I am curious to see what happens to the stock after this news. It might be a time to get into the stock.
Yesterday's job report was better than expected. Or so the media spin machine would like you to think.
U.S. private-sector employers added 91,000 jobs in September (above expectations of 75,000)… But another report out today shows employers are planning the most layoffs in more than two years. Last month, U.S. firms announced plans to cut 115,730 jobs – including huge cuts from Bank of America and the U.S. military. That's more than double August's total of 51,114 jobs… And that's the highest number since April 2009, when companies announced 132,590 layoffs.
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Michael Lewis might be the best financial journalist around. His article in Vanity Fair about California going bust is very insightful. It's very long so I won't copy it here. You might want to save it for later.
California or Bust
The smart money says the U.S. economy will splinter, with some states thriving, some states not, and all eyes are on California as the nightmare scenario. After a hair-raising visit with former governor Arnold Schwarzenegger, who explains why the Golden State has cratered, Michael Lewis goes where the buck literally stops—the local level, where the likes of San Jose mayor Chuck Reed and Vallejo fire chief Paige Meyer are trying to avert even worse catastrophes and rethink what it means to be a society.
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I'm not sure how many of you read ZeroHedge but it's has the stories that the spin doctors don't want you to read. Yesterday, the CNBC drones went on and on about how they shouldn't be mentioning the websites name on TV. Pretty funny.
More money printing...
Bank Of England Expands QE By £75 Billion To A Total Of £275 Billion, Keeps Rate Unchanged
As many expected, the Bank of England has followed in Bernanke's footsteps and proceeded with extra QE, 75 billion extra, or about 25 billion more than consensus - this is the first expansion in the British QE since November 5, 2009 when it did the latest £25 billion expansion. Unfortunately, this is just the beginning: much more global QE is coming down the line as the "monetary authority" realizes it only has itself and its printers to rely on in a world rapidly reentering recession.
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This ties in with the story about California. It's isn't just one state with a problem. It's all of them.
Nearly Half of U.S. Lives in Household Receiving Government Benefit
Families were more dependent on government programs than ever last year.
Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.
The share of people relying on government benefits has reached a historic high, in large part from the deep recession and meager recovery, but also because of the expansion of government programs over the years. (See a timeline on the history of government benefits programs here.)
Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).
Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.
High unemployment and increased reliance on government programs has also shrunk the nation’s share of taxpayers. Some 46.4% of households will pay no federal income tax this year, according to the nonpartisan Tax Policy Center. That’s up from 39.9% in 2007, the year the recession began.
Most of those households will still be hit by payroll taxes. Just 18.1% of households pay neither payroll nor federal income taxes and they are predominantly the nation’s elderly and poorest families.
The tandem rise in government-benefits recipients and fall in taxpayers has been cause for alarm among some policymakers and presidential hopefuls.
Benefits programs have come under closer scrutiny as policymakers attempt to tame the federal government’s budget deficit. President Barack Obama and members of Congress considered changes to Social Security and Medicare as part of a grand bargain (that ultimately fell apart) to raise the debt ceiling earlier this year. Cuts to such programs could emerge again from the so-called “super committee,” tasked with releasing a plan to rein in the deficit.
Republican presidential hopefuls, meanwhile, have latched onto the fact that nearly half of households pay no federal income tax, saying too many Americans aren’t paying their fair share.
UPDATE: Nearly half of the population lives in a household that has at least one member who receives some kind of government benefit. An earlier headline incorrectly suggested that half of American households receive some government benefit. Due to differences in household size that isn’t the case.
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I thought I would finish with a funny letter I received yesterday. I don't think I have any Texas A&M fans on my distribution list. If so, I'm sorry in advance.
Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.
- Click for full-size image
Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).
Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.
High unemployment and increased reliance on government programs has also shrunk the nation’s share of taxpayers. Some 46.4% of households will pay no federal income tax this year, according to the nonpartisan Tax Policy Center. That’s up from 39.9% in 2007, the year the recession began.
Most of those households will still be hit by payroll taxes. Just 18.1% of households pay neither payroll nor federal income taxes and they are predominantly the nation’s elderly and poorest families.
The tandem rise in government-benefits recipients and fall in taxpayers has been cause for alarm among some policymakers and presidential hopefuls.
Benefits programs have come under closer scrutiny as policymakers attempt to tame the federal government’s budget deficit. President Barack Obama and members of Congress considered changes to Social Security and Medicare as part of a grand bargain (that ultimately fell apart) to raise the debt ceiling earlier this year. Cuts to such programs could emerge again from the so-called “super committee,” tasked with releasing a plan to rein in the deficit.
Republican presidential hopefuls, meanwhile, have latched onto the fact that nearly half of households pay no federal income tax, saying too many Americans aren’t paying their fair share.
UPDATE: Nearly half of the population lives in a household that has at least one member who receives some kind of government benefit. An earlier headline incorrectly suggested that half of American households receive some government benefit. Due to differences in household size that isn’t the case.
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I thought I would finish with a funny letter I received yesterday. I don't think I have any Texas A&M fans on my distribution list. If so, I'm sorry in advance.
October 2, 2011
Michael L. Slive
Commissioner
Southeastern Conference
2400 Dale Ernhardt Jr. Drive, Trailer 23
Tuscaloosa, AL 56843
Re: Request for Assistance
Commissioner Slive:
This letter is intended to inform you of a misunderstanding we had regarding our recent
application to join the SEC, and to seek your assistance in rectifying the situation. As you are
aware, Texas A&M University takes great pride in its athletic accomplishments and is an
outstanding academic center. Our recent decision to leave the Big 12 Conference was designed
to enhance these attributes.
In considering the conferences in which Texas A&M would have the best fit, particularly as a
football program, it was decided in a meeting amongst our Regents that the Southland
Conference was the best overall fit. We have played a number of teams from that conference
over the last few years, and hoped to build new regional rivalries that would be attractive to our
fan base, while maintaining the competitive edge that Aggies expect from their football program.
(You should have seen how happy the fans were when we roasted Stephen F. Austin last year 42-
7--now that’s football!) Apparently, however, some notes were incorrectly transcribed, and the
next thing you know, we accidentally submitted an application to the Southeastern Conference.
I am sure you can see how such a thing could have happened.
It probably was just as surprising to you that we submitted an application to the SEC as it was to
me. After all, we haven’t beaten a team from the SEC since 1995. Most of our incoming
freshman wouldn’t even be able to remember that game! I mean, seriously, we certainly would
not have knowingly applied to be a member of a conference like that. I probably should have
recognized the mistake sooner, but I’ve been flustered recently by this whole Longhorn Network
situation. In any event, it wasn’t until this weekend when people kept saying that the Arkansas
game would be a conference game next year that made me recognize the error. “What?! I
thought, we wouldn’t want to play Arkansas in a conference game! Every year! That’s crazy!”
That would mean we’d have to play Alabama and LSU, also. That would be inconsistent with
our goal of actually someday winning a conference title, a goal that has proved elusive to us for
the last 14 years as a Big 12 member.
So, I looked into things a little closer, and found the source of our error. I really, really
apologize for the confusion. The President of Sam Houston State and I had a chuckle over the
whole mess this morning. He assured me that the Southland Conference would not let our
mistake hold up our approval for competing in that conference beginning July 1, 2012, but we
will need the SEC’s permission, given that you formally accepted our erroneous application.
Thus, this letter is intended to seek your permission.
Please, please, please, please, please do not make us play Alabama, LSU, Florida, or even
Mississippi next year! You’ve seen us. We’re 0-7 and we haven’t even played SEC teams
ranked in the top 10. Have mercy! You don’t want 13 members anyway . It’s an odd and
unlucky number. So this works out best for all involved.
Again, my deepest apologies for the transcription error that caused this unfortunate
misunderstanding. We need to get our schedules arranged with Stephen F. Austin, Lamar, and
Sam Houston State quickly, so we would really appreciate your approval of this request at the
earliest opportunity. I look forward to hearing from you soon.
Sincerely,
R. Loftin
R. Bowen Loftin
P.S. In the alternative, Texas A&M would be willing to play in the SEC provided all games are
limited to only two quarters. Four quarters is a lot to expect out of student-athletes.
Cc: Commissioner, Southland Conference
Michael L. Slive
Southeastern Conference
2400 Dale Ernhardt Jr. Drive, Trailer 23
Tuscaloosa, AL 56843
Re: Request for Assistance
Commissioner Slive:
This letter is intended to inform you of a misunderstanding we had regarding our recent
application to join the SEC, and to seek your assistance in rectifying the situation. As you are
aware, Texas A&M University takes great pride in its athletic accomplishments and is an
outstanding academic center. Our recent decision to leave the Big 12 Conference was designed
to enhance these attributes.
In considering the conferences in which Texas A&M would have the best fit, particularly as a
football program, it was decided in a meeting amongst our Regents that the Southland
Conference was the best overall fit. We have played a number of teams from that conference
over the last few years, and hoped to build new regional rivalries that would be attractive to our
fan base, while maintaining the competitive edge that Aggies expect from their football program.
(You should have seen how happy the fans were when we roasted Stephen F. Austin last year 42-
7--now that’s football!) Apparently, however, some notes were incorrectly transcribed, and the
next thing you know, we accidentally submitted an application to the Southeastern Conference.
I am sure you can see how such a thing could have happened.
It probably was just as surprising to you that we submitted an application to the SEC as it was to
me. After all, we haven’t beaten a team from the SEC since 1995. Most of our incoming
freshman wouldn’t even be able to remember that game! I mean, seriously, we certainly would
not have knowingly applied to be a member of a conference like that. I probably should have
recognized the mistake sooner, but I’ve been flustered recently by this whole Longhorn Network
situation. In any event, it wasn’t until this weekend when people kept saying that the Arkansas
game would be a conference game next year that made me recognize the error. “What?! I
thought, we wouldn’t want to play Arkansas in a conference game! Every year! That’s crazy!”
That would mean we’d have to play Alabama and LSU, also. That would be inconsistent with
our goal of actually someday winning a conference title, a goal that has proved elusive to us for
the last 14 years as a Big 12 member.
So, I looked into things a little closer, and found the source of our error. I really, really
apologize for the confusion. The President of Sam Houston State and I had a chuckle over the
whole mess this morning. He assured me that the Southland Conference would not let our
mistake hold up our approval for competing in that conference beginning July 1, 2012, but we
will need the SEC’s permission, given that you formally accepted our erroneous application.
Thus, this letter is intended to seek your permission.
Please, please, please, please, please do not make us play Alabama, LSU, Florida, or even
Mississippi next year! You’ve seen us. We’re 0-7 and we haven’t even played SEC teams
ranked in the top 10. Have mercy! You don’t want 13 members anyway . It’s an odd and
unlucky number. So this works out best for all involved.
Again, my deepest apologies for the transcription error that caused this unfortunate
misunderstanding. We need to get our schedules arranged with Stephen F. Austin, Lamar, and
Sam Houston State quickly, so we would really appreciate your approval of this request at the
earliest opportunity. I look forward to hearing from you soon.
Sincerely,
R. Loftin
R. Bowen Loftin
P.S. In the alternative, Texas A&M would be willing to play in the SEC provided all games are
limited to only two quarters. Four quarters is a lot to expect out of student-athletes.
Cc: Commissioner, Southland Conference
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