YID With LID: Hey Taxpayers, Get Ready To Pay For the Union Pension Failure Tsunami

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FOX News: Beck: The Hindenburg Omen

I thought you might be interested in this video: Beck: The Hindenburg Omen.

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Fwd: News Alert: California Gay Marriage on Hold as Case Is Appealed

>
> California Gay Marriage on Hold as Case Is Appealed
>
> A U.S. appeals court panel on Monday ruled that same-sex
> couples could not marry in California while the court
> considers the constitutionality of the state's gay marriage
> ban, according to wire reports.
>
> But the Ninth Circuit Court of Appeals panel set a relatively
> aggressive schedule for hearing the case, ordering lawyers to
> produce a series of briefs between Sept. 17 and Nov. 1.
>
> The Monday decision by the appellate panel reverses a ruling
> last week by U.S. District Court Chief Judge Vaughn Walker,
> who had said marriages could resume while higher courts
> considered the matter.
>
> Read More:
> http://www.nytimes.com?emc=na
>
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(BN) New York Factories Lose Sales, U.S. Builders Confidence, as Recovery Wanes

Bloomberg News, sent from my iPhone.

U.S. Economy: Factory Demand, Builder Confidence Fall

Aug. 16 (Bloomberg) -- Orders and sales at New York manufacturers decreased in August for the first time in more than a year and U.S. homebuilders turned more pessimistic, indicating the economic slowdown is becoming broad-based.

The Federal Reserve Bank of New York's so-called Empire State factory index today showed bookings dropped for the first time since June 2009, while sales fell at the fastest pace since March 2009. The National Association of Home Builders/Wells Fargo confidence index unexpectedly declined to a 17-month low.

Slower consumer spending and less inventory rebuilding may restrain manufacturing after the industry led the economy out of the worst recession in seven decades. Treasury securities climbed on growing concern the global expansion will cool in the second half of the year more than central bankers estimated.

The reports are showing "a truly weak recovery," said Tom Porcelli, a senior economist at RBC Capital Markets Corp. in New York. "There's no sustained driver. Sentiment is pretty weak in both of these rather large segments of the economy."

The yield on the benchmark 10-year Treasury note dropped to 2.57 percent at 4:24 p.m. in New York from 2.67 percent late on Aug. 13. The Standard & Poor's 500 Index was little changed at 1,079.38 at the 4 p.m. close in New York.

Less Than Forecast

The New York Fed's general economic index, which is a separate question not tied to orders or sales, rose to 7.1 this month from 5.1 in July. Economists forecast the measure would rise to 8, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the area covering New York, northern New Jersey and southern Connecticut.

Estimates of the 48 economists surveyed by Bloomberg ranged from zero to 12.3. Manufacturers account for about 6 percent of New York's economy.

The factory orders gauge decreased to minus 2.7 this month from 10.1 in July. A measure of shipments fell to minus 11.5 from 6.3.

The manufacturing executives' outlook index retreated to the lowest level since July 2009. Growing concern about the future may prompt companies to rein in hiring, depressing one of the bright spots in employment.

Factories nationally have added 183,000 workers to payrolls since the start of the year, according to Labor Department data. In July, they boosted payrolls by 36,000, while the factory workweek increased to 41.1 hours from 41 hours a month earlier.

Economies in Disequilibrium

ITT Corp., a maker of night-vision goggles, last month reported revenue for the second quarter that was below the analyst estimates in a Bloomberg survey.

"This global economy is not in a steady state of equilibrium now," ITT Chief Executive Officer Steven Loranger said on a conference call July 30. "We've seen a lot of short cycle volatility throughout our segments and throughout our geographies."

Homebuilders are also more concerned. The National Association of Home Builders/Wells Fargo sentiment index dropped to 13 this month, the lowest level since March 2009, from 14 in July, data from the Washington-based group showed today. Economists forecast a reading of 15, according to the median estimate in a Bloomberg News survey. Readings lower than 50 mean more respondents said conditions were poor.

Demand has slumped since a government homebuyers tax incentive expired in April. With mounting foreclosures adding to inventory and unemployment forecast to end the year at 9.5 percent, a housing recovery will take time to develop.

Many 'Challenges'

"The housing market still has many fundamental challenges that are likely to keep it depressed," said Zach Pandl, an economist at Nomura Securities International Inc. in New York. "The problem continues to be oversupply. There are just far too many homes."

The builders group's indexes of current single-family home sales and expectations for purchases over the next six months decreased.

"Builders are expressing the same concerns that they are hearing from consumers right now, particularly the sense that the overall economy and job market aren't gaining any traction," NAHB Chairman Bob Jones, a homebuilder from Bloomfield Hills, Michigan, said today in a statement.

To be eligible for government's tax incentive program, worth as much as $8,000, buyers had to sign contracts by the end of April and close on homes by June 30. The deadline for closings was extended until the end of September.

Global Asset Demand

Another report showed concern over slowing growth worldwide propelled global demand for long-term U.S. financial assets in June as investors abroad bought Treasuries and agency debt and sold stocks. Net buying of long-term equities, notes and bonds totaled $44.4 billion for the month, compared with net purchases of $35.3 billion in May, the Treasury Department reported.

Fed policy makers last week voted to keep the benchmark interest rate at a record low and said the recovery was likely to be "more modest" than earlier anticipated. The central bank decided to keep its bond holdings steady, taking an additional step to spur growth for the first time in more than a year.

The results of the Fed's quarterly loan-officer survey, also issued today, showed banks eased credit standards and terms on loans in the second quarter, even as demand for business and consumer credit was little changed at the majority of lenders. It was the first survey since late 2006 that showed a loosening of guidelines on loans to small companies.

To contact the reporters on this story: Courtney Schlisserman in Washington cschlisserma@bloomberg.net Timothy R. Homan in Washington at thoman1@bloomberg.net

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Fwd: Morning Bell: Death, Taxes and the Failure of Obamanomics

08/16/2010 Death, Taxes and the Failure of Obamanomics Benjamin Franklin famously said, "In this world nothing can be said to be certain, except death and taxes." With America's stagnant-as-a-swamp economy still stuck at 9.5% unemployment, an unexpected 484,000 new jobless claims, and reports of a slowed recovery, it might be time for old Ben to pull out his quill and add another certainty to his list: the continuing failure of Obamanomics. Judging by the words of one of President Barack Obama's economic advisors, it doesn't look like the Administration is going to change course anytime soon. On ABC's "This Week with Christiane Amanpour," Laura Tyson, a member of the President's Economic Recovery Advisory Board, called for even more of the same tried-and-failed Obamanomics stimulus policies, when asked how to get the economy moving faster: We have to continue to do everything we can to stimulate demand in the economy… Invest in people. Invest in infrastructure. Invest in knowledge," she said. "Invest, invest, invest is really what we must do.

WorldNetDaily

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Fwd: Morning Bell: The Gulf Recovery Obama Does Not Want to See

08/13/2010 The Gulf Recovery Obama Does Not Want to See Next week, for the fifth time since July, the first family will board Air Force One for yet another luxury vacation, this time to an exclusive Martha's Vineyard estate that rents for up to $50,000 a week. But before they head north, the Obamas will first grace Panama City, Fla., with their presence this weekend for what is being billed as a "solidarity vacation to the Gulf Coast." While in Florida, the President is expected to meet with local business leaders to discuss the effects of the spill before departing on a cross-country trip around the United States including stops in Los Angeles and Seattle to raise cash for Democrats and a stop in Wisconsin at a renewable energy factory. Not on the agenda? Any meetings with oil workers in other Gulf states who are now unemployed thanks to President Obama's Gulf oil drilling ban. If the President really wanted to see the economic damage his policies are causing in the Gulf, he could first stop in Pascagoula, Miss., where idle oil rigs in the Signal International shipyard have formed an eerie floating ghost city that locals have dubbed "Rig Row." Instead of being deployed at sea where they could be creating wealth for this country and jobs for Gulf residents, these rigs are wasting away idly in port as a direct result of President Obama's oil drilling moratorium - a moratorium that when first issued on just deep sea rigs, a federal judge ruled was "arbitrary and capricious." Undaunted, the Obama administration doubled down, issuing a broader oil drilling injunction that is killing even more jobs than the first ban.

(BN) Sovereign Debt Risk Surges in Europe as Slowdown May Deepen Deficit Woes

Bloomberg News, sent from my iPhone.

Sovereign Debt Risk Surges as Slowdown May Deepen Deficit Woes

Aug. 12 (Bloomberg) -- A gauge of government bond risk rose to the highest level in five weeks on concern Europe's deficit crisis will worsen as slowing economic growth exacerbates bank bailout costs.

The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments rose for a seventh day, climbing 4 basis points to 140, according to data provider CMA. The gauge is the highest since July 7 and up from a three-month low of 109.5 on Aug. 3.

Swaps on Ireland climbed to a 17-month high on speculation the $32 billion bailout bill for Anglo Irish Bank Corp. will add to the country's fiscal deficit. Greece's economy contracted for a seventh quarter and unemployment claims in the U.S. unexpectedly rose, deepening concern of a so-called double-dip recession.

"A weakening macro picture leading to increasing budget deficits for sovereigns has led to sovereign spreads widening again," BNP Paribas SA strategists in London wrote in a note to investors. "The size of 'Bad Anglo' while not finalized yet will probably add quite a bit to the Irish national debt."

Ireland's borrowing costs rose at an auction of 1 billion euros ($1.28 billion) of six and eight-month bills today. The country sold 500 million euros of securities due Feb. 14, 2011, at an average yield of 2.458 percent, compared with 1.367 percent at a July 22 auction of similar bills.

Bailout Costs

The cost of the Anglo bailout may trigger a surge in Ireland's budget deficit to 25 percent of GDP this year, before dropping to 10 percent in 2011, analysts at Dublin-based Davy Research wrote in a note today. The European Union limit for members of the euro area is 3 percent.

Default swaps on Ireland climbed 15 basis points to 286, the highest since March 2009, CMA prices show. Contracts on Anglo Irish jumped 17.5 to 551.5, Allied Irish Banks Plc increased 17.5 to 441 and Irish Life & Permanent Group Holdings Plc rose 14.5 to 337.

Germany may also have to absorb the holdings of two so- called bad banks, raising the nation's debt to 90 percent of gross domestic product, Die Zeit reported. Contracts on Germany increased 3 basis points to 47, the highest since June 29.

Swaps on Greece jumped 17.5 basis points to 809.5 as the wage-cuts and tax increases that aim to trim the European Union's second-biggest budget deficit deepened a recession. Contracts on Portugal climbed 8.5 basis points to 277, Italy rose 10 to 182 and Spain was 7 higher at 221.

U.S. Treasuries

The cost of hedging against losses on U.S. Treasuries climbed for the eighth day, with default swaps rising 1 basis point to 49.5, the highest level since February. Initial jobless claims rose by 2,000 to 484,000 in the week ended Aug. 7, the highest since mid February, Labor Department figures showed.

The cost of insuring corporate debt against default also rose with the Markit iTraxx Crossover Index of swaps linked to 50 companies with mostly high-yield credit ratings increasing 16 basis points to 520, according to JPMorgan Chase & Co., the highest in three weeks.

The Markit iTraxx Europe Index of 125 companies with investment-grade ratings climbed 4.25 basis points to 116.25, and the Markit iTraxx Financial Index of 25 banks and insurers rose 5.5 to 137.5, JPMorgan prices show.

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. A basis point on a contract protecting 10 million euros of debt from default for five years is equivalent to 1,000 euros a year.

To contact the reporter on this story: Abigail Moses in London at Amoses5@bloomberg.net

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Fwd: Budget Bulletin: Trustees Report: Social Security and Medicare are Unsustainable

Budget Bulletin Your source for federal budget news and analysis Recent Updates It's Official: Medicare's Finances Shadowed by Uncertainty 2010 Social Security Trustees Report Continues to Show the Urgency of Reform U.S. Long-Term Debt Situation Is One of the World's Worst Featured Research Trustees Report: Social Security and Medicare are Unsustainable By Nicola Moore The Social Security and Medicare Trustees today released their annual reports on the fiscal condition of the programs, and the situation for these programs is still dire. Although the programs' fiscal health hasn't worsened since last year, both programs are still on an unsustainable course. Most significantly, the programs are running trillion-dollar shortfalls because they've promised more benefits than they can afford: Social Security has a $7.9 trillion shortfall (up $0.1 trillion from last year), which means the program would require $7.9 trillion in cash—today!—to afford its promises. Alternatively, closing that gap would require payroll taxes to rise immediately and permanently from 12.4 percent of earnings to 14.24 percent. For a worker earning $50,000, that's a $920 tax increase. Medicare has a $30.8 trillion shortfall. To put that into perspective, that is more than twice the size of the entire U.S. economy, which means it would be impossible to infuse enough cash into Medicare to fix the program. However, the assumptions used to arrive at this number give new meaning to the word optimistic. The good news for Social Security is that the basic position of the trust fund is unchanged: The trust fund, which is currently running deficits and will rebound by 2012, will begin to run deficits in 2015, and the whole piggy bank will be exhausted 2037. The bad news for workers, as the Trustees indicated, is that the main reason these dates are unchanged is that workers will be paying more in payroll taxes thanks to Obamacare, which has made a larger share of earnings subject to Social Security taxes. >> Click here to read Nicola Moore's full report Chart of the Week Get more charts with Heritage's Federal Revenue and Spending Book of Charts About The Heritage Foundation Founded in 1973, The Heritage Foundation is a research and educational institute - a think tank - whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense. The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400

Fwd: Morning Bell: The Dodd-Frank Bailout is Already Here

08/12/2010 The Dodd-Frank Bailout is Already Here On July 21, when President Barack Obama signed the Dodd-Frank financial regulation bill, he promised: "There will be no more taxpayer-funded bailouts. Period." How long will this Obama promise last? Well, The New York Times reports today that  "the Obama administration on Wednesday pumped $3 billion into programs intended to stop the unemployed from losing their homes," including a program announced by the Department of Housing and Urban Development that "will draw on $1 billion authorized by the new financial overhaul law." That's right. The Dodd-Frank "no more taxpayer-funded bailouts forever" bill is not even a month old, and already President Obama is using it to turn your tax dollars into yet another bailout. And why is the Obama administration turning to Dodd-Frank bailout funds so soon after passage? Because its original mortgage bailout plan, the Home Affordable Modification Program (HAMP), has been a complete failure. Don't take our word for it. Here are the words of Special Inspector General for the Troubled Asset Relief Program Neil Barofsky: Unfortunately, HAMP continues to struggle to achieve its original stated objective, to help millions of homeowners avoid foreclosure "by reducing monthly payments to sustainable levels." Despite a seemingly ever increasing array of HAMP-related initiatives designed to encourage participation in the program, the number of homeowners being helped through permanent modifications remains anemic, with fewer than 400,000 ongoing permanent modifications…and HAMP has not put an appreciable dent in foreclosure filings. Indeed, the number of trial and permanent modifications that have been canceled substantially exceeds the number of homeowners helped through permanent modifications.