So here it is 8 months since I first entertained the thought that there had to be more to the Santa Barbara County budget crisis than a blanket excuse that Wall Street was to blame. As a matter of fact all of America is blaming Wall Street for one thing or the other. I stand behind the counter at work and listen to our customers and there different opinions about who is to blame for this or that on a daily basis. I must say I am impressed with the intelligence and thought that has gone into there particular views and there statistics they have to help them explain there stance. Our troubled America is on everyone’s mind.
Than at the same time I think wow what a dilemma the Republicans are in right now. I mean it seems everyone (as stated by the media) is not pleased with current President Obama’s performance to date. An yet can anyone name the Republican front runner to challenge President Obama in 2 years? People please be honest with yourself, there is no one out there as a savior for this Country! Well other than myself and you the American Public of course! An is it just me or does President Obama seem to be willing to spend as much money as he can on the American public as easily as it was spent on Wall Street? Putting money on Main street rather than Wall Street should please us and yet nobody seems happy. Now I am not saying I am pleased with our Country’s current situation but when I do hear our President speak I get a positive feeling of sincerity regardless of what the media polls say. I also have just one message for our President Obama,” Raise the ceiling of expectations for all future generations! An what I mean by that statement is that if President Obama is to serve only one term as President than be your own man for the remainder of your term.
Mr. President if you attempt that which has never been regardless your length in office you forever create a brighter future for this Country. If you raise the bar of self sacrifice for Country over self, you than match the efforts of our Brave Military and the duty that they perform on a daily basis! An with you knowing damn well it may reduce your stay in that very office you create history and change the possibilities for tomorrow forever. Your legacy in fact will not be your 1 ( I am here for two) term in office but the years and generations you affected from that stay and your willingness of self sacrifice for Country. Be your own man and play by new rules Mr. President! We all know that if we continue playing by the old rules there will be a new financial crisis in about 9 years that the American public will once again be responsible for and everything that goes with it will cycle over again.
My nightmare with illegal actions against me by a select few from the Santa Barbara police Department started almost 5 years ago to the date. I remember when I would write on the internet about my experiences people would tell me to move on. Or that nobody cares about my Illegal incarcerations, illegal foreclosure, Illegal Civil Court proceedings or other illegal actions by our Government. Well as it turns out America does care! Have you heard about the HALTING of FORECLOSURES due to improper actions by the foreclosing party’s? People with circumstances exactly as mine . We are talking about major banks like B of A and state by state halting of foreclosure proceedings until proper documentation and court procedures are followed. Jim you are miles ahead of anyone else I know. An for those of you who can invest in Real Estate hold tight the true opportunity’s will just start appearing later this year in that market! A 2 bed room home on 2.16 acres in Prunedale Ca. with in law quarters 140,000. That is 30 minutes from Morgan Hill Ray!
A few weeks back I had dinner with Ray and it was quite nice, Of course what else do I have to talk about except all my research and why it is so important. An I asked him if we as people are insane, which will be the theme to the next part of this posting. I mean just how stuck on stupid can we be America. Then Pension issues cost us all, read below and some startling news.
Larry ‘Magic” Mendoza
US Cities Face Half a Trillion Dollars of Pension Deficits
Big US cities could be squeezed by unfunded public pensions as they and counties face a $574 billion funding gap, a study to be released on Tuesday shows. The Financial Times reports.
US Cities Face Half a Trillion Dollars of Pension Deficits
TAX, POLITICS, PENSION, DEFICIT, ECONOMY, POLITICS
| 12 Oct 2010 | 05:32 AM ET
Big US cities could be squeezed by unfunded public pensions as they and counties face a $574 billion funding gap, a study to be released on Tuesday shows.
The gap at the municipal level would be in addition to $3,000 billion in unfunded liabilities already estimated for state-run pensions, according to research from the Kellogg School of Management at Northwestern University and the University of Rochester.
“What is yet to be seen is how this burden will be distributed between state and local governments and whether the federal government will be called upon for bail-outs,” said Joshua Rauh of the Kellogg School.
The financial demands of unfunded pension promises come as state and local governments grapple with years of falling tax revenue related to the recession.
The combination has raised concern that defaults, which are historically rare in the $2,800 billion municipal bond market where local governments obtain money, could now rise.
“The bondholders would be competing with the pension beneficiaries for scarce government resources,” Mr Rauh said.
Current pension assets for plans sponsored by Philadelphia can only pay for promised benefits through 2015, while Boston and Chicago would deplete their existing funds by 2019.
Cincinnati, Jacksonville, Florida and St Paul have current pension assets that can only pay for promised benefits through 2020.
Local governments use unique accounting methods that many, such as Mr Rauh, believe understate obligations. Based on his estimates, which use US Treasuries as the benchmark, each household already owes an average of $14,165 to current and former municipal public employees in the 50 cities and counties studied.
“Philadelphia has the most immediate cause for concern, as the city can pay existing promises with existing assets only through 2015,” Mr Rauh said, assuming an 8 percent annualized return, the most common benchmark for municipal plans.
In New York City, San Francisco and Boston the total is more than $30,000 a household and, in Chicago, it tops $40,000.
Taxpayers in these areas risk not only local tax increases and service cuts to pay for benefits, but potentially some of the bill for the $3,000 billion unfunded obligations at the state level, the researchers say.
“The fact that there is such a large burden of public employee pensions concentrated in urban metropolitan areas threatens the long-run economic viability of these cities, as residents can potentially move elsewhere to escape the situation,” Mr Rauh said.
The research examines 77 pension plans sponsored by 50 major cities and counties and covering about 2 million workers, which is estimated to be two-thirds of workers covered by local pensions. Researchers then extrapolated the results – an unfunded liability of about $5,300 per worker – to come up with the total estimate of $574 billion.
Copyright 2010 The Financial Times Limited
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