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One of my many mistake in life was not applying for a secure federal govt job like at the va hospital in loma linda, ca. When i was honorably discharged from the army at that time i wasnt intrested in a govt job. I started my own business & i did good for quite awhile.
State and Local Governments have to be in panic mode about now - the New House is going to be very different than the old House. Unions will be up in arms - they will have a hard time getting public sympathy this time. Too many stunts like the recent Snow temper tantrum in New York City have the public against the unions.
First volley was the removal of the Build America Bonds program - it's now gone.
Under the program, a state would issue taxable debt to finance a project and later receive a check from the Treasury Department subsidizing a portion of the interest cost. The program was wildly popular among state and local governments, with nearly $200 billion being issued in two years.
Legislation is going to be introduced to prevent any Pension Bailouts, Legislation is going to be introduced to force State and Local Government to reveal Pension financials. There is talk of Legislation to pave a way for State Bankruptcy. There is only 60 Billion in 2011 Stimulus funds for States, only 6 Billion in 2012 - there will be GOP House committees that oversee that funding. There are new rules in the House for the Budget - they will cover the 2010 Budget that the Dems never voted on and the new Budget for 2011.
This is going to be the major battle of 2011 - several States are effectively bankrupt now, lots of Cities/Towns are in the same bad shape.
The well is dry - riots to follow soon. It's going to be a mess.
I just can't see how the Fed could even consider bailing out city/state pensions..there's way too many of them underfunded and no way to even pay the money back.
We've got that one town in Alabama as the first one to stop paying.
When push comes to shove though, bond interest has priority over pension payments.
Many cities around the US have deep debt in bonds they used to finance everything.
The govt (city, county, state & federal) will not cut the public employees pensions, salaries or benefits any time soon. New hires is a totally different story.
If taxes are raised or services have to be cut then they will do it.
Govt employees will protect themselves cause its a dog eat dog world.
Not a surprise that the Union considers it a "dog eat dog world" or that they only care about "protecting themselves". The Federal pensions will be fine - it's going to be up to the people in each State how they handle their money problems - will the taxpayers (and politicians) give up everything to "protect" the unions?
Doubtful - when the money is gone, it's gone. Spending like drunk sailors and greed are about to catch up with some folks. The bad news is that people will be hurt by this "protectionism" that has run amuck for many years.
I just can't see how the Fed could even consider bailing out city/state pensions..there's way too many of them underfunded and no way to even pay the money back.
We've got that one town in Alabama as the first one to stop paying. When push comes to shove though, bond interest has priority over pension payments.
Many cities around the US have deep debt in bonds they used to finance everything.
Secured bond interest USED to have priority. We all learned it did not in the GM and Chrysler bankruptcies. Legislation is going to be introduced also to protect Bond holders so that can't happen again.
The FED has been bailing out the State pensions for the last two years - they are going to have a hard time doing that now. Very few CongressCritters would vote for such a thing today. I'm sure that the Union bosses and Obama have a plan of some sort - I don't think he can do it by Executive order.
...The FED has been bailing out the State pensions for the last two years - they are going to have a hard time doing that now. Very few CongressCritters would vote for such a thing today. I'm sure that the Union bosses and Obama have a plan of some sort - I don't think he can do it by Executive order.
Why not? The Fed bailed out Wall Street, which caused a lot of this mess.
Much of States' pension funds are invested by Wall Street. Virginia's pension fund lost $14 Billion in the meltdown. Add to that the fact that State legislatures are raiding their pension funds to balance their budgets...and no wonder pensions are underfunded. (Virginia has NO public unions whatsoever)
I read that Bank of America is negotiating settlements with large investors that lost big bucks investing in Countrywide's garbage mortgages. Why aren't the States trying to recoup some of their losses in a similar fashion.
The govt (city, county, state & federal) will not cut the public employees pensions, salaries or benefits any time soon. New hires is a totally different story.
If taxes are raised or services have to be cut then they will do it.
Govt employees will protect themselves cause its a dog eat dog world.
Actually, the police in my large city recently took pay and benefit cuts totaling over 4% of compensation. Top management took pay and benefit cuts totaling 10% of compensation. Since pensions and health care benefits are going up fast, that means they lost more than 4% and 10% in their respective pay checks.
Other bargaining units that didn't take the cuts got layoffs. This year, there will be both layoffs and pay cuts for everyone, I think.
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2011 Public Pensions Get Whacked
