Tuesday, December 29, 2009

What does it tell us when states go bust.....

Huh..... Maybe they should cut back and live within their means. I mean, why do state governments have to spend billions when the feds are paying for the same things. Wait til interest rates go up big time and we can't buy all that junk,  let alone big ticket items that generate sales and property taxes.

Somebody has to pay for all this debt. I think we know who. This leads to a lower standard of living. Expect interest rates to go up in 2010 and scare the fuck out of the big shot gangsters who's stooges in office will be thrown out big time. China, India, and Russia are now is buying gold and will stop buying our debt. As I've warned befor, that's when the shit hits the fan. Then....

Surprise! Need to raise interest rates to pay for trillion dollar deficits. You get it in the ass. Not exactly rocket science.

On the home front, insurance company is paying off my totaled Suzuki and I just bought a 2004 Suzuki to replace it. Looks new and I paid $10000 out the door. I went to the credit union and picked up a check for $9350 and put $650 on my credit card. i got 4.5 % on the loan and $200 a month for 5 years. I'll pay it off in two  or three and borrow more even though interest rate will probably be too high, for my retirement RV.

By the way, no money down is back. The secret is having your financing in hand before you shop. Pay off your loans and borrow a little more. Pay them off then borrow more, doing it over and over. And stay away from running credit card balances as that lowers your score. Just bank your paychecks and use your credit card for immediate expenses then pay your card off in full that improves your credit.

 Patti and I have 12 more payments on the mobile home and then we only pay $190 a month plus electric. I think we'll do fine even with the extra couple of thousand in doctor bills from her operation. At least she goes back to work next week and I can make plans to start another business and generate some tax losses.

Being in business is the only way we can practice tax avoidance since real estate is such a long term mess. A married couple generating $50,000 a year pay through the nose to the gangsters in Washington.

More on this later.

I still would like to get to Florida and start my mobile home investing program for my retirement. I've already found a few bargains on the internet. Which only covers a fraction of the opportunities. People have to live somewhere, even broke dicks. heh heh.

States Scramble to Close New Budget Gaps - WSJ.com
The patches used by states on their ailing budgets just months ago are now failing.

Ohio lawmakers were expected late Thursday to vote on a compromise reached with Gov. Ted Strickland to avoid cutting education budgets an average of 10% on Jan. 1. In Arizona, lawmakers met in a special session Thursday -- their fourth on the budget this year -- to grapple with a new deficit. And in New York, Democratic Gov. David Paterson said Sunday he would postpone paying $750 million of state bills to avert a cash crunch.
[cutting deeper]

Many states eliminated expected deficits earlier this year with budget cuts, tax increases, short-term borrowing, accounting moves and planned gambling expansions.

But despite a slight improvement in the U.S. economy, states are now finding those measures didn't go far enough. Tax collections continue to trail projections in some states, and court rulings and political battles have blocked some gap-filling moves.

Plus, some legislatures didn't fully deal with the deficits, leaving the toughest decisions to governors. All states, except Vermont, have at least a limited requirement of a balanced budget.

Only a few states now have cash-flow problems. But if revenues continue to fall below expectations, the list could grow, said Scott Pattison, executive director of the National Association of State Budget Officers.

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