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By Kevin Yamamura and Dan Smith
(The Sacramento Bee) Gov. Arnold Schwarzenegger estimated Monday that California’s budget will fall out of balance by $5 billion to $7 billion this fiscal year, on top of a $7.4 billion gap already projected for 2010-11.
If true, state leaders would confront at least a $12.4 billion to $14.4 billion problem when Schwarzenegger releases his budget in January. California currently has an $84.6 billion general fund budget.
The Republican governor spoke with The Fresno Bee editorial board Monday after signing a bill placing a water bond on … Continue Reading
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(Hellenic Shipping News) The stock market has enjoyed a significant rally since the end of the first quarter. The Bureau of Economic Analysis reported last week that the economy grew at a 3.5% annual rate in the third quarter–a figure they achieved by that claiming inflation was running at only a 0.8% annual rate, despite a sharp drop in the dollar, a spike in commodity prices and record highs for gold. The cyclical bull market in stocks and positive print on GDP has caused some on Wall Street and in … Continue Reading
(The Sacramento Bee) California’s state budget crisis is so severe that the Pew Center on the States, a Washington-based policy think tank, is using it as an example of conditions that imperil other states.
Nine other states, the Pew report says, … Continue Reading
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By Louis Uchitelle
(CNBC – The New York Times) A widening gap between data and reality is distorting the government’s picture of the country’s economic health, overstating growth and productivity in ways that could affect the political debate on issues like trade, wages and job creation.
The shortcomings of the data-gathering system came through loud and clear here Friday and Saturday at a first-of-its-kind gathering of economists from academia and government determined to come up with a more accurate statistical picture.
The fundamental shortcoming is in the way imports are accounted for. A … Continue Reading
In a survey of 1,500 registered voters, 80% say the state is on the wrong track. Respondents express little confidence in state politicians and candidates, even as support for Obama remains high.
By Cathleen Decker
(The Los Angeles Times) Frustrated at California’s woes, voters are sharply pessimistic about whether the next governor will be able to move the state in the right direction, and most believe California is in the midst of a long-term decline, a new Los Angeles Times/USC poll shows.
Against that grim backdrop, next year’s political contests loom as potentially volatile, but Democrats start out holding the upper hand, … Continue Reading
(The Ticker – The Washington Post) Each month, as regular readers know, I like to unpack the new unemployment number and get behind the data. The news this month continues to be grim. Indeed, it is climbing rapidly toward record-grim territory.
The official U.S. unemployment rate in October rose to 10.2 percent from 9.8 percent in September, the Labor Department’s Bureau of Labor Statistics reported Friday.
But the truer measure of unemployment — a total count of everyone who should be working full time but is not — hit 17.5 percent in October, the highest level in modern times.
The official unemployment number … Continue Reading
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Preparing for Second Wave of Financial Crisis
By Rocky Vega
(The Daily Reckoning) If you’re looking for insight into how you should be responding to the “recovery” in the US economy, there’s actually a glimmer of sanity coming leading US companies. Right now major American companies are storing up more cash than at any other time within the past 40 years.
According to media reports, Citigroup and JPMorgan Chase among others are saving “as if another financial crisis were on the way.” Even the vice president of equity research at Rochdale Securities Dick … Continue Reading
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