Holiday Shopping Season

While appealing to emotional desires for more stuff we do not need, corporate bottom lines do not want you to realize how close to the fiscal cliff we really are.

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Friday, November 30, 2012

President Obama and Congress discuss tax measure that would kill housing recovery

With the lack of fortutude by both Congress and the President to address their fiscal households over the past four years, the standard paradigm of wait until the last minute and legislate some draconian budget that will accomplish little, and hurt the majority of Americans, is staring them in the face.  With the proverbial 'fiscal cliff' just one month away from dropoff, the low IQ men and women who represent 310 Americans are putting tax cut issues on the table that would devastate not only the housing recovery, but nearly every homeowner in the country.

On Nov. 29, Congress and the White House began looking at the removal of the mortgage interest deduction for taxpayers who own a home, and believe it could be a low impact measure to save revenues towards cutting the deficit.



Of all the deductions woven into the sprawling U.S. tax code, few have been more fiercely guarded than the enormous tax break that lets homeowners deduct the interest they pay on their mortgages.

But as Congress and the White House negotiate the first major rewrite of tax laws in decades, changing the generations-old mortgage-interest deduction — which costs the government roughly $100 billion a year — has gone from far-off possibility to part of the conversation. - Washington Post

Congress passed the home mortgage interest deduction as a means to help Americans buy affordable housing, and create jobs and economic growth through construction and all the industries tied to home buying.  By removing this long standing deduction, not only would it add an average of $5000 to the tax burden of most homeowners, but it would take away a key selling point for realtors in offering home buying vs renting as an option.


Modern education and economics: Students sell sex for tution money

On Nov. 29, the UK Independent published a rather interesting look at how the economic recession, and the draconian cost of eduction, are leading students to sell their bodies for tuition money.  Sex for education appears to not only be a continuation of the world's oldest profession, but a sad commentary for the civilized world where the lack of opportunites, jobs, and affordable schooling is forcing kids, especially young women, to use the one true commodity they have that is always in high demand.


Students are being offered up to £15,000 a year to cover their university studies in exchange for having sex with a stranger, an undercover investigation by The Independent has revealed.

The website SponsorAScholar.co.uk claims to have arranged for 1,400 women aged between 17 and 24 to be funded through their studies by wealthy businessmen seeking “discreet adventures”. - UK Independent

Click HERE to watch the video

In a purely capitalistic system, morality and emotion have no real place in how one trades commodities and resources to achieve a 'profit' they desire for their own personal use.  And like the courts agreeing a woman has the right to do as she sees fit with her own body, society should not look down upon the young men or women who choose this avenue to better their lives by selling sex for skyrocketing tuition, but rather, focus more on the economic landscape that leaves them with little choice on how to pay for higher learning.

After all, it is the schools themselves who carry the curriculum of sex eduction.

Monday, November 26, 2012

Goldman Sachs has now completely taken over the Western world

It is official.  Goldman Sachs has now taken over dominion of the Western world.  On Nov. 27, Mark Carney, former head of the Bank of Canada, has officially taken over leadership of the Bank of England.  This now puts former Goldman Sachs employees in charge of most of the central banks in the Western economy, and in some cases, as heads of state for two European nations.


London is losing so much trust as the global financial center that Prime Minister David Cameron may need to consider an unprecedented choice for Bank of England governor: Mark Carney, the Canadian who polices the world’s financial system and has no ties to the bailouts or rigged markets tainting Labour and Conservative governments alike.

The 47-year-old Carney, who received his masters and PhD degrees from Oxford University, is no stranger to the City of London after working there with Goldman Sachs Group Inc. Now serving as governor of the Bank of Canada and the head of the Financial Stability Board, he is unscathed by the fallout from the 2008 financial crisis.

“Mark Carney is one of the brightest, most capable people I’ve ever met in global finance and central banking,” said Tim Adams, a former U.S. Treasury undersecretary who worked with Carney at Group of Seven meetings. “I’ve been around these circles a long time and he’s smart, politically savvy, a good manager and has an outstanding track record. It’s tough to find all those elements in a single person.” - Bloomberg via Zerohedge
With this appointment, Goldman Sachs former employees now control the US Treasury, the EBC, and the Bank of England.  Three of the four cornerstones of the Western economy and monetary system, and as seen in Greece and Italy, fully capable of appointing technocrats at any time to rule sovereign nations.

Friday, November 23, 2012

Darwin had Black Friday in mind when he created the theory of survival of the fittest

Black Friday is the annual day after Thanksgiving which rings in the holiday shopping season, and brings forth the mindless multitudes buying things they don't need.  This year, Black Friday sales resembled cattle feed lots, and Black Friday consumers resembled groups of zombies, identifying flat screens with grey matter.

To illustrate the point, the Daily Economist has two disturbing and entertaining items that are occurring this Friday, and provide a unique glimpse into the survival of the fittest mode that Darwin believes are species have.


Black Friday got off to a rowdy start at a San Antonio mall where police say one shopper pulled a gun on another who punched him in the face while they were waiting in line at a Sears store.

Police Sgt. Rob Carey tells the San Antonio Express-News a man rushed into the store when it opened Thursday night to get to the front of a line, started arguing with people and tried cutting in front of them.

One man who got punched pulled a gun and that scattered shoppers, including the impatient line-cutter who took cover behind a refrigerator. Then he fled.

Carey says the man with the gun had a permit to carry the weapon and isn't being charged with a crime. - NBC DFW

And from the offensive side of the ravaging animals, comes the wonderous, rarely seen footage of the human species in desperate need of a sale.




Where are Guns and Roses when we need them, playing in the store background as it drowns out Jingle Bells.

Wednesday, November 21, 2012

Welcome to the USA, now here is how to apply for welfare

The Department of Homeland Security is not just about protecting our borders, fighting terorrism inside the U.S., and sexually groping simple people who wish to fly from place to place.  No, the ever expanding Federal agency is now instituting a new program to teach illegal and lawfully applying aliens how to apply for welfare, and to get credentials to hide the existance inside America.


Welcome to USA.gov,” a website maintained by the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS), bills itself as the “primary gateway for new immigrants to find basic information on how to settle in the United States” — featuring a prominent section for new immigrants about how to access government benefits.

“Depending on your immigration status, length of time in the United States, and income, you may be eligible for some federal benefit programs,” the Web page reads.

“Government assistance programs can be critically important to the well-being of some immigrants and their families. - Daily Caller

During the 1920, President Calvin Coolidge said, "The buisness of America is business."  Today, in 2012, President Obama is telling the world, the business of America is welfare and socialism.

Sunday, November 18, 2012

Paycheck calculator to show how the fiscal cliff will affect you

With the Bush tax cuts ending on Dec 31, and a whole new array of taxes are ready to be imposed on the American people beginning on Jan 1, it is difficult to sift through the myriad of articles which try to explain how the fiscal cliff will affect you, if it remains without change by Congress and the White House.

However, there is a now a website that provides a new paycheck calculator that shows American just how much they pay now, and will expect to pay next year if all new taxes go into affect.  The fine programmers at Paycheck City have created a neat application and graph that will allow visitors to see the difference between their 2012 taxes, and those projected for 2013.

Simply click on this link, and select the normal amount of standard deductions your family or individual returns allow.

Fiscal Cliff Calculator and Chart


While Paycheck City does not guarantee the results from this generic calculator, it does allow someone to get a rough, general, ballpark estimate of how much more they will have to pay, starting in 2013 due to the increased taxes.

Thursday, November 15, 2012

Ten: The number of affordable states you could live in on Social Security

As the estimated 10,000 per day Baby Boomers begin retiring, and start accessing their Social Security accounts, the hard economic questions they must face come at them quickly.  The primary one of course, is can I afford to live off my benefits, and even more so, where can I afford to live.

A new infograph from Nov. 15 shows that Florida, Arizona, and all the warm weather climate states that have been the dream of many over the past few decades, are now priced out of their budgets due to inflation, taxation, and other monetary barriers.  In fact, on an average benefit income of $1130 per month, the number of states that fit this budgetary criteria is now limited to just 10.

And most are in the Midwest.



Montana, North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Arkansas, Iowa, Kentucky, and West Virginia round out the only true affordable places to live for retirees on a Social Security budget.

But of course, one can always look on the bright side.  These are the primary places that grow food in America, and if the feces hits the fan, at least you will be around other like minded individuals who have a more prudent standard of living, and have been doing so for decades.

New job loss report: To those who believed the White House, here's your sign

For the limited few out there who actually believed the September BLS report that showed the unemployment rate falling from 8.1% to 7.8%, all we at the Daily Economist have to say is, Here's your sign.

Primarily, the drop in unemployment just weeks before the election was so obvious, and so blatent, and so large, that every analyst with a modicum of respect knew that after Nov. 6, the revisions of those numbers would either pop the rate back over 8%, or quite discouragingly, move the numbers even higher than what it was.


Picture courtesy of Fox and Friends

The latest initial claims data posted a multi-year high 104,548 surge in weekly NSA claims from 361,800 to 466,348, and even the Seasonally adjusted number soaring from 361K to 439K on expectations of a 375K print. In other words, a complete disaster for any economic data bulls. What is truly amusing is that the same Wall Street "experts" who set expectations were unable to foresee the Sandy effect that every "macrotourist" on Twitter apparently is so very aware of. Also, it is apparently also "Sandy's fault" (now that the Bush excuse is back in retirement) that the prior week's claims were revised from 355K to 361K. Basically, just as we said 3 weeks ago, ignore every negative data point: - Zerohedge


Interestingly, these numbers come just before the onset of Black Friday, and the seasonal increase of temporary jobs leading into, and through Christmas.  What indications then should we expect from here, as to the retail sales for the 2012 holiday by businesses?

Not much.

Tuesday, November 13, 2012

If your college Degree can't land you a job, demand a refund

Refunds are a common practice for businesses who want to ensure customers return again and again to their places of business, but what is the recourse for an college student who receives a lifetime of propaganda that their college Degree ensures a lucrative career, and it doesn't actually pan out?

Demand a refund of course!

And this is just what one student has done on Nov. 12, by submitting a petititon to the Obama administration to offer college graduates, who owe massive student loan debts, the right to turn in their diplomas in exchange for a refund of their money.


We petition the obama administration to:

Provide University graduates ability to trade their diplomas back for 100% tuition refunds.

Because of the inability of recent college graduates to find gainful employment in order to repay their college debt, and since this college debt cannot be eliminated in bankruptcy, and most of the recent additions to the job market have been in service related industries, the Obama administration should take up the cause of reducing college debt and hold those accountable responsible.

In the name of Consumer Protection, recent college graduates should have the ability to return the diploma and not make any reference to receiving education from the college in exchange for a 100% refund of college tuition. This may be extended with a graduated (ha, get it?) reduction for the last four years, with a red line at January 20, 2008.

While a novel idea, and unique way to hop on the Obama welfare wagon like 53% of Americans have already done, it would probably be more prudent to simply sue the college professors and university where you got your Degree, for failing to teach you basic logic and economics in believing that borrowing $120,000 would guarantee you a chance at one of Obama's famous shovel ready burger flipper jobs.

I'll have some fries with that Mr. Liberal Arts Degree man.

Sunday, November 11, 2012

Reality strikes for food stamp numbers as data download continues after election

Most people with any financial sense knew the BLS data regarding the unemployment rate falling .03 in September was a lie, and sure enough, the data download of real economic indicators after the election bears this out.  Not only did Goldman Sachs immediately on Nov. 7 issue a warning that GDP for the 4th quarter would decline from 1.9 to 1.5%, but on Nov. 10, the Bureau of Labor Statistics (BLS) reported that food stamp applications for October were the highest in over a yea.


There was, however, another closely tracked number which perhaps is far more indicative of the economic "growth" in the past 4 years, which certainly had a delayed release. The number of course is that showing how many Americans are on foodstamps, and usually is released at the end of the month, or the first day or two of the next month. This time the USDA delayed its release nine days past the semi-official deadline, far past the election, and until Friday night to report August foodstamp data. One glance at the number reveals why: at 47.1 million, this was not only a new all time record, but the monthly increase of 420,947 from July was the biggest monthly increase in one year. - Zeroehedge

When you win an election through data manipulation, reporting bad numbers after the fact is in itself a strategy.  President Obama can use these numbers to force a new economic plan on the American people, while ensuring one third of the entire work force is bound to government reliance, and accordingly, political reliance.

Thursday, November 8, 2012

Marc Faber: Obama re-election will be a disaster for US; buy a machine gun

Economist Marc Faber of the famed Gloom, Boom, and Doom report, spoke with Bloomberg television on Nov. 7 regarding the just completed presidential elections. In the interview, Faber had some very stark assessments of what he believes is in store for the economy, and for America.  The well known economist stated that not only will the re-election of Barack Obama be bad for business, and a disaster for the U.S., but people should get a machine gun to protect what remaining assets they have.


“I am surprised with the reelection of Mr. Obama. The S&P is only down like 30 points. I would have thought that the market on his reelection should be down at least 50%...I think Mr. Obama is a disaster for business and a disaster for the United States. Not that Mr. Romney would be much better, but the Republicans understand the problem of excessive debt better than Mr. Obama who basically doesn't care about piling up debt. You also have in the background Mr. Bernanke, who with artificially low interest rates enables the debt to essentially escalate endlessly.”

“They should buy themselves a machine gun…I need to buy a tank. Joking aside, look, we have manipulated markets. Whenever you manipulate markets, you will get unintended consequences. i think the reelection is unintended consequence of money printing, that favors the so- called 0.25%. It was easy for the Democrats to attack the wealthy fat cats of Wall Street, the elite, and the privileged people to portray them as a profiteer of the system, which to some extent, they are. Not because they wanted to but because Mr. Bernanke enabled them to be profiteers. We have a situation where you have today Mr. Obama, I doubt he will stay at the presidency for another four years. I think there will be so many scandals, but that’s another story.” - Marc Faber interview on Bloomberg, Nov. 7

Maybe this more than anything is why both Smith and Wesson, and Sturm Ruger stock was way up on Wesnesday, even though the markets fell more than 300 points.

Wednesday, November 7, 2012

How now down dow

Forward.  That is the new motto of the Obama administration.  Of course, forward slogans were the key rallying cry for Mao and other communist leaders, so the progressives in America appear more than happy to borrow it for their vision of the country.

However, it appears forward is not the rallying cry of the stock markets post-Obama re-election, as the Dow, S&P, and AAPL cry out in terror after breaking key levels.


DOW


S&P 500


2 Month Apple Chart

It seems like only last night everyone was celebrating more hope, if not much change. Now comes the hangover. The Dow Jones intraday drop is now 2.23% (and rising), greater than the biggest drop so far in 2012 record on June 1. The last time the market plunged as much: literally one year ago, or November 9, 2011. Sadly, it appears that one can't have their Dow Jones Industrial Average and redistribute it too. - Zerohedge

Forward!  To infinity and Beyond! That appears to be the no-win mantra of Fed Charman Bernanke and the hope and change of those who still own paper in the Wall Street casino.

Tuesday, November 6, 2012

Jesus and the Democrat (Humor)

A Republican, in a wheelchair, entered a restaurant one afternoon and asked the waitress for a cup of coffee. The Republican looked across the restaurant and asked, "Is that Jesus sitting over there?"  The waitress nodded "yes," so the Republican requested that she give Jesus a cup of coffee, on him.

The next patron to come in was a Libertarian, with a hunched back. He shuffled over to a booth, painfully sat down, and asked the waitress for a cup of hot tea. He also glanced across the restaurant and asked, "Is that Jesus, over there?"

The waitress nodded, so the Libertarian asked her to give Jesus a cup of hot tea, "My treat."


The third patron to come into the restaurant was a Democrat on crutches. He hobbled over to a booth, sat down, and hollered, "Hey there honey! How's about getting me a cold mug of Miller Light?" He too looked across the restaurant and asked, "Isn't that God's boy over there?"

The waitress nodded, so the Democrat directed her to give Jesus a cold beer. "On my bill," he said loudly.

As Jesus got up to leave, he passed by the Republican, touched him, and said, "For your kindness, you are healed." The Republican felt the strength come back into his legs, got up, and danced a jig out the door.

Jesus passed by the Libertarian, touched him, and said, "For your kindness, you are healed." The Libertarian felt his back straightening up, and he raised his hands, praised the Lord, and did a series of back flips out the door.

Then, Jesus walked towards the Democrat, just smiling.

The Democrat jumped up and yelled, "Don't touch me ... I'm on disability."

Monday, November 5, 2012

Tens of thousands of New Yorkers homeless as winter storms approach

Just as Napolean and Hitler learned the hard way that you do not attack Russia in late summer or fall, so too is New York, New Jersey, and many other East Coast states in the wake of hurricane Sandy learning that dealing with reconstruction on the precipice of winter is a harrowing experience.  This is what Governor Cuomo and tens of thousands in New York City are realizing when a new report from Nov. 5 shows that being homeless when winter storms are coming to your city, is the catalyst for intense misery.


First the flood, now the freeze (and the lack of fuel and gas and heating just making it much worse). And for tens of thousands of residents of New York and New Jersey this means that as many as 40,000 will need to find alternative housing, especially ahead of Wednesday when a Nor'easter formation is expected to hit the Tristate area and bring even more freezing rain and cold to the region. From Reuters: "Tens of thousands of people affected by superstorm Sandy could soon need housing as cold weather descends on the state of New York, Governor Andrew Cuomo said on Sunday. Cuomo, in a televised press conference nearly a week after the storm hit the U.S. East Coast, said the fuel shortages are improving but problems will persist for "a number of days."" Elsewhere, and also from Reuters: "Victims of superstorm Sandy on the U.S. East Coast struggled against the cold early on Sunday amid fuel shortages and power outages even as officials fretted about getting voters displaced by the storm to polling stations for Tuesday's presidential election. Overnight, near-freezing temperatures gripped the U.S. northeast. At least two more victims were found in New Jersey, one dead of hypothermia, as the overall death toll from one of worst storms in U.S. history climbed to at least 112. - Zerohedge

Unfortunately, New York is one of the last places where people are willing to open their doors to strangers, and where strangers are just as likely to steal from you during a crisis.  Besides the massive reports of looting in the aftermath of the hurricane, even waitng for hours in a line to get gasoline has forced police to monitor stations due to the fights and potential theft of unprepared citizens.

New York City is a stark opposition to Joplin, Missouri, where neighboring towns welcomes homesless families in after the devasting tornado of 2011.  However, in NYC, it's an ideology of every man for himself, and the fears are the government is unable to deal with the massive amount of numbers homeless, and the people themselves do not want to take the risk of sheltering strangers for long periods of time.

CNBC's Jim Cramer provides insane prediction of Obama landslide

On Nov. 5, Jim Cramer of CNBC's Mad Money program, offered his election prognostication for what tomorrow will bring for the country.  In a parallel to his atrocious stock picking record, and embarrassing diatribe of not selling Bear Stearns just days before it went bankrupt, the former hedge fund manager predicts that President Obama will win by not only a landslide, but with numbers not seen since Ronald Reagan in 1984.

Jim Cramer:

Popular vote:  Obama: 55%, Romney: 45%
Electoral College:  Obama: 440, Romney: 98

Not only are these numbers absurd, there is not one poll, or analyst who is with 100 electors of this insane prediction.  Cramer believes that several states, including long standing conservative ones like Arizona and Texas, will go for Obama, even when they didn't in 2008.


Analysis of Jim Cramer's stock pick performance:

In a quick chat with MarketBeat one of the paper’s authors, Paul Bolster, was kind enough to translate, explaining that Cramer beats the market in part because of the excess risk in his picks. “If we adjust for his market risk, we come up with an excess return that is essentially zero,” Bolster said, adding that “zero,” in this case, means his returns are roughly in line with the risk he’s taking on. “He’s pulling his own weight with respect to the risks that his picks represent,” Bolster said. In the paper, Bolster and fellow finance professor Trahan conclude that “we find inconsistent evidence of Cramer’s ability to add value through security selection.” - WSJ

Numbers wonk Patrick Burns served as the key stat cruncher for the Barron’s story, and here’s his paper explaining his approach. Conclusion: “In my opinion, Jim Cramer’s stock-picking superiority is at best unproved.”

Then of course, there is Cramer's more recent epic fail when he pushed the Facebook IPO on his show.



Looks like the man who is part of the psychopathic 1%, who believe taking massive risks at the detriment of investors and the country, is simply adding to his resume of being the fool and joker of Wall Street.

Friday, November 2, 2012

No laughing at Doomsday Preppers now as FEMA and Red Cross fail again after Sandy

In times of trouble, your charitable donations and taxes, that in the good times go to fund organizations such as the Red Cross and Fema, seem to disappear as these agencies end up doing very little for the residents of disaster areas.  During hurricane Sandy, where both the government and Red Cross had more than 8 days to prepare for the exact locations where the storm would strike, few efforts by both agencies could be found.

And on November 1st, the disgust was so great for the Red Cross, a Staten Island official publicly announced that no American should give donations to the decades old relief agency.


“Because the devastation in Staten Island, the lack of a response,” Mr. Molinaro said to explain his comment to NBC after the press conference. “You know, I went to a shelter Monday night after the storm. People were coming in with no socks, with no shoes. They were in desperate need. Their housing was destroyed. They were crying. Where was the Red Cross? Isn’t that their function? They collect millions of dollars. Whenever there’s a drive in Staten Island, we give openly and honestly. Where are they? Where are they? I was at the South Shore yesterday, people were buried in their homes. There the dogs are trying to find bodies. The people there, the neighbors who had no electricity, were making soup. Making soup. It’s very emotional because the lack of a response. The lack of a response. They’re supposed to be here….They should be on the front lines fighting, and helping the people.” - Politicker

Additionally, where was FEMA with their warehouses full of MRE's and other basic necessities for just this purpose?  On the outside looking in, and from their track record during and after Katrina, it is no wonder why.

As National Review’s Kevin William’s points out, FEMA has wasted “shocking amounts of money,” including the expenditure of $416,000 per capita to temporarily house people displaced by Hurricane Katrina, issuing $2000 debit cards to hurricane victims without bothering to check their identification, and allowing nearly 11,000 unused manufactured homes to deteriorate on old runways and open fields in Arkansas. - Front Page Magazine

It is ironic that Americans laugh or make fun of preppers, and the government uses their prudence to exploit class warfare between the haves and have nots.  But the sad truth is, in times of trouble, you are responsible for yourselves and your family, and if you wait for the agencies that gladly take your money during times of peace, it is a fool's errand to believe that money will be of any use when disaster strikes.

Thursday, November 1, 2012

Comedian shows children about Obama economics by redistributing their halloween candy

Obama economics is about two things.  Crony capitalism (Solyndra, GM, etc...), and taking from the middle class to give to the poor.  Through inflation, taxation, and regulation, the Obama administration's policies have destroyed more middle class incomes than any President in history.

So to ensure that the younger generations understand what President Obama's class warfare and tax the rich socialism is all about, a Fox News correspondant on Oct. 30 went out to a local trick or treating area and began to teach redistribution to the children, using their halloween candy.


Picture courtesy of Sodahead.com



There you go.  It is ingrained in human kind at birth to enjoy the fruits of ones own hard work, and redistribution, as stated plainly from the mouths of babes, is stealing.