California: Running out of other people’s money
California: Running out of other people’s money.
California: Running out of other people’s money.
Tag: bankruptcy
California: Running out of other people’s money
The White House has confirmed that the Obama budget to be announced on Monday will predict a $1.3 trillion deficit for 2012.
The bigger picture: The White House has confirmed that the Obama 2013 budget proposal to be announced on Monday will predict a $1.3 trillion deficit in 2012, and only try to shrink that to $900 billion in 2013.
Numbers like this demonstrate the need for further budget cuts, even in areas that I think are important, such as space exploration. However, these numbers also illustrate one clear fact: the Obama administration is not serious about balancing the budget. That the administration has applied the knife to the Mars planetary program while allowing other less successful NASA programs to flourish proves this administration’s poor sense of priorities in these difficult financial times.
More thoughts next week.
The bigger picture: The White House has confirmed that the Obama 2013 budget proposal to be announced on Monday will predict a $1.3 trillion deficit in 2012, and only try to shrink that to $900 billion in 2013.
Numbers like this demonstrate the need for further budget cuts, even in areas that I think are important, such as space exploration. However, these numbers also illustrate one clear fact: the Obama administration is not serious about balancing the budget. That the administration has applied the knife to the Mars planetary program while allowing other less successful NASA programs to flourish proves this administration’s poor sense of priorities in these difficult financial times.
More thoughts next week.
“We only have two or three years before we get into a very ugly debt-crisis austerity mode.”
The day of reckoning looms: “We only have two or three years before we get into a very ugly debt-crisis austerity mode.”
The day of reckoning looms: “We only have two or three years before we get into a very ugly debt-crisis austerity mode.”
Six charts from the Congressional Budget Office that will scare the bejeebers out of you
Six charts from the Congressional Budget Office that will scare the bejeebers out of you.
Six charts from the Congressional Budget Office that will scare the bejeebers out of you.
The NY Times reported today that the investigation into MF Global’s bankrucpty has located most of the missing $1.2 billion of customer money
The NY Times reported today that the investigation into MF Global’s bankrucpty has located most of the missing $1.2 billion of customer money.
Investigators have determined what happened to nearly all of the customer money that disappeared from MF Global around the time of its bankruptcy last Oct. 31, but have not publicly disclosed their progress, fearing that doing so might cripple efforts to recover the cash and pursue potential wrongdoing, people briefed on the investigation said.
While authorities have traced hundreds of millions of dollars to banks, MF Global’s trading partners and even the firm’s securities customers, investigators remain uncertain about whether they can retrieve the money.
As I was reading this article I had the strange feeling that I lived in an alternative universe. At no point did the New York Times bother to mention the name of former Democratic New Jersey Governor Jon Corzine, the economic go-to guy for the Obama administration and the man who was in charge of MF Global when all of this illegal and incompetent activity occurred. For those that want to know a bit more about the story, you might want to go to this New York Post editorial today, which lays out the issues that the New York Times so conveniently wants everyone to forget, and also notes that even now Corzine is out there campaigning and raising funds for Obama’s re-election.
Well, as they say, birds of a feather will flock together.
The NY Times reported today that the investigation into MF Global’s bankrucpty has located most of the missing $1.2 billion of customer money.
Investigators have determined what happened to nearly all of the customer money that disappeared from MF Global around the time of its bankruptcy last Oct. 31, but have not publicly disclosed their progress, fearing that doing so might cripple efforts to recover the cash and pursue potential wrongdoing, people briefed on the investigation said.
While authorities have traced hundreds of millions of dollars to banks, MF Global’s trading partners and even the firm’s securities customers, investigators remain uncertain about whether they can retrieve the money.
As I was reading this article I had the strange feeling that I lived in an alternative universe. At no point did the New York Times bother to mention the name of former Democratic New Jersey Governor Jon Corzine, the economic go-to guy for the Obama administration and the man who was in charge of MF Global when all of this illegal and incompetent activity occurred. For those that want to know a bit more about the story, you might want to go to this New York Post editorial today, which lays out the issues that the New York Times so conveniently wants everyone to forget, and also notes that even now Corzine is out there campaigning and raising funds for Obama’s re-election.
Well, as they say, birds of a feather will flock together.
Bankrupt and owing the taxpayers half a billion dollars, Solyndra has been caught destroying brand new parts
Bankrupt and owing the taxpayers half a billion dollars, Solyndra has been caught destroying brand new parts.
Bankrupt and owing the taxpayers half a billion dollars, Solyndra has been caught destroying brand new parts.
On Tuesday the Treasury Department began using pension funds to keep the federal debt below the debt limit.
The day of reckoning looms closer all the time: On Tuesday the Treasury Department began using pension funds to keep the federal debt below the debt limit.
This action is, at this time, only a stop-gap until the debt ceiling is raised $1.2 trillion as per Obama’s request. Nonetheless, it signals the federal government’s increasingly dire debt problems.
The day of reckoning looms closer all the time: On Tuesday the Treasury Department began using pension funds to keep the federal debt below the debt limit.
This action is, at this time, only a stop-gap until the debt ceiling is raised $1.2 trillion as per Obama’s request. Nonetheless, it signals the federal government’s increasingly dire debt problems.
The national debt now equals the entire U.S. economy
The day of reckoning looms: The national debt now equals the entire U.S. economy.
The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion. That’s roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.
But don’t worry. The press is focused like a laser on more important issues, such as whether the states might someday consider outlawing the pill.
The day of reckoning looms: The national debt now equals the entire U.S. economy.
The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion. That’s roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.
But don’t worry. The press is focused like a laser on more important issues, such as whether the states might someday consider outlawing the pill.
The United States closed 2011 with a record $15.22 trillion Debt that was officially 100.3% of GDP and only $14 billion from breaching the debt ceiling
Meanwhile, in real news: The United States closed 2011 with a record $15.22 trillion debt that was officially 100.3% of GDP and only $14 billion from breaching the debt ceiling passed by Congress only five months before.
Meanwhile, in real news: The United States closed 2011 with a record $15.22 trillion debt that was officially 100.3% of GDP and only $14 billion from breaching the debt ceiling passed by Congress only five months before.
Top 10 Ways Hollywood Can Win Its Audience Back
The top ten ways Hollywood can win its audience back.
As someone who spent almost twenty years in the movie business, I think Nolte hits the nail on the head. I also think Hollywood will not do any of the things he suggests, mostly because it would require them to abandon their elite, leftwing ideology that for the past thirty years has become the only thing too many Hollywood people care about.
The top ten ways Hollywood can win its audience back.
As someone who spent almost twenty years in the movie business, I think Nolte hits the nail on the head. I also think Hollywood will not do any of the things he suggests, mostly because it would require them to abandon their elite, leftwing ideology that for the past thirty years has become the only thing too many Hollywood people care about.
At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial.
“At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial.”
Tens of millions of Americans have yet to understand that the can can no longer be kicked down the road, because we’re all out of road. The pavement ends, and there’s just a long drop into the abyss. And, even in a state-compliant car seat, you’ll land with a bump. At this stage in a critical election cycle, we ought to be arguing about how many government departments to close, how many government programs to end, how many millions of government regulations to do away with. Instead, one party remains committed to encrusting even more barnacles to America’s rusting hulk, while the other is far too wary of harshing the electorate’s mellow.
“At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial.”
Tens of millions of Americans have yet to understand that the can can no longer be kicked down the road, because we’re all out of road. The pavement ends, and there’s just a long drop into the abyss. And, even in a state-compliant car seat, you’ll land with a bump. At this stage in a critical election cycle, we ought to be arguing about how many government departments to close, how many government programs to end, how many millions of government regulations to do away with. Instead, one party remains committed to encrusting even more barnacles to America’s rusting hulk, while the other is far too wary of harshing the electorate’s mellow.
The spenders won 2011
The Obama Nation: Even More Debt And Even More Store Closings
A nation in economic collapse.
During “the Obama Nation”, the federal government has already accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office. Of course the Bush administration was nearly as bad at piling up government debt. Between Bush and Obama (with a big helping hand from the Federal Reserve), they have done a pretty good job of wiping out the financial future of the United States. If there are future generations of Americans, they will look back and curse those that did this to them. It is absolutely immoral to steal trillions of dollars from future generations. Unfortunately, there are very, very few members of Congress that are even objecting to this madness.
The article’s listing of store closings is also quite frightening, suggesting that the economic situation of the nation is far worse than has been reported.
A nation in economic collapse.
During “the Obama Nation”, the federal government has already accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office. Of course the Bush administration was nearly as bad at piling up government debt. Between Bush and Obama (with a big helping hand from the Federal Reserve), they have done a pretty good job of wiping out the financial future of the United States. If there are future generations of Americans, they will look back and curse those that did this to them. It is absolutely immoral to steal trillions of dollars from future generations. Unfortunately, there are very, very few members of Congress that are even objecting to this madness.
The article’s listing of store closings is also quite frightening, suggesting that the economic situation of the nation is far worse than has been reported.
Several of China’s biggest borrowers have been given permission to delay loan payments
The day of reckoning looms: Several of China’s biggest borrowers have been given permission to delay loan payments.
The day of reckoning looms: Several of China’s biggest borrowers have been given permission to delay loan payments.
A country in denial about its fiscal future
The Great Spending Betrayal
Over Friday and Saturday, 61% of House Republicans and 34% of Senate Republicans voted for the omnibus megabus bill. In doing so, not only did they violate their pledge pertaining to bundled (1200-page) bills and the 72-hour layover rule and agree to fund Obamacare, Dodd-Frank, Planned Parenthood, the EPA, the PLO and the UN; they actually agreed to spend almost $9 billion more than last year. Overall, budget authority will be $33 billion higher than the House budget, while appropriations for non-defense spending will be $45 billion more. One of the members who voted in the affirmative even agreed that he had voted for a “crap sandwich.”
One reason the budget is still growing is that two-thirds of the government is still controlled by the spendthrift Democratic Party. A second reason is that there are too many wimpy Republicans willing to compromise with these spendthrifts.
Which is why we have elections. 2012 should help fix this problem.
Over Friday and Saturday, 61% of House Republicans and 34% of Senate Republicans voted for the omnibus megabus bill. In doing so, not only did they violate their pledge pertaining to bundled (1200-page) bills and the 72-hour layover rule and agree to fund Obamacare, Dodd-Frank, Planned Parenthood, the EPA, the PLO and the UN; they actually agreed to spend almost $9 billion more than last year. Overall, budget authority will be $33 billion higher than the House budget, while appropriations for non-defense spending will be $45 billion more. One of the members who voted in the affirmative even agreed that he had voted for a “crap sandwich.”
One reason the budget is still growing is that two-thirds of the government is still controlled by the spendthrift Democratic Party. A second reason is that there are too many wimpy Republicans willing to compromise with these spendthrifts.
Which is why we have elections. 2012 should help fix this problem.
Budget deal cuts EPA by three percent
Another science budget update from Nature states that the budget deal will cut EPA by three percent.
This cut reduces EPA’s budget from its 2011 numbers by about $400 million. However, the agency’s total 2012 budget of $8.4 billion is still $1 billion more than it got in 2008, hardly what I’d call a draconian cut.
Once again, the inability of Congress to seriously face the deficit issue threatens to eventually destroy the U.S.’s ability to do any science. A bankrupt nation can’t do much but feed itself, as the scientists in the Soviet Union learned back in the 1990s.
Another science budget update from Nature states that the budget deal will cut EPA by three percent.
This cut reduces EPA’s budget from its 2011 numbers by about $400 million. However, the agency’s total 2012 budget of $8.4 billion is still $1 billion more than it got in 2008, hardly what I’d call a draconian cut.
Once again, the inability of Congress to seriously face the deficit issue threatens to eventually destroy the U.S.’s ability to do any science. A bankrupt nation can’t do much but feed itself, as the scientists in the Soviet Union learned back in the 1990s.
The stimulus was not a one time expense, it was built into the baseline
One reason we are going bankrupt: The stimulus was not a one time expense, it was built into the baseline.
Click to see the chart most of all. It will make you sick.
One reason we are going bankrupt: The stimulus was not a one time expense, it was built into the baseline.
Click to see the chart most of all. It will make you sick.
Electric car company shuts down
For once, the taxpayer doesn’t get screwed: The electric car company Aptera has shut down due to lack of interest from investors and the lack of a loan from the government.
The California company was counting on a federal loan – and private investments to match the loan – so that it could start producing its very first electric vehicle. Aptera said it was close to securing a $150 million from the U.S. Department of Energy, but it couldn’t line up the private dollars necessary to complete the loan application process.
For once, the taxpayer doesn’t get screwed: The electric car company Aptera has shut down due to lack of interest from investors and the lack of a loan from the government.
The California company was counting on a federal loan – and private investments to match the loan – so that it could start producing its very first electric vehicle. Aptera said it was close to securing a $150 million from the U.S. Department of Energy, but it couldn’t line up the private dollars necessary to complete the loan application process.
The collapse of the solar power industry
American Airlines files for bankruptcy
American Airlines files for bankruptcy. Note this as well:
American was the only major U.S. airline that didn’t file for bankruptcy protection in the aftermath of the 2001 terrorist attacks that triggered a deep slump in the airline industry. The last major airline to file for bankruptcy protection was Delta in 2005.
This list of bankrupt airlines does not include Southwest, however, which has seen its business boom in the past decade. I wonder, could these other airlines be driving customers away with their high baggage fees, complex ticket rules that end up costing customers money or convenience, and their willingness to go along with the abuses of the TSA?
Whenever I can, I fly Southwest, because they don’t charge for baggage and allow me to change or cancel flights without penalty. However, I also fly as little as possible these days, mostly to avoid being treated like a criminal by the TSA. And I know I am not alone in this.
Thus, all airlines have lost business due to TSA abuse. You’d think they’d wake up and start to fight this government intrusion into their operations.
American Airlines files for bankruptcy. Note this as well:
American was the only major U.S. airline that didn’t file for bankruptcy protection in the aftermath of the 2001 terrorist attacks that triggered a deep slump in the airline industry. The last major airline to file for bankruptcy protection was Delta in 2005.
This list of bankrupt airlines does not include Southwest, however, which has seen its business boom in the past decade. I wonder, could these other airlines be driving customers away with their high baggage fees, complex ticket rules that end up costing customers money or convenience, and their willingness to go along with the abuses of the TSA?
Whenever I can, I fly Southwest, because they don’t charge for baggage and allow me to change or cancel flights without penalty. However, I also fly as little as possible these days, mostly to avoid being treated like a criminal by the TSA. And I know I am not alone in this.
Thus, all airlines have lost business due to TSA abuse. You’d think they’d wake up and start to fight this government intrusion into their operations.
“What the hell are we paying you for?”
Chris Christie to Barack Obama: “What the hell are we paying you for?”
This is so good, so honest and to the point, that it deserves to be embedded everywhere.
Chris Christie to Barack Obama: “What the hell are we paying you for?”
This is so good, so honest and to the point, that it deserves to be embedded everywhere.
Supercommittee gives up
The day of reckoning looms: The Congressional supercommittee has given up. The perspective of one member of the committee can be read here. Key quote:
The Congressional Budget Office, the Medicare trustees, and the Government Accountability Office have each repeatedly said that our health-care entitlements are unsustainable. Committee Democrats offered modest adjustments to these programs, but they were far from sufficient to meet the challenge. And even their modest changes were made contingent upon a minimum of $1 trillion in higher taxes—a move sure to stifle job creation during the worst economy in recent memory.
Even if Republicans agreed to every tax increase desired by the president, our national debt would continue to grow uncontrollably. Controlling spending is therefore a crucial challenge. The other is economic growth and job creation, which would produce the necessary revenue to fund our priorities. [emphasis mine]
This needs repeating: regardless of whether you think we should raise taxes in this situation, no tax increase can eliminate the deficit. The problem is out-of-control spending that needs to be seriously curbed.
The day of reckoning looms: The Congressional supercommittee has given up. The perspective of one member of the committee can be read here. Key quote:
The Congressional Budget Office, the Medicare trustees, and the Government Accountability Office have each repeatedly said that our health-care entitlements are unsustainable. Committee Democrats offered modest adjustments to these programs, but they were far from sufficient to meet the challenge. And even their modest changes were made contingent upon a minimum of $1 trillion in higher taxes—a move sure to stifle job creation during the worst economy in recent memory.
Even if Republicans agreed to every tax increase desired by the president, our national debt would continue to grow uncontrollably. Controlling spending is therefore a crucial challenge. The other is economic growth and job creation, which would produce the necessary revenue to fund our priorities. [emphasis mine]
This needs repeating: regardless of whether you think we should raise taxes in this situation, no tax increase can eliminate the deficit. The problem is out-of-control spending that needs to be seriously curbed.
Supercommittee to the rescue
The Supercommittee to the rescue!
They’re the new superhero group of Superfriends from the Supercongress who are going to save America from plummeting over the cliff and into the multitrillion-dollar abyss. There’s Spender Woman (Patty Murray), Incumbent Boy (Max Baucus), Kept Man (John Kerry) and many other warriors for truth, justice and the American way of debt. The Supercommittee is supposed to report back by the day before Thanksgiving on how to carve out $1.2 trillion dollars of deficit reduction and thereby save the republic.
The Supercommittee to the rescue!
They’re the new superhero group of Superfriends from the Supercongress who are going to save America from plummeting over the cliff and into the multitrillion-dollar abyss. There’s Spender Woman (Patty Murray), Incumbent Boy (Max Baucus), Kept Man (John Kerry) and many other warriors for truth, justice and the American way of debt. The Supercommittee is supposed to report back by the day before Thanksgiving on how to carve out $1.2 trillion dollars of deficit reduction and thereby save the republic.
We’re still not cutting
The day of reckoning looms: We’re still not cutting.
In the spring fight to avert a government shutdown, Republicans promised $100 billion in real cuts but then compromised for $38.5 billion in future savings. In reality, the Congressional Budget Office found the deal still resulted in an increase of more than $170 billion in federal spending from 2010 to 2011. The “largest spending cut in history” ended up being a spending increase.
And this:
But the [super]committee isn’t really trying to cut spending. It seeks only to spend the country into bankruptcy a little slower. Rather than letting the country rack up $23.4 trillion of debt by 2021, the supercommittee hopes to keep it to $21.3 trillion. It’s the difference between speeding off a cliff at 91 miles per hour versus 100 miles per hour.
The day of reckoning looms: We’re still not cutting.
In the spring fight to avert a government shutdown, Republicans promised $100 billion in real cuts but then compromised for $38.5 billion in future savings. In reality, the Congressional Budget Office found the deal still resulted in an increase of more than $170 billion in federal spending from 2010 to 2011. The “largest spending cut in history” ended up being a spending increase.
And this:
But the [super]committee isn’t really trying to cut spending. It seeks only to spend the country into bankruptcy a little slower. Rather than letting the country rack up $23.4 trillion of debt by 2021, the supercommittee hopes to keep it to $21.3 trillion. It’s the difference between speeding off a cliff at 91 miles per hour versus 100 miles per hour.
“Unfortunately, it’s worse than it looks.”
Appropriations bill promising $1 billion cut will increase spending by more than $9 billion according to one senator
A Senate appropriations bill promising a $1 billion cut will actually increase spending by more than $9 billion, according to one senator.
It just cannot be contended that this is serious work toward reducing our deficit. It just cannot be.
A Senate appropriations bill promising a $1 billion cut will actually increase spending by more than $9 billion, according to one senator.
It just cannot be contended that this is serious work toward reducing our deficit. It just cannot be.
US debt to surpass GDP on Halloween
The day of reckoning looms: The US debt will surpass the gross domestic product come Halloween.
The day of reckoning looms: The US debt will surpass the gross domestic product come Halloween.
The remaining assets of Rocketplane Kistler are to be auctioned off November 11
Got $50,000 for the good faith deposit? Then you can bid on remaining assets of Rocketplane Kistler, to be auctioned off on November 11.
Got $50,000 for the good faith deposit? Then you can bid on remaining assets of Rocketplane Kistler, to be auctioned off on November 11.
Senate rejects House funding bill; shutdown looms
Senate rejects House funding bill; shutdown looms.
While we chatter about superficial election debates and a falling satellite, the federal budget continues to crash and burn. What I find disturbing about the events in the Senate is this quote:
Democrats in the Senate, who are in the majority, oppose Republican efforts to roll back “green” energy programs to pay for aid for victims of Hurricane Irene and other disasters. They say disaster aid, usually a bipartisan issue, should not require cuts elsewhere — especially to programs creating green jobs — as the GOP majority in the House now demands. [emphasis mine]
So how do the Democrats expect to pay for this disaster aid? Will the money grow on trees?
Senate rejects House funding bill; shutdown looms.
While we chatter about superficial election debates and a falling satellite, the federal budget continues to crash and burn. What I find disturbing about the events in the Senate is this quote:
Democrats in the Senate, who are in the majority, oppose Republican efforts to roll back “green” energy programs to pay for aid for victims of Hurricane Irene and other disasters. They say disaster aid, usually a bipartisan issue, should not require cuts elsewhere — especially to programs creating green jobs — as the GOP majority in the House now demands. [emphasis mine]
So how do the Democrats expect to pay for this disaster aid? Will the money grow on trees?