Middle Class Dismissed

The Fleeting Beauty of Bubbles and Bonds

"The political calculus is simple: the bottom half of households don't vote, don't contribute to political campaigns and don't have enough income to borrow huge sums of money to enrich the banks. They are thus non-entities in the fiscal-monetary project of maintaining the power structure of the Status Quo. All the Status Quo needs to do is borrow enough money to fund social programs that keep the masses passive and silent. Unfortunately for the Powers That Be, the cost of placating the rapidly increasing marginalized populace is rising much faster than tax revenues." Continue reading →

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Kyle Bass: “The Next 18 Months Will Redefine Economic Orthodoxy For The West”

"The topics he focuses on are Central bank expansion (with a mind-numbing array of awe-full numbers to explain just where the $10 trillion of freshly created money has gone), Japan's near-term outlook ('the next 18 months in Japan will redefine the economic orthodoxy of the West'), and most importantly since, as he notes, 'we are investing in things that are propped up and somewhat made up,' the psychology of negative outcomes. The latter, Bass explains, is one of the most frequently discussed topics at his firm, as he points out that 'denial' is extremely popular in the financial markets." Continue reading →

Continue ReadingKyle Bass: “The Next 18 Months Will Redefine Economic Orthodoxy For The West”

IBM Cutting Jobs In U.S. And Globally

"International Business Machines Corp. (IBM), the world’s largest computer-services provider, began cutting U.S. jobs today as part of a global restructuring plan announced in April. The reduction targets employees with a range of seniority, from rank-and-file staff to executives. Some U.S. workers began to receive notifications of the cuts last night, according to Lee Conrad, a coordinator for Alliance@IBM, an employee group. The restructuring will cost $1 billion worldwide, including severance expenses. The company is probably cutting 6,000 to 8,000 jobs globally, based on the $1 billion cost figure." Continue reading →

Continue ReadingIBM Cutting Jobs In U.S. And Globally

European Car Sales Fall to 20-Year Low Amid Unemployment

"European car sales fell to a 20-year low in May as record joblessness caused by a recession in the euro area reduced demand at PSA Peugeot Citroen (UG), Renault SA (RNO), Fiat SpA (F)and General Motors Co. (GM) Registrations dropped 5.9 percent to 1.08 million vehicles from 1.15 million a year earlier, the Brussels-based ACEA said today. The figure was the lowest for the month since 1993. The ACEA compiles data for the 27-nation EU plus Switzerland, Norway and Iceland. Peugeot, Renault, Fiat and GM’s deliveries fell at least 10 percent in the region last month as price cuts failed to attract buyers." Continue reading →

Continue ReadingEuropean Car Sales Fall to 20-Year Low Amid Unemployment

Price Inflation Watch: Average NYC Rent Passes $3,000

"The average rent in NYC last quarter was $3,017 a month, according to Reis Inc. According to Reuters, the average New York rent was more than 50 percent higher than second-place San Francisco, where rent grew 1.1 percent from the first quarter to $1,998.82. Oklahoma City was the cheapest market, at an average of $571.03 a month, up 0.6 percent. The national average is $1,062. With few apartments up for grabs in NYC, brokers are urging prospective tenants to carry financial paperwork with them to showings and to make a decision quickly, reports WSJ." Continue reading →

Continue ReadingPrice Inflation Watch: Average NYC Rent Passes $3,000

Dear New Yorkers: Here’s Why Your Rent Is So Ridiculously High

"While the average rent for available apartments in New York City is now over $3,000, the U.S. Census Bureau says renters in New York City were only paying a median of $1,125 in 2011. What gives? The answer is, there are lots of cheap apartments in New York. You just can't get one of them, because they're rent controlled, and tenants with great rent controlled deals cling to their apartments until they die. In Manhattan below 96th Street, 35% of rent regulated apartments are occupied by a tenant who has lived there for more than 20 years. Less than 3% of market-rate tenants have been around that long." Continue reading →

Continue ReadingDear New Yorkers: Here’s Why Your Rent Is So Ridiculously High

Tax compliant Americans abroad with a principal residence or mutual funds should renounce citizenship

"It has become clear for U.S. citizens abroad that the only thing worse than NOT being tax compliant is BEING tax compliant. The cost of U.S. tax compliance is that your U.S. citizenship will disable you from effective financial and retirement planning. The reason is that the U.S. considers most non-U.S. investment vehicles to be PFICs. The sale of your principal residence will be subject to a capital gains tax. Furthermore, the additional “Obamacare taxes” imposed on investment income will make the situation worse. If you you own a principal residence or a non-U.S. mutual fund and you sell it all the gains (and possibly more) will be confiscated." Continue reading →

Continue ReadingTax compliant Americans abroad with a principal residence or mutual funds should renounce citizenship

Not All Insurers Game for State Exchanges: The Consumer Impact

"As more insurers decide to pack up and leave certain states as health exchanges start to take form, experts say consumers are going to be left feeling the pain. Over the last few weeks, several departure announcements have sent a ripple through the health insurance industry, as companies weigh whether or not they want to play ball under Obamacare. So far, California has experienced the biggest migration with Aetna (AET), UnitedHealthcare (UNH) and Cigna (CI) leaving the state’s exchange, Covered California. Fifteen states and D.C. are in the process of creating their insurance exchanges before the 2014 deadline; when individuals must purchase insurance or face a fine." Continue reading →

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If You Are A Baby Boomer, You Will Go Bankrupt—If You Stay In America

"If you could get an 87% discount on your health care, would you take it? Or would you deliberately stand pat, pay 100%—and go broke? The answer is obvious. So if you cannot afford health care in the United States—or realize that, in the not-too-distant future, you won’t be able to afford it—then the smart move if you are living on a fixed income (or will be soon) is to try to look for a place where health care costs are manageable. A place where you can receive your pension or Social Security check or annuity or whatever, and yet not be afraid that you are one medical emergency away from losing your house and all your money." Continue reading →

Continue ReadingIf You Are A Baby Boomer, You Will Go Bankrupt—If You Stay In America

Wal-Mart walks away from plans for 3 D.C. stores after ‘living wage’ law passes

"Wal-Mart Stores Inc. said it was scrapping plans to build three stores in Washington, D.C., after the city council passed a bill late Wednesday that would require big retailers to pay starting wages that are 50% higher than the city’s minimum wage. The bill requires retailers with corporate sales of $1 billion or more and with stores of at least 75,000 square feet to pay workers starting salaries of no less than $12.50 an hour. The city’s minimum wage is $8.25. The measure includes an exemption for unionized businesses and gives existing big stores, which include Target Corp. and Macy’s Inc., four years to comply." Continue reading →

Continue ReadingWal-Mart walks away from plans for 3 D.C. stores after ‘living wage’ law passes