Archive for the ‘Stimulus’ Category

This Should Get Interesting Fast

Monday, November 22nd, 2010

It seems the political wing of the IRA isn’t happy about the EU/IMF non-bailout bailout that will enslave the Irish (and their kids, grandkids and great-grandkids). The Mayor can’t possibly see how this will end badly.

Oh right, and what is this about Sinn Fein protesters trying to enter government buildings? The IRA are still unarmed, right?

Buehler?

Beuhler?

800 Created Or Saved Jobs Are Now Officially NOT Saved

Friday, November 12th, 2010

800 of the 3000 jobs that were either created or saved at the Savannah Nuclear Solutions at the Savannah River site have now been terminated at a cost of, wait for it…

The cuts come less than two years after the Savannah River Site — which uses other contractors in addition to Savannah River Nuclear Solutions — received $1.6 billion in stimulus cash to create and save about 3,000 jobs.

While fielding thousands of applications at job fairs statewide, officials were quick to say that those jobs were only temporary and would likely expire once the time-limited funds ran out. The jobs ranged from procurement and public relations to work doing construction and general maintenance.

Using Mitchieville’s officially math app (it’s actually an abacus stolen from an old Chinese migrant worker), that’s roughly 500K per job.

Since the company did state upfront that as soon as the stimulus money ran out they would have to fire many of the contractors, one has to wonder whether the 1.6 BILLION dollars was a good investment for temporary jobs? Let’s ponder. Hmmmmm.

Before we ponder any further, let’s look at the job description of the new millionaires:

Savannah River Nuclear Solutions manages the 310-square-mile Savannah River Site, which once produced plutonium and tritium for atomic bombs. Work there is now focused mostly on research and cleaning up areas of the site contaminated during weapons production and sealing off former reactor sites with concrete.

I think it’s say to say that from the job descriptions, the laid off workers were in construction of some form. Now, The Mayor does believe that cleaning up contaminated sites and sealing off reactors is of vital importance, yet I still wonder what the bright folks at the Savannah nuke site would have done if the stimulus money never showed up? I mean, was there no money in the kitty for cleaning up the site to begin with? Did the brass figure they would cross that bridge when they got there? In other words, who was going to pay for the mess?

I suppose it all comes down to, “was there value in the money spent?” For instance, perhaps they could have given each contractor $70K a year for two years and given the remaining $1.3 billion to African men to teach them how to properly wash their ballsacks. Oh, been there, done that? My bad.

7 Weak Spots In The Employment Report

Wednesday, September 8th, 2010

**David Rosenberg

1.Aggregate hours worked were flat.

2.All the employment gains were part-time — full-time employment, as per the Household Survey, plunged 254,000.

3.Those working part-time for “economic reasons” surged 331,000 — the biggest increase in six months.

4.While private payrolls were better than expected, 10,000 of that +67,000 tally reflected returning construction workers who had been on strike.

5.Manufacturing employment was down 27,000 and total goods producing jobs were flat — hardly signs of a robust economic backdrop.

6.The diffusion index for private payrolls actually fell to 53.0 from 56.7 in July — a seven-month low. It was 68.0 at the April high, which is consistent with an economy slowing down to stall-speed.

7.The labour market gap widened with the all-inclusive U6 unemployment rate rising to a four-month high of 16.7% from 16.5% in July. This is why the odds are stacked against a sustained acceleration in wages.

**remember, markets surged last week on this report. Obama called the report “positive news” and that his policies have “halted the bleeding”. Any more positive reports like this and you’ll be eating out of a soup kitchen.

PLUS – What David Rosenberg didn’t mention was that “800,000 Americans were added to the “Not in Labor Force” statistic“.

Summers To Winter – You’re A Jobs Killer

Tuesday, March 2nd, 2010

japan1

February’s job figures will be released this Friday, and in a tell-tale sign that they are going to be absolutely terrible, White House economic adviser Larry Summers has already found a culprit to blame the losses on:

“The blizzards that affected much of the country during the last month are likely to distort the statistics. So it’s going to be very important … to look past whatever the next figures are to gauge the underlying trends,” Summers said in an interview with CNBC, according to a transcript.

Construction activity was hit particularly hard by the storms, but many restaurants and stores also had to close, putting the brakes on hiring plans and temporarily throwing some employees out of work.

 

Is that how things work in the States? You get a snowstorm so Chucky Cheese lays off its wait staff? 6″ of snow is enough for an employer to push its employees out the door? “Grab a shovel, Pete, then grab your last cheque”.

If only there was a way we could warm up the earth so this kind of job-killing weather could be stopped…

So people get laid off because of snow, and I’m sure in the spring we’ll be told that people were fired because of the rain, and in the summer people will be fired because it’s too hot to work, and in the fall we’ll be told it was just to *autumny* for people to work. For every season turn, turn, turn.

Then again, it wouldn’t surprise me if the job figures were *better than expected*. Meaning, we’re being softened up to believe the job figures will be a complete disaster, and then when they’re 5% *better than expected*, Summers can then say that even though employees fired by the zillions, because of the administrations hard word and dedication to job creation, things weren’t as bad as we thought they would be. “We saved 400,000 jobs!!”

One thing is for sure though: when we find out on Friday that the economy lost 250,000 jobs, the stock market will go up 130 points, proof that the economy is improving.

Putting On The Fritz

Tuesday, February 23rd, 2010

fritz_henderson

Remember a year ago Obama set executive pay limits for those people whose companies received federal bailout money? Well, that was sooooo February 2009:

After resigning as president and CEO of General Motors in December, Fritz Henderson might have gone into hiding or decided to sit out the harsh Michigan winter on a Florida beach.

Instead, here he is popping up again, this time as a consultant to GM on international operations at the very fancy fee of $59,090 a month for 20 hours of work a month. That works out to almost $3,000 an hour for a CEO who was ousted after just eight months on the job.

Consider that one a *job saved*. To date, the Obama stimulus has either saved or created 2 000 001 jobs.

Yet I seem to remember Obama railing against executives receiving outrageous compensations? Cue dream sequence, February 2009…

“For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn’t just bad taste — it’s a bad strategy — and I will not tolerate it. We’re going to be demanding some restraint in exchange for federal aid — so that when firms seek new federal dollars, we won’t find them up to the same old tricks,” the president added.

Under Obama’s plan, companies that want to pay their executives more than $500,000 will have to do so through stocks that cannot be sold until the companies pay back the money they borrow from the government. The rules will be implemented by the Treasury Department and do not need to be approved by Congress.

A year ago, Obama “wouldn’t tolerate these kinds of compensation packages” for top executives, but this year he seems to be able to tolerate them just fine. You know what that means, don’t you? It means Obama has become more tolerant. And that’s a good thing. It’s a sure-fire sign of someone maturing.

To be fair though, Fritz isn’t a top executive getting over $700,000 a year for working a mere 20 hours a month, he’s a consultant who gets over $700,000 a year for working a mere 20 hours a month.

For a mere consultant to make more money than most top executives at GM, that must mean he must have a pretty solid skill-set, correct?

Although Henderson’s compensation seems a little steep, getting him back to work makes sense. Nobody ever questioned his brains or his work ethic.

And it was in-part thanks to Fritz Henderson, that even through The Worst Economic Downturn Since The Great Depression™, GM was still able to keep it’s ranking as the worlds #1  #2  #3  #4 whatever the hell it is now, car manufacturer in the world. It’s obvious that without Fritz and his mad skillz and unquestionable work ethic, GM would have been bankrupt and possibly nationalized by the Obama administration. 

Thank any God but the Christian God THAT didn’t happen.

Green Shoots & Leaves

Saturday, December 12th, 2009

recession-is-over

Business Insider – The 10 Countries Most Likely To Default

Bloomberg – A record 37.2 million people, or about one out of every eight Americans, received food stamps in September, as the recession drove a surging jobless rate, according to a government report. 

Rolling Stone- Obama’s big sellout (when the Rolling Stone starts to catch on, oh my…)

Politico - In a bold but risky year-end strategy, Democratsare preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year’s rather than have to face the issue again prior to the 2010 elections (done deal, I’m a day late on this one – but it’s worth reading to see the hypocrisy).

Global Economic Analysis – Stimulus Checkup – 100 ridiculous projects funded by the American Recovery Act

Politico – Perhaps the greatest measure of Obama’s declining support is that just 50% of voters now say they prefer having him as President to George W. Bush, with 44% saying they’d rather have his predecessor (haha).

Money And Markets – When you think about the government’s exploding debt burden, you probably don’t focus on interest payments. But those payments will likely total $4.8 trillion over the next 10 years, amounting to more than half the government’s $9 trillion in debt. Interest rates are near zero now, thanks to the Federal Reserve’s massive monetary stimulus. But at some point the Fed will have to reverse that easing.

Whiskey and Gunpowder – The world is not yet ready to give up its addiction to paper currency. Actually, the world may be getting a snoot-full of it, but governments are not. You see, paper currency has an unbelievably strong attraction for governments. Do you know what it is? Do you wanna know?

My Budget 360 – It is hard to justify the 1,100 mark for the S&P 500.  The 676 low of March, as disastrous as it may have felt, actually reflected a more accurate measure of earnings potential of the 500 S&P companies.  The S&P 500 is a good index because it measures 500 companies with a current collective market cap of $9.6 trillion.  The S&P 500 over a century of data has seen price to earnings ratios of between 5 and 10 after severe contractions.  It is safe to say that what we are experiencing is a strong contraction.

Money And MarketsGovernments the world over have spent the past year bailing out, backstopping, insuring, and stimulating their financial sectors and economies. Trillions of dollars, euros, yen, and pounds have been thrown around like Halloween candy. Officials have assured us there’s little risk to that strategy. But we have warned consistently that the opposite is true. Our stance: If you borrow and spend too much, all you’re going to do is transform a Wall Street debt crisis into a Washington debt crisis.

So, Black Friday Was Better Than Expected, Eh?

Thursday, December 10th, 2009

black-friday

Despite what the cheerleaders have been telling you at the various state-controlled media outlets, Black Friday wasn’t a smashing success. According to hard numbers released by The NPD Group,  sales of large ticket items were down by a massive amount,  while overall sales were down 1.2% compared to last year. Yes, compared to the worst Black Friday ever on record, sales were actually 1.2% lower. Green shoots & leaves, my brothers and sisters.

You know what this means, don’t you? Exactly – the stock market will go up 200 points today.

**Thanks to The Market Ticker

Green Shoots & Leaves

Monday, November 23rd, 2009

depression

Support for Health Care Reform falls to new low. But that does NOT make a difference to Obama and crew, they’re going to shove that crap down your throat whether you want it or not.

Financial and Economic Situation Could Get Ugly Fast. Could get ugly fast? Where ya been, buddy?

What has the government done to the dollar? Hmmmm, pooch screwed it I would think.

Escaping Taliban May Widen War as Pakistan Pays Cost. Sure, Pakistan pays the cost if you neglect to add the tens of billions it gets from the US.

State tax revenues hard-hit by recession. But, but but, what about the green shoots?

This will take you a while to get through, but it is well worth it. Grab a coffee and some sedatives, you’re going to need it – The Critical Unraveling of US Society

If you read one article today, make it this one. If there is one person out there that is responsible for this financial disaster, it has to be George Soros - A man-made financial disaster

China Questions Cost of US Healthcare Reform. Damn it all, even the chicoms see what that idiot obama can’t/doesn’t/won’t see.

GM wants gov’ts to help pay $4.9 bn restructuring. Too big to fail, but man are they ever giving it a good shot.

More fixed-rate home loans going into foreclosure. Subprime was the tip of the iceberg, small potatoes compared with what’s coming down the tube.

Stimulus – Creating Non-Existing Jobs For People That Don’t Exist

Tuesday, November 17th, 2009

stimulus-money

One of the state-controled media outlets let a doozy slip, as ABC reported that slush fund  stimulus money has been used to create jobs in places that don’t actually exist:

Here’s a stimulus success story: In Arizona’s 15th congressional district, 30 jobs have been saved or created with just $761,420 in federal stimulus spending. At least that’s what the Web site set up by the Obama administration to track the $787 billion stimulus says.

There’s one problem, though: There is no 15th congressional district in Arizona; the state has only eight districts.

And that’s just the start of it, of course:

For example, recovery.gov says $34 million in stimulus money has been spent in Arizona’s 86th congressional district in a project for the Navajo Housing authority, which is actually located in the 1st congressional district.

In Oklahoma, recovery.gov lists more than $19 million in spending — and 15 jobs created — in yet more congressional districts that don’t exist.

In Iowa, it shows $10.6 million spent  and 39 jobs created — in nonexistent districts.

In Connecticut’s 42nd district (which also does not exist), the Web site claims 25 jobs created with zero stimulus dollars.

The list of spending and job creation in fictional congressional districts extends to U.S. territories as well.

$68.3 million spent and 72.2 million spent in the 1st congressional district of the U.S. Virgin Islands.

$8.4 million spent and 40.3 jobs created in the 99th congressional district of the U.S. Virgin Islands.

$1.5 million spent and .3 jobs created in the 69th district and $35 million for 142 jobs in the 99th district of the Northern Mariana Islands.

$47.7 million spent and 291 jobs created in Puerto Rico’s 99th congressional district.

The stimulus is working so well that it is actually creating districts that didn’t exist before. Just as Obama created extra states when he was running for president, his stimulus is actually creating new land.

The stimulus is constructed entirely out of victory and a healthy dose of black magic. For billions and billions of dollars, the stimulus creates non-existant jobs, for non-existant businesses, for people that are not sure where they live.

Bra.Vo.

The Obama administration defended it’s non-job jobs, claiming that the people who are reporting the non-job jobs are telling the truth, they are just geographically impared:

“Some recipients clearly don’t know what congressional district they live in, so they appear to be just throwing in any number. We expected all along that recipients would make mistakes on their congressional districts, on jobs numbers, on award amounts, and so on. Human beings make mistakes,” Pound said.

Indeed. And “In Connecticut’s 42nd district (which also does not exist), the Web site claims 25 jobs created with zero stimulus dollars”, those jobs were created out of Obama’s Hope ‘N Change© campaign. He hoped ‘em up, and they plum appeared. Like the mighty Kreskin, he is.

If the recovery website just had a drop-down menu which listed each district for each state, we probably wouldn’t be talking about this right now. But I’m pretty sure you can’t get a drop-down menu for $18 million nowadays, drop-down menus are pretty high-tech.

Now consider that only 14% of the stimulus has been spent so far. And this is what you have. Imagine next summer – a few months before the November election – when another $500 billion gets spent in Democrat districts. If you think this is a boondoggle so far, you aint seen nuttin’ yet.

Time Machine

Tuesday, October 20th, 2009

time-machine-bits-and-pieces

Again, putting things into perspective is impossible for some people, but if they would just get a grip and look at how amazing this world, and in particular how amazing we have it in the west, they wouldn’t say idiotic things like, “economic conditions are worse now than they were in the 30’s.”

As The Mayor has always contended, we have the worlds richest poor.

3.6 Million Lost Jobs? That’s Just Great!

Thursday, October 15th, 2009

stimulus-construction

The numbers are in for how many jobs Obama’s $800 billion stimulus program has created to date, and according to White House representatives, things are coming along smashingly!

The number: 30,383 jobs from roughly $16 billion worth of stimulus contracts awarded directly by federal agencies.

Crunching the numbers, that comes to $533,000 per job “saved or created.” To put those 30,383 jobs in perspective, consider that the U.S. economy lost 262,000 net jobs just last month and has lost 3.6 million lost jobs since President Barack Obama was sworn into office.

What a great deal!

And it makes you wonder how many of those 30,000 *saved or created* jobs are actually government jobs? Plenty, I would think.

Also keep in mind that if a construction project starts in, oh let’s say Nancy Pelosi’s jurisdiction, and it involves laying 200 feet of interlocking marble blocks (with diamond encrusted inlay) in front of the Nancy Pelosi Monument to Transgendered, Bi, and Left-Handed Lesbians With Tooth Decay, and it takes five guys 1 week to accomplish the project, according to the Obama administration, that’s five jobs *saved or created*. However, when that job is finished, unless those five guys are running security around the monument, those five jobs are actually gone for life. Sure, they could get work on another stimulus project, but funnily enough, that counts as five jobs that were *saved or created*. If those same guys get 20 one week stimulus projects over the next year, guess what? The stimulus program, according to men who wear pocket protectors and crunch numbers, *created* 50 jobs. From five guys. That are now unemployed.

In essence, by the time this fiasco is over, expect close to 500 million jobs to be created, with an unemployment rate or 11.2%.