Tuesday, May 29, 2012
Growth in the National Debt
6:40 am edt
The one inescapable drag on the economy and every American taxpayer or government dependant is the interest obligation
paid on the national debt. Indebtedness is nothing new to this country, but the inability to service the public debt stretches
over the last half century. This trend is so disturbing that politicians spend every waking hour avoiding the consequences
of the ultimate outcome, the demise of the currency. The reserve currency status that has allowed for effortless deficit spending
has a day of reckoning. The final collapse of the global empire and superpower will smell more of financial evaporation than
of a military defeat. Read the entire article
Tuesday, May 22, 2012
Electric Power Generation under NYS Article X
6:55 am edt
The New York State Public Service Commission draft (link for comments) from the New York State Board on Electric Generation
Siting and the Environment for the proposed regulations to the Power NY Act 2011, known as Article X is deficient in its mandate.
Since a SEQR review for electric generation projects that fall under the new regulations is no longer a requirement, New York
State is effectively writing new regulations that abdicate the oversight role of the Department of Environmental Conservation.
The motive to fast track permitting approval at the expense of environmental protection demonstrates a bias in favor of developer
projects. Therefore, in order to establish an equitable balance in interests, it is prudent to include a comprehensive citizen
participation process within the administrative structure of the DPS. Read the entire article
Tuesday, May 15, 2012
Money Center Banks and Stricter Financial Oversight
4:44 am edt
Once again, the practices of the "Too Big to Fail" banksters bring the financial money machine to the brink.
The J.P. Morgan derivative losses and trading gambles by their "London Whale" demonstrates business as usual in
the murky world of risk distortion. Even the vexing progressive Robert Reich makes an accurate assessment for breaking up
the big banks and the resurrecting of Glass-Steagall.
"Word on the Street is that J.P. Morgan’s exposure
is so large that it can’t dump these bad bets without affecting the market and losing even more money. And given its
mammoth size and interlinked connections with every other financial institution, anything that shakes J.P. Morgan is likely
to rock the rest of the Street."Read the entire article
Tuesday, May 8, 2012
Bankruptcy Trends in the Post Meltdown Era
12:26 pm edt
Economic dislocation is an inherent element in any financial system. One way to deal with balance sheet imbalances
is to declare bankruptcy. The most common examples of liquidating default without payment are to petition the court to absolve
debt obligations. Personal bankruptcy is tragic, but is common in a culture where immediate consumer gratification is the
end all of a private excess society. Business bankruptcy is different because the underlying enterprise assumes all the risks
of engaging in commerce. Even prudent expenditures and sound business activities can go sour that ultimately results in insolvency.
Read the entire article
Tuesday, May 1, 2012
Big vs Small Bank Loans
10:10 am edt
If your Main Street business needs capital and seeks a loan, your prospects are slim to none. It is evident that
the real economy has never recovered from the collapse of the financial system. TARP was a temporary rescue of the large money
center banks. For the local community banks, the massive give away has strings attached and penalties to be paid. Not much
consolation for a small business endeavor that is desperate for cash and an improved business environment.
Read the entire article