subdivisions of homes totally abandoned or existing with only a hand full of occupants.  The millions thrown at lenders for new mortgages are not getting through to buyers, as there are fewer of them.  We are witnessing a system breakdown.

Isn’t this already happening?  I recently blogged about Detroit and how many of the homes are already empty, and have been gutted for their copper and such.  And additionally, many who are behind on their mortgages, and said bank gets a bailout, refinances the mortgage, only to increase the payment by $300 to $500 a month, and also demands several thousand dollars just to stop the foreclosure within 30 days!

And states and cities will be broke also, so forget about getting any help from them, which is already happening.  Say bye bye to welfare and to schools.

Municipalities and states are sinking into a spending, debt-ridden morass.  It was reported today that 22 of 50 USA states are in serious budgetary trouble.  California is one of those in terrible condition and Michigan is already technically broke as many of her cities. [Don’t forget Ohio as the governor called Rahm and said he needed $5 billion!]  Detroit will file bankruptcy in 2009 and there will [be] many other surprises as well.  There will be a cascade of bond defaults and the outcome will cap the ability of these cities, states and countries to borrow ever more.

Hey, at least we are all in this together….. *smirk*  True worldwide Socialism!  YIPPIE!

The shining light through all of this is the faster we find the bottom the faster we can recover.  Sadly, the recovery process will take years.  Futures and commodities traders should continue to earn steady profits as the stock markets slide into oblivion for years.  We see no recovery until 2015.

Let see… Obama Jan 2009 – Jan 2013.  I wonder if he will run for re-election?

I find it interesting that there is no mention of the Big 3, or of a company such as Wal-Mart still being in business.  If Wal-Mart collapses, we are in trouble.

But wait.. according to the Russian nutjob, by 2010 we will be in a civil war and the United States will be split between Canada, China/Japan, Mexico and the EU with Alaska going back to Russia and Hawaii going to China/Japan so all of this won’t happen!

Of course there’s always Gerald Celente’s prediction of a total collapse of the economy and a revolution by 2012.

So well.. there’s my first post of the new year…… oh and… um… might be a little late… but have a happy and prosperous  New Year, while you still can? *shrug* *nervous smile*

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40,000 Pick Free Vegetables At Colorado Farm In One Hour.

11/27/2008 08:14:00 AM

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So while I’m in the middle of cooking, and the other half is still asleep, why not blog?  :D

In Colorado 3 miles west of Platteville at Miller Farms on Colo. 66, a farm couple opened up their fields to anyone who wanted to pick up free vegetables left over after the harvest.  The couple expected about 5,000 to 10,000 to show up to dig for the free potatoes, carrots, beets, pumpkins, onions and leeks.

Instead, about 40,000 showed up in an estimated 11,000 vehicles.  About 30 acres of the 600-acre farm 37 miles north of Denver reportedly became a parking lot.  It was estimated that 600,000 pounds of produce was harvested on Saturday.  The event was due to be two days, Saturday and Sunday however, the fields were picked clean on Saturday, cancelling the event on Sunday.  The food was gone within an hour, before noon.

“Overwhelmed is putting it mildly,” Dave Miller stated.  “People obviously need food.”  “We had originally planned to take everyone by tractor to the fields but due to the overwhelming response we had to allow people to walk or drive themselves,” said Dave Miller.

“It was completely more than we expected,” said David Patterson, the farm’s operations manager. “It was absolutely insane, but it was one of the most wonderful things we’ve ever seen.”  “It’s an overall sign of the times,” Patterson added.  “Out country is in some bad economic times and there are a lot of people who have lost their jobs.  I probably talked to 50 people who were out here this weekend, just going from group to group chatting, people who’ve lost their jobs.”

Weld County sheriff’s deputies helped direct traffic and the Colorado State Patrol did issue citations for cars illegally parked on the side of the road.  Many families had to be turned away.

The Miller farm opened up free to the public for the first time this year after hearing reports of food being stolen from churches.  Last week in Denver, thieves broke into freezers owned by the Park Hill Grandparents Organization and stole Thanksgiving trimmings – including more than a dozen frozen turkeys – set to be donated.

SOURCES:

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Lessons From The Great Depression [My Parents]

11/21/2008 01:49:00 AM

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1sn99hitBoth of my parents lived through the Great Depression, although my father was only 4 years old when the stock market crashed.  But the lessons he and my mother, along with my grandparents learned from the “great crash” continued on with them throughout their lives, with some until the day they died.  Although I never remember any of them suffering for anything, in fact them paying cash for new cars and cash for homes, they were all extremely “tight” when it came to money.

And I think it’s time to share a personal side of my life with you, and share with you what I learned from my parents and my grandparents and how they lived through the Great Depression, and how it affected their way of life for the rest of their lives.  They taught me many of the “old” ways, and here I share some of them with you in hopes that you take away something that will help you in the long run, if things go bad along with 17 tips to make your life easier.

I have memories of huge gardens started every spring with long hours of summer spent tending to that garden.  Meals towards the end of summer of nothing but vegetables; corn on the cob, green beans,  red tomatoes sliced thick, cucumbers, and collard greens, all fresh from the garden that morning. 

When there was an excess crop, which was nearly every year as planned, the canning rush would be on.   I remember shelves lined with canned tomatoes, tomato juice, green beans, corn and carrots.  Onions would he pulled, washed, hung and dried in the basement.  Also in the basement, which had a dirt floor, was a potato “shed” that had been filled with dirt.  The potatoes would be stored in this dirt for winter use.  And of course were the jars of zucchini, pickles and relish with onions, cauliflower and peppers.   Peas were also a yearly crop however, those would be blanched, and then frozen.

We were also lucky enough to have a huge apple tree, a huge mulberry tree and a small vineyard of concord grapes.  Since we lived near the woods, there were always wild strawberries and blackberries for the picking in the summer.  We were also lucky enough to have a wild walnut tree in the woods.

As for meat, every so often my parents would go out and purchase a half side of beef, a couple whole hogs, a couple lambs, and a dozen chickens or so.  The beef, hogs and lamb of course were already slaughtered however, my father would spend hours using a saw and knives cutting it all up, where mom would be waiting to wrap it in butcher paper, write on the tape of the contents, and place it in the freezer.  Then the Kitchenaid mixer would come out, the meat grinder attachment went on, and hamburger and sausage would be next.  I have memories of pork shoulders “curing” in closets and memories of my father beheading a dozen chickens, my mother dipping them in boiling water, and she and I plucking the feathers.  By the end of the night, the chickens were cut up, in the butcher paper, and in the freezer.

And then there was “huntin’” season.  I bagged my first deer at the age of 13 and ended up on my butt.  But hunting season was for deer, squirrel, pheasant and rabbit.  Turtles were awesome for soup.  And summers were spent many times fishing for crappie, bluegill, and walleye.  All of it ended up on the table or in the freezer with nothing going to waste.  And no, I never ate raccoon, possum, rats or groundhog… that’s just…. ew.  But I’ve had rattlesnake, alligator, moose, buffalo (farm) and bear and would eat it all again in a heartbeat.

Everything eaten was pretty much made from scratch, even bread made by my father every Sunday afternoon, from scratch from the large cakes of yeast he would purchase.  At the time bread machines didn’t exist.  They even made their own spaghetti and noodles.  The only thing that they did not “make” as I remember were milk (if you will), cheese, ice cream and butter, although they did try for a time to make butter, but decided that the cost of buying it outweighed the time to make it.  It seems the only things that were bought on a regular basis were milk products and eggs, although if I was lucky enough to get a box of cereal, it was eaten with powdered milk.  Breakfast was toast with homemade jam and oranges.

For me while growing up, grocery stores were of the “verboten” goods of cereal like Corn Pops and Fruit Loops, Snickers, cupcakes, chips, buttery crackers, and exotic fruit.  The aisles of Pop Tarts, chips and such weren’t even gone down when my mother went to the store.  For my mother, grocery stores were for flour, sugar, eggs, baking soda, oranges and bananas.  Even pineapple was a treat and generally only served around holidays.  Coconut wasn’t bought pre-shredded in plastic bags, it was bought on sale, and then hacked open and shredded by hand.

At my home, at the time Pepsi was sold in 8-packs of glass bottles.  And that 8-pack would last at least two weeks.  Pepsi was only allowed  on Friday night when mom would make popcorn, or on Saturdays at lunch, when a home made pizza was made from scratch, crust and all.  Milk and mostly powdered milk was the drink at breakfast, and water for other meals and snacks.  There were no prepackaged foods like Stouffer's lasagna, as it was made from scratch.

Which leads us to eating out.  We never, ever ate out.  The few times we did were when my parents would drive 60-75 miles to go shopping out of town in larger cities for groceries.  Generally eating out consisted of Burger King back when they made real hamburgers.  There wasn’t any delivered pizza.  No Chinese food.  Nothing delivered at all. And no “quick trips” to McDonalds.  No Subway.  No TGI Fridays.

As for clothes, well, that was a little different.  My mother did make my father’s work shirts which one could hardly tell the difference between it and a store bought Arrow shirt.  She also made his ties.  She would sit at night crocheting or knitting a blanket, afghan or scarf.  Sometimes she would sit at the sewing machine making quilts from my old jeans, or old shirts.  She even made sheets and towels.  But clothes were store bought, and I could never go without my Levis.

Then there was the issue of electric.  One would never EVER leave a room and leave the TV, stereo, or lights on.  If you weren’t in the room, nothing was to be on.  And winters would find oneself under quilts she had made, with the furnace temperature turned down to below 50F, while there was a wind chill of –10F outside.  Summers were not inside with air conditioning, they were in front of fans with windows open, or sitting on the porch.  In the summers, clothes were line dried, and nearly always washed in cold water.  Showers lasted at most 10 minutes or I’d get a knock on the bathroom door and then a shock of hot water in the shower when they turned on the cold water in the kitchen.

But I didn’t live by candlelight.  I mean my parents did have oil lanterns, candles, flashlights and batteries for when the lights went out.  But I didn’t grow up with only a radio and books.  I had my own room, with a double bed, my own TV and my own stereo.  This of course was about the time when VCRs came out and I was in High School.  This was before the days of video games on TVs and computers.  If you wanted to play a video game, you went down to the local hangout with a pocket full of quarters.   I remember hearing that my cousin had gotten a ColecoVision and I was mad because my parents wouldn’t get me one.

This was around the beginning of the days of cable but we didn’t have it, as it wasn’t run out our way and many people still didn’t have it.  And there wasn’t an internet.  If you wanted to talk to your friends, you used a phone.  There were no cell phones and I didn’t have a phone in my room.  If you wanted to talk to your friends and you weren’t home, you used a pay phone.  If you wanted to see a movie, you went to the theater.  And I got an “allowance” in return for helping around the house, taking out trash, doing my own laundry, doing the dishes and helping in the garden.  It wasn’t much, and of course my parents encouraged me to save it, but that was my “fun” money for Pepsi, Lay’s chips, Snickers and the movies.

Which brings me to the point and lessons of this post.  Although my parents could have afforded to eat out everyday, could have afforded to buy everything new, could have afforded to to leave lights on, could have afforded to buy a new car, in cash, every year, and could have afforded to give me everything I wanted, they didn’t.  Instead it ended up in the bank in CDs so when they did buy a new home, which in 20 years I remember two of them being purchased with cash, they had it, and no debt.  And when my father was laid off permanently in the mid 80s after working for the same company 19 years and eight months.  He was only four months away from retirement, and he lost his pension (Yep they “f***ed” him.) and having that money in the bank was how they made it until he found another job since unemployment was really a joke, and still is.  Especially when the unemployment office told him he would have to take a job that was offered to him through the unemployment office at 25% of his previous pay, for the exact same job he had been doing, until at a later time he found a job that was closer to his previous rate of pay.  He was never the same after what the company did to him, and after what the unemployment office did to him.  He became a very, VERY, VERY bitter and mean man.  Especially after mom found a job, and worked for the first time since the late 60s, and covered the bills until things became “normal” again so they wouldn’t have to depend on that money in the bank… but they never were normal for him again especially when mom wanted to keep her job after he got the job that was closer to his previous pay.  It was a good thing that I was nearly 18 and ready to leave and I never went back.  Those are the things that hard times can do to people and it can affect you for the rest of your life.

My parents never had a credit card, and they never took out a loan, even when they bought a new house, and even though my father was eligible for VA loans.  If the freezer died, they went out the next day and bought one with cash.  If the car broke down, it was paid for in cash.  If they bought new furniture, even if a living room suite cost $5K, it was paid for in cash.  If they couldn’t afford to pay for it in cash, then they figured they didn’t need it and didn’t get it.

And they did all this while my father was the only one who worked most of the time, but we suffered for nothing.  So how did they do it?  By following a certain set of “unwritten” and “unsaid” rules which they carried with them from the Depression years.

1.  Live below your income.  If you can’t afford it, and you can’t pay for it in cash, then you don’t need it.  Do not spend more than you earn, do not go into debt.

2.  Needs, not wants.  You may think you “need” it, but in reality you only “want it” because you think you “deserve” it.  And I don’t mean to insult anyone, but those who are 15-30 will have the hardest time with this because you just don’t know what it’s like without.  You’re use to having it all, you’re use to getting it all, because you think you deserve it all.  You are going to have to learn to prioritize what you need over what you want.  You may think you “need” a new cell phone, when in reality you don’t even “need” a cell phone at all when you have a home phone.  If its something important, they can leave a message.  And which is important, having money for gas and food, or paying a cellphone bill you don’t need?

3.  Stay home.  My father had two-weeks of vacation a year.  That vacation was one week at home, and one week at my grandparents, 800 miles away.  Other than that, there was no travel.

4.  Eat in.  Like I have said, we hardly ever ate out.  Even my father took his lunch with him to work, which was generally the prior nights leftovers.  Mom always seemed to make just enough for us, and then enough for the next day for his lunch.  He even took a thermos of coffee with him to work.  Now lunches for me at school, were of course school lunches, for at the time full price lunches were $0.90 - $1.10, so it made more sense for them to give me a dollar instead of packing lunch.  There was no, “lets stop at McDs for a snack” on the way home.

5.  Skip the alcohol.  Now my father was from a mountain top in West Virginia, and he had a degree in Chemical Engineering, so I’m pretty sure you can figure what he did from time to time.  But even still, he always had a bottle of either 151 or Irish Whisky in the cupboard.  But those bottles, fifths, would last over a year.  My parents didn’t  really drink.

6.  Keep Your Car.  The first car I remember was a 1967 Comet and that was their only car until we moved about 30 miles out in the middle of nowhere.  Then they purchased a 1972 Monte Carlo.  My father drove the Comet to work everyday, and mom used the Monte Carlo.  That Comet lasted until 1981 when it was hauled to the junk yard, and they bought a 1981 VW Rabbit.  The 1972 Monte Carlo lasted until 1987 at which point they got a 1987 GMC truck.  The 1981 VW Rabbit lasted until 2001 when mom got a used Mazda RX7.  A car is for transportation, not a fashion statement.  During the Great D, many people didn’t have vehicles and literally walked for miles.  Today, our society doesn’t quite work as well with that, but if you are in a city, use the bus.  If you live somewhat outside of city limits, use a bike if you can.  Only use your car if it is absolutely necessary.

7.  Entertainment.  During the Great Depression the only entertainment was a radio,or books, or magazines, if you could afford them.  Everyone had a radio.  Going to the movies was a treat from time to time.  Now I’m not saying forget the TV and stick to radio.  What I am saying is drop the $100 a month cable and go to bunny ears.  Also forget buying movies.  Which leads me to online.  Now I am a full believer in the Internet.  I get my news, weather, just about everything from online, even TV shows and movies (and I’m talking legally.  If you wish to break the law, that’s your choice.)  I am a firm believer in paying the $20 - $50 a month for the Internet.  It really can be your “home entertainment center” if you use it as such.  And I’m not talking about sitting in front of the computer surfing for 8 hours a day, or chatting and such.  You can even find many many books, legally, online, if you search for them.

8.  What is old, is new.  Now my parents didn’t have to buy things used, or fix things back up if they broke, but they did.  And they took care of what they had so it would last.  My mother was the queen of garage sales, flea markets and auctions.  My father would fix the lawnmower (a push one, not a riding one) and rebuild the engine himself.  If its broke, fix it first instead of just throwing it out. 

9.  Use it up, don’t waste it, don’t throw it out, wear it out.  This statement may bring images of pack rats, but that is not what it is about.  It about simple things like adding water to the last bit of shampoo in the bottom of the bottle.  Its about not throwing any food away, even scraps.  And just because a platter or bowl you need doesn’t match the rest of your dishes, doesn’t mean that it’s not useful or needed.  Its about if there is a black spot in a potato, don’t throw the whole potato away, cut out the dark spot, and use the rest.  When I have leftover veggies, I throw them in the freezer, even if its only a spoonful.  When I get enough, I thaw them out, cook them down, grind them to make vegetable stock.  And just because there is a small hole in your shirt, doesn’t mean it goes in the trash.  Pick up a needle and thread and fix it.

10.  Make Do.  This one I’m putting in a category all by itself.   Make do is about just that, make do with what you have, work with what you have.  It is a mentality.  For example, I’m a woman so I learn to make do without a mixer, since the last one died and I haven’t found one on sale or at a decent price to replace it.  Recently I made a Key Lime pie from scratch.  Now the “filling” if you will. which is nothing more than key lime juice (hand squeezed), sweetened condensed milk, and egg whites, has to be “whipped”.  Well I don’t have a mixer, and I don’t have an egg beater. My “make do” was to take a whisk, place the handle between my hands, and rub my hands together.  Believe it or not, it worked.  It was a little bit of work, but I “made do” with what I had on hand.  That is an example of making do.  Instead of using paper towels, use regular hand towels.  Save plastic Ziploc baggies and reuse them after washing them out.  Now I don’t have a huge ball of tin foil under my sink, and I don’t save it, as I don’t use it that often.

11. Turn It OFF.  If you are not in a room, turn out the lights.  If you aren’t playing your XBox, UNPLUG IT.  Many electronics continue to use electric even if they are turned off, and still plugged in.  Digital TVs and monitors are notorious for this.  I’m not saying unplug everything when you leave a room, but try to use strip plugs where you can turn the entire strip off.  If you’re not using it, don’t leave it on.  And for winter heating, lower the thermostat to no higher than between 65F – 68F.  If you are cold, put on a sweater or sweatshirt.  Cover yourself with a blanket, or better yet, knit yourself one.  If its hot, open the window and use a fan, forget the AC.  Although in environments where daily temps are 90F+, AC/Central Air is a requirement but you can raise the temperature to 75F – 80F and use a fan.  Also, unless needed, wash your clothes in cold water and line dry them if possible if weather allows.  Remember, during the Great D, many homes did not have electric as it had not been run yet, and in fact nearly all outside of town didn’t even have running water much less a water heater.  Clothes were washed by hand.  Baths were taken by gathering water in buckets, and warming them on a stove.  Everyone shared the water.

12.  Learn to cook and stockpile.  This is not as hard as it seems.  It may seem more expensive to buy items to make things from scratch in the beginning, but in the long run, it is much much more inexpensive to stockpile, and cook from scratch.  There are many many good places on the web to find easy recipes to start with, and work your way up.  I buy lemons, limes and oranges on sale, juice them myself, and freeze the juice in ice cube trays.  This is much cheaper and healthier than buying the concentrate.  When I can get fresh veggies on sale, like green beans for $0.50 - $0.99 a pound, I buy five – ten pounds, blanch them, and freeze them in freezer bags.  Tomatoes are the same.  Cook them, grind them, and freeze.  I even make my own bread, however I cheat with a bread machine that I bought at a second-hand store, never opened, for $13.00.  I buy pasta and cheese and make my own mac and cheese.  I make my own rice mixes with rice, bouillon and spices.  I have an awesome knife (since my cutter broke) to cut thin thin potatoes for homemade french fries.  I use dried beans to make soup and baked beans.  I dry my own onions, celery and garlic to make onion, celery and garlic powder.  If you don’t have the pots and pans, I’m pretty sure you have a Goodwill, Salvation Army or second-hand store nearby.  Or check garage sales.  A little soap and elbow grease can go a long way.

13.  Get the most for your money.  Use coupons, sales and price matching.  I know many people hate using coupons and many people think that coupons are only for processed food.  And if you use coupons, then you are poor.  This is somewhat true, yet it’s not.  I use them religiously and combined with sales, on the average, every grocery bill always has a savings of 50 –70% between coupon use, sales and price matching.   This allows me to buy the higher price goods such as meat.  And we don’t eat SPAM, or processed food.  I buy roasts, strip steaks, hamburger, pork chops,  whole chickens and occasionally fish (but generally canned tuna and salmon).  If I can get all my pantry and dry box items at 75% off, then I can afford beef when it is on sale and still save between 50-70% off full price.  And I unlike many people, don’t make a list.  I shop for what is on sale, and I “stock up” on them.  If ketchup is on sale (since I haven’t mastered the perfect ketchup) and its a good price, I’ll buy 4-6 of them, if I’m running low on my stockpile shelf.  If whole chickens are on sale for $0.99 or less, I’ll buy four of them, take them home, cut them up, and then make chicken stock from the remainder and bones.  It took time to get to this point with the stockpile, but it can be done, and it can be done in about a two months time.  Recently I didn’t go grocery shopping at all for four weeks, and put a serious dent in my stockpile and freezer.  The following week, I spent $150 and got nearly $400 in grocery items, and just about replaced everything that had gotten low in my stockpile and freezer.  There are many good sites on the web to learn to how power coupon and shop for sales and learn what the corporate policies are for using those coupons.  It can be done, and it takes a bit of work, but the savings are worth it.

14.  Garden.  If you live in the country, you are blessed with land.  If you are in the city, in an apartment, you are cursed with concrete however, you can still grow herbs.  These take minimal space, and if things go bad, are a good thing to barter with.  And if you have the space, make a compost pile for free fertilizer.

15.  And another important thing.  Be flexible.  If things go bad, you are going to learn how to do everything you know differently.  You may have to take a job that you feel is beneath you, but at least it’s income.  Be open to suggestions and criticism, respectfully.  The person who is telling you something might be 20 or 40 years older than you, and just might know something that will help you through the hard times.  You may not be eating the quality or quantity of food you like or wish.  You may be wearing clothes that are two years out of style.  You may have to learn how to darn your socks.  I know these things seem silly now, but what if things go bad?  And you are going to hate it having to live in a way that seems foreign to you.  I have sort of lived the way my parents did, but not quite to their extreme.  I am falling back now on everything they taught me, and happy that I know what I do.  But I too do not look forward to really really having to scrape, do without, and make do.  It will be a bit easier for me in the beginning, if everything goes bad, but it won’t make it any happier for me.

16.  But the most important thing to remember, is no one is going to help you. You are on your own.  Don’t expect any handouts from the government, because if you get one, it’s not going to be too much.  Seriously.  Last year’s stimulus was $600.  Exactly how far did that money go?  And don’t expect food stamps.  States are running out of money.  And there probably won’t be soup kitchens like there were in the 1930s, and you really wouldn’t want that soup anyway as it was basically water.  Do not count on help from anyone but yourself.  That is the bottom line.  Only you can look after yourself.  And that is going to be the hardest thing for most people to accept.  And a lot of people are going to be angry, and that is expected and understood.  But remember, it’s not going to be forever.  It’s not going to be that way for the rest of your life.  It may only be two months, or two years, or it may be 10 years, but it won’t be forever.  And you won’t be alone in it all, as just about everyone else will be going through it with you.  It’s just getting through it.

17.  The biggest lines and suggestions I can give you overall is lower your expenses while trying to increase your income.  Ask yourself, do I “need” this or can I “make do” without it? 

Good Luck.

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Simple Questions.... And Thoughts To Ponder [Election]

10/31/2008 01:10:00 PM

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obama

If you are an Obama supporter, and go out in public wearing an Obama shirt or pin, do you feel safe? Would you be harassed? (Democratic Party)

mccain If you are a McCain supporter, and go out in public wearing a McCain shirt or pin, do you feel safe? Would you be harassed? (Republican Party)

baldwin-a If you are a Baldwin supporter, and go out in public wearing a Baldwin shirt or pin, do you feel safe? Or do you get questions of who Baldwin is? (Constitutional Party)

mckinney If you are a McKinney supporter, and go out in public wearing a McKinney shirt or pin, do you feel safe? Or do you get questions of who McKinney is? (Green Party)

barr If you are a Barr supporter, and go out in public wearing a Barr shirt or pin, do you feel safe? Or do you get questions of who Barr is? (Libertarian Party)

moore If you are a Moore supporter, and go out in public wearing a Moore shirt or pin, do you feel safe? Or do you get questions of who Moore is? (Socialist Party)

Or for that matter, any of the other presidential candidates?

A group of McCain supporters marched through the Upper West Side.. and it ain't pretty how they were treated. Is this what we have become? Us and Them? Is this how a president is suppose to lead a country? By dividing us into "groups?"

Imagine if you were on the street wearing a candidate's shirt, other than Obama's what would happen to you.
stlouis
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Enjoy Your Dominoes Pizza While You Can.

10/15/2008 03:57:00 AM

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2175210226_4a7c98e19d_oDomino's Pizza Inc (DPZ), who had 8,726 stores worldwide at the end of the 3rd quarter, posted a weaker-than-expected profit due to a sharp drop in U.S. sales, sending shares of the biggest independent U.S. pizza chain down 32 percent to an all-time low.  In the fiscal third quarter that ended Sept. 7, Domino's net profit fell 8 percent to $10.1 million from $11 million a year earlier.

Domino's said it was looking for alternative sources of funding after Lehman Brothers filed for bankruptcy.  It's ability to draw upon its variable funding notes diminished after Lehman Brothers declared bankruptcy, adding that it has no borrowings under its available variable funding notes as of Sept. 7.   Lehman was the primary lender of the pizza chain's revolving-credit facility, providing $90 million of a $150 million revolving credit line.  Should the existing agreement with Lehman become void, or if the chain cannot raise additional capital, the credit facility would fall to $60 million, with $38.3 million already committed.

Domino's additionally said it will save its cash and potentially make loans directly to its franchises.   And although the pizza company doesn't need access to that cash for day-to-day operations, the fact that it's likely no longer available could hamper long term plans such as stock buybacks.

Like other pizza sellers, Domino's has faced weak domestic demand and higher costs for items like cheese and wheat.  At the same time, U.S. consumers are more likely to make meals at home to save money due to unemployment, and higher food and fuel costs.

Revenues fell 4 percent to $323.6 million.  Sales at U.S. restaurants open at least one year fell 6.1 percent, overshadowing international same-store sales, which rose 5.4 percent.

Domino's said the company may not be able to meet its 2008 growth plans for 200 to 250 stores, and that Domino's expects to close more than the 50 to 75 U.S. stores it had originally planned to shutter this year.

Earlier this year, Domino's assigned 'F' grades to 247 operators, who were put on notice to improve sales or have their operations taken over.  Since then, 111 are trying to improve their stores, while 75 are in the midst of selling their operations.  Some 47 have already been removed from the system and 14 more are still weighing their options.

On Tuesday, shares of Domino's sank 26%, or $2.55 to finish at $7.45.

Of course maybe it would help Dominoes business in the U.S. if they wouldn't resort to calling the phone number you give when you order pizza to tell you specials [The Consumerist], or leaving specials in Ziploc bags weighted down with rocks [The Consumerist], or maybe actually honoring their coupons [The Consumerist].+

I miss the Noid.

noid  

 

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Financial Problems Are Motivating People to Violence.

10/14/2008 02:08:00 PM

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foreclosure-map-may-2008 More people are resorting to violence to solve their problems.  And law enforcement doesn't seem to be helping the situation in some situations.

Read stories of lives changed forever about Pamela Ross, Addie Polk, Carlene Baldermana, Karthik Rajaram, and the Padilla's due to financial problems.

Left, are foreclosure rates for May 2008.

 

 

PAMELA ROSS

In Tennessee, a woman fatally shot herself last week as sheriff's deputies went to evict her from her foreclosed home.  Pamela Ross, 57, and her husband were fighting foreclosure on their home when sheriff's deputies in Sevierville came to serve an eviction notice.  Jimmy D. Ross was in court on a matter related to a foreclosure on her home, while Pamela was home and had spoken to officers outside her home Monday morning.  While Jimmy was in court, he did receive a 10 day appeal, and the deputies did not, nor did they ever have a "Writ of Possession" to seize the home.

While officers were across the street from the home, they heard a gunshot and found Pameal dead from a wound to the chest.  Reporters attempting to get a statement from Sheriff Ron Seals on the matter have been unsuccessful.  The family's attorney has stated that deputies should not have been at the house, since they did not have the writ in hand.

In an update, it was learned that Pamela had spoken to officers outside her home Monday morning while her husband, Jimmy D. Ross, was in court on a matter related to a foreclosure on their home.  Jimmy doesn't believe the account the officers are telling.

"It doesn't add up," he said in an interview with The Mountain Press on Tuesday. 

He said he told officers Monday that he believed they were responsible for her death.

"One way or another, I said, whether you pulled the trigger or not, you killed my wife."

A friend, he said, talked to Pamela Ross by phone five minutes before her death.

She also left a message with a Galveston, Texas man whom Ross describes as a private attorney general that they had been advising him during the foreclosure and eviction procedure.  "She... said, scared to death, "They're at my front door and my back door, Odell, what should I do?'  And then the phone went dead," Ross said.

Sheriff Ron Seals said officers were sent to the house before the writ evicting the family was issued because they were concerned about what Jimme Ross might do if he were evicted.    Authorities say Ross has made threats against law enforcement and court personnel, and they were aware that he had guns in the home.

"Under normal circumstances, we would not do that (level of force), but we went out there knowing there were weapons in the house and there had been threats," Seals said.  Deputies had seen firearms at the house when they assisted IRS agents who searched the house in relation to a separate case several months ago.  Knowing that and of the alleged threats Ross had made, they decided to send officers there ahead of time. 

They also asked for Sevierville police to assist.  One officer was there as backup before Pamela Ross spoke to the officers and went back inside, Bob Stahlke, a spokesman for the Sevierville PD stated.  Many others converged on the house, however, after officers reporting hearing a shot from inside the house, Stahlke said.

Ross said he doesn't believe his wife would have walked out and spoken to authorities.  She spent most of her time in bed due to a chronic, terminal illness, he said.  "The whole thing was a scam to get me out of my home.  I'll put the bottom line to you," he said.

He denies ever threatening a judge or police officer.  "I don't make threats against anybody," he said.  "I don't have to make threats.  If I'm going to do something, I'll do it."  "We are private people, we don't bother anybody and I don't want anybody bothering us."

... As he left court on Monday, a deputy escorted him to the car and chatted with him as they walked.  When they reached his car, however, he said that the deputy informed him his wife had been in an accident and was being taken to a hospital by ambulance.  He decided to go home to change his clothes before being taken to the hospital.

As he neared his home, law enforcement officers were all around his home and swarmed his car, demanding that he get out.  Ross said he first refused to comply.  "This guy with this big Uzi or whatever it is jumped on the hood of the car there and pointed that gun at me, and they were screaming at me," he said.

He said he was handcuffed and held several hours before being told what had happened to his wife.

 

ADDIE POLK

A 90-year-old Ohio widow, Addie Polk, shoots herself in the chest as authorities arrive to evict her from house she has called home for 38 years.  A neighbor used a ladder to enter a second-story bathroom window of Polk's home after he and the deputies heard loud noises inside.  He found her lying on a bed, and he could see she was breathing, but also noticed a long-barreled handgun on the bed, she had shot herself two times.  Downstairs they found Polk's car keys, pocketbook and a life insurance policy laid out neatly where they could be found.

A congressman told Addie Polk's story on the House floor before lawmakers voted to approve the bailout package.  Mortgage finance company Fannie Mae dropped the foreclosure, forgave her mortgage and said she could stay in the home.

 

 

CARLENE BALDERMANA

080723_Carlene_Balderrama

John Balderman had filed for Chapter 13 bankruptcy three times from 2004 to 2006, but the courts had dismissed the petitions.  Under Chapter 13 debtors can usually keep their homes while paying off their debts.

In July, 2008 in Taunton, Massachusetts, Carlene Balderrama, a housewife who had hidden her family's mounting financial crisis from her husband, by intercepting letters from the mortgage company and shredding them before her husband saw them shot herself.  She tried to refinance but was declined.  On the day the house was to be auctioned, she faxed a note to PHH Mortgage Corporation of New Jersey around 2:30 pm warning:  "By the time you foreclose on my house, I'll be dead."  The suicide note also had another line, which was not initially released at the time of the news flash.  It read, "I hope you're more compassionate with my husband and son that you were with me."

Then the 52-year-old walked outside, shot her three cats and then herself with her husband's rifle.  The mortgage company notified police, who found her body at 3:30 pm.  The foreclosure auction was scheduled to start at 5 pm.  Notes left on the table revealed months of planning.  She'd picked out her funeral home, laid out the insurance policy, and left a note saying, "pay off the house with the insurance money." 

The husband, John Balderrama, didn't even know of the foreclosure, as Carlene handled all the home finances.  "She put in her suicide note that it got overwhelming for her," said her husband, John Balderrama.  "Apparently she didn't have anyone to talk to.  She didn't come to me.  I don't know why.  There's gotta be some help out there for people that are hurting, than to see somebody lose a life over a stupid house." 

PHH canceled the foreclosure auction that was scheduled to be held that day but it is not clear whether it was done before or after receiving the fax.  Buyers did however, begin to show up for the auction, but learned it had been canceled.

 

 

KARTHIK RAJARAM

Rajaram, despondent over his own financial problems, shot and killed his wife, three children, mother-in-law and then himself in California.  I recently blogged about this incident.

 

PADILLA'S

Jessica Padilla, 22, Seward Padilla, 42, and Lori Padilla, 45 were found dead in their home with all three being shot.  Jessica's 2-year-old daughter was found unharmed outside the home.  A man called 911 from the Padilla residence to report a fire in the basement before hanging up, authorities said.  When police officer and firefighters arrived, there were shots originating from the second floor, toward the fire equipment.  Police said that gasoline was used to ignite the fire and that rounds fired from the house hit a fire truck and a house across the street.  The case is still under investigation.

The family was under severe financial strain, according to court documents.  Their home was in foreclosure, and owed nearly $30,000 to credit card companies and had declared bankruptcy, but investigators said they were not sure what role their finances played in the shootings or fire at this point.

There was a history of domestic violence in the family and Seward and Lori had taken out protective orders out against  each other.  Court documents also showed Seaward and Lori had filed twice for divorce.   Police do not know how Jessica, who was five months pregnant, became involved in the dispute.

VIDEO

"Housing Crisis", the plight of a community of foreclosures told through the stories of three families . 
8 Minutes, 49 Seconds.

 

CLARIFICATION

In an AP article that was released today it states that in Ocala, Florida, Roland Gore shot his wife and dog, set fire to the couple's home, which had been in foreclosure, called 911 and then killed himself.  That incident is from 2003 and not 2008 according to the date of a post on the Firehouse Forums.

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Bush Is An Idiot.

10/10/2008 08:19:00 AM

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005 It does not matter if I like Bush or I hate him, he's an idiot today.

To say to the United States, "that anxiety can feed anxiety and that can make it hard to see all that's being done to solve the problem," is just stupidity.

Gee I am just so sorry that the average American, who has lost basically most of their life investments in 401(k)s and stocks, those investments that have taken years to build up, and I mean more than 10 years, some people 20 years are a major shock to us.  I'm sorry that you don't understand that those funds were many, many, many people's life savings.  And I'm sorry that you, our President, has lost contact with reality about what it's really like on "Main Street" America.  You have all you little oil investments to fall back on.

If Wall Street is freaking, good for them.  Wall Street is failing because banks got greedy, using our money to become rich, and now that we are taking it out of the market, they don't have our money to play with.  Get use to it.  Play with your own money.

And according to an AP report, Bush's top advisors are pledging to continue working to correct the mistakes that have led to this situation.  Gee, I guess I should have a warm fuzzy feeling about this according to Bush.  Treasury Secretary Henry Paulson says the group has been working to reduce the likelihood that past mistakes will be repeated. 

Now that's all fine and good, but what about doing something to help the taxpayers, instead of spending our money on banks?  This is insanity.

Bush pushed that the bailout bill needed to go through.  Well, since it's been passed as law, the stock market has dropped everyday since.  The he changed his tune and said it would take some time.... is anyone going to have a home, a job or a bank account if and when it kicks in?  Obviously the stock market doesn't have any confidence in the bailout bill.

And to come on TV and restate what has transpired over the past week, which is headlining news everyday, is a waste of my time.  Actually, he's done it 26 times before, either through written, radio or on-camera statements since Lehman Brothers failed....  Sorry Bush, your credibility is in the pot.  Especially when the world is blaming America for the world economic crisis.  Argentina wants to put Bush on trial for example.

 

 

And the rest of the world also seems to have a bad attitude, so we are not alone.

 

Its brutally obvious where Bush's priorities lie, with Wall Street, the bankers, getting out of office, and not with "Main Street" America.  Is it freakin' March 2009 yet?

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Chicago Sheriff Halts Foreclosure Evictions on Renters

10/10/2008 03:04:00 AM

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005 Illinois law was recently revised to require the owner of the property and mortgage holder to notify whoever lives there 120 days before an eviction is carried out.  But some landlords are disappearing with the renters rent money without notifying the tenants.

Katrina McMullin, 34, was paying her rent on time, but that didn't stop a deputy from coming to her Northwest Side door with a notice of eviction.  She had received no notice from her landlord. 

"How dare they take my rent and still evict me?" said McMullin, who is staying in the apartment after hiring a lawyer.  "It wasn't fair."

The Chicago metropolitan area ranks 35th in the U.S. in terms of foreclosure rates.  Cook County Sheriff Tom Dart, the sheriff of the third-most populous U.S. county, halted evictions on foreclosed properties on Thursday, saying innocent tenants were being put on the street. 

On the Cook County Sheriff's Website was posted an official press release on the situation.

"With Cook County on pace to conduct a record number of evictions this year - and an unprecedented number of evictions due to mortgage foreclosures - Cook County Sheriff Thomas J. Dart announced Wednesday he is suspending all foreclosure evictions."

The move comes as a result of the growing number of evictions that involve renters - most of whom are dutifully paying their rent every month, only to later learn their landlord has fallen behind on mortgage payments and the building has gone into foreclosure.  While mortgage companies are suppose to conduct a basic due diligence investigation before requesting an eviction - identifying all occupants - sheriff's deputies are regularly finding no work done by the mortgage company in advance, leaving the identifying work to deputies working at taxpayer expense.

 

Other evictions due to such issues as failing to pay rent would continue, Dart says.

"Those mortgage companies only see pieces of paper, not people, and don't care who's in the building," Dart says.  "They simply want their money and don't care who gets hurt along the way.  On top of it all, they want taxpayers to fund their investigative work for them.  We're not going to do their jobs for them anymore.  We're just not going to evict innocent tenants.  It stops today."

More than 1/3 of all trips by sheriff's eviction teams results in finding nobody home to verify who lives there or finding someone other than the mortgage-holder.

By refusing to do any foreclosure-related evictions, the hope is that banks will change their policies.  Dart acknowledges that he is at risk of violating court orders to evict and could be found in contempt.  But he says he is also responsible for making sure justice is being done. 

"We will no longer be a party to something that's so unjust," he said.

The sheriff's complaint stems from the extra work his office does on behalf of lenders.  Dart says he is tired of his deputies showing up at homes for an eviction and finding tenants who are not on the mortgage.  Taxpayers foot the bill for that work.

Dart said he will resume foreclosure-related evictions when lenders agree to do their own due diligence in figuring out who is living in foreclosed properties.

Cook County Circuit Chief Judge Timothy Evans could not be reached for comment.  Dart planned to meet with judges Thursday.

A spokeswoman for the sheriff said there were more than 500 evictions for foreclosure scheduled over the next six weeks and the office was on pace to conduct 43,000 evictions for the year with 4,500 of them being for foreclosure-related evictions.  About one third of those are rent-paying individuals.

BANKERS AND THE LAW

But bankers say he is breaking the law. IBA said Dart was ignorning the law and was engaging in "vigilantism."

"In announcing his plan, Dart acknowledged that he could be found in contempt of court," the IBA said in a statement, adding that the sheriff's decision "should not be tolerated."

"We don't have the ability to take over collateral upon default, and if we don't have that assurance, or we think evictions won't be made.. we simply won't make the loan," Koch said of the moratorium

Frank Binetti, vice president of the Illinois Mortgage Bankers Association stated

"It would have a significant impact because obviously lenders would be hesitant to lend if they knew that if someone defaulted they wouldn't be able to take the property back. "  "It would create higher risks for lenders and they would have to price that into the loans, if they even chose to lend in Cook County."  "The only thing you have as a lender is the collateral, and if you aren't able to retrieve the collateral, why are you even lending in the first place?"

OTHER OPINIONS

Most officials in surrounding counties, also struggling with unprecedented levels of foreclosures, found the move beyond the scope of a sheriff. 

In Will County, Sheriff Paul Kaupas was apprehensive about halting evictions and suggested the courts should suspend eviction orders.  Pat Berry, spokesman for Kaupas, said "If we disregard the law, what kind of message are we sending?"

Kane County Sheriff Patrick Perez said he understood Dart's motivation, having worked in the civil division dealing with evictions. 

"I saw more misery in those two years than I did in the 14 or 15 years of criminal law enforcement before it," he said.

DID YA KNOW?

Last year, Dart pushed a bill before the Legislature that owuld have required mortgage companies to identify any children or senior citizens living in a unit before requesting an eviction.  Dart hoped to link those vulnerable residents with social service agencies, but banking and real estate industry lobbyists killed the bill, according to the Cook County Sheriff's website.

VIDEO

 

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In the US, States Are Going Broke

10/09/2008 09:02:00 AM

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StateGovernmentDeficit According to a study by the Center on Budget and Policy Priorities released at the end of September, an alarming 34 states are in "trouble" due to rather large budget gaps.  Their report shows the states that have seen the biggest shortfalls in tax revenue in their fiscal 2009 budgets.  In alphabetical order the worst are, Alabama, Arizona, California, Florida, Georgia, Maryland, Nevada, New Jersey, New York and Rhode Island.  And just because you don't see your state on that list, doesn't mean it's met its budget.

States NOT on the list are Alaska, Colorado, Idaho, Kansas, Louisiana, Missouri, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Oregon, Pennsylvania, South Dakota, West Virginia and Wyoming.  These states can meet their budget requirements however, it does not mean that major cuts haven't been made.

The snowballing is beginning on the state levels.  If no one believes that this country is in a recession think of this:  First more and more people are without jobs, thus their income falls, thus they are no longer paying in state income tax.  This of course means the state does not receive the amount of income as it did.  So, state's don't have the funds as they once did.  In the states that are coming up seriously short, it will directly effect you.

How are the states trying to "fix" their budget problems?  But cutting out that which Americans need the most right now due to their income dropping like a stone in water.  And some states are getting around the Federal reduction in taxes from the federal economic stimulus legislation enacted earlier this year, by changing their state codes thus raising your state taxes.

The total of all the "gaps" for 34 states is $53.4 billion.  Aren't you glad your government is looking out for your best interest by giving $700 billion to all the banks?  Aren't you glad that we aren't in a recession.  Aren't you glad that President Bush says everything is going to be alright, but it's just gonna take time... ya okay... I'll just live off the interest of my investments.. oh wait............

More with examples of cuts, all the states that have a "gap" and the worst states for "gaps".

Examples of cuts:

  • Public health programs: At least 14 states have implemented or are considering cuts that will affect low-income children’s or families’ eligibility for health insurance or reduce their access to health care services.  For example, Rhode Island has eliminated health coverage for 1,000 low-income parents, and New Jersey has cut funds for charity care in hospitals.  In Tennessee, an estimated 30,000 to 40,000 seriously ill people are expected to lose hospitalization and other medical services provided through TennCare.

  • Programs for the elderly and disabled:  At least 11 states are cutting medical, rehabilitative, home care, or other services needed by low-income people who are elderly or have disabilities, or significantly increasing the cost of these services.  For example, Florida has frozen reimbursements to nursing homes and relaxed staffing standards and Rhode Island is requiring low-income elderly people to pay more for adult daycare.  Tennessee has reduced community-based services for people who are mentally retarded.

  • K-12 education:  At least 13 states are cutting or proposing to cut K-12 and early education; For example: Florida cut school aid by an estimated $130 per pupil, Nevada eliminated funds for gifted and talented programs, and Rhode Island is eliminating early education funding for 550 children.

  • Children's Services:  Illinois has reduced funding for child welfare, mental health, youth services and other programs.

  • Colleges and universities: At least 17 states have implemented or proposed cuts to public colleges and universities.  For example, Alabama, Kentucky, and Virginia have all cut university budgets and/or community-college funding, resulting in tuition increases of 5 percent to 14 percent.

  • State workforce: At least 19 states have proposed or implemented reductions to their state workforce.  New Jersey is reducing its workforce by 2,000 employees through early retirement, lay-offs and attrition.  In Tennessee, the governor announced the elimination of over 2,000 state positions - about 5 percent of the state workforce.  Some 1,500 employees accepted buy-outs for early retirement.  In Kentucky, the public defender will eliminate 10 percent of positions (54 positions) and decline certain types of cases including family court cases, probation and parole revocations and some types of involuntary commitments and misdemeanors; hiring freezes have been instituted in Arizona, California, Connecticut, Delaware, Georgia, Minnesota,  New Hampshire, Virginia and Washington.

  • Raising Taxes and "Sin" Tax:  New York has enacted tax and fee increases.  Large liquor retailers in New Hampshire, will pay more in state taxes along with a tobacco tax increase.  Several states, including Maine, Oklahoma, Rhode Island and Vermont, changed their tax codes to avoid revenue loss that would otherwise have occurred due to the federal economic stimulus legislation enacted earlier this year.

  • Various:  New Mexico was forced to put off a $500 million bond sale.  Massachusetts had to pull the plug halfway into a $400 million offering.  Maine is considering canceling road projects that were to be funded with bonds.  South Carolina Governor Sanford said legislators shouldn't be paid to return to Columbia to fix a state budget shortfall because they created the problem, saving taxpayers $50K daily.

In order of budget gap (as a % of the total budget), from lowest to highest of the worst.  (NOTE:  The unemployment rates are the most current state rates available, being August 2008 published on September 16, 2008.  The national unemployment for September, 2008 was 6.1%):

Rhode Island

Budget Gap:  31.1%
Gap:  $430 Million
August Unemployment Rate:  8.8%

Proposed cuts to the public college system and aid for municipalities, as well as tighter limits on welfare benefits are planned.  The state has reduced the maximum income level at which parents can receive public health insurance from 185 percent of the federal poverty line to 175 percent.  This will eliminate coverage for approximately 1,000 parents.  More than 7,800 low-income families will also have to pay higher monthly premiums for public health insurance.

Low-income elderly people now must pay higher rates for subsidized adult daycare.  This is estimated to affect more than 1,200 people with incomes below $20,000.

State aid has been frozen for K-12 education at last year's levels in nominal terms and reduced the number of children who can be served by Head Start and similar services by more than 550.

Fund have been cut for affordable housing, eliminated health insurance for home-based child care providers, restricted TANF cash assistance for children, reduced health insurance for retired state workers and cut support to localities by $10 million.

A reduction in the state workforce by 2,000 or more employees via encouraging early retirement, but has announced that it will lay off workers if needed.

A tax credit for foreign taxes paid was eliminated, a tax credit for motion picture production was capped, a moratorium on new projects qualifying for the historic structure tax credit was placed, and fees were increased.

Connecticut

Budget Gap:  2.6%
Gap:  $450 Million
August Unemployment Rate:  6.4%

In Connecticut, home to many Wall Street employees, the state budget hole has more than doubled in a month to $300 million and now to $450 million.  The governor has ordered budget cuts to programs that help prevent child abuse and provide legal services for foster children.  There is currently a freeze on hiring.

Alabama

Budget Gap:  9.5%
Gap:  $784 MIllion
August Unemployment Rate:  5.3%

Alabama closed some corporate tax loopholes, and made cuts to colleges and universities.  The Department of Human Resources has announced it will end in August home-makers services of approximately 1,100 older adults.  These services often allow people to stay in their own homes and avoid nursing homes.

Minnesota

Budget Gap:  5.4%
Gap:  $935 Million
August Unemployment Rate:  5.8%

Policymakers capped enrollment at current levels for a program that provides expanded health services and care coordination for people with disabilities.

There is currently a freeze on hiring.

Maryland

Budget Gap:  7.2%
Gap:  $1.1 Billion
August Unemployment Rate:  4.5%

Maryland enacted a $1.35 billion tax increase in late 2007, which along with $277 million in budget cuts, is designed to help address the state's deficit.  However, due to the declining economy an additional gap of $270 million has occurred.  This is likely to be addressed by further spending cuts.

Nevada

Budget Gap:  16%
Gap:  $1.2 Billion
August Unemployment Rate:  6.9%

Nevada has the worst foreclosure rate in the nation and its economy has slowed dramatically this year.  Nevada has no state income and derives its income from sales tax and casino tax.  Since people do not have the amount of "extra" money to use on vacations, and since Reno, Las Vegas and most of the rest of the state lives of tourism, income has drastically declined.  The governor capped the state's children's health program and increased children's health-care premiums, and cut funding for K-12 education, higher education and welfare.

The governor has capped the State Children's Health Insurance Program at its approximate current number of enrollees and increased the premiums that families must pay.  As a result, many applicants will be denied coverage, even though the economy is weakening and need consequently is rising.  Health services for some pregnant women have also been eliminated.

The welfare agency will make it harder for low-income families to receive cash assistance and health insurance, for instance by increasing the amount of time before which some families that have lost benefits may reapply.

The governor has ordered various cuts to K-12 education, including delaying an all-day kindergarten expansion, cutting per pupil expenditures by $400 in a pilot program, eliminating funds for gifted and talented programs, eliminating funds for a magnet program for students who are deaf or hard of hearing, and made across-the-board cuts.

Massachusetts

Budget Gap:  4.3 - 4.5%
Gap:  $1.2 - $1.3 billion
August Unemployment Rate:  5.1%

Whenver Administration and Finance (A&F) determines that revenues will be "insufficient to meet all fo the expenditures authorized to be made from any fund, whether by appropriation or distribution," the commissioner must notify the governor and the House and Senate committees on Ways and Means, in writing, and certify the amount of the "probably deficiency."  The governor must act within 15 days of receiving notification.

Governor Patrick is preparing to make budget cuts using the emergency powers granted to him under his section "9C" which refers to a section of the MA General Laws - Chapter 29 - that governs state finances.  Section 9C deals specifically with revenue deficiencies, and what steps the executive branch should take to ensure a balanced budget.

There are some restrictions to the 9C and use, for example, the governor cannot renege on contractual obligations, nor can he cut accounts governing pensions or Medicaid.

Ohio

Budget Gap:  4.5%
Gap:  $1.3 Billion
August Unemployment Rate:  7.1%

Ohio plans to close two mental health facilities.

The governor has announced plans to eliminate as many as 2,700 positions, about 4.5 percent of the state workforce.  The reductions will be achieved through a combination of early retirements, lay-offs, and unfilled vacancies.

Georgia

Budget Gap:  8.7%
Gap:  $1.8 Billion
August Unemployment Rate:  6.4%

The governor has asked state agencies to cut 4% to make up an expected shortfall in the $21 billion budget for the coming fiscal year. 

The Governor has withheld funds from the Homeowners Tax Relief Grant which passes state money to counties sot hat they can provide property tax credits to homeowners, thus casing localities to roll back the credits, or fund them from their own resources.

Six out of seven state run parks lodges are money losers, according to the state.  Toilets at the Amicalola Falls State Park Visitor Centers have been closed due to budget cuts and portable toilets are put in place.  The park doesn't have the money from the state to fix a sewage problem in the bathrooms.  Hours are being reduced at many parks.  One of every eight jobs at state parks remains vacant.  Half a dozen parks and historic sites have been closed for two to four days a week, as fewer staff cover more than one property. 

At Fort Yargo State Park there are only two "badges" on the 1,814 acre park who carry guns, write traffic tickets, and answer the calls for 3am unruly campers.  How they control costs is by leaving one position vacant, and reducing the number of times they patrol the campgrounds.

Arizona

Budget Gap:  19.9%
Gap:  $2 Billion
August Unemployment Rate:  5.8%

The state reduced the Medicade rolls by increasing the frequency with which some adult recipients must reapply for benefits.  Arizona has also cut funding for community health centers and state universities along with vaccines.  They have also put a freeze on hiring.

Eliminated was temporary health insurance for people with disabilities coping with serious medical problems.

New Jersey

Budget Gap:  7.7%
Gap:  $2.5 Billion
August Unemployment Rate:  5.7%

The state legislature passed a $32.8 billion budget that is $600 million less than last year's budget.  New Jersey plans to trim the budget by offering early-retirement incentives for state employees through attrition, or a reduction in number by 2,000 by leaving vacancies and laying off staff.

Property tax rebates for households with incomes over $150,000 are eliminated and reduced for others.  A public utility tax that was scheduled to end in 2010 has been extended to 2013.  A renters' credit for families with incomes under $50,000, previously worth $200 or more per family, has been cut to a maximum $80 per family for non-elderly, non-disabled renters.

Florida

Budget Gap:  19.9%
Gap:  $5.1 Billion
August Unemployment Rate:  6.8%

Florida also has no state income tax.  The $66 billion Florida budget for the coming year is about $6 billion less than the one approved the previous year.  It includes a $332 million reduction in public school spending and cuts to state hospitals, nursing homes, and various social programs.

Aid has been cut to local school districts for the current  year by $130 per pupil.

Nursing homes and other providers will not get scheduled cost-of-living adjustments in their reimbursements and staffing standards will be relaxed for one year in the expectation that the freeze would result in staffing cuts.  Medicade reimbursements to hospitals and community based services for the elderly, such as meals and homemaker services, have also been cut.

New York

Budget Gap:  9.8%
Gap:  $5.5 Billion
August Unemployment Rate:  5.6% (NY State), 5.9% (NYC)

Governor Patterson said the state could face an "economic blood bath" as the budget hold continued to worsen.  "We are in a very serious economic crisis.  There's no way to sugarcoat it," he said in a public meeting last Friday.

The state made cuts to the health insurance program for low-income families, and enacted tax and fee increases.  There is a hiring freeze and further agency reductions of 7 percent, in addition to a 3.35 percent reduction in spending in April.

The budget raises approximately $1.5 billion in revenue through a variety of measures including closing tax loopholes, delaying tax credits, raising cigarette taxes, requiring collection of taxes for more on-line purchases, and increasing various fees.

Paterson said that he will also seek some $2 billion worth of cuts, because of his fears that the state's taxpayers will continue to decline.  And he said he was taking the steps to try to hold off a downgrade in the states credit rating.

California

Budget Gap:  22%
Gap:  $22.2 Billion + $250 million court ordered
August Unemployment Rate:  7.6%

As of today, California sits $1 billion in the red.  Governor Arnie sent a letter  (PDF) last week warning Paulson, the Secretary of the Treasury, this week that the great state of California "might" need to borrow $7 Billion from the Feds, if credit market's don't ease and banks don't start loaning money again, to pay for salaries and other operating costs.    The money needs to be in the state's bank account by October 28th to be able to fund a scheduled $3 billion payment to more than 1,000 school districts.  The state was also thinking about planning a $7 billion bond sale.

The state did however, enact a budget that imposed cuts to the state's health insurance program for the poor and other social service programs.

There is currently a freeze on hiring.

They also reduced the State Children's Health Insurance Program, increasing co-payments and reductions in dental services.  The state will also require more frequent eligibility determinations for Medi-Cal recipients and is cutting payments to health care providers significantly through February of next year.

Cost-of-living adjustments are suspended to cash assistance programs for low-income families and cutting child care subsidies.

Revenues will be increased in the current fiscal year by limiting certain business tax credits and suspending corporate "net operating loss deductions."  Other revenue increases in the current year will come from accelerating tax withholding.

And if all that isn't enough, U.S. District Court Judge Thelton Henderson on Wednesday ordered the state to prepare to turn over $250 million to the federal receiver charged with improving health care in the state's prisons.  Altogether, the receiver is seeking $8 billion.

States Budget Gaps:

 

TABLE 2:
SIZE OF FY2009 BUDGET GAPS

State

Gap before budget was adopted

Additional mid-year gap

Total

Total Gap as Percent of FY2009 General Fund

Alabama

$784 million

 

$784 million

9.5%

Arizona

$1.9 billion

$100 million

$2.0 billion

19.9%

Arkansas

$107 million

 

$107 million

2.4%

California

$22.2 billion

 

$22.2 billion

22.0%

Connecticut

$150 million

$300 million

$450 million

2.6%

Delaware

$217 million

 

$217 million

6.0%

District of Columbia

$96 million

$131 million

$227 million

3.6%

Florida

$3.4 billion

$1.7 billion

$5.1 billion

19.9%

Georgia

$245 million

$1.6 billion

$1.8 billion

8.7%

Hawaii

 

$162 million

$162 million

2.8%

Illinois

$1.8 billion

Yes, DK size

$1.8 billion

6.3%

Iowa

$350 million

 

$350 million

5.5%

Kentucky

$266 million

 

$266 million

2.9%

Maine

$124 million

 

$124 million

4.1%

Maryland

$808 million

$269 million

$1.1 billion

7.2%

Massachusetts

$1.2 billion

Yes, DK size

$1.2 billion

4.3%

Michigan

$472 million

 

$472 million

4.8%

Minnesota

$935 million

 

$935 million

5.4%

Mississippi

$90 million

 

$90 million

1.8%

Nevada

$898 million

$275 million

$1.2 billion

16.0%

New Hampshire

$200 million

Yes, DK size

$200 million

6.4%

New Jersey

$2.5 billion

 

$2.5 billion

7.7%

New York

$4.9 billion

$630 million

$5.5 billion

9.8%

Ohio

$733 million

$540 million

$1.3 billion

4.5%

Oklahoma

$114 million

 

$114 million

1.7%

Rhode Island

$430 million

 

$430 million

13.1%

South Carolina

$250 million

$140 million

$390 million

5.7%

Tennessee

$468 million

 

$468 million

4.1%

Vermont

$59 million

$24 million

$83 million

6.8%

Virginia

$1.2 billion

Yes, DK size

$1.2 billion

7.1%

Wisconsin

$652 million

 

$652 million

4.6%

TOTAL

$47.6 billion

$5.9 billion

$53.4 billion

10.0%

 

FEDERAL BUDGET

If you would like to see what your state receives from the Federal Government, head on over to the White House website for Fiscal Year 2009, State by State, Federal Budget.

RANT ON

So, States are considering going to the Feds for help, with California officially saying that "might" need help.  Now, we've already seen bailouts of banks and various financial institutions, that "officially" are to the tune of $700 Million, but have been estimated to be more than $1.8 Billion by the time it's done and over with.  So how long do you think all this money from the Feds is going to last?  I mean if the states are suffering from lower income tax, isn't the Federal Government going to suffer from the same? - RANT OFF.

SOURCES

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