Category Archives: Taxes

Taxes

Obama bus tour spin, Everyone but Obama to blame, Spend more money, The more Obama speaks the worse the markets perform

Obama bus tour spin, Everyone but Obama to blame, Spend more money, The more Obama speaks the worse the markets perform

“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″

From the LA Times August 18, 2011.

“Obama’s bus tour themes: Washington (not him) really screwed up and we should spend a lot more”

“President Obama did some real good talking the last few days out there in Iowa and Minnesota and Illinois. Well, he did a lot of talking anyway.

He made it sound as if he’s been living in Peosta or Atkinson himself, the way he went on about all the misbehavior going on back there in Washington, D.C., where he has lived since January of 2005 and, since January of 2009, at taxpayer expense in the White House.

The way he described those D.C. political shenanigans, who would want to spend $745 million of someone else’s money to get there? Or $1 billion more to stay there? Or pay $37.1 million of others’ money to 464 aides to help him work there.

Here are a few things said by the Democrat who just spent weeks negotiating spending cuts. See if this sounds like a chastened spender whose credit rating just got downgraded:

When folks tell you that we’ve got a choice between jobs now or dealing with our debt crisis, they’re wrong. They’re wrong. We can’t afford to just do one or the other. We’ve got to do both….

We’ve got over $2 trillion worth of repairs that need to be made around the country, and I know there are some right here in this county and right here in this state. And we’ve got a lot of construction workers that are out of work when the housing bubble went bust, and interest rates are low, and contractors are ready to come in on time, under budget — this is a great time for us to rebuild our roads and our bridges, and locks in the Mississippi, and our seaports and our airports….

I think to myself, you know what, if folks in Washington were carrying out their responsibilities the way you’re carrying out your responsibilities, we’d be just fine. We would be just fine. (Applause.)…

Of course, those folks in Washington including him are not in Washington. Congress is on recess, the same time-off Obama will begin today on another island vacation.”

Read more:

http://latimesblogs.latimes.com/washington/2011/08/obama-bus-canada.html

Obama’s rhetoric is doing a good job of calming financial market fears.

Stock Indexes

Dow 11,046.60 -363.62 -3.19%
S&P 500 1,149.37 -44.52 -3.73%
Nasdaq 2,411.45 -100.03 -3.98%

From the US Labor Dept. today.

In the week ending August 13, the advance figure for seasonally adjusted initial claims was 408,000, an increase of 9,000 from the previous week’s revised figure of 399,000.

Austan Goolsbee Obama chief economic adviser leaving, Citizen Wells commenters on small business problems, Obama economic failures

Austan Goolsbee Obama chief economic adviser leaving, Citizen Wells commenters on small business problems, Obama economic failures

“the Times of the nineteenth of December had published the official forecasts of the output of various classes of consumption goods in the fourth quarter of 1983, which was also the sixth quarter of the Ninth Three-Year Plan. Today’s issue contained a statement of the actual output, from which it appeared that the forecasts were in every instance grossly wrong. Winston’s job was to rectify the original figures by making them agree with the later ones.”…George Orwell, “1984″

“Another liberal economic nut ‘quits’ his job to go back to teaching, because the economy isn’t better. This is nothing more than a manager firing his advisors because he made a horrible decision, based upon his beliefs and their recommendations. Sadly, it’s not like these ‘economic advisors’ get held accountable for poor decision making process and economic policies. No, they get to go back to their ‘teaching jobs’ so they can tell students how great they are and how it was all somebody else’s fault.”…commenter pete

“It’s easy to see why some businesses hire undocumented workers to avoid the tax burden. Or worse yet they just pick up stakes and move out of the country.
And now obamacare will tax us more? Our government’s over taxation and interference has caused small businesses to be reluctant to hire more employees. Under the Obama regime we’ll see businesses leaving the country droves. It is no wonder that our country’s economy is on a downward spiral”….commenter Jonah

Reported on Citizen Wells this morning.

“Most of the key economic indicators have worsened recently, the unemployment rate is back over 9 percent and there is increasing mention of the spectre of a depression.

From the Chicago Tribune June 6, 2011.

“Top Obama economic adviser, Austan Goolsbee, will quit to return to University of Chicago”

“Austan Goolsbee, President Barack Obama’s chief economic adviser, is leaving the administration and returning to the University of Chicago Booth School of Business to teach.

The announcement from the White House late Monday comes at a time when the U.S. unemployment rate is back above 9 percent, speculation is growing that the nation may be at risk of dipping back into a recession and amid intense political debate over whether to extend the nation’s debt ceiling,

Goolsbee began advising Obama before his election as president and has become the administration’s chief public spokesman on the economy. He has headed the White House Council of Economic Advisers for the past nine months. On ABC’s “This Week” program Sunday, Goolsbee emphasized that the administration had made progress on employment since the depths of the Great Recession and said “don’t make too much of any one jobs report.”

May’s unemployment rate, released last week, climbed to 9.1 percent. The stock market has been sliding recently on concerns about a slowing economy in the U.S. and globally.

Obama said in a statement, “Since I first ran for the U.S. Senate, Austan has been a close friend and one of my most trusted advisers. Over the past several years, he has helped steer our country out of the worst economic crisis since the Great Depression.”””

The following comments placed on that article are worthy of publishing:

Commenter pete:

CW,
Do you think that anyone has seen through the game. Another liberal economic nut ‘quits’ his job to go back to teaching, because the economy isn’t better. This is nothing more than a manager firing his advisors because he made a horrible decision, based upon his beliefs and their recommendations. Sadly, it’s not like these ‘economic advisors’ get held accountable for poor decision making process and economic policies. No, they get to go back to their ‘teaching jobs’ so they can tell students how great they are and how it was all somebody else’s fault.

From a small business perspective the problems are easy to see. Foremost, you have a bunch of idiots making the hiring of new employees and economic growth very risky. Obamacare, new regulations, unable to get loans and credit, inflation of goods costs, and bear marketplace all conspire to strike fear into employers. Second, customers are AFRAID. About 1/3 of americans see the Constitution (and rule of law) evaporating before their eyes for the first time in history, and they fear for the future. About 1/3 of Customers are oblivious to the politics, but have no jobs or real income and are underwater on their houses. About 1/3 are starting to believe that the government could default on SS and Medicare/Caid, as well as other entitlements which they are dependent upon. These factors lead to a loss of Consumer Confidence, and fewer and fewer exchanges, jobs, and tax revenue. By the way, even IF you succeed now, and make more than 250k in a year, create jobs, and help your local community, you will be saddled with 71% income tax next year. REALLY! 71%, you might as well make less and smell the roses, send some of your employees home.

What I’m trying to say, while out in the trenches of the small business world, is that Jimmy Carter II on Steroids, Barack Obama (or whatever his/her name is) is bad for small business. Small Business is the engine that runs the American Economy, and it hurting. The government bailouts…..none was targeted to growth of small business or small industry. The new regs and obamacare attack all industry , but are especially hard for small business to cope with because of limited resources.

Ronald Reagan understood america and small business contribution. His economics weren’t trickle down as much as they were designed to help the middle class businessman, the Job creator, to succeed. Obama economics are pumping trillions to the Bankers and the GM/GE of the world, which is truly a trickle down economics. Worse yet, that money just ends up overseas in the ‘global economy’ with job creation elsewhere.

Obama’s economics have struck at the heart of America by removing MIDDLE CLASS JOBS and therefore, the middle class. The liberals, whom pride themselves supposedly helping the poor and middle class, are hypocrites, as their policies actually make it worse for these people by depriving them of needed small business jobs and manufacturing. While people will start to get used to the ‘new economy’ of 8-12% unemployement, the government is going to run out of ‘other peoples money’ soon, and the other shoe is going to drop.

What I written above I believe with my very core, and since it is critical of Obama and his Fascist/Elitist policies, I suppose that makes me a racist. I have sensed an increase in attacks from the left wing nuts as the reality falls upon them that the ‘annointed one’ and his cronies are a lot of hot air and not of true real life tested ideas. Just like socialism I might add, lots of ‘utopia promised’ followed by lots of misery and failure.

Keyensian ecomomics doesn’t work when you don’t have a base of production and small business. Keyensian economics doesn’t work when the Government is not a moderator, but becomes the unchecked new predator (competing for business resources) in a delicate system of customer and business. The ‘brilliant’ economists that have ‘quit’ the Obama economic team obviously not as smart as they thought they were….perhaps we should call Obama’s Economics the ‘Audacity of Arrogance with Ignorance implemented with Inexperience’.

Sorry, done ranting for the morning, I gotta go back to work to try to keep my employees with jobs and pay for other peoples mortages.

Pete”

Commenter Jonah:

“Pete,

Our family has owned a business for almost 40 years. I started paying the bills for the business about 7 years ago and I was alarmed to learn the cost to run a business.

OUR SMALL BUSINESSES PAYS:
FEDERAL INCOME TAX
STATE INCOME TAX
FEDERAL UNEMPLOYMENT TAX
STATE UNEMPLOYMENT TAX
7% SOCIAL SECURITY TAX FOR EMPLOYEES
(this is in addition to the 7% the employee gives the government)
PROPERTY TAX
PERSONAL PROPERTY TAX
UTILITY TAXES ON GAS, ELECTRIC, AND PHONE
GASOLINE TAX
SALES TAX TO THE STATE FOR EVERYTHING WE SELL
APROXIMATELY 7% SALES TAX ON EVERYTHING WE BUY

PLUS WE PAY
MEDICAL INSURANCE
AUTO INSURANCE
PROPERTY INSURANCE
LIABILITY INSURANCE
WORKMAN’S COMP
VARIOUS LICENSES AND PERMITS
I’m sure I’ve forgotten a few things.

THE GOVERNMENT GETS MORE OF OUR MONEY THAN WE DO!

It’s easy to see why some businesses hire undocumented workers to avoid the tax burden. Or worse yet they just pick up stakes and move out of the country.

And now obamacare will tax us more? Our government’s over taxation and interference has caused small businesses to be reluctant to hire more employees. Under the Obama regime we’ll see businesses leaving the country droves. It is no wonder that our country’s economy is on a downward spiral.”

Taxes, Unemployment, Businesses don’t pay taxes people do, Citizen Wells open thread, October 18, 2010

Taxes, Unemployment, Businesses don’t pay taxes people do, Citizen Wells open thread, October 18, 2010

The far left, in ignorance, or as part of their agenda of the end justifies the means, perpetually bashes business and the so called fat cats. They believe that anyone making more money than they should pay more taxes. They believe that corporations are evil.

Here is the truth about taxing business and increased business expenses.
Rush Limbaugh, for many years has done an excellent job of explaining the impact of tax increases on American business and ultimately the American public. He explains that corporations do not pay taxes. This also includes non corporations, all business entities. This is the huge message that you never hear from the left, the business bashers. We already have a seious unemployment situation due to Obama and his far left socialists. I am concerned that tax hikes or hidden cost increases that will begin kicking in 2011, coupled with out of control government spending , will take us over the edge. Our new Congress will have to work fast to deactivate the tax and spend Health Care Legislation, cut taxes and provide a more business and jobs friendly envioronment.
 

Businesses ultimately do not pay taxes. Taxes become part of the cost of doing business. They are passed on to consumers and impact employment and the overall econo. When a business incurrs higher taxes or other increased costs, some combination of the following occurs:

  • The increased costs are passed along to consumers. This could be a local family run dairy farm. The cost increases are reflected in higher milk prices. When higher inheritance taxes are in effect, the children of the dairy farmers could be forced to shut down. That would, of course, diminish supply.
  • The increased costs prevent more hiring from occuring. The spectre of tax increases is causing that now.
  • The increased costs can lead to layoffs and schedule decreases. Our high unemployment rate is witness to that.
  • The increased costs can lead to pay freezes and pay cuts.
  • The increased costs prevent bussinesses from spending money on expansion and new technology, futher putting a damper on the economy.

And don’t forget, people with money start businesses. Questions they must ask are is it feasible, will it make money and where do I locate. Taxes always influnce those decisions.

So when you are encountered by a brain dead, far left sheeple, educate them on higher taxes and business bashing.

Grassroots in Nebraska, Gary Johnson speech, Lincoln NE, June 19, 2010, Former New Mexico Governor, Limit the size of government, Protect freedom

Grassroots in Nebraska, Gary Johnson speech, Lincoln NE, June 19, 2010

Grassroots in Nebraska
Working from the bottom up for a Constitutional, limited government as originally intended by the Founders
Home of the Lincoln Tea Party movement since February 2009

From Grassroots in Nebraska:

“A MESSAGE FROM GRASSROOTS IN NEBRASKA
Included in this message:
June 19th Event “An Evening with Gary Johnson”
Primary Election Results and Next Steps
Immigration Issues
GiN Online
MARK YOUR CALENDARS FOR A JUNE 19TH EVENT – AN EVENING WITH GARY JOHNSON
Former New Mexico Governor Gary Johnson is coming to Lincoln on June 19th for an event that includes a reception and talk. Those who are interested in elected officials who limit the size of government, protect freedom, and seek to maximize the potential for free enterprise should mark this event on their calendars. 
The event has been organized by the Nebraska Republican Liberty Caucus, for which NE Campaign for Liberty State Director Laura Ebke, serves as Chair. RLC-NE’s mission is to serve as the conscience of the Republican party. As you are likely aware, Grassroots in Nebraska has been working on a number of efforts recently with Laura and the NE Campaign for Liberty group, such as advocating for the passage of the Sovereignty Resolution. When Laura asked if GiN would be a co-host for the Governor Johnson event, it was an easy answer.
Governor Johnson at the very least promises to be have a different perspective from much of what’s being heard from politicians today. While serving as New Mexico’s Governor, Gary Johnson vetoed more legislation than all of the other governors in the U.S. during the same period and reduced spending to the extent that New Mexico’s debt was eliminated. He is proof that limited governance doesn’t mean political “suicide”; he was re-elected and served to the length of NM’s term limits.
Of course, I encourage everyone to forward the information about the event to those who they believe may have an interest. All those who attend may find themselves having been in the position of meeting and assessing a potential 2012 candidate; there are indicators that Governor Johnson may be considering a run for President in the next election.
Finally, in addition to what already promises to be an enjoyable and interesting evening, District 26 Legislative Candidate Tom Dierks (who is running against Senator Amanda McGill) is planning on attending Governor Johnson’s speech and hopefully will have a little time to visit with folks afterwards.
Basic information: (see below for links with additional information and registration form)
Saturday, June 19
5:30 – 7:00pm Reception: Meet Gary Johnson and mingle with like-minded conservatives while enjoying hors d’oeuvres and cash bar
7:00 – 8:00pm Presentation and talk by former Governor Johnson
Holiday Inn Southwest, Lincoln
Click HERE for a link to further details on the event on the RCL-NE website
PRIMARY ELECTION RESULTS AND NEXT STEPS
Official results from Nebraska’s Primary Election on May 11 can be read in full on the Nebraska Secretary of State’s website. Click HERE.
GiN’s primary stated mission is to promote limited government as originally intended by the Founders – from the bottom-up. That means our emphasis is within Nebraska and focused on its governmental entities. Those of us who actively engaged in the legislative process this past session recognized in order to effectively advocate for limited government and the protection of individual liberty, we need representatives at the Unicameral who share those priorities.
Of course we are interested in who is sent to represent Nebraska in Washington, D.C., but we have ample evidence that 1) The majority of Congress is currently impervious to all evidence of opposition and 2) the climate in Nebraska favors incumbents, particularly those holding federal offices.
If you are interested in an effort to elect Constitutional, limited government candidates to the Nebraska Unicameral, those of us who spent time walking for District 28 Candidate Nancy Russell intend to build upon her solid showing in the primary, and at the request of several GiN members, are considering expanding our efforts to at least two prospective candidates if we can get commitments from a solid core of volunteers. If you are interested in joining in these efforts, please let us know.
IMMIGRATION
A serious “shout-out” must be given to Susan Smith, leader of the Nebraskans Advisory Group (click HERE for the website). Susan has been working very hard on this issue for a very long time. In the coming week, I hope to do an in-depth interview with her regarding several items of importance, particularly regarding an upcoming vote in Fremont pertaining to an illegal immigrant ordinance. I  will send out a message with a link to a post on the GiN website when completed. In the meantime, some information you might find interesting:
The Fremont vote is June 21. A serious effort is underway to register voters by June 11 for the special election on the ordinance noted above.
Susan is urging calls to the Nebraska Congressional delegation; Reps. Terry, Fortenberry, and Smith, urging them to demand National Guard troops be sent to the border and vote no on any amnesty proposal. Click HERE for their contact information.
GiN Online
You will be seeing changes in the next few weeks on the both the main website (http://grassrootsne.com) and the member NING site. The main GiN site could use an improved look, clearer navigation, and more visible links to resources.
Also, NING networks has announced they will begin charging a monthly fee for their services so we will be moving membership to a new location, which will be similar, but hopefully an improvement over the NING site and more integrated into the main website. I will keep folks informed regularly regarding the move.
Thank you,
Shelli Dawdy
402.261.5573
Grassroots in Nebraska
Working from the bottom up for a Constitutional, limited government as originally intended by the Founders
Home of the Lincoln Tea Party movement since February 2009
Check us out online…
Grassrootsne.com

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May payroll numbers worse than forecast, Employers in the US hired fewer workers in May, Payrolls rose by 431000, Economists projected a 536000, Stock futures drop

May payroll numbers worse than forecast, Employers in the US hired fewer workers

From Bloomberg June 4, 2010.

“Employers in the U.S. hired fewer workers in May than forecast and Americans dropped out of the labor force, showing a lack of confidence in the recovery that may lead to slower economic growth.

Payrolls rose by 431,000 last month, including a 411,000 jump in government hiring of temporary workers for the 2010 census, Labor Department figures in Washington showed today. Economists projected a 536,000 gain, according to the median forecast in a Bloomberg News survey. Private payrolls rose a less-than-forecast 41,000. The jobless rate fell to 9.7 percent.

Staff reductions at companies such as Hewlett-Packard Co. and Citigroup Inc. indicate a slowing in the labor market that threatens to restrain consumer spending, the biggest part of the economy. Federal Reserve Chairman Ben S. Bernanke said yesterday that unemployment was exacting a heavy toll, showing why economists forecast interest rates will remain low.

“It’s going to be a long haul,” Michael Englund, chief economist at Action Economics LLC in Boulder, Colorado, said before the report. “We really aren’t adding many jobs. We’ve lost some momentum in the economy and final sales clearly aren’t enough to generate job growth.”

Stock-index futures fell and Treasury securities rose after the report. The contract on the Standard & Poor’s 500 Index dropped 2.1 percent to 1,080 at 8:38 a.m. in New York. The 10- year Treasury note rose, pushing down the yield to 3.27 percent from 3.37 percent late yesterday.”

“Payrolls estimates in the Bloomberg survey of 82 economists ranged from 220,000 to 750,000 after a gain of 290,000 jobs in April. Economists surveyed also forecast the jobless rate fell to 9.8 percent last month from 9.9 percent in April. Unemployment reached a 26-year high of 10.1 percent in October. The May figures showed the labor force shrank 322,000.

Federal hiring of temporary workers to conduct the decennial population count probably peaked last month, economists said.

The unwinding of census employment may keep distorting the payroll figures for months as the government dismisses workers when the count is completed. For that reason, economists say private payrolls, which exclude government jobs, will be a better gauge of the state of the labor market for much of 2010.”

Read more:

http://www.bloomberg.com/apps/news?pid=20601087&sid=ax55j3oSwVuI&pos=1

Jobless claims report May 27 2010, US Labor Dept, Initial claims 460000, Decrease of 14000, This is good news?

Jobless claims report May 27 2010, US Labor Dept, Initial claims 460000, Decrease of 14000

This is good news?

From the US Department of Labor May 27, 2010.

“UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

          SEASONALLY ADJUSTED DATA

In the week ending May 22, the advance figure for seasonally adjusted initial claims was 460,000, a decrease of 14,000 from the previous week’s revised figure of 474,000. The 4-week moving average was 456,500, an increase of 2,250 from the previous week’s revised average of 454,250.

The advance seasonally adjusted insured unemployment rate was 3.6 percent for the week ending May 15, unchanged from the prior week’s unrevised rate of 3.6 percent.

The advance number for seasonally adjusted insured unemployment during the week ending May 15 was 4,607,000, a decrease of 49,000 from the preceding week’s revised level of 4,656,000. The 4-week moving average was 4,637,250, a decrease of 11,500 from the preceding week’s revised average of 4,648,750.

The fiscal year-to-date average of seasonally adjusted weekly insured unemployment, which corresponds to the appropriated AWIU trigger, was 5.134 million. 

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 404,325 in the week ending May 22, a decrease of 5,765 from the previous week. There were 538,311 initial claims in the comparable week in 2009.

The advance unadjusted insured unemployment rate was 3.4 percent during the week ending May 15, a decrease of 0.1 percentage point from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 4,381,421, a decrease of 88,300 from the preceding week. A year earlier, the rate was 4.6 percent and the volume was 6,153,284.
Extended benefits were available in Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, and Wisconsin during the week ending May 8.

Initial claims for UI benefits by former Federal civilian employees totaled 1,481 in the week ending May 15, an increase of 163 from the prior week. There were 2,369 initial claims by newly discharged veterans, a decrease of 120 from the preceding week.

There were 17,937 former Federal civilian employees claiming UI benefits for the week ending May 8, an increase of 577 from the previous week. Newly discharged veterans claiming benefits totaled 36,370, an increase of 1,365 from the prior week.

States reported 5,059,843 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending May 8, a decrease of 41,403 from the prior week. There were 2,185,863 claimants in the comparable week in 2009. EUC weekly claims include first, second, third, and fourth tier activity.

The highest insured unemployment rates in the week ending May 8 were in Puerto Rico (6.2 percent), Alaska (5.9), Oregon (5.4), Nevada (4.9), California (4.8), Pennsylvania (4.7), Wisconsin (4.5), North Carolina (4.4), Montana (4.3), and Connecticut (4.2).

The largest increases in initial claims for the week ending May 15 were in Tennessee (+3,041), Missouri (+2,369), Mississippi (+1,697), Illinois (+1,154), and Arkansas (+851), while the largest decreases were in California (-2,161), Michigan (-2,133), Washington (-1,968), Florida (-1,480), and Oregon (-1,200).”

Read more:

 http://www.dol.gov/opa/media/press/eta/ui/current.htm

Obama approval rating -22, Lowest Obama approval rating, May 26, 2010, Rasmussen, 45% strongly disapprove

Obama approval rating -22, Lowest Obama approval rating, May 26, 2010

From Rasmussen May 26, 2010.

“The Rasmussen Reports daily Presidential Tracking Poll for Wednesday shows that 23% of the nation’s voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-five percent (45%) Strongly Disapprove, giving Obama a Presidential Approval Index rating of -22. That’s the lowest Approval Index rating yet measured for this president (see trends).

Enthusiasm for the president among Democrats, which bounced following passage of the health care law, has faded again. Just 48% of those in the president’s party now Strongly Approve of Obama’s performance. That’s down from 65% earlier.

Among men, 20% Strongly Approve and 50% Strongly Disapprove. Among women, those numbers are 27% and 40% (see other recent demographic highlights).

The Presidential Approval Index is calculated by subtracting the number who Strongly Disapprove from the number who Strongly Approve. It is updated daily at 9:30 a.m. Eastern (sign up for free daily e-mail update). Updates are also available on Twitter and Facebook.

Overall, 43% of voters say they at least somewhat approve of the president’s performance. Fifty-five percent (56%) disapprove.

The number who give the president good or excellent marks for handling the economy has fallen to 35%. That’s down four points from a week ago. Forty-eight percent (48%) say the nation’s economic problems were caused primarily by President Bush while 43% blame President Obama. See other measures of the president’s performance at Obama By the Numbers.”

Read more:

http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

US economy slowdown, Economy cooling, Financial markets, Corporate forecasts, Soft retail sales, Rise in jobless claims

US economy slowdown, Economy cooling, Financial markets, Corporate forecasts

From Daily Finance May 22, 2010.

“Forget Europe: Signs of a Slowdown in the U.S.”
“Financial markets around the world are fixated on Europe as it grapples with its debt woes. Though probably overdone, investor paranoia is understandable. The fallout for the global economy would be massive if things spiraled out of control, unlikely as that may seem for the moment.

While potentially catastrophic developments overseas may be captivating, investors would do well to stay focused on more subtle developments in the U.S. Much of Wall Street remains bullish on the prospects of an economic recovery, but some signs suggest that a slowdown may be materializing nonetheless.

Watch Corporate Guidance and Economic Indicators

Hosted software provider Salesforce.com (CRM) is the latest company to report strong results for the first quarter but provide a forecast that couldn’t live up to Wall Street’s expectations. On Thursday, the company said it expected earnings per share of between $1.13 and $1.15 for the full year. That was well below the $1.28 analysts had forecast, and shares tumbled in trading after hours.

The results from Salesforce.com mirror those of networking giant Cisco (CSCO) last week. While Cisco delivered a strong first quarter, shares were initially hammered based on a lackluster outlook for the rest of the year. Hardware giant Dell (DELL) also came under fire as concerns about its ability to maintain profits grew despite solid results for the first quarter.

A slew of retailers including Lowe’s (LOW), Home Depot (HD) and Wal-Mart (WMT) have also provided skimpy guidance for the rest of the year. And while companies may well be trying to game Wall Street by setting the bar low only to dazzle later, recent economic data suggests that the economy could also be slowing after a sharp rebound in demand from depressed lows.

A set of closely watched indicators released Thursday by the Conference Board showed that the economy may be cooling as it heads into the second half of the year. Those findings echo leading indicators monitored by the Economic Cycle Research Institute, which noted that “the pace of improvement in the overall economy is set to slacken in the months ahead” as measures fell to a 40-week low.

Soft retail sales and a sudden rise in jobless claims have contributed to the darkening picture.”

Read more:

http://www.dailyfinance.com/story/investing/forget-europe-signs-of-a-slowdown-in-the-u-s/19487132/

Budget deficit widens, Largest April deficit ever, $82.7 billion shortfall, Record 19th straight monthly shortfall, Risk of higher interest rates

Budget deficit widens, Largest April deficit ever, $82.7 billion shortfall

From Bloomberg, May 12, 2010.

“Budget Deficit in U.S. Widened to $82.7 Billion in April”

“The U.S. reported a budget deficit for April, the second such shortfall since 1983 for the month that typically sees an increase in income tax payments.

The excess of spending over revenue rose to $82.7 billion last month compared with a $20.9 billion gap in April 2009, the Treasury Department said today in Washington. It was the largest April deficit ever and exceeded the median forecast in a Bloomberg News survey.

April marked a record 19th straight monthly shortfall, highlighting the challenges facing the Obama administration. Deterioration in the government’s balance sheet in coming years raises the risk of higher interest rates even as an improving economy helps generate taxable income.

“We’re not going to see the deficit come down until economy gets healthier,” Gary Thayer, chief macro strategist at Wells Fargo Advisors LLC in St. Louis, said before the report. “We still have some important problems with the economy. There’s still a tendency by policy makers and lawmakers to address the problem with additional spending.”

The government’s April budget deficit compares with a median forecast of $57.9 billion, according to a Bloomberg survey of 30 economists. Projections ranged from deficits of $20 billion to $90 billion.”

“Revenue Declines

Revenue and other income fell 7.9 percent to $245.3 billion in April from $266.2 billion the same month last year, the Treasury said.”

“Spending for the entire government for April jumped 14.2 percent from the same month a year earlier to $328 billion.”
“The Obama administration forecasts a $1.6 trillion budget deficit in the current fiscal year that began Oct. 1. President Barack Obama’s debt commission met April 27, the first of a series of meetings aimed at producing a plan to reduce the deficit.

Administration officials and Democrats in Congress are looking to the commission for recommendations on reducing the federal debt, which is currently projected to reach 90 percent of the economy by 2020. Interest payments are forecast to quadruple to more than $900 billion annually by that year.”

Read more:

http://www.bloomberg.com/apps/news?pid=20601087&sid=agqhhoO8_cS0&pos=3

Unemployed data, Facts, May 8, 2010, Unemployment rate rises to 9.9 %, Employment rises 290,000, Emergency Unemployment Compensation rises 153,786

Unemployed data, Facts, May 8, 2010, Unemployment rate rises to 9.9 %

Three things happened last week that caused me to ponder what is going on with our economy.

The stock market plunged.

Confusing numbers from the government about employment and unemployment were released.

Many colleges were winding down their academic year. With this comes millions of young adults entering the work force part time or full time. What kind of job market will they encounter?

Consider these numbers and data released last week by the Federal Government.

  • Nonfarm payroll employment rose by 290,000 in April.
  • The unemployment rate edged up to 9.9 percent.
  • In April, the number of unemployed persons was 15.3 million.
  • The rate had been 9.7 percent for the first 3 months of this year.
  • The number of long-term unemployed (those jobless for 27 weeks and over) con-tinued to trend up over the month, reaching 6.7 million.
  • In April, 45.9 percent of unemployed persons had been jobless for 27 weeks or more.
  • Among the unemployed, the number of reentrants to the labor force rose by 195,000 over the month.
  • About 2.4 million persons were marginally attached to the labor force in April, compared with 2.1 million a year earlier.
  • They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.
  • Among the marginally attached, there were 1.2 million discouraged workers in April, up by 457,000 from a year earlier.
  • Discouraged workers are persons not currently looking for work because they believe no jobs are available for them.
  • Federal government employment was up in April, reflecting the hiring of 66,000 temporary workers for the decennial census.
  • UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT: In the week ending May 1, the advance figure for seasonally adjusted initial claims was 444,000, a decrease of 7,000 from the previous week’s revised figure of 451,000.
  • States reported 5,354,259 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending April 17, an increase of 153,786 from the prior week.

 

Sources:

http://www.bls.gov/news.release/empsit.nr0.htm

http://www.dol.gov/opa/media/press/eta/ui/current.htm

No wonder the stock market has the jitters.