Michael Shedlock
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The New York Times is reporting Paterson Warns of Economic Crisis.
In a rare, brief televised address, Gov. David A. Paterson announced on Tuesday afternoon that he would call the Legislature into an emergency session on Aug. 19 to address what he called an economic and budget crisis confronting New York State as a result of plummeting revenues and rising costs.
The new governor avoided any mention of new taxes, instead arguing forcefully for austerity. He said he was calling on the Legislature to reduce the size of the state workforce; cut agency spending; reduce property taxes for homeowners; aid New Yorkers with the soaring costs of home energy; and even consider public-private partnerships that would take over state assets.
“Revenues are dropping dramatically,” the governor added. At the start of May, the state budget office projected a cumulative deficit of $21.5 billion over the next three years. Now, just two months later, that estimate has risen to $26.2 billion — “a staggering 22 percent increase in less than 90 days.”
Mr. Paterson offered another example of the rapid deterioration in the state’s finances. In June 2007, he said, the 16 banks that pay the most on their business profits remitted $173 million to the state treasury. “This June, just a month ago, they sent us $5 million — a 97 percent decrease,” he said.
Era of ‘buy now and pay later, and later’ is over
New York is the second state in five days to declare a fiscal emergency. See
Schwarzenegger Announced Intention To Slash State Workers' Pay Till Budget Passes
for more on the crisis in California.
The most stunning thing about Paterson's announcement is how rational it is. He is not begging Washington for handouts, asking for higher taxes, or praying for miracles.
This is pretty stunning too:
In June 2007, the 16 banks that pay the most on their business profits remitted $173 million to the state treasury. “This June, just a month ago, they sent us $5 million — a 97 percent decrease.
”
Unlike Schwarzenegger who has for years resorted to floating bond or proposing various lottery schemes to "fix" the budget, Paterson has the correct solution.
Of course Schwarzenegger has at times vowed to "cut up the credit cards" but in the end has delivered nothing but promises and schemes of floating $500 billion in bonds to "rebuild California the way it needs to be rebuilt".
Can Paterson Deliver?
I hope Patterson can, but the state legislature is likely to resist all the way.
The Right Mindset
- Cutting spending
- Learning to do with less
- Austerity
- Reduce the size of the government workforce
- Reduce property taxes
Patterson had the courage to say exactly what I asked Senator Obama to say in
. However, saying these things is one thing, and doing them is another.
Regardless of whether or not all of those things happen, some forced austerity is all but assured. The same goes for California as well.
And the word that describes the process best is the one word nearly everyone is in denial over: deflation.
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This article has 4 comments:
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M in Baltimore
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Jul 31 02:53 PM****B of A to own Countrywide Mtg.(B of A will by itself control close to 40% of ALL USA Mortgages) with Countrywide
alone not counting the two below.
(Talk about a Monarchies)
JP Morgan to own EMC MTG.
Merrill Lynch to own Saxon Mtg.
Subject: Quote by Thomas Jefferson "Is a Central Bank is ever created in America- Through Inflation and Deflation the "Bankers" will Rob The "Americans"
This is the Truth-The Bankers created the S&L crisis and eliminated the competition and They created the Sub-prime crisis (The Banks create the product not the Loan-Brokers) and will eliminate the Loan Brokers.And have already procured the Treasury-and Federal Reserves' approval and the Supreme court confirmation to go into Real Estate and as The now deceased "George Thatcher" ( Thatcher who started Sterling S&L and build it into Union bank and sold it to Barclays -Who sold it to a Japanese Financial concern) told me - The Bankers tried this in the depression. As the "Movie" " A Wonderful Life" with Jimmy Stewart depicts" only this time the "Jimmy Stewarts of America" lose. Due to a ignorant Senate / Congress /and Public all to willing to buy the (BS) -That the Loan Brokers did it. And this way (With only the Banks left) the Public will save money with No competition (Wrong). Further the Late Senator "Henry Hyde" of Utah and "Henry Gonzales" of Texas held the Bankers at bay till "Henry Hyde's" apprentice turned on him after he died and "Sold" out to the Bankers.
Lets start a petition and have everyone from the Homeowners' losing their Homes to the Loan Brokers to the Real Estate community sign under this and get millions of signatures and STOP the Bankers before it is to late to save the "America" created by our Founders OR will we become like the "Serfs of Europe" in the 1300-1600s controlled by the Central Bankers as Slaves.
The plan is for a ALL powerful Federal-Central government to eliminate the States, And then , Run "America" Thru the Federal Reserve and its main Bankers .Example: B of A will control 22% of ALL Home Loans on the buy out of Countrywide. This means B of A will control more than 1 out of 5 Home
Loans. Remember the "Magna Carta" & the "Bill of Rights & The Sons of Liberty & Thomas Paine's "Common Sense" & the Laws against Monopolies.
The Truth is the Loan Brokers (were pawns) and for the most part made a living and sold their Loans to the big Banks who were not at this point controlled by Respa and resold the Loans at Multiple profits to the (GSEs). Compare the Loan-Brokers commissions with the Bankers." The BANKERS HAD THEIR HIGHEST PROFIT in HISTORY" from 1999-2006 who. and now are crying "Wolf" .
Our founders refused to have a Central Bank-- until the Traitor- Wilson "SOLD" out with J.P. Morgan's" Help creating the "Federal Reserve"
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
Read what Pres. Andrew Jackson Pres. Thomas Jefferson and Pres. George Washington thought of the Central Bankers.
The Treasury Department's plan to revamp regulation of the nation's banks, thrifts and investment banking firms is (so we hear) going nowhere fast. The blueprint - among other things - would eliminate state banking charters. As we all know, state chartered banks are at the center of the nation's mortgage crisis because they're the ones who created all those risky loan programs, securitized subprime mortgages, and sold them overseas in the form of CDOs to foreign investors. Ooops, I'm sorry that's Wall Street where Treasury secretary Henry Paulson used to work. If I were the head of a community bank trade organization I would attack the monster that created the mess: Wall Street. How best to do that? Answer: resurrect Glass-Steagall which (until it was torn down by Congress last decade) prohibited investment bankers from owning depositories and banks from underwriting securities..
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Perm it Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax),
IRS Penalties (tax on top of tax),
Liquor Tax,
Luxury Tax,
Marriage License Tax,
Medicare Tax,
Property Tax,
Real Estate Tax,
Service charge taxes,
Social Security Tax,
Road Usage Tax (Truckers),
Sales Taxes,
Recreational Vehicle Tax,
School Tax,
State Income Tax,
State Unemployment Tax (SUTA),
Telephone Federal Excise Tax,
Telephone Federal Universal Service Fee Tax,
Telephone Federal, State and Local Surcharge Tax,
Telephone Minimum Usage Surcharge Tax,
Telephone Recurring and Non-recurring Charges Tax,
Telephone State and Local Tax,
Telephone Usage Charge Tax,
Utility Tax,
Vehicle License Registration Tax,
Vehicle Sales Tax,
Watercraft Registration Tax,
Well Permit Tax,
Workers Compensation Tax..
STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago,
and our nation was the most prosperous in the world.
We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.