Mike “Mish” Shedlock is an American investment advisor and financial commentator. He operates the blog MishTalk.com, offering economic trend analysis. Shedlock is a registered investment advisor representative for Sitka Pacific Capital Management, an asset management firm whose goal is strong performance and low volatility, regardless of market direction. He is also a contributing “professor” on Minyanville, a community site focused on economic and financial education.
The entire education system is financially unsustainable and has been for some time. The price of education is so expensive as to make college a poor choice for many who attend, and a downright bad choice for those who go heavily in debt for degrees in little demand. The cost of education keeps rising along with:...
Editor’s Note: This post by Michael Shedlock explains quite well why significantly increasing the minimum wage is a terrible idea. If the union’s new “Fight for Fifteen” (dollars per hour) campaign were successful, it would increase unemployment, and unleash a round of price inflation that would in-turn require government entitlement payments to increase. This is...
As hoped and expected Detroit Bankruptcy Protections Affirmed, Snyder Shielded. Detroit can enjoy the protections of bankruptcy, including immunity from lawsuits related to the case, a federal judge ruled, extending that shield to Michigan Governor Rick Snyder. U.S. Bankruptcy Judge Steeven Rhodes in Detroit today blocked lawsuits by public employee groups and pension funds who alleged...
In an inevitable, anticlimactic decision today, Detroit files for bankruptcy. Detroit became the largest US city to ever file for bankruptcy on Thursday, seeking protection from its creditors as it restructures more than $18bn in debt. Richard Snyder, Michigan’s Republican governor, said in a letter included in the filing. “Detroit simply cannot raise enough revenue to...
Editor’s Note: A push to dramatically increase the minimum wage isn’t limited to Washington DC. Earlier this year, Los Angeles mayoral candidate Wendy Gruel promised to push for a minimum wage of $15 per hour in that city. This report by UnionWatch contributor Mike Shedlock explains the impracticality and unintended negative consequences of mandating a...
Editor’s Note: This post by UnionWatch contributor Mike Shedlock covers familiar territory. Our parent organization, the California Public Policy Center, has published detailed analyses of the new GASB and Moody’s rules, including: “Moody’s Final Adopted Adjustments of Government Pension Data,” “How New Rules from Moody’s and GASB Affect the Financial Reporting of Pensions in Seven...
Looking for amazing arrogance coupled with economic stupidity at the state government level? You can find it in Oregon where Governor Kitzhaber Demands Tax Hikes and Emergency Powers and Warns he Might Turn to National Guard, if the legislature does not see things his way. Gov. John Kitzhaber warned Monday that he could be forced to...
Given the constant chatter from the Obama administration and from teachers’ unions on the need to spend more for public education, let’s address the question “Is the US spending enough on education?” I propose we look at the stats in graphical form starting with charts of population and total spending, culminating with education spending per...
A recent report entitled Philadelphia, 5th Largest City in US is Effectively Bankrupt; Mayor Holds Closed Meeting With Wall Street to Discuss Asset Sales generated several emails from disgruntled people hoping to leave the area for the usual complaints: unions, schools, crime. One reader sent a link to a Philly.Com article by Joseph N. DiStefano titled Philly effort to keep well-known...
A few days ago a federal judge sided with the city of Stockton, validating its bankruptcy. See Judge Rules Stockton CA Bankruptcy is Valid, City Acted in Good Faith. Bondholders screamed, but the ruling made sense. What did not make sense (except from the point of view of politicians protecting their own undeserved pensions), was...
Today a judge ruled that the city of Stockton California is indeed bankrupt and that the city acted in good faith. Creditors asked the judge to void the bankruptcy, saying the city could raise taxes instead. I have been watching this story for a while. Here is some background on the Stockton bankruptcy as reported by Arizona Central....
Editor’s Note: In a provocative recent book “The Great Rebalancing,” economist Michael Pettis writes “thanks to the internet, much of the best writing and debate has taken place in the modern equivalent of the nineteenth century’s pamphlets, broadsheets, and coffeehouse discussions – economic blogs. For many years the development and understanding of economic theory was...
The hollowing out of Detroit is nearly complete. All that’s left is a bankrupt shell of a city with no services and scattered citizens that do not pay taxes. The Detroit News reports Half of Detroit Property Owners Don’t Pay Taxes Nearly half of the owners of Detroit’s 305,000 properties failed to pay their tax...
Inquiring minds are watching an excellent video on The Kudlow Report between Larry Kudlow and David Harkin. Harkin is the author of a study on US infrastructure and a professor at the University of North Carolina Charlotte. Partial Transcript Kudlow: President Obama wants to spend another $50 billion on repairs to our infrastructure. Do we...
a new form will got here