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Author Topic: California nears financial "meltdown" as revenues tumble
glassman
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here's what's going in our state budget battles, we are near meltdown here too:

Associated Press
Miss. gov, AG spar over what to do with no budget
By EMILY WAGSTER PETTUS , 06.25.09, 05:00 PM EDT
pic

JACKSON, Miss. -- As top Mississippi lawmakers continued wrangling Thursday over the unfinished state budget, the Republican governor and Democratic attorney general sharply disagreed about what happens if there's still no spending plan when the fiscal year begins next week.

Gov. Haley Barbour said he can run government by executive order. Attorney General Jim Hood said that's true for some agencies, but not all. Hood said Medicaid patients are at risk of losing critical services, including prescription coverage.

"Somebody's going to die ... if he lets this thing keep going in the direction it's going," Hood said, criticizing Barbour's decision to reject a tentative budget deal earlier this week.

Hood said while some "core functions" such as prisons, public schools and mental health facilities could operate under executive order, other services would have to stop unless a judge issues an order to keep them going.

For example, Hood said that without a court order, state troopers could be forced stay off the roads because the Department of Public Safety is not explicitly mentioned in the state constitution.

"If the governor wants to sit up there and let our Public Safety Department shut down, our Crime Lab, which has murder cases that we're working on, shut down, then that blood's going to be on his hands," Hood told reporters Thursday outside the Capitol.

Barbour has said the Highway Patrol could operate under executive order. He said he doesn't think it's necessary to ask a judge's permission to keep state government alive.

"If the attorney general would like to get a court order, then we can have a belt with suspenders," Barbour said during a news conference.

The governor said he was still not ready to call legislators back to the Capitol for a special session because House and Senate negotiators were working on how to fund Medicaid, the government health insurance program for the needy.

The fiscal year begins next Wednesday.

Barbour wants lawmakers to set a $90 million annual tax on hospitals to help pay for Medicaid. Hospital executives object say that will hurt their finances, and House leaders fear the cost could be passed on to patients.

Hospitals paid a similar tax for about a dozen years until the federal government blocked it in 2005. Barbour said his proposed revision of the tax would be the hospitals' "fair share."

Budget negotiators thought they had reached a deal late Sunday, but Barbour objected because it had only a $60 million hospital tax.


http://www.forbes.com/feeds/ap/2009/06/25/ap6588639.html

there's nothing liberal or Liberal about MS.

this hospital tax will be charged directly to my health insurance plans.

hospital taxes? "conservative"? LOL...

even our casinos were not the magic bullet they were supposed to be.

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Machiavelli
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quote:
Originally posted by glassman:
seriously. the garbage collector is considered a low-life and payed as such, but they are just as if not more important than your doctor to your health and quality of life.

They get paid very well in NY... I guess it depends on what part of the country... in the more populous states they get paid more i assume...

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rounder1
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This is not a challenge.....but I am wondering what you compare that with.....

Do they make more or less than a Taxi driver.....how bout a fireman?

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Peaser
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Just imagine if those that owe taxes to California did the same thing that the state is doing to those it owes refunds to.

I'm sorry California, but here is a pink slip I.O.U. - I will pay you when you pay those owed refunds. Now we know that doesn't make sense as the one's that are paid in full to the state aren't the delinquent ones.

I wonder if anyone that got those pink slip I.O.U. notices from the state will ever see a return on their overpayment of taxes. A precedent may be set if the state files for bankruptcy. Imagine that ugly scenario...

Many folks will be paying less in taxes this coming year. It's better to owe than to pay more than you owe. It's sad that the state is doing what so many in our country have done over the years.

California should be referred to a debt counseling service? geez...

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glassman
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wow, Peaz, it never occurred to me that a state could file for BK. that's an ugly thought.

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Don't envy the happiness of those who live in a fool's paradise.

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Peaser
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Or maybe that monster earthquake will hit and take California off the map and into the sea.

Either way, it'd be messy...

--------------------
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Peaser
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quote:
Originally posted by glassman:
here's what's going in our state budget battles, we are near meltdown here too:

Associated Press
Miss. gov, AG spar over what to do with no budget
By EMILY WAGSTER PETTUS , 06.25.09, 05:00 PM EDT
pic

JACKSON, Miss. -- As top Mississippi lawmakers continued wrangling Thursday over the unfinished state budget, the Republican governor and Democratic attorney general sharply disagreed about what happens if there's still no spending plan when the fiscal year begins next week.

Gov. Haley Barbour said he can run government by executive order. Attorney General Jim Hood said that's true for some agencies, but not all. Hood said Medicaid patients are at risk of losing critical services, including prescription coverage.

"Somebody's going to die ... if he lets this thing keep going in the direction it's going," Hood said, criticizing Barbour's decision to reject a tentative budget deal earlier this week.

Hood said while some "core functions" such as prisons, public schools and mental health facilities could operate under executive order, other services would have to stop unless a judge issues an order to keep them going.

For example, Hood said that without a court order, state troopers could be forced stay off the roads because the Department of Public Safety is not explicitly mentioned in the state constitution.

"If the governor wants to sit up there and let our Public Safety Department shut down, our Crime Lab, which has murder cases that we're working on, shut down, then that blood's going to be on his hands," Hood told reporters Thursday outside the Capitol.

Barbour has said the Highway Patrol could operate under executive order. He said he doesn't think it's necessary to ask a judge's permission to keep state government alive.

"If the attorney general would like to get a court order, then we can have a belt with suspenders," Barbour said during a news conference.

The governor said he was still not ready to call legislators back to the Capitol for a special session because House and Senate negotiators were working on how to fund Medicaid, the government health insurance program for the needy.

The fiscal year begins next Wednesday.

Barbour wants lawmakers to set a $90 million annual tax on hospitals to help pay for Medicaid. Hospital executives object say that will hurt their finances, and House leaders fear the cost could be passed on to patients.

Hospitals paid a similar tax for about a dozen years until the federal government blocked it in 2005. Barbour said his proposed revision of the tax would be the hospitals' "fair share."

Budget negotiators thought they had reached a deal late Sunday, but Barbour objected because it had only a $60 million hospital tax.


http://www.forbes.com/feeds/ap/2009/06/25/ap6588639.html

there's nothing liberal or Liberal about MS.

this hospital tax will be charged directly to my health insurance plans.

hospital taxes? "conservative"? LOL...

even our casinos were not the magic bullet they were supposed to be.

Glass, Any idea how many of the casino's along the coast were affected by the Hurricanes and have they recovered?

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glassman
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they were heavily damaged, and they were given the right to move thier new facilities to somewhat safer locations (not particualrly safe tho) and they were the first to recover. they have been up and running for a couple of years while much of the rest of our stuff has yet to be fixed.

i love to saltwater fish, i have to go all the way over to Louisianna to do much of it now because MS has not rebuilt enough along the coast.

i just went fishing all the way down to Grand Isle LA to check it out down there and found them to be mostly recovered.

Grand Isle is really nice as long as you don't want luxury accomodations. It reminds of the NC outerbanks when i first started going there, before Tom Cruise bought in and every lawyer and doctor in the State of NC followed him... [Smile]

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Don't envy the happiness of those who live in a fool's paradise.

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Peaser
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We're going to the southern tip of Delaware the 2nd week of August for a week. Picked up a beach house down there with the family.

Now I just need to find a good fishin' crew to take us all out to the gulf stream when we're down there. I haven't been there since I was about three, camping on the beach with my family through a tropical storm.

When we go down to Myrtle Beach, we've always used Capt. Dick's in Murrell's Inlet. They were great. I caught a nice dolphin fish last time. My dad caught a nice grouper as well. We also took a bunch of reef fish. My sister, and brother-in-law did a little chummin' for us last time, heh heh. We had a feast for a few days. mmmmmmm...

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Buy Low. Sell High.

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Machiavelli
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quote:
Originally posted by glassman:
they were heavily damaged, and they were given the right to move thier new facilities to somewhat safer locations (not particualrly safe tho) and they were the first to recover. they have been up and running for a couple of years while much of the rest of our stuff has yet to be fixed.


Isn't there some MS law stating casinos can't be on land?

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glassman
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quote:
Originally posted by Machiavelli:
quote:
Originally posted by glassman:
they were heavily damaged, and they were given the right to move thier new facilities to somewhat safer locations (not particualrly safe tho) and they were the first to recover. they have been up and running for a couple of years while much of the rest of our stuff has yet to be fixed.


Isn't there some MS law stating casinos can't be on land?
they changed it after the casinos "threatened" to not rebuild (like they were gonna do that ) [BadOne]

i think they gave 'em 800 feet from the water, so it's not that big of a change.....

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Machiavelli
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quote:
Originally posted by glassman:


i think they gave 'em 800 feet from the water, so it's not that big of a change.....

800 feet or not it's a stupid law because it puts the casino's in harms way of hurricanes and such.

One thing i found interesting about MS in recent years because I'm a true crime buff is the case about the Dixie Mafia killing that judge and his politician wife.... really a interesting story if you like true crime...

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Let the world change you... And you can change the world.

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Ace of Spades
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Schwarzenegger declares Calif. fiscal emergency

http://news.yahoo.com/s/ap/20090701/ap_on_re_us/us_california_budget

SACRAMENTO – Gov. Arnold Schwarzenegger has declared a fiscal emergency to address California's deficit and has ordered state offices closed three days a month to save cash.

The Legislature will have 45 days to send him a plan to balance the state's budget, which ended the fiscal year with a $24.3 billion deficit. The shortfall is expected to grow by $7 billion because the Legislature did not enact several stopgap measures Tuesday.

If lawmakers fail to act within the 45 days, they cannot adjourn or act on other bills until they solve the crisis.

The government shutdown will lead to a third furlough day each month for 235,000 state employees, bringing their total pay cut to about 14 percent.

California began its new budget year Wednesday without a balanced spending plan, which will force the controller to issue IOUs.

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wallymac
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http://news.yahoo.com/s/ap/20090702/ap_on_re_us/us_state_budgets

SACRAMENTO, Calif. – The finances of several states around the nation are sinking deeper into chaos as lawmakers struggle to work out budget differences amid a recession that has wiped out tax revenue and set the stage for dramatic cuts in service and pay for government workers.

The start of the new fiscal year arrived Wednesday with states from California to Connecticut still without spending plans in place.

Gov. Arnold Schwarzenegger declared a fiscal emergency and ordered state offices closed three days a month to save money as state officials plan to pay bills with IOUs starting Thursday.

Deep budget cuts have already forced California school districts to cancel summer school programs, moves that have affected — among others — elementary and middle school students in Los Angeles, which has the country's second largest district.

School officials in North Carolina, Oregon, Florida and other states have also cut or limited summer classes.

Cutbacks to other programs — and possibly government-wide shutdowns — loomed with cash quickly running out.

But the pain extends far beyond the West Coast. The governor of Pennsylvania is proposing a 16 percent tax increase. A budget veto by the Illinois governor left the state with no spending plan at all. Indiana barely avoided a shutdown.

In most states, the debate centers on whether states should be raising taxes to bridge the budget gaps. Schwarzenegger said he wouldn't sign anything that raised taxes or fees beyond what he has already proposed.

"I'm proud of California, even though we have our crisis," the governor said. "No one can point fingers, because as you can see, there are 30 states right now that have their fiscal year starting today that also don't have a budget, so I mean let's not get carried away and just look at California as we are the only state that cannot manage the budget."

The recession has taken a devastating toll on tax revenues and state finances. States had a cumulative $121 billion budget gap in crafting this year's budgets — and the gap would be even bigger without federal stimulus money, said Todd Haggerty, a research analyst at the National Conference of State Legislatures.

"You can't look to any one region that's performing better than the others," Haggerty said. "You can see Arizona and California in the west, Ohio and Illinois in the middle and Pennsylvania and North Carolina in the east."

The NCSL says seven states — Arizona, Connecticut, Kentucky, Mississippi, North Carolina, Ohio and Pennsylvania — have experienced delays or had to extend their sessions to deliberate on the budget.

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CashCowMoo
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467K jobs cut in June; jobless rate at 9.5 percent


This is EXACTLY what the Obama admin said the "stimulus" was supposed to prevent..worst case scenario was 9% and now its going higher. They need to stop painting pictures of imminent success upon passage of trillion dollar spending bills and slowing the unemployment rate significantly if it is passed.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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jordanreed
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just wait,little one....see if you can hold it in a little longer. Dont poo yourself just yet...

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jordan

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wallymac
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quote:
Originally posted by CashCowMoo:
467K jobs cut in June; jobless rate at 9.5 percent


This is EXACTLY what the Obama admin said the "stimulus" was supposed to prevent..worst case scenario was 9% and now its going higher. They need to stop painting pictures of imminent success upon passage of trillion dollar spending bills and slowing the unemployment rate significantly if it is passed.

Have you even stopped to think what the numbers would look like if there wasn't a Stimulus package?
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Highwaychild
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We're just now getting some road jobs here in my State, finally, that we wouldn't be getting if it weren't for the stimulus package.
So this leads me to believe the ball should just now be getting rolling in all the other States as well, or pretty soon anyway.

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Ace of Spades
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quote:
Originally posted by CashCowMoo:
467K jobs cut in June; jobless rate at 9.5 percent


This is EXACTLY what the Obama admin said the "stimulus" was supposed to prevent..worst case scenario was 9% and now its going higher. They need to stop painting pictures of imminent success upon passage of trillion dollar spending bills and slowing the unemployment rate significantly if it is passed.

Bro forget about Obama for a minute.....where would we be right now if Mcaine and Palin were calling the shots??? This B#tch said she can see Russia from her house [Big Grin] ......Then some might argue that its palin that's stupid, not Mcaine....

Okay...but Mcaine chose her for running mate.

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IWISHIHAD
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Quote CashCooMoo:

"467K jobs cut in June; jobless rate at 9.5 percent"

_________________________________________________

I wonder what the true unemployment rate is in the US now.

Most of the facts they use to come up what the numbers come from those eligible for unemployment.

The number has to be upwards of 20-25% now.

They have extended the period you can collect, which inturn gives us a little better idea of what unemployment is, under the old package these numbers would be less.

Do all the other states have an equal amount of time to collect unemployment compared to CA.?

I think some of the stimulas package has been used to lenghten the period people can collect unemployment.

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wallymac
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"I wonder what the true unemployment rate is in the US now."

How true. Once people use up their unemployment benefit they are dropped from the rolls of unemployed whether they get a job or not.

I know from talking to people in many different industries here in California that jobs are not easy to find.

Construction has taken a huge hit. Auto industry has taken a huge hit. Many Auto dealers have closed and all those jobs are lost.

I see local grocery stores closing all the time and none coming in to fill the void.

In the past I'd see help wanted signs all over. Now I don't see any, not even at the fast food restaurants.

The numbers also don't take into account the people that have taken part time work or jobs paying much less then the job that was left.

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CashCowMoo
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quote:
Originally posted by wallymac:
quote:
Originally posted by CashCowMoo:
467K jobs cut in June; jobless rate at 9.5 percent


This is EXACTLY what the Obama admin said the "stimulus" was supposed to prevent..worst case scenario was 9% and now its going higher. They need to stop painting pictures of imminent success upon passage of trillion dollar spending bills and slowing the unemployment rate significantly if it is passed.

Have you even stopped to think what the numbers would look like if there wasn't a Stimulus package?
How do you know what those numbers would be? The Obama administration said if we DIDNT pass the stimulus that it wouldnt be as bad as it is now. Its going to get worse.

SOMEONE please explain to me how hiring a construction crew for a few months to build bridges and roads and then the job is done is going to maintain long term employment and job security? Its not.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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Highwaychild
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I've been on road jobs that's taken over 2 years to complete, several jobs ongoing at the same time...
we have over 350 people working just at our company alone... not to mention our competition, that's a lot of mouths getting fed.

You got something against people working Cow?

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IWISHIHAD
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Quote CashCooMoo:

"How do you know what those numbers would be? The Obama administration said if we DIDNT pass the stimulus that it wouldnt be as bad as it is now. Its going to get worse."

_________________________________________________

One thing is for sure that if there was no stimulas package, there would be a lot less money out there to try and keep things alive and keep money flowing in the middle and lower class families.

If and when there is a turn around, it is worth some sort of try now, since the alternative sucks, but there is no guarantee.

To me it's a crapshot where you spend the money and how much needs to be spent, to get the best results in the longer run.

Like they say everyone has their opinion, time will tell if this administration made the right choice.

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CashCowMoo
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quote:
Originally posted by IWISHIHAD:
Quote CashCooMoo:

"How do you know what those numbers would be? The Obama administration said if we DIDNT pass the stimulus that it wouldnt be as bad as it is now. Its going to get worse."

_________________________________________________

One thing is for sure that if there was no stimulas package, there would be a lot less money out there to try and keep things alive and keep money flowing in the middle and lower class families.

If and when there is a turn around, it is worth some sort of try now, since the alternative sucks, but there is no guarantee.

To me it's a crapshot where you spend the money and how much needs to be spent, to get the best results in the longer run.

Like they say everyone has their opinion, time will tell if this administration made the right choice.

Allowing China to be the hand that feeds us even more is dangerous. That hand has, is, and will be fattening us on their money. We didnt have that money in the first place to spend. Printing presses anyone?
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IWISHIHAD
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"Allowing China to be the hand that feeds us even more is dangerous. That hand has, is, and will be fattening us on their money. We didnt have that money in the first place to spend. Printing presses anyone?"

_________________________________________________

It isn't going to matter much to the majority if we end up with a depression, we have a lot more people now than in the 30's.

Most world powers, if not all know, if we go down they are coming with us.

We could not let so many of our major industries fail at the same time and had any chance, to much of a domino effect.

If our economy goes under China knows there in deep trouble, North Korea will be the least of our problems then.

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Machiavelli
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quote:
Originally posted by CashCowMoo:

SOMEONE please explain to me how hiring a construction crew for a few months to build bridges and roads and then the job is done is going to maintain long term employment and job security? Its not.

Umm as Hwy pointed out alot of these projects take alot longer then just a "few months" and the money these people working those jobs make will eventually go back into the economy therefor affecting other industries who prosper from this and creating jobs in those industries and on and on like a domino effect.

You really do not think much about such things do you?

Stop Mooing....

--------------------
Let the world change you... And you can change the world.

Ernesto "Che" Guevara de la Serna

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Peaser
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http://news.yahoo.com/s/time/08599190750400

http://www.time.com/time/nation/article/0,8599,1904936,00.html

Let depression II begin...

--------------------
Buy Low. Sell High.

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The Bigfoot
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LOL

Ridiculous.

California has been one of the wealthiest states in the nation and within a decade will once again be one of the wealthiest states in the nation unless millionaires suddenly lose their desire for beachfront property.

Cali will be fine...they just need to stop living the dream for a couple years and deal with the reality under the glitz.

Cow...the stimulus was never intended to be long term employment. It is being used to create nation building infrastructure using trade labor at a time when the labor market is dry as a bone. In a year or two when the projects are more or less completed and the money has been spent the labor market should have had time to bottom out and be recovering. Just think of it like supply and demand economics.

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CashCowMoo
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Supply and demand? Well our supply AND demand come from Chinese goods. Look at our supply, its all from China. Now drywall, industrial pipe and tubing, baby food, happy meal toys, clothing, shoes, electronics, paints, formulas, christmas lights, hoses, etc


Our demand...is from where? Oh thats right China because all of our domestic companies are done with.

Oh we get a few roads paved and some bridges built, yeah....thats going to revive the economy.

"GREEN" tech? GE? Oh thats right, jobs going to China to manufacture green heavy equipment such as wind blades. Dont forget, we get into a business of cap and tax we are going to see it all going to China even more or Mexico.


THAT IS NOT STIMULUS!


Guess what else? Few rumors going around in that the refineries that make the gasoline for your car that you drive are looking now to IMPORT refined oil/gasoline because of cap and trade. If cap and trade goes through the senate then we are going to see Chinese gasoline because there are basically no pollution controls over there.

It isnt AMERICA that needs green reform it is China and Mexico!!!!!

What about the white collar jobs? The tech jobs?

Sheesh....tax tax tax. Someone has to pay for this stuff. Guess what? The only change Obama has is his poll numbers from when he got elected...they are going down. LMAO

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The Bigfoot
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LOL China's got nothing to do with it other than the fact that they have tons of raw materials because we ship them our garbage instead of reducing it ourselves like a responsible society.

That China doesn't seem to care to do it well...that is concerning isn't it? Perhaps if they had some stronger environmental laws...oh wait, you don't like those either do you?

Supply and demand people style my friend. The labor market is scarce right now. Prices are down and available labor is up. the gov is using that to get projects that enhance the city, state, nation at a discount while bringing some moderation into the labor markets until they themselves find equilibrium. The nation keeps turning, bread stays on the table, and while millions still lose their homes they don't lose their lives to squallor, disease, and starvation.

quote:
Sheesh....tax tax tax. Someone has to pay for this stuff.
Comes with living in the greatest and most abundant nation in the world. Wanna pay less tax? Move to China or Mexico.

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Machiavelli
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quote:
Originally posted by The Bigfoot:
Perhaps if they had some stronger environmental laws...oh wait, you don't like those either do you?

hehe so true.. the laws he dislikes here he wants for other countries.. kind of ironic isn't it?

quote:
Comes with living in the greatest and most abundant nation in the world. Wanna pay less tax? Move to China or Mexico.
Again it's an irony he isn't aware of or appreciates lol

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