The economy.. What is happening? No ideology

Parent Cafe
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<p>It’s an odd thing to see. I travel all over the US, and some of the places I go to, things are really booming. Fancy restaurants, high priced malls…packed. It just looks like everyone has money to blow. Other places are practically deserted, and the only packed places are Walmart and fast food restaurants. I’m not sure exactly why, if it’s big towns vs large towns, local industry, or what. But the areas that seem to be centered on tech or government appear to be doing fantastic.</p>

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<p>answer to the OP:</p>

<p>bubblebubblebubble</p>

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<p>Why would they retire old teachers if they are doing their jobs? It would actually cost them more because they would have to fully fund their pensions and pay for the new teachers. A lot of people don’t have enough to retire or they don’t think that they have enough to retire and will just work until they can’t.</p>

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<p>The stock market recovers and the fed doesn’t raise rates…</p>

<p>Housing is going to recover…the fed better raise rates when housing recovers or it is going to get ugly…</p>

<p>I am slightly worried…but it is still early…there is time…</p>

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<p>“Housing is going to recover…the fed better raise rates when housing recovers or it is going to get ugly…”</p>

<p>Meaning, inflation? I thought they’d said they were going to keep rates low until at least 2014, regardless.</p>

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<p>Cyprus- at the insistence of the EU- is confiscating 10% of bank depositors balances as an immediate tax. </p>

<p><a href=“http://www.reuters.com/article/2013/03/16/us-eurozone-cyprus-idUSBRE92E02220130316[/url]”>http://www.reuters.com/article/2013/03/16/us-eurozone-cyprus-idUSBRE92E02220130316&lt;/a&gt;&lt;/p&gt;

<p>If you are an investor that is an extremely unsettling precedent. I’d imagine we will see a fair amount more capital exit EU and the US could be the beneficiary.</p>

<p>[on the other hand I think the Financial Crisis C omission identified “excessive liquidity” as a factor in the 2008 recession, so we can start worrying about that]</p>

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<p>Yes…we are talking about this in the investment thread…</p>

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<p>“dont fight the Fed”
Need I say more?</p>

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<p>isn’t pension accumulated steadily over the years? In that case, it makes no difference whether they fire new teachers or retire old ones, provided they all get paid the same, and even better if the tenured teachers are paid more, and possibly less effective teachers due to their age. I find younger teachers are better at relating to students than older ones.</p>

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<p>I see two economies developing: The Haves, and The Rest. Haves’ economy is booming; Rests’ economy is stagnant.</p>

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<p>You mean are pensions fully funded?</p>

<p>I’m a bit surprised that anyone would ask that question today given that’s it has been acknowledged to be a huge problem for at least the last five years.</p>

<p>[CBO</a> | The Underfunding of State and Local Pension Plans](<a href=“http://www.cbo.gov/publication/22042]CBO”>http://www.cbo.gov/publication/22042)</p>

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<p>And you’ve been on your local school board so that you know how school finances work?</p>

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<p>That’s a great anecdote. Useful for one case.</p>

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<p>Real estate in our area is far from recovering. The house next door to us is very similar to ours and in short sale, list price scary low. Businesses are closing their doors and unemployment is higher than the national average…in our county it’s even higher than the state average. The building related industry is doing well but that is because of all of the damage from hurricane Sandy.
I look forward to seeing some improvements…any time now</p>

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<p>Our state is mixed. We have lots of fed employees who have been told they will be having paycut by getting 22 days mandatory unpaid leave over the year. High end homes are doing great and actually real estate around here never took much of a hit anyway. </p>

<p>See lots of restaurants and stores closing. WalMart is packed. Lots of homeless and cuts in social services. Our state is doing awful job of maintaining buildings but wants to keep building. As a taxpayer it makes you crazy. Growing gap between HAVES and HAVE NOTS.</p>

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<p>either you pay everyone less, or fire them completely. I highly doubt the teachers’ pensions are the only things being cut due to the budget cuts.</p>

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<p>Every year, the city where I work has some number of teachers retire. The city then sends the state several hundred thousand to a few million dollars to pay for their pensions. It appears that the city doesn’t really fund the full amount - they make matching contributions to the state but have to pay a big chunk when someone actually retires.</p>

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<p>Our state is several billion short in funding it’s state pensions. There has been no serious effort to bridge the yawning chasm between promises and funding.</p>

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<p>“I see two economies developing: The Haves, and The Rest. Haves’ economy is booming; Rests’ economy is stagnant.”</p>

<p>It seems that it is very much based upon where you live, and what industry you are in. Those in prosperous areas who didn’t lose/get paycuts in their jobs, can take advantage of low interest rates, rising stock market values, and relatively low inflation. But if you were on the edge anyways, you don’t have money in the market, don’t have the credit to get those interest rates,and you might have lost your job.</p>

<p>I worry about what is going to happen to people who are just hanging on right now when inflation hits. If you’re barely getting by now, how are you going to make it when everything costs more? I know theoretically salaries should increase, but if the unemployment is still high and businesses can get employees without raising salaries, they may not. Most of my family members are in the “Haves”, but some are “The Rest.” I see them having to live with parents endlessly.</p>

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<p>another reason for me to work in the private sector. That’s just weird.</p>

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<p>Please don’t tell me that you’re an economics major.</p>

<p>[Corporate</a> Pensions on Pace to Hit Year-end Deficit Record - The CFO Report - WSJ](<a href=“http://blogs.wsj.com/cfo/2012/12/11/corporate-pensions-on-pace-to-hit-year-end-deficit-record/]Corporate”>http://blogs.wsj.com/cfo/2012/12/11/corporate-pensions-on-pace-to-hit-year-end-deficit-record/)
<a href=“http://psc-cuny.org/clarion/march-2012/how-business-elites-looted-private-sector-pensions[/url]”>http://psc-cuny.org/clarion/march-2012/how-business-elites-looted-private-sector-pensions&lt;/a&gt;
[The</a> Private-Sector Pension Predicament | Hoover Institution](<a href=“http://www.hoover.org/publications/policy-review/article/100696]The”>http://www.hoover.org/publications/policy-review/article/100696)
[Milken</a> Institute | Newsroom: Press Release | Underfunded private-sector pension plans threaten the retirement security of millions of Americans; Milken Institute report provides solutions for addressing the funding gap](<a href=“http://www.milkeninstitute.org/newsroom/newsroom.taf?cat=press&function=detail&level1=new&ID=200]Milken”>http://www.milkeninstitute.org/newsroom/newsroom.taf?cat=press&function=detail&level1=new&ID=200)
[RealClearMarkets</a> - Private Pensions Evade Honest Accounting](<a href=“http://www.realclearmarkets.com/articles/2012/07/05/private_pensions_evade_honest_accounting_99749.html]RealClearMarkets”>Private Pensions Evade Honest Accounting | RealClearMarkets)</p>

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<p>92% urban, urban households earn 32% more than rural households and spend 18% more.</p>

<p>[Number</a> of the Week: Urban vs. Rural Spending - Real Time Economics - WSJ](<a href=“Number of the Week: Urban vs. Rural Spending - WSJ”>Number of the Week: Urban vs. Rural Spending - WSJ)</p>