This'n'That; December 18th [NY Budget;Econ Slavery]

Did Paterson Attend the "Rob'em-Clinton" School Of Obfuscation? Well, here we are.... I've had the evening to think about Paterson's budget proposal. Do we really have to contend with ANOTHER DOLT[biden,as well]?? I gotta admit..... Paterson's got plenty of testicular fortitude!! With unmitigated gall, his proposal not only DOES NOT reduce spending, but actually INCREASES state spending by $1.3Billion [1.1%]. In recent Paterson speeches, he tries to make us believe he doesn't know when the next bottle of Chteau Lafite Rothschild Pauillac-1996 will arrive at the Executive Mansion. While he says the "huddled masses" must tighten their belts, Mr Paterson continues on his spending spree!! The state workforce will be reduced by 521 souls, equalling a paltry 0.25%; Yup, one-quarter of one percent!! On toppa that.... He gave all the "Welfare Rats" a 10% raise for sitting on their dead asses!! When was the last time you gotta raise anywhere near 10%?? Can't he realize that The New Deal and The Great Society actually held back those in the bottom tier of the American economy/workforce?? And now he wants to ensure it's continuation with the proposed raise. Living on the dole not only creates soap-opera aficionados, but stifles the work ethic and the will to succeed!! Welfare rewards society's non-producers and promotes slavery of another sort. The recipients are tied to those politicians who provide the funds which control a docile segment of the population. Instead of working for shelter, clothing and "a sack of potatoes," they figuratively "stand in line for the handout." At least, if they were of a mind to, the actual slaves in America's past could take pride in their mates, the children they raised/were raising, a job well done, etc. What pride is to be taken in "Standing in line for a handout??" Paterson as well as most other liberal Democrats on any level, hopes to continue if not grow, the numbers of recipients on into perpetuity, creating a dependency on the gov't for their every want and need-hence CONTROL[Economic Slavery]!! Sorting Out The Budget Proposal Paterson's Folly will now: ###Make [for fee] downloads of music, movies, books, photos, games and other electronic entertainment subject to state and local sales taxes. ###Increase tuition at SUNY and CUNY schools by 14%. ###Eliminate a NYC personal income tax credit aimed at renters. ###Restore the sales tax on clothing and shoe purchases under $110. ###Add sales tax to hair cuts and fitness club memberships. ###Add sales tax to movie and sports events. ###Add sales tax to Taxis and buses. ###Add sales tax to cable and satellite TV and the growing satellite radio market. ###End the max limit on the gasoline tax. ###Increase the wine excise tax to 51 cents/gallon from 18.9 cents. ###Increase the beer excise tax to 24 cents/gallon from 11.0 cents. ###Increase the cigar tax to 16 cents per cigar. ###Increase the tax on flavored malt beverages. ###Increase fees for vehicle registration by $11. ###Increase fees for first-time and renewal of drivers' licenses by 25%. ###Require everyone to get new license plates [tags] for $25 [+$10]. ###Add a new fee of $50 for driver training books. ###Add a new 18% tax on fruit drinks [with less than 70% fruit juice] and non-diet soft drinks. ###Increase tuition for state DEC education camps by 30%. ###Force Internet reatailers to charge sales tax on New York transactions. ###The aforementioned miniscule workforce reduction. ###Formulate a smaller pension for newer local and state gov't employees by: raising retirement age from 55 to 62; by requiring recent hires [Tier V] to make pension contributions after their 10th year of gov't employment; the exclusion of overtime in calculating pension benefits. How-the-Hell are we supposed to tighten our belts?? Til Nex'time.......

This'n'That; December 17th[Kennedy;NY Budget]

Kennedy On Western NY "Campaign Swing" Do ya 'spose that the next co-senior Senator's Tuesday was spent trying to find a driver that knew where Syracuse, Rochester and Buffalo are? Aw, hail, I forgot!!; royalty travels by private, executive jets and use local stretch limosines. Ms Kennedy is spending the day speaking with the executive-type waifs on a swing through Upstate and Western New York. Earlier today she met with Matt Driscoll, the Mayor of Syracuse, this afternoon she's to meet in private with Rochester Mayor Bob Duffy and US Rep "Geeze-Louise" Slaughter-at an "undisclosed location" at an "undisclosed time." I presume that she's then going on to Buffalo. I'm thinkin'..... she's already been "annointed" and this is just a "meet-the-exalted-designate" trip. The media almost constantly derided Governor Sarah Palin for being unqualified for the vice presidency. Surely the same criteria will reveal Caroline Kennedy as less-than-unqualified!!! Oh, My GOD..... He REALLY IS Nuts!!! As a general rule, I don't cuss a whole lot.....but....I'm finding myself saying more and more...."Cheese'n'Rice!!!" When David Paterson replaced the state's philanderer-in-chief, I had hope. Hope that the obscene mis-management and tax-and-overspend policies would be a thing of the past. "Cheese'n'Rice!!!" I shudda knowed better!!! Now, wudd'n'cha think that a state that's "up-to-it's-ass-in-alligators" would figger out a way to "drain the swamp??" I just realized it.......that's a pretty accurate description of the state's government campus in Albany!!! There's really nothing new in either the budget, itself or in the prevailing governing philosophy. "Cheese'n'Rice!!!" I wasn't able to track down the actual text of the 2009-2010 NYS Proposed Budget but I did find a synopsis, they call it the Briefing Book. One has to wade through all the flowerdy prose to find that there's much that's increased; that spending isn't reduced to any significant level. "Cheese'n'Rice!!!" [Better gitcha a beer cuz this is kinda "windy...."] I. Tax Reforms and Actions: ***Restructure Clothing Exemption ***Extend NYC Personal and Credit Services Tas Statewide ***Extend Sales Tax to Entertainment-related Spending ***Extend Sales Tax to Transportation-related Spending ***Limit Itemized Deduction Limitation for Millionaires ***Limit Capital Improvement Exemption ***Repeal the Sales Tax Cap on Fuel ***Extend Sales Ta to Cable and Satellite Television and Radio ***Repeal Bad Debt Provisions ***Reform the Cigar Tax ***Standardize Tax on Flavored Malt Beverages ***Eliminate Underutilized Tax Credits ***Restructure the Insurance Tax ***Treat Coupons Consistently ***Increase Sales Tax on Luxury Goods ***Treat Gain from the Sale of Partnerships as income. ***Amend the Definition of Presence in New York. ***Expand Tax on Nonresident Hedge Fund Income. ***Address Abusive Tax Avoidance. ***Expand Definition of Affiliate Nexus for Internet Sales. ***Close Digital Property Taxation Loophole. ***Disallow Utility Definition as Manufacturers. ***Change Filing Requirement for Overcapitalized Captive Insurance Corporations. ***Eliminate Exemption for Large Cooperative Insurance Companies. ***Increase Beer and Wine Tax Rates. ***Increase Auto Rental Tax. [[Total Tax Reforms=26]] "Cheese'n'Rice!!!" II. New or Increased Fees ***Increase Feed Tonnage Fees. ***Increase [3] Food Licensing Fees. ***Establish Seed Dealer Licensing Fees. ***Increase and Expand New Statewide Central Register Fees. ***Increase [3] Civil Service Exam Fees. ***Establish a Local Fee for Hiring a Public Retiree. ***Increase Public Management Intern Placement Fee. ***Expand Insurance Fingerprinting Fee. ***Establish [2] Security Guard Training Fees. ***Increase Nuclear Power Plant Fee. ***Increase [11] Motor Vehicle Registration Fees. ***Increase [3] Motor Vehicle License Fees. ***Reissue License Plates. ***Establish a Fee for MV-278 Certificate. [MV-278=5Hr PreLicensing Course Completion Certificate] ***Increase [3] State Pollutant Discharge Elimination System Fees. ***Estabish New Marine Fising License. ***Establish Trout and Salmon Stamp. ***Increase DEC Education Camp Fee. ***Increase Physician Fees. ***Establish EArly Intervention Parent Fee. ***Assess Early Intervention Provider Fee. ***Restructure Clinical Lab Fees. ***Increase Certificate of Need Fees. ***Increase [9] Asbestos Fees. ***Increase [2] Boiler Fees. ***Establish Explosives Fees and Penalties. ***Increase Real Property Transfer Fee. ***Increase [8] Parks Administrative Fees. ***Establish Horse Entrance Fee. ***Increase[16] State Licensing Fees. ***Increase Surcharge on Auto Insurance. ***Establish Processing Fee for Paper Tax Returns. ***Establish Bad Check Fee. ***Establish Installment Payment Fee. ***Establish Tax Preparer Fee. ***Increase Highway Use Tax Renewal Fee. ***Increase Cigarette and Tobacco Retail Registration Fee. ***Establish Non-LLC Partnership Fee. [[Total New or Increased Fees=88]] "Cheese'n'Rice!!!" III. Charges and Assessments for Specific Sectors ***Increase Utility Assessment. ***Reinstitute Hospital Assessment. ***Reinstitute Home Care Assessment. ***Increase Hospital Surcharges. ***Increase Covered Lives Assessment. ***Extend the Covered Lives Assessment. ***Establish Physical Procedure Surcharge. ***Increase Insurance Assessment for Public Health Programs. ***Establish Timothy's Law Insurance Assessment. ***Increase Insurance Assessment for Tobacco Control and Early Intervention. ***Extend Insurance Assessment. ***Third Party Administrator Fee. ***Additional Sales Tax on Soft Drinks for Health Care Programs. [[18% on non-diet; "Obesity Tax"]] [[Total Charges and Assessments for Specific Sectors=13]] "Cheese'n'Rice!!!" IV. New or Increased Fines ***Allow Civil Penalties for Non-Housing Cases. ***Remove Cap on Surcharges. ***Increase [2] Vehicle Safety Fines. ***Establish Uncertified Crane Operation Penalty. ***Increase [3] License Suspension Fees. ***Increase Food Safety Violation Penalties. ***Automated Speed Enforcement Cameras. [[Total New or Increased Fines=10]] "Cheese'n'Rice!!!" V. Other Revenue Actions ***Expand the Bottle Bill. [[include non-carbonated beverages and other containers]] ***Reform the Empire Zones Program. ***Allow the Sale of Wine in Grocery Stores. ***Expand Tax ollections. ***Reciprocal Vendor Offset. ***Increase Prepaid Sales Tax Rates on Cigarettes. ***Allow Decals for TMT Carriers. ***Increase Prepayment to 40%. ***Pari-Mutuel Tax Extender. ***Eliminate Quick Draw Restrictions. ***Extend VLT Hours of Operation. ***Allow for Additional Multi-Jurisdictional Lottery Games. ***Lottery Prize Fund Investment. ***Authorize VLTs at Belmont Park. [[Total Other Revenue Actions=14]] VI. New or Expanded Tax Credits ***Expand the Lo Income Housing Tax Credit Program. ***Create an Enhanced Research and Development Credit. ***Expand the Qualified Emerging Technology Company Credit. [[Total New or Expanded Tax Credits=3]] "Cheese'n'Rice!!!" Whew!!! Whadda Loada CRAP!!! "Cheese'n'Rice!!!" Tomorrow [if I have time; if it don't snow!!] I'll try to explain some of the more obscure items as well as I can. Til Nex'time........

This'n'That; December 16th [Lawsuits;Stocks;Economy;Taxes;Kennedy]

Will Kennedy "Find" Upstate? Upstate New York is defined as any area north of New York City, Southern Westchester County and Long Island. In land mass, that would be a number "far north" of 99% of the state. In population Upstate is 37.5% of the state with a population of 7,121,911 as compared to "Downstate" whose population is 11,864,546. Now, Ms Kennedy [she never changed her name after marriage] is actively "campaigning" for the Rob'em Clinton Senate seat. She's contacted several "High Muckity-Mucks," most notably Time-Warner Honcho Dick Parsons, Civil Unrest Activist Al Sharpton, NYC Schools Chancellor Joel Klein, Senator "Chuckie Cheese," New York Comptroller Thomas DiNapoli and last but probably least, Rep "Geeze-Louise" Slaughter [See a trend here; EVERYONE is downstate with the exception of "Geeze-Louise"]. Where is the experience required to help run the most powerful country on the planet? Do we just "award" positions of authority to American "Royalty?" Now that Ms Kennedy has made her desires public, Governor Paterson will be hard pressed to overcome her public appeal.Who knows? The Governor may rightly opt for substance over "flash" and appoint someone like Erie County Supervisor, Democrat Joel Giambra, Erie County Executive Committee member Mark Poloncarz or State Assemblyman David Gantt . Without "local" representation, Upstate and Western New York State will continue to be either ignored or tossed a cuppla bits of federal pork, enough to keep us quiet while the bulk of benefits goes to "downstate!!" This Guy Understands US Rep Louie Gohmert, Tx., understands the frustrations of the American Taxpayer. The more income governments at all levels take from us, the more they piss away. Rep Gohmert introduced HR 7309 [text below] to exempt all income during January and February, 2009 from any federal taxes, including Social Security. HR 7309 IH 110th CONGRESS 2d Session H. R. 7309 To amend the Internal Revenue Code of 1986 to suspend employment and income taxes for the first two months of 2009, and for other purposes. IN THE HOUSE OF REPRESENTATIVES December 9, 2008 Mr. GOHMERT (for himself, Mr. SHADEGG, Mrs. BLACKBURN, Mr. CARTER, Mr. FRANKS of Arizona, Mr. PENCE, Mr. WESTMORELAND, Mr. SESSIONS, Mr. MCCOTTER, Mrs. MYRICK, Mr. SALI, Mr. AKIN, Mr. MCHENRY, Mrs. DRAKE, Mrs. MCMORRIS RODGERS, Mrs. BACHMANN, Mr. GARRETT of New Jersey, Mr. PRICE of Georgia, Mr. PAUL, Mr. BURTON of Indiana, and Mr. MACK) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to suspend employment and income taxes for the first two months of 2009, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SUSPENSION OF EMPLOYMENT TAXES. (a) Tax on Employees- Section 3101 of the Internal Revenue Code of 1986 (relating to rate of tax) is amended by adding at the end the following new subsection: ‘(d) Suspension- In the case of wages received for service performed during the period beginning on January 1, 2009, and ending on February 28, 2009, the percentage under subsections (a) and (b) shall be zero percent.’. (b) Tax on Employers- Section 3111 of such Code (relating to rate of tax) is amended by adding at the end the following new subsection: ‘(d) Suspension- In the case of wages paid for service performed during the period beginning on January 1, 2009, and ending on February 28, 2009, the percentage under subsections (a) and (b) shall be zero percent.’. (c) Tax on Self-Employment Income- Section 1401 of such Code (relating to rate of tax) is amended by adding at the end the following new subsection: ‘(d) Suspension- In the case of self-employment income for service performed during the period beginning on January 1, 2009, and ending on February 28, 2009, the percentage under subsections (a) and (b) shall be zero percent.’. (d) Effective Dates- (1) The amendments made by subsections (a) and (b) shall apply to remuneration paid or received after December 31, 2008. (2) The amendment made by subsection (c) shall apply to taxable years beginning after December 31, 2008. SEC. 2. SUSPENSION OF INCOME TAXES. (a) In General- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139B the following new section: ‘SEC. 139C. WAGE AND SELF-EMPLOYMENT INCOME. ‘In the case of an individual, gross income shall not include-- ‘(1) any remuneration for service performed during the period beginning on January 1, 2009, and ending on February 28, 2009, by an employee for his employer, including the cash value of all remuneration (including benefits) paid in any medium other than cash wages (as defined in section 3121), and ‘(2) any self-employment income (as defined in section 1402) derived by such individual during such period.’. (b) Clerical Amendment- The table of sections for such part is amended by inserting after the item relating to section 139B the following new item: ‘Sec. 139C. Wage and self-employment income.’. (c) Effective Date- The amendments made by this section shall apply to taxable years ending after December 31, 2008. SEC. 3. FUNDING OF SOCIAL SECURITY TRUST FUNDS WITH REPEALED TARP FUNDS. (a) Repeal of Final $350 Billion Purchase Authority Under Troubled Assets Relief Program- Section 115 of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended-- (1) in subsection (a), by striking paragraph (3); and (2) by striking subsections (c), (d), (e), and (f). (b) Transfer to Social Security Trust Funds- (1) ESTIMATE OF SECRETARY- The Secretary of the Treasury (in consultation with the Secretary of Health and Human Services and the Commissioner of Social Security, as appropriate) shall estimate the impact that the enactment of this Act has on the income and balances of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund. (2) TRANSFER OF FUNDS- If, under subsection (a), the Secretary of the Treasury estimates that the enactment of this Act has a negative impact on the income and balances of any of such funds, the Secretary shall transfer from the general revenues of the Federal Government such sums as may be necessary so as to ensure that the income and balances of such funds are not reduced as a result of the enactment of this Act. SEC. 4. IMMEDIATE TERMINATION OF TARP PURCHASE AUTHORITY. (a) In General- The authorities provided under section 101(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211), excluding section 101(a)(3) of such Act, shall terminate immediately upon the enactment of this Act. (b) Rule of Construction- The termination under subsection (a) shall apply to any authority of the Secretary of the Treasury under the Emergency Economic Stabilization Act of 2008 to purchase preferred or other stock or equity in any financial institution. (c) Conforming Amendment- The Emergency Economic Stabilization Act of 2008 is amended by striking section 120 (12 U.S.C. 5230). Some Banking Stocks While Wall Street's "big boys" are "coming apart at the seams," smaller regional banks in most areas of the U.S., are holding fairly stable; of course there's the normal rises and falls in the stock prices so you have to do the due diligence on each stock. [This site doesn't allow/support the blogger to make charts, s-o-o-o-o....the stocks will be listed in this order Name,Symbol, Recent Price, Dividend Yield {%}, Hq Address] A point to ponder..... Some of the stocks have astranomical dividend yields!! When considering an investment in one of these, be aware that chances are good that the institution will lower the rate and payout to a more reasonable level. ***Capitol Federal Financial; CFFN; $42.90; 4.6%; Topeka, Ks. ***Central Virginia Bankshares; CVBK; $5.55; 8.8%; Powhatan, Va. ***Fidelity Southern Corp; LION; $2.86; 80.6%; Atlanta, Ga. ***LSB Financial Corp; LSBI; $13.92; 7.2%; LaFayette, La. ***New York Community Bank; NYB; $11.80; 8.6%; Westbury, N.Y. ***Teche Holding Co; TSH; $24.63; 5.6%; Franklin, La. ***Popular, Inc; BPOP; $5.99; 5.4%; San Juan, PR. ***Irwin Financial Corp; IFC; $1.28; 37.8%; Columbus, In. ***Preferred Bank; PFBC; $6.40; 6.6%; Los Angeles, Ca. Another point to ponder: A while back I got a piece of spam that had an interesting subject so I opened it. What I found was an offer of FREE stock tracking software from http://www.marketbrowser.com/ . I downloaded it and after wandering through it, found that I could set up and navigate it fairly easily. One can create as many folders [each containing nine stock screens] as one wants. In the initial screen, the top row has to be indices from a pull-down menu [like the DJIA, federal unemployment rate, etc], while in subsequent folders, all screens can be stocks. Largest Class-Action Lawsuits; 2008 By filing a class action lawsuit, individuals or small groups can act on behalf of a larger group to seek justice. Many class action lawsuits have been filed in 2008, combating bad business and false promises. Comcast-Internet giant Comcast has been involved in a class action suit regarding its promise of service since early 2008. Gilbert Randolph LLP filed a class action suit against Comcast in the Superior Court of the District of Columbia in February 2008. The complaint alleges that Comcast's promises to provide the "fastest Internet connection" and "unfettered access to all the content, services, and applications that the Internet has to offer" are false because Comcast impedes access to peer to peer (P2P) applications. When it comes to P2P applications, Comcast isn't exactly the forgiving type. According to the complaint, Comcast sends "reset packets" which tell the transmitting computer to stop sending data. Tribune Co.-On September 16, 2008, several former and current Los Angeles Times employees filed a lawsuit against the newspaper's corporate parent, Tribune Co., and its chief executive, Sam Zell, contending reckless management is destroying the value of the company. The lawsuit seeks damages on behalf of employees of The Times and Tribune Co., which owns a variety of newspapers, television stations, and other assets, including the Chicago Cubs baseball team. [From: http://www.legalzoom.com/ ] Economy Continues To Tank -- U.S. consumer prices fell in November at the fastest rate since 1932, the darkest days of the Great Depression, the Labor Department reported Tuesday, as prices for energy, commodities and airline fares plunged across the country. The U.S. consumer price index fell by a seasonally adjusted 1.7%, the department reported, the biggest drop since the government began adjusting the CPI for seasonal factors in 1947. But on a non-seasonally adjusted basis, the CPI fell by 1.9%, the biggest decline since January 1932, at the nadir of the Great Depression. Energy prices declined by a seasonally adjusted 17%, the most since February 1957. Gasoline prices plunged by 29.5% in November, the most since the government began keeping records in February 1967. The CPI data is one of the last pieces of the economic puzzle that the Federal Reserve will have to mull before its announcement about interest rates later Tuesday. The policy-making Federal Open Market Committee is almost universally expected to cut its target for overnight interest rates to 0.5% from 1%. Over the past year, overall consumer prices have risen by 1.1%, down from their peak of 5.6% in July. Core prices have risen by 2% in the last 12 months. Prices for certain goods rose in November, even as the overall number fell. Medical care prices, for example, climbed by 0.2%. They are up 2.7% in the past year. Also, food prices rose by 0.2% in November. Falling transportation prices contributed to the overall decline. Those prices dropped 9.8% in November, the most in 61 years. They are down 8.9% over the past year. Within transportation, new vehicle prices fell 0.6%. Airline fares, meanwhile, dropped 4%. In a separate report on Tuesday, the Commerce Department said that housing starts fell by a whopping 18.9% to a seasonally adjusted annual rate of 625,000, the lowest since the department began keeping records in 1959. [From: http://www.marketwatch.com/ ] Til Nex'time.............

This'n'That, December 15th[pres-elect;Powell;NY budget]

NOW, It's Official Prior to December 15th [today], Obama was just that OBAMA, or Mister Obama, or ex-senator Obama, etc. Today all 538 Electoral College delegates met in their respective state capitols. They cast their votes to reflect the way their districts voted in the general election. After the vote was officially talleyed, Mr Obama became the President-Elect. He can now correctly use the title. He can also now use that ficticious room- "The Office of the President-Elect." With previous incoming administrations-both Democrat and Republican, we've NOT had an offcial as arrogant, self-centered or as conceited as the one who now occupies that imaginary office. It WAS All About Race, Wasn't It......? I found this article on CNN's website: (CNN) — The Republican party must stop "shouting at the world" and start listening to minority groups if it is to win elections in the 21st century, former Secretary of State Colin Powell said Thursday. Powell, who crossed party lines and endorsed President-elect Barack Obama just weeks before the election, said the GOP must see what is in the "hearts and minds" of African-American, Hispanic and Asian voters "and not just try to influence them by… the principles and dogma." "I think the party has to stop shouting at the world and at the country,"Powell said. "I think that the party has to take a hard look at itself, and I've talked to a number of leaders in recent weeks and they understand that." Powell, who says he still considers himself a Republican, said his party should also stop listening to conservative radio talk show host Rush Limbaugh. If it walks like a duck, if it quacks like a duck-chances are that it's a duck!! Colin Powell kinda left-handedly admitted that his support of Obama and the sabotage of John McCain's campaign was certainly about race NOT political philosophy. His comments about Limbaugh only indicate to me that he's a Democrat "in Republican clothing." I don't always agree with Rush but he's saying things, bringing up topics and hidden information that I don't and won't hear anywhere else!! One Topic They WON'T Broach Well, NY Governor Paterson's budget proposal is out!! Nowhere could I find any mention of spending cuts. There were lots of "income" increases [read: TAX INCREASES]. They included a request for State workers to defer five-days pay until some mystical future date arrives-their retirement or departure. The increases include the gas tax, clothing taxes, income taxes, insurance policy taxes, obesity tax [non-diet soft drinks] and changes to rules so hospitals and healthcare providers to shift the costs to individuals and employers. NY's annual budget is approximately $120Billon. The three-year deficit projection is $47Billion. One proven truism: One [individual or unit of government] can not spend it's way to prosperity. Til Nex'time.......

This'n'That; December 13th[Co Stock;Education;a Book;Grocery]

The Hazards Of Having Company Stock In A 401[k]-[from http://www.fundadvice.com/] Here are a few interesting figures from Financial Engines, an online company that specializes in employee retirement plans: In 401(k) plans that offer company stock as an investment option, 36 percent of the participants have invested more than a fifth of their savings in shares of the companies they work for. Older workers, who should be taking less risk, seem to be taking more. One-quarter of 401(k) participants 60 and older have at least half their accounts invested in company stock. It should be obvious why that’s so risky. Workers don’t have much choice about relying on the same company for their income and their benefits. But when they rely on the same company for a big chunk of their retirement, they are placing extremely heavy bets. Many people also own company stock outside their retirement plans, an equally bad idea in my view.Most of those people are understandably confident. They know the company and the industry. Or do they? Hundreds if not thousands of Washington Mutual employees thought they knew the company they worked for. A year ago, Washington Mutual was a profitable company, the nation’s largest thrift institution, and had just moved its headquarters into shiny new digs in downtown Seattle. From those offices, executives presided over more than 2,000 retail branches spread from Washington state to Florida. The company had more than 40,000 employees, including 3,500 (many with relatively high pay) in downtown Seattle. Early this year, very few of the bank’s employees, even executives, would have given even a 10 percent probability to the following scenario: • The 100-year-old company, once widely known as “the friend of the family” in the Northwest, would be dragged down by its aggressive subprime mortgage loan portfolio. • Month after month the stock price would fall until, with the speed of late summer lightning, a liquidity crisis led to a multi-billion-dollar run on the bank. • With stunning swiftness the federal government would declare the bank a failure, making the stock worthless. Yet that’s what happened. The Puget Sound Business Journal reported that when the company collapsed, a total of 17.6 million shares were owned by the bank’s employees. What was that stock worth? At the approximately $44 price in June 2007, it would have been worth about $770 million. By October 2007, at $28 a share, it would have been worth about $490 million. Now the stock is de-listed and trading over the counter at 16 cents a share, making it worth about $2.8 million. Is "Buy-And-Hold" The Way To Go? There is no question that in the past, buy-and-hold has worked for patient, long-term investors who can stay the course during the bad times and hang on until the good times return. However, some investors who regard themselves as buyers-and-holders still bail out when the chips are down. In doing so, they usually gain some emotional relief. But here’s the problem: Investors who go to cash in bear markets may be converting temporary losses into permanent ones. The price of that comfort is the loss of the profits which have always been there for the taking when the stock market has rallied. While there’s no guarantee that a rally will ever take place, history tells us it is highly probable. What’s also highly probable is this: If you bail out when losses get too scary to tolerate, you at some point will want to get back in when things are moving upward. The problem is that when that day comes, you won’t have any objective way to know whether or not it’s the right time. If you wait until you feel comfortable getting back into stocks, you will probably have missed most if not all of the recovery. You will undoubtedly have “sold low” after a decline spooked you and “bought high” after a rally restored your confidence. This is an example of how our emotions and our herd instincts prompt us to do the exact opposite of Wall Street’s classic advice: Buy low and sell high. Buying and holding, while it can be very challenging, at least is a system to protect you from your emotions. Something else we have been preaching for many years is wide diversification. While no sector of the stock market is immune to a global financial crisis, diversification helps. Remember a few months ago when oil peaked at more than $145 a barrel and people were eagerly buying energy stocks and commodities? I wonder how happy they are now, with the price less than half of the summer peak. Time To Educate Yourself Now is the time to be working to further your financial education. Here are several indeces that are important indicators of the health [or the lack thereof] of the various segments of the economy. **Dow Jones Industrial Average (30 large stocks; popular indicator) **NYSE Composite Index (all companies on the NYSE) **Nasdaq Composite Index (all companies on the NASDAQ; technology-heavy) **NASDAQ-100 Index (100 large NASDAQ non-financial stocks) **S&P 500 Index (500 large companies; general market analysis) **Russell 2000 Index (2000 small-cap stocks) **Wilshire 5000 Index (total U.S. market) Big Russ And Me As I've mentioned many times in the past, I'm about as conservative as anyone can be. That being said, I thoroughly enjoyed reading "Big Russ and Me" by the late Tim Russert. Mr Russert the Younger, and I were polar opposites in our political thinking and philosophy. But this was such a powerful "read" that it was impossible for politics to get in the way of pure entertainment!! This is a story about a man who was severely burned in a military aircraft accident during WWII, returned home to marry his sweetheart, raised a family and for the most part, worked two full-time jobs during his adult life. This is a story of a kid growing up in a loving family in South Buffalo [NY] and later in West Seneca [NY], both suburbs of the City of Buffalo. It's about the lessons of life that Tim learned through his observation of, and his exposure to his Dad, Big Russ. I can't remember what I paid for the book, a large paperback but as I recall, I thought it was a fair deal at Sam's Club [The book has probably been around long enough to be found at the local thrift stores]. Buy It; Read It; Enjoy It!! Where To Go From The "Top Of The Heap" For the last many years, grocery shoppers have had one local chain to deal with. Early in the last century, when they were "coming up" the company was a boon to Rochester and Suburban residents. As companies grow, they sometimes get too-big-for-their-britches!! This appears to be the case with Wegman's Food Markets, Inc. Many times complaints about rising prices bring a reply like "Everything is going up." This leaves me with the feeling that Wegman's thinks they're invincible..... they'll be on top into forever....... Well................ there's a new kid on the block!! PriceRite Grocery is a Massachusetts company started in 1995. They have stores in Connnecticut, Rhode Island, New York and Pennsylvania as well as Massachusetts. In Rochester the company has two stores-one on University Ave., and one on Driving Park Ave. One is scheduled to open soon in Henrietta, a southern suburb of Rochester. Rumor has it PriceRite may be building a couple more in the Rochester/ Monroe County area. I've heard alot of good things from co-workers so in the next few days, I intend to check them out. After I do, I'll report back..... good or bad..... Til Nex'time........