Middle Class Dismissed

Few Dare Discuss Social Security and the Decline in Full-Time Employment

"If the global economy slides into recession in the years ahead, as seems increasingly likely, full-time employment in the U.S. could slip to 100 million while the number of beneficiaries continues to soar by 10+ million a decade. All the official projections assume steady, strong increases in payroll taxes and full-time employment; the system's deficits will explode higher if full-time employment sags while the number of beneficiaries increases from 57 million to 70 million and then on to 80 and 90 million. Anyone who cares about the viability of Social Security had better wake up to the widening divergence of full-time employment and SSA beneficiaries." Continue reading →

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No Banker Left Behind

"The Detroit bankruptcy case has been cast as a contest between bondholders and pensioners that can be resolved only by shared sacrifice. What we do have a problem with is shared sacrifice that does not seem to apply to the big banks that abetted Detroit’s descent into bankruptcy. Last month, just days before its bankruptcy filing, Detroit reached its first settlement with creditors. The settlement was with UBS and Bank of America, and though the precise terms will not be nailed down until the bankruptcy judge weighs in, Detroit is set to pay an estimated $250 million to terminate a soured derivatives transaction from 2005." Continue reading →

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Philadelphia Borrows $50 Million So Its Schools Can Open on Time

"Superintendent William R. Hite Jr. said the $50 million was necessary to provide the minimum staffing needed for the basic safety of the district’s 136,000 students. In June, the district closed 24 schools and laid off 3,783 employees, including 127 assistant principals, 646 teachers and more than 1,200 aides, leaving no one even to answer phones. For a number of years, Mayor Michael A. Nutter and the City Council have been working, with some success and a fair amount of taxpayer pain, to shore up the city’s finances, which have been troubled by mounting debt, a shrinking tax base and unfunded pension and health care obligations to retirees." Continue reading →

Continue ReadingPhiladelphia Borrows $50 Million So Its Schools Can Open on Time

Philadelphia Borrows $50 Million So Its Schools Can Open on Time

"Superintendent William R. Hite Jr. said the $50 million was necessary to provide the minimum staffing needed for the basic safety of the district’s 136,000 students. In June, the district closed 24 schools and laid off 3,783 employees, including 127 assistant principals, 646 teachers and more than 1,200 aides, leaving no one even to answer phones. For a number of years, Mayor Michael A. Nutter and the City Council have been working, with some success and a fair amount of taxpayer pain, to shore up the city’s finances, which have been troubled by mounting debt, a shrinking tax base and unfunded pension and health care obligations to retirees." Continue reading →

Continue ReadingPhiladelphia Borrows $50 Million So Its Schools Can Open on Time

Why Are So Many College Graduates Driving Taxis?

"In 1970, only 1 in 100 taxi drivers and chauffeurs in the U.S. had a college degree, according to an analysis of labor statistics by Ohio University’s Richard Vedder, Christopher Denhart and Jonathan Robe. Today, 15 of 100 do. Similarly, in 1970, only about 2 percent of firefighters had a college degree, compared with more than 15 percent now, Vedder and his colleagues found. And, according to research by economists Paul Harrington and Andrew Sum of Northeastern University, about 1 in 4 bartenders has some sort of degree." Continue reading →

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Unemployed Spaniards rush to play slaves in Ridley Scott’s ‘Exodus’ film

"Thousands of Spaniards in the depressed southern region of Andalusia are queueing up to play the role of slaves in film-maker Ridley Scott’s Biblical epic 'Exodus', hoping for a way out of unemployment. In a region with unemployment at 35 percent, the prospect of work as an extra with a daily wage of 80 euros ($107) has sparked a rush in Almeria where casting is being held for the story of Moses and the Jewish exodus to the promised land. Some 10,000 people turned up at a casting call in the city of Almeria, and another 5,000 in the nearby town of Pechina, one of the casting organisers said." Continue reading →

Continue ReadingUnemployed Spaniards rush to play slaves in Ridley Scott’s ‘Exodus’ film

Greek teen’s death after argument with bus ticket inspector sparks anti-austerity protests

"The incident quickly touched a nerve in Greece, where the government is using increasingly tough methods to collect revenue under pressure from its international lenders to fix its finances. About 300 people, among them anti-bailout groups, marched to the cemetery where Kanaoutis’s funeral was held on Friday evening. After the service, dozens of youths pelted riot police with stones near the spot where he died. Protesters smashed the windows of a bus in the area and scrawled 'Murderers' in red paint on the windshield. 'Kanaoutis died because he didn’t have a ticket worth 1.20 euros ($1.59),' said the main opposition Syriza party in a statement." Continue reading →

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Half of All Homes Are Being Purchased With Cash

"More than half of all homes sold last year and so far in 2013 have been financed without a mortgage, according to a Goldman Sachs analysis. The analysis estimates that around 20% of all homes sold before the housing crash were 'all-cash' sales (or around 30% of sales by dollar volume). But over the past seven years, the all-cash share of sales has more than doubled. There’s no exact way to know who is responsible for all of these cash purchases, though they are likely to include some combination of investors, foreign buyers, and wealthy homeowners that don’t want to go through the hassle of getting a mortgage before closing on a sale." Continue reading →

Continue ReadingHalf of All Homes Are Being Purchased With Cash

Fox News Follows California Beach Bum Living Off Food Stamps For Years

"Meet Jason Greenslate. You don’t know him but you help buy him his food. With no job and no plans to get one, Jason picks up a cool $200 a month on his EBT card courtesy of ‘we the people’. How many more Jasons are there out there?" Continue reading →

Continue ReadingFox News Follows California Beach Bum Living Off Food Stamps For Years

Bill Bonner: Trust is falling

"Stocks are now as expensive as they were in 2007, says our old friend Mark Hulbert. As for bonds, they are at the top of a 30-year bull market. And gold? The metal bottomed out in 1998. It's gone up ever since, with a textbook correction over the last year or so. What's happening now? Slowly, gradually, like draining a huge lock on a canal, the bond market is dropping. Bonds rise on trust. They fall when trust ebbs away. Why should trust fall now? The simple answer is because it has run its course. Trust is cyclical. As it grows, people become more confident, more sure, and more reckless. Why hold back when there is nothing to fear?" Continue reading →

Continue ReadingBill Bonner: Trust is falling