'Emergency' Tax on the Rich Roils Britain

As part of the global push to tax the rich, Britain is now debating an “emergency” wealth tax. But the idea has hit fierce opposition from conservatives, who say the “politics of envy” hasn’t made the country rich.

Deputy Prime Minster Nick Clegg, leader of the Liberal-Democrat Party, has proposed a one-time tax on the wealth (rather than the incomes) of high-net-worth Britons. The details aren’t clear, but Clegg says the country is facing an economic war caused by a prolonged recession, and needs to tax the rich in order to avoid social unrest.

He told the Guardian that unless the country “hardwired fairness” into the budget, “I don't think the process will be either socially or politically sustainable or acceptable."

READ MORE:  http://www.cnbc.com/id/48825978

FCC eyes tax on Internet service

The Federal Communications Commission is eyeing a proposal to tax broadband Internet service.
The move would funnel money to the Connect America Fund, a subsidy the agency created last year to expand Internet access.

The FCC issued a request for comments on the proposal in April. Dozens of companies and trade associations have weighed in, but the issue has largely flown under the public's radar.

"If members of Congress understood that the FCC is contemplating a broadband tax, they'd sit up and take notice," said Derek Turner, research director for Free Press, a consumer advocacy group that opposes the tax.

Numerous companies, including AT&T, Sprint and even Google have expressed support for the idea.

READ MORE:  http://thehill.com/blogs/hillicon-valley/technology/245479-fcc-eyes-tax-on-internet-service

Some Free Advice for Mitt Romney

Stop talking tax percentages. Start talking dollars. The media understand this. In today’s issue of USA Today (August 17, 2012) there’s an above-the-fold article on page 4A with this headline: “Romney: Paid 13% or more in taxes each year.” Nowhere in the article does it say how much 13 percent is in dollars. There’s a reason for this.

What’s 13 percent of your yearly income? Is it nearly $3 million? If it is, say it. “I paid $3 million dollars in taxes.” Emphasize the word ‘million.’

Ask reporters who ask you how much you paid last year how much they paid. Ask Diane Sawyer and other media types how much money they make and how much they pay in taxes. Then ask Harry Reid how much he paid in taxes last year. Ask President Obama how much he paid in taxes last year.

Read more: http://politicaloutcast.com/2012/08/some-free-advice-for-mitt-romney/#ixzz24wLLbrGP

Gritty N.J. city of Camden to scrap police department amid budget woes

Crime-ridden Camden, New Jersey - often referred to as the most dangerous city in the United States—is getting rid of its police department.

In the latest example of a cash-strapped municipality taking drastic measures to deal with swollen public sector liabilities and shrinking budgets, the city plans to disband its 460-member police department and replace it with a non-union “Metro Division” of the Camden County Police. Backers of the plan say it will save millions of dollars for taxpayers while ensuring public safety, but police unions say it is simply a way to get out of collective bargaining with the men and women in blue.

“This is definitely a form of union-busting," Camden Fraternal Order of Police President John Williamson told FoxNews.com. “This method is unproven and untested, to put your faith in an agency that doesn’t even [yet] exist.”

READ MORE: http://www.foxnews.com/politics/2012/08/24/camden-nj-to-reboot-police-department-by-new-year/#ixzz24qyhLH8t

Argentine President Cristina Fernandez's popularity sinks to 30%

Argentine President Cristina Fernandez's popularity sank to 30 percent in August, less than half of what it was a year earlier, according to a poll published on Sunday that portrayed a country worried about crime and high inflation.

The telephone survey of 2,259 voting-age Argentines by polling company Management & Fit showed dissatisfaction with the interventionist policies that won Fernandez a landslide re-election 10 months ago.

The popularity of the 59-year-old Peronist -- who is part of a bloc of left-leaning South American leaders including Evo Morales of Bolivia and Rafael Correa of Ecuador -- fell by 8.1 percentage points between August and July alone.


The international bond market has shunned Argentina since its 2002 sovereign debt default and subsequent embrace of policies that emphasize state intervention in the markets and heavy government spending meant to stoke economic growth.

READ MORE:  http://www.reuters.com/article/2012/08/26/us-argentina-fernandez-poll-idUSBRE87P07620120826

CBO warns of deep recession if Congress fails to avert 'fiscal cliff'

The nonpartisan Congressional Budget Office (CBO) on Wednesday warned the economy will enter a recession next year if the country goes over the so-called fiscal cliff.

In its most dire warning yet about the fiscal cliff, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the George W. Bush-era tax rates expire and automatic spending cuts are implemented.

Unemployment also would rise from 8.2 percent in 2012 to 9.1 percent next year, the office estimates.

“The stakes of fiscal policy are very high right now,” CBO Director Doug Elmendorf said. He urged Congress to act in September to avoid the fiscal cliff.

READ MORE:  http://thehill.com/blogs/on-the-money/budget/244703-cbo-warns-of-deep-recession-if-congress-fails-to-act-on-fiscal-cliff

Sen. Portman: Obama’s ‘Regulatory Cliff’ As Bad As Fiscal One Read more: Sen. Portman: Obama’s ‘Regulatory Cliff’ As Bad As Fiscal One

The Obama administration is steering the country toward a steep “regulatory cliff” that could exacerbate the damage the so-called fiscal cliff will cause, according to Sen. Rob Portman, R-Ohio.

“After three years of bureaucratic excess, the Obama administration has been quietly postponing several multibillion-dollar regulations until after the November election,” Portman writes in The Wall Street Journal.

“Those delayed rules, together with more than 130 unfinished mandates under the 2010 Dodd-Frank financial law, could significantly increase the regulatory drag on our economy in 2013.”

Editor's Note: The Truth About the Economy — Government Documents Lead to Eerie Conclusion

For example, Portman points to a regulation the Labor Department is working on that would make the cost of retirement planning for middle-class workers increase in order to “protect” them from free investment help.

READ MORE:  http://www.moneynews.com/StreetTalk/Portman-regulatory-fiscal-cliff/2012/08/17/id/448901?s=al&promo_code=FC83-1

Trading caps and gowns for mops

College grads taking jobs unrelated to their studies

By Quentin Fottrell 

After four years of college, many graduates are ending up in jobs that only require the ability to operate a cash register with a smile. 

After commencement, a growing number young people say they have no choice but to take low-skilled jobs, according to a survey released this week. 

And while 63% of “Generation Y” workers — those age 18 to 29 — have a bachelor’s degree, the majority of the jobs taken by graduates don’t require one, according to an online survey of 500,000 young workers carried out between July 2011 and July 2012 by PayScale.com, a company that collects data on salaries.  

READ MORE:  http://www.marketwatch.com/story/trading-caps-and-gowns-for-mops-2012-08-22

 

Some Free Advice for Mitt Romney

Stop talking tax percentages. Start talking dollars. The media understand this. In today’s issue of USA Today (August 17, 2012) there’s an above-the-fold article on page 4A with this headline: “Romney: Paid 13% or more in taxes each year.” Nowhere in the article does it say how much 13 percent is in dollars. There’s a reason for this.

What’s 13 percent of your yearly income? Is it nearly $3 million? If it is, say it. “I paid $3 million dollars in taxes.” Emphasize the word ‘million.’

Ask reporters who ask you how much you paid last year how much they paid. Ask Diane Sawyer and other media types how much money they make and how much they pay in taxes. Then ask Harry Reid how much he paid in taxes last year. Ask President Obama how much he paid in taxes last year.

Then ask Mr. and Mrs. America.

READ MORE:  http://politicaloutcast.com/2012/08/some-free-advice-for-mitt-romney/

Fiscal Brinkmanship Is the Real US Threat

Is America going to plunge off a fiscal cliff? That is the question starting to preoccupy Washington and Wall Street. For as fiscal issues move to centre stage in the 2012 election, America potentially faces three nasty shocks.

Steve McAlister | Photodisc | Getty Images

On January 1 2013, the Bush-era tax cuts are slated to expire, just as automatic fiscal tightening measures, agreed last year, kick in. That equates to about $400 billion in tax increases and almost $200 billion in spending cuts, more than 4 percent of gross domestic product. If that was not bad enough, in early 2013 America will also hit the $16.4 trillion debt ceiling, which means the Treasury cannot issue more bonds unless Congress raises that limit.

READ MORE:  http://www.cnbc.com/id/48720578

When Will "The System" Fail?

It's all one steaming pile of horse turds.

More and more layers continue to be peeled back, exposing central planning and banking for what it is: an internationally rigged game with only the little guy as loser.

This week we learned John Corzine and his ilk WILL NOT be charged for losing $1.6 billion in customer funds, some of which they transferred into company accounts to stave off collapse.

Their criminal moves didn't stave it off, of course...

MF Global went the way of Lehman last fall in the eighth largest bankruptcy in U.S. history.

Remember, Corzine was the governor of New Jersey and also the CEO of Goldman Sachs (where he was succeeded by ol' Hank Paulson). On top of this, he was a United States senator.

 READ MORE:  http://email.angelnexus.com/hostedemail/email.htm?CID=12876751651&ch=03EC6869FF320332579265731CD2ECE1&h=19eafc1bf183d1145e76277937f36ec3&ei=WbkK9g84N

U.S. Government's Foreign Debt Hits Record $5.29 Trillion

CNSNews.com) - The money the U.S. government owes to foreign entities rose to a record $5.2923 trillion in June, according to data released by the U.S. Treasury Wednesday afternoon.

In May, the U.S. Treasury had owed $5.2581 trillion to foreign entities. On net, in June, the U.S. government borrowed an additional $34.2 billion from foreign entities in order to fund U.S. government operations.

The U.S. government’s indebtedness to foreign interests has grown by 72.3 percent during President Barack Obama’s term in office. In January 2009, when Obama was inaugurated, the U.S. government owed $3.0717 trillion to foreign entities, according to the Treasury Department. That has increased by $2.2206 trillion—or 72.3 percent—to the record $5.2923 trillion reported for yesterday.

READ MORE:  http://cnsnews.com/news/article/us-governments-foreign-debt-hits-record-529-trillion

Jobless rates rise in NY, NJ and Connecticut in July

(Reuters) - Jobless rates for New York, Connecticut and New Jersey all climbed in July, with New Jersey seeing its highest unemployment rate since 1977, according to data from the three neighboring states on Thursday.New Jersey's jobless rate rose for the fourth month in a row, to 9.8 percent, up from 9.6 percent in June and from 9.4 percent in July 2011, according to preliminary numbers from the state Department of Labor.

New York's unemployment rate also increased from both June and the year-earlier month, rising to 9.1 percent. In June the jobless rate was 8.9 percent, and a year-ago July it was 8.2 percent, the state reported.
In Connecticut the unemployment rate climbed to 8.5 percent from 8.1 percent in June, but was down from 8.9 percent a year-ago.

For New York City, whose financial industry is the economic engine for the tri-state region, unemployment was unchanged at 10 percent in July, but still above year-ago levels when it was 9 percent, according to the data from the state's Labor Department.

READ MORE:  http://www.reuters.com/article/2012/08/16/us-newjersey-unemployment-idUSBRE87F15K20120816

How Much Will It Cost You If Bush Tax Cuts End?

Americans would shell out as much as $5,700 more a year if the Bush tax cuts are allowed to expire at the end of 2012, according to a new analysis that highlights the perils and political consequences of the nation's fiscal cliff.

Connecticut residents would get rocked the worst, with an additional cost of $5,783 a year while New Yorkers would get hit $5,542 on average, the study from the nonpartisan Tax Foundation states.

Mississippi residents get the least impact, at $1,310 on average, but 29 of the 50 states will see taxpayers get hit at least $2,000.

Find out where your state ranks here.

READ MORE:  http://www.cnbc.com/id/48674247

Money Anxiety Index: Stock Market Rally 'Totally Irrational'

The stock market rally worth about 300 points on the Dow over the past three sessions is "totally irrational," according to the curator of the Money Market Index economic barometer.

In particular, investor enthusiasm over Friday's monthly jobs report from the government is misplaced because a large portion of the 163,000 new non-farm jobs reported are temporarily and likely to vanish soon, says Dan Geller, chief research officer of the index.

"The rally on Friday after the release of the employment figures and the consumer confidence index really has no economic merit," Geller says. "It's totally irrational."

READ MORE:  http://www.cnbc.com/id/48533456

Greek jobless rate hits new record, more pain ahead

(Reuters) - Greece's jobless rate climbed to a new record in May, underlining how austerity prescribed to slash deficits and keep bailout funds flowing is hitting the economy on which recovery depends.

Latest data on Thursday showed the jobless rate climbed to 23.1 percent, with nearly 55 percent of those aged 15-24 out of work, a desperate situation that fed into the popularity of anti-bailout parties in Greek elections this year.

The gloomy data coincided with news that the government plans to revive a labor reserve measure targeting 40,000 public servants for eventual dismissal, in a drive to achieve 11.5 billion euros in savings promised to international lenders.

Government officials citing this scheme said Athens also intends to shed tens of thousands of temporary contract workers by streamlining its needs across ministries and state entities.

READ MORE:  http://www.reuters.com/article/2012/08/09/us-greece-layoffs-idUSBRE8780KX20120809

Investors Prepare for Euro Collapse

Banks, companies and investors are preparing themselves for a collapse of the euro. Cross-border bank lending is falling, asset managers are shunning Europe and money is flowing into German real estate and bonds. The euro remains stable against the dollar because America has debt problems too. But unlike the euro, the dollar's structure isn't in doubt.

Otmar Issing is looking a bit tired. The former chief economist at the European Central Bank (ECB) is sitting on a barstool in a room adjoining the Frankfurt Stock Exchange. He resembles a father whose troubled teenager has fallen in with the wrong crowd. Issing is just about to explain again all the things that have gone wrong with the euro, and why the current, as yet unsuccessful efforts to save the European common currency are cause for grave concern.

He begins with an anecdote. "Dear Otmar, congratulations on an impossible job." That's what the late Nobel Prize-winning American economist Milton Friedman wrote to him when Issing became a member of the ECB Executive Board. Right from the start, Friedman didn't believe that the new currency would survive. Issing at the time saw the euro as an "experiment" that was nevertheless worth fighting for.

READ MORE:  http://www.spiegel.de/international/business/investors-preparing-for-collapse-of-the-euro-a-849747.html

Exclusive: U.S. banks told to make plans for preventing collapse

(Reuters) - U.S. regulators directed five of the country's biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.

The two-year-old program, which has been largely secret until now, is in addition to the "living wills" the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
Officials like Lehman Brothers former Chief Executive Dick Fuld have been criticized for having been too hesitant to take bold steps to solve their banks' problems during the financial crisis.

According to documents obtained by Reuters, the Federal Reserve and the U.S. Office of the Comptroller of the Currency first directed five banks - which also include Citigroup Inc,, Morgan Stanley and JPMorgan Chase & Co - to come up with these "recovery plans" in May 2010.

They told banks to consider drastic efforts to prevent failure in times of distress, including selling off businesses, finding other funding sources if regular borrowing markets shut them out, and reducing risk. The plans must be feasible to execute within three to six months, and banks were to "make no assumption of extraordinary support from the public sector," according to the documents.

Spokespeople for the five banks declined to comment. The Federal Reserve also declined to comment.

READ MORE:  http://www.reuters.com/article/2012/08/10/us-banks-recoveryplans-idUSBRE87905N20120810

Recession Generation Opts to Rent Not Buy Houses to Cars

The day Michael Anselmo signed a lease on his first apartment in New York City, he lost his job at Buck Consultants LLC. He spent about 10 months struggling to pay rent with unemployment benefits. Two years later he's still hesitant to buy a home or even a road bike. 

"Every decision that I have made since I lost my job has been colored by that insecurity I feel about the future," said Anselmo, 28, who now rents an apartment in Austin, Texas, and works as a consultant for UnitedHealth Group Inc. "Buying a house is just further out on the timeline for me than it used to be."

Anselmo and many of his peers are wary about making large purchases after entering adulthood in the deepest recession and weakest recovery since World War II. Confronting a jobless rate above 8 percent since 2009 and student-loan debt hitting about $1 trillion, 20-to-34-year-olds are renting apartments, cars and even clothing to save money and stay flexible.

READ MORE:  http://finance.yahoo.com/news/recession-generation-opts-rent-not-040001312.html;_ylt=A0LkuVWBvCNQxhoAZwKiuYdG;_ylu=X3oDMTQ0Ym5hdmRwBG1pdANGUCBQZXJzb25hbCBGaW5hbmNlBHBrZwNiNWQ5Zjk2Mi1iOThhLTNiNDQtOTQ3MC02ZmE1NTA1MzQyYmYEcG9zAzIEc2VjA01lZGlhU2VjdGlvbkxpc3QEdmVyAzMwY2U2M2U5LWUxOTMtMTFlMS1iZmZmLWVmMzQ4YjdhYjUzNQ--;_ylg=X3oDMTFpNzk0NjhtBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

For Unpaid College Loans, Feds Dock Social Security

It's no secret that falling behind on student loan payments can squash a borrower's hopes of building savings, buying a home or even finding work. Now, thousands of retirees are learning that defaulting on student-debt can threaten something that used to be untouchable: their Social Security benefits.

According to government data, compiled by the Treasury Department at the request of SmartMoney.com, the federal government is withholding money from a rapidly growing number of Social Security recipients who have fallen behind on federal student loans. From January through August 6, the government reduced the size of roughly 115,000 retirees' Social Security checks on those grounds. That's nearly double the pace of the department's enforcement in 2011; it's up from around 60,000 cases in all of 2007 and just 6 cases in 2000.

READ MORE:  http://www.smartmoney.com/borrow/student-loans/grandmas-new-financial-problem-college-debt-1344292084111/

Economic crisis tests Italian family, Church opens doors

ROME (Reuters) - In happier times, ice-cream seller Antonio Siracusa would have considered turning to relatives for help when he lost his job in a cinema in Rome. But these are not happy times.

So Siracusa chooses to go to a free canteen run by Christians in the district of Trastevere for dinner, and picks up free food parcels for other meals.

"I have siblings, but I don't want anything from them," said Siracusa, as he stood in line at the Sant'Egidio charity's diner, adding that he didn't feel comfortable bothering them in such tough economic times. "The community here are my family."

A deep recession and rising unemployment has piled pressure on all Italians and may even be undermining Italy's most reliable social safety net in periods of financial difficulty - the family.

Christian charities say many Italians appear to be ashamed of turning to relatives already struggling in the economic crisis or are coping with the effects of divorce, the incidence of which has doubled in Italy since 1995.

READ MORE:  http://ca.news.yahoo.com/economic-crisis-tests-italian-family-church-opens-doors-223926206.html

Indigestion for ‘les Riches’ in a Plan for Higher Taxes

PARIS — The call to Vincent Grandil’s Paris law firm began like many others that have rolled in recently. On the line was the well-paid chief executive of one of France’s most profitable companies, and he was feeling nervous.

President François Hollande is vowing to impose a 75 percent tax on the portion of anyone’s income above a million euros ($1.24 million) a year. “Should I be preparing to leave the country?” the executive asked Mr. Grandil. 

The lawyer’s counsel: Wait and see. For now, at least. 

“We’re getting a lot of calls from high earners who are asking whether they should get out of France,” said Mr. Grandil, a partner at Altexis, which specializes in tax matters for corporations and the wealthy. “Even young, dynamic people pulling in 200,000 euros are wondering whether to remain in a country where making money is not considered a good thing.” 

READ MORE:  http://www.nytimes.com/2012/08/08/business/global/frances-les-riches-vow-to-leave-if-75-tax-rate-is-passed.html?_r=3&hpw

Social Security's Era of 'Free Money' Comes to an End

People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press.

Previous generations got a much better bargain, mainly because payroll taxes were very low when Social Security was enacted in the 1930s and remained so for decades.

‘‘For the early generations, it was an incredibly good deal,’’ said Andrew Biggs, a former deputy Social Security commissioner who is now a scholar at the American Enterprise Institute. ‘‘The government gave you free money and getting free money is popular.’’

READ MORE:  http://www.cnbc.com/id/48533565

Germany and Italy near blows over euro

German politicians from across the spectrum have reacted furiously to warnings by Italy’s Mario Monti that Bundestag control over EU debt policies threatens to bring about the “disintegration” of the European project. 

 

“We must make it clear to Mr Monti that we Germans will not shut down our democracy to pay Italian debts,” said Alexander Dobrindt, secretary-general of Bavaria’s Social Christians (CSU).

Bundestag president Norbert Lammert said parliament’s integrity cannot be subordinated to the ups and downs of the markets. Free Democrat (FDP) leaders said Italy’s unelected prime minister is playing with political fire by trying to circumvent democratic legitimacy.

The dispute comes as relations between Germany and Italy touch the lowest ebb since the Second World War, with Il Giornale publishing a front-page picture of Chancellor Angela Merkel under the headline “Fourth Reich”.

READ MORE:  http://www.telegraph.co.uk/finance/financialcrisis/9457368/Germany-and-Italy-near-blows-over-euro.htmlhttp://www.telegraph.co.uk/finance/financialcrisis/9457368/Germany-and-Italy-near-blows-over-euro.html

Darkening skies over Europe

By Jon Markman, MarketWatch 

 http://www.blogger.com/blogger.g?blogID=3814089687891528629#editor/target=post;postID=1133294423174584018

Seattle, Wash. (MarketWatch) — You can’t spell Spain without “pain,” and you can’t spell euro zone without nearly breaking down in tears as you contemplate the latest unraveling of the continent. 

On some level, it is hard to make room in your mind for how badly the financial condition of Spain has unwound in the past two months, but you need to do that because it is as serious as Greece, but with bigger consequences. 

Don’t get tired of all the bad news. You still need to pay attention even though policy makers are trying to cobble together another in a series of rickety, short-term fixes this week with twine and chewing gum. There is a controlled explosion rippling across the continent, and just because it is summer, does not mean it’s not real. 

Despite the efforts made toward the 100-billion-euro bailout of its banking system last month, Spain has not yet evaded a banking crisis at all. And it has not evaded its sovereign debt crisis. And its fiscal situation is worsening because the Spanish people are freaking out about the fourth in a series of harsh austerity measures. The regional government system in Spain is also getting worse, with Valencia needing a bailout now and Catalan soon to follow. 

READ MORE:  http://www.marketwatch.com/story/darkening-skies-over-europe-2012-08-01?link=MW_story_popular

The depression is here — it’s just invisible

Commentary: The crash wasn’t sudden, but it’s still a tragedy

DENVER (MarketWatch) — The Great Depression that Federal Reserve Chairman Ben Bernanke claims to have averted has been part of the background radiation of our economy since at least 2008.  

It’s just that like radiation — it’s invisible. 

We’ve called it the recovery, the jobless recovery, the slogging recovery and more recently the fading recovery. We’ve measured modest growth in our nation’s gross domestic product to record that our so-called Great Recession ended in June 2009. And now we are saying that if this disappointing growth suddenly disappears, as currently feared, we will be in a new recession.

Unemployed men in February 1931 queue outside a soup kitchen opened in Chicago by Al Capone.

There is nothing more depressing than hearing about a new recession when you haven’t fully recovered from the last one. I take heart in suspecting that in a still-distant future, historians will look back with clarity and call this whole rotten period a depression.

The precise definition of a depression, of course, remains as debatable as anything else in the field of economics. By some definitions, it is a long-term slump in economic activity, often characterized by unusually high unemployment, a banking crisis, a sovereign-debt crisis, surprising bankruptcies and other horrible symptoms we can find in the headlines almost every day. 

READ MORE:  http://www.marketwatch.com/story/the-depression-is-here-its-just-invisible-2012-08-01?link=MW_story_investinginsight

The Real Crash is dead ahead as 2008 is forgotten

Commentary: Ironically, you’ll win by buying banks now

 

SAN LUIS OBISPO, Calif. (MarketWatch) — “Facebook will become the poster child for the current social-media bubble,” warns economist Gary Shilling in his latest Forbes column, “just as Pets.com was for the dot-com bubble.” Yes, Wall Street is repeating the 2000 dot-com crash as today’s social-media bubble crashes and burns. 

 

 Think history folks: Remember 2000-2002? The economy suffered a 30-month recession and a brutal bear market. The Dow Jones Industrial Average peaked at 11,722, then crashed, losing over 4,000 points dropping below 7,500, down more than 43%, with massive losses of more than $8 trillion in market cap. 

But it gets worse: Shilling’s bluntly warning: “If we aren’t already in a recession, we’re getting very close.” Yes, he’s more reserved than Nobel economist Paul Krugman, whose latest book goes beyond hinting that the America economy is repeating the 2000-2002 recession, His title says it all: “End This Depression Now!”

READ MORE:  http://www.marketwatch.com/story/the-real-crash-is-dead-ahead-as-2008-is-forgotten-2012-07-31?pagenumber=1

 

Nine Great American Companies That Will Never Recover

Many American companies have been lauded for their rapid rise to greatness, a process that sometimes takes less than a decade. These firms become leaders in their industries, are renowned for innovation, phenomenal growth, and, in the case of public corporations, their soaring share prices. Google Inc. (NASDAQ: GOOG) usually makes the list, as does Apple Inc. (NASDAQ: AAPL). At the other end of the scale are well-known firms that are so crippled they go bankrupt or disappear entirely. Recently, these have included AMR, the parent of American Airlines, Borders, and Eastman Kodak.

Somewhere in the middle — between the companies that do phenomenally well and those that fail — are ones that were once leaders in their industries but have fallen hopelessly behind. They may remain in business for years or even decades after their best days. Their executives struggle to find better strategies, and often their boards seek new management. But, in the case of companies that fall permanently into trouble and well behind the leaders in their industries, the chance of a turnaround has passed. Competitors have taken too much market share, and often have stronger balance sheets. Or, their products and services are no longer in demand because of changes in the overall economy or the sectors in which they operate.

READ MORE:  http://247wallst.com/2012/08/01/nine-great-american-companies-which-will-never-recover/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=AUG012012A&utm_campaign=DailyNewsletter

Rationing Begins: States Limiting Drug Prescriptions for Medicaid Patients

(CNSNews.com) – Sixteen states have set a limit on the number of prescription drugs they will cover for Medicaid patients, according to Kaiser Health News.

Seven of those states, according to Kaiser Health News, have enacted or tightened those limits in just the last two years.

Medicaid is a federal program that is carried out in partnership with state governments. It forms an important element of President Barack Obama's health-care plan because under the Patient Protection and Affordable Care Act--AKA Obamcare--a larger number of people will be covered by Medicaid, as the income cap is raised for the program.

READ MORE:  http://cnsnews.com/news/article/rationing-begins-states-limiting-drug-prescriptions-medicaid-patients

Eurozone unemployment hits record high, while Mario Monti sees 'light at the end of tunnel'

Unemployment across the recession-hit eurozone hit 11.2pc in June. 

EU data agency Eurostat said the seasonally-adjusted rate was the same as an upwardly-revised May toll but noted another 123,000 people lost their jobs going into the European summer, bringing the total to nearly 18m, more than 2m up on a year earlier.

Marking a 14th successive monthly rise, analysts noted a cumulative rise of 2.248m people since that series began in April last year, with London-based Howard Archer of IHS Global Insight warning that the unemployment rate "now looks odds-on" to cross 11.5pc by the end of the year, with "a very real danger" of reaching 12pc next year.

In Germany, the Federal Labour Agency said raw or unadjusted unemployment also rose sharply in July, with the total number of people out of work up by 66,800 on June at 2.88m.

READ MORE:  http://www.telegraph.co.uk/finance/financialcrisis/9440579/Eurozone-unemployment-hits-record-high-while-Mario-Monti-sees-light-at-the-end-of-tunnel.html

 

Examiner Local Editorial: Fauquier County steps over the line

Farmers in Fauquier County are planning to bring their pitchforks to an Aug. 2 hearing before the Board of Zoning Appeals to protest the arbitrary treatment of one of their own. On April 30, Zoning Administrator Kimberley Johnson sent Martha Boneta an official cease-and-desist notice for selling farm products and hosting a birthday party for her best friend's 10-year-old daughter on her 70-acre Paris, Va., farm without a special administrative permit.

Johnson threatened to fine Boneta $5,000 per violation if she did not stop the alleged unlawful activities within 30 days. In doing so, Boneta's fellow farmers say, Johnson stepped far beyond her authority. They're supporting her appeal before the BZA because they rightly fear that left unchecked, this infringement on one farmer's freedom to make a living will spread to other agricultural enterprises like a dangerous pest.

READ MORE:  http://washingtonexaminer.com/examiner-local-editorial-fauquier-county-steps-over-the-line/article/2503450