Fantastic article explaining what’s REALLY happening:

[briansd1]

[quote=Jazzman]
Another problem is that Europe is not homogenous, so cultural differences can be big. Expecting Greece to adopt the disciplines of say the German economy is going to take a shift in mindset. The fundamental difference between all countries used to be the relationship between banks, businesses and governments. The question now might be has globalization brought about more of a uniformity in that relationship.[/quote]

I see it a little differently.

America is a big diverse country, population wise. The difference is that we have automatic wealth transfers from rich states to poor states. Strong economies of the coasts support the poorer states such a Mississippi and Alabama.

A vibrant economy needs productive savers as well as consumers. You need well paid professionals, but also need low paid service employees.

Greece was a quasi developing country when they joined the Euro. They should have kept wages low to compete with Germany and attract investments. But without reforming, they borrowed to bring themselves up closer to France and Germany’s standards.

The internal deflation now happening in Greece will make them more competitive by lowering wages. But the Greeks have gotten used to the good life so it’s hard for them to go back to the old standard of living.

Germany should bail out Greece because German industry benefited greatly from Greek consumption. It’s a chicken and egg thing — co-dependence.

China is lending money to us because they need us to keep on buying their products.

Only time and reforms can bring things back into balance.

[CA renter]

[quote=sdrealtor]Not to mention that there is a difference between unions and the AMA, NAR and NADA. Those groups lobby to impact policy they do not negotiate for salaries and benefits for their groups. Further the AMA lobbies for policy that impacts medical care delivery to people. NAR looks to impact housing policy and the availability of financing for homes. I’m not saying they don’t so please enlighten us as to how each of those unions does anything in the name of the general public?[/quote]

Holy shit, sdr!!!! You’ve got to be kidding!!!

Those groups lobby for regulations and laws that force people to use the services of their members, and restrict new entrants in their respective markets. They lobby for “govt-backed” financing, foreclosure moratoriums, taxpayer-funded bailouts, and other interventions that force home buyers to overpay for housing (and the related commissions). In other words, they lobby so that they can receive more money and power for themselves and their members!

There is ONE and only ONE reason for every single one of these political contributors/donors in D.C.: MONEY!

[yoyoyah1]

This is a simplification of the Greek problem.

They are spending at a rate faster than the tax revenue. Also, % of population working for the government is quite high.

This is not a rich vs poor problem.. its structurally unsound economy over reliant on government jobs.

[paramount]

[quote=yoyoyah1]This is a simplification of the Greek problem.

They are spending at a rate faster than the tax revenue. Also, % of population working for the government is quite high.

This is not a rich vs poor problem.. its structurally unsound economy over reliant on government jobs.[/quote]

And exactly how is this different from California?

[sdrealtor]

I believe it was you who said no one is forced to buy anything. They have choices. You basically agreed with what isaid about them lobbying to impact public policy while adding a dose of vitriol. I’m still waiting for my NAR paycheck, benefits and pension plan. I’m also waiting to hear what public unions do for anyone other than their members.

[sdrealtor]

[quote=paramount][quote=yoyoyah1]This is a simplification of the Greek problem.

They are spending at a rate faster than the tax revenue. Also, % of population working for the government is quite high.

This is not a rich vs poor problem.. its structurally unsound economy over reliant on government jobs.[/quote]

And exactly how is this different from California?[/quote]
Wish I could like that post

[CA renter]

[quote=paramount][quote=yoyoyah1]This is a simplification of the Greek problem.

They are spending at a rate faster than the tax revenue. Also, % of population working for the government is quite high.

This is not a rich vs poor problem.. its structurally unsound economy over reliant on government jobs.[/quote]

And exactly how is this different from California?[/quote]

And tax evasion in Greece is a national pastime. Just sayin’.

[CA renter]

[quote=sdrealtor]I believe it was you who said no one is forced to buy anything. They have choices. You basically agreed with what isaid about them lobbying to impact public policy while adding a dose of vitriol. I’m still waiting for my NAR paycheck, benefits and pension plan. I’m also waiting to hear what public unions do for anyone other than their members.[/quote]

No, I never said that no one is forced to buy anything. To the contrary, I’ve said that we often don’t have a choice, without extreme hardship or inconvenience, whether one buys from the private market or the public market.

Unions lobby on behalf of union members (though they represent the interests of union members/employees, unions are not public employees), and never claimed to do anything else. The NAR and all other associations, etc. represent their members’ interests in just the same way. Many public employees get decent benefits (which used to be found in the private sector, too…before the private sector sheeple bought into the lies that “unions are bad” and “globalization is good”), and realtors make $10K for work that is worth $800, tops. The form of compensation doesn’t matter at all; the bottom line is that all of these organizations are looking out for the interests of their (usually paying) members. In every case, it’s about getting more money/compensation for their members via regulations, subsidies, government financing/guarantees, tax breaks, etc. You can’t single out any one type of organization because these donors/contributors are ALL “guilty” of the same things, and consumers/taxpayers are paying the price for ALL of them.

If you’re arguing that we need to get money out of politics, I’m with you 100%, but only if ***ALL*** money/bribery is banned. We need a level playing field in order to prevent a total takeover of our entire society and economy; it’s all about checks and balances. If capital has a seat at the table, then labor has to have a seat at the table as well.

[sdrealtor]

Yes my work is worth $800 tops. Today after going back and forth on counters offers 3 times (up to counter offer #6) my clients were ready to accept the sellers counter. I asked them to let me try one additaional last thing my way. The result is they are opening escrow another $7500 below the “sellers bottomline” that we spent 2 weeks negotiating back and forth to get to not to mention 6 months of searching and writing numerous offers. I’d like to think the fact that I saved them $7500 today is worth more than $800 but what do I know.

[CA renter]

And they couldn’t have negotiated this on their own (and saved thousands of dollars on commission costs if they were to take the “selling agent’s” portion of the commission) if they were able to represent themselves? …which they’re not, thanks to the NAR.

[sdrealtor]

They could have gone directly to the sellers agent and asked for a reduction in the price by the buyers commission side however that wouldnt have helped much. If the listing agent would have done that she would have insisted on a price starting at least $40K higher than we settled at and would have reduced it by the buyers side commission that was alot less than $40K. This was a very challenging negotiation. I got the sellers to accept $40K less than an inferior comp closed a couple doors away last month. I earned every penny that I made on this one based upon what I got them the house for not even factoring in months of work and many failed attempts on other houses.

FWIW, I beleive I could have done alot better for you also. Alot better.

[Anonymous]

[quote][…] if they were able to represent themselves? …which they’re not, thanks to the NAR.[/quote]

So now we are arguing against government regulation of complex financial transactions?

Yeah, that’s just what our economy needs: fewer consumer protections.

Free markets are evil, but every person for themselves!

The arguments go in circles, but a common theme pervades: bitterness.

[CA renter]

Just FYI…

“The Trans-Pacific Free Trade Agreement is currently being negotiated between the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam, with bilateral discussions also under way for entry by Canada, Japan and Mexico. Unlike many other international negotiations, including even those at the World Trade Organization (WTO), these have been conducted with virtually zero transparency. While the American public is barred from knowing what their representatives are negotiating for and negotiating away, approximately 600 corporate advisors are given regular access to the negotiating texts and negotiators.

Many see a double-standard at work. When public health advocates attempted to hold a luncheon in the hotel to share their expertise with interested negotiators, they even had their room reservation revoked. Activists are angry that these negotiations have been so secretive, and warned that without greater public participation, the Trans-Pacific trade talks could deliver a corporate-backed “NAFTA of the Pacific.”

According to AFL-CIO Trade Policy Specialist Celeste Drake:

Far too many Californians have already had their jobs shipped overseas, and now corporations are crowing that they need to find low-cost labor alternatives to sweatshops in China. We’ve heard talk about ‘labor and environmental’ standards ever since NAFTA, and so far nothing offered has been adequate to protect jobs at home and human rights abroad. President Obama has promised better, but American workers would be more confident if the process were more open. In his State of the Union Address, he promised to bring manufacturing jobs back to America, and we hope he does that.

It’s hard to see the Trans-Pacific Free Trade Agreement as a reasonable way to boost our manufacturing sector, given how similar trade deals have decimated it. NAFTA alone cost the U.S. nearly 700,000 jobs, and since China joined the WTO in 2001, we’ve lost over 6 million manufacturing jobs, or 1 in 3. Americans have caught on, too, with 69% considering FTAs job-killers, according to a recent poll. And they’re starting to voice their concerns.”

http://www.calaborfed.org/index.php/site/page/activists_take_on_secret_trans-pacific_free_trade_agreement_demand_fair_deal_or_no_deal/

[no_such_reality]

[quote=CA renter]”The easiest way to understand Europe’s financial crisis is to look at the solutions being proposed to resolve it. They are a banker’s dream,…[/quote]

Ah, the bankers dream deal, a 53.5% write down of the amount owed.

Maybe we can get the State unions to take that dream deal on their pensions.

[quote=BBC]
“Greece has won a 53.5% reduction in its debt burden to private creditors, while any profits made by eurozone central banks on their holdings of Greek debt will be channelled back to Greece.” http://www.bbc.co.uk/news/business-13798000%5B/quote%5D

[briansd1]

CA renter, I think you will enjoy this latest by Paul Krugman.

By all means, let’s talk about visionary ideas; but we can take a big step toward full employment just by using the federal government’s low borrowing costs to help state and local governments rehire the schoolteachers and police officers they laid off, while restarting the road repair and improvement projects they canceled or put on hold.

Krugman is right that state and local governments have been cutting back a lot.

But, IMO, that doesn’t mean that pensions don’t need to be adjusted. I’d rather see pensions cut back than cuts in education and social services. The role of state and local governments is to provide services, not support former employees’ cushy retirements.

Unfortunately, pensions are contracts that come first. And why would local politicians and administrators cut their own pensions?

[Author]

Posts