Mike Shedlock

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.

Latest by Mike Shedlock

Douglas County Colorado School Board Rebels Against Teachers Union

Three members of the Douglas County School Board have floated proposals to terminate dealings with teacher’s unions. Three board members proposed three separate ballot questions, each chipping away at what have been traditional district-union relationships in the affluent county south of Denver. Should the district be prohibited from using public funding for the compensation of...

By Mike Shedlock

Syracuse New York Headed for Bankruptcy

Without a doubt Syracuse, New York is headed for bankruptcy. Not only is there an “official denial” but the mayor of Syracuse is seeking legal guidance on municipal bankruptcy. Once again, public union wages and benefits, especially police and firefighters’ pensions are smack in the midst of it. Please consider this news headline which I...

By Mike Shedlock

Zombified Cities – The Consequences of Extreme Labor Costs

Space does not permit a complete discussion of zombified cities. Such a list would be in the many hundreds. Rather this post is about four cities in recent news that are among the walking dead. One is even a dumping ground for the dead. <strong>Fourth Financial Urgency in Miami in Four years</strong> The <em>Huffington Post</em>...

By Mike Shedlock

San Bernardino Files Bankruptcy Petition

Fearing action by creditors, San Bernardino, California, Files Chapter 9 Bankruptcy Petition San Bernardino, California, after disclosing a $46 million shortfall in the city’s budget, filed for municipal bankruptcy. San Bernardino listed assets and debt of more than $1 billion in a filing yesterday with the U.S. Bankruptcy Court in Riverside, California. It’s the third...

By Mike Shedlock

Flood of City Bankruptcies Coming

In a welcome, common sense ruling, Court lets Stockton, Calif. cut retiree health care A federal bankruptcy judge on Friday cleared the way for Stockton, California to cut health care benefits for retirees while it is in bankruptcy proceedings. Stockton is seeking Chapter 9 protection from its creditors and said that it would cut retiree...

By Mike Shedlock

Estimating CalPERS Underfunding at Various Rates of Return

Editors Note: It remains an article of faith among public sector union defenders of defined benefit pensions – as they are – that “the market’s just taken a little beating,” and “the long-term outlook does not merit a crisis mentality.” Even pension fund managers, such as City of San Jose’s Police and Fire Retirement Plan...

By Mike Shedlock

San Bernardino Considers Bankruptcy

When you see headlines like this: San Bernardino, California, Weighs Chapter 9 Bankruptcy, you know 100% without a doubt the city is bankrupt, and the only question pertains to the filing. From the Bloomberg headline story …. San Bernardino may become the third California city in two weeks to file for municipal bankruptcy protection, as...

By Mike Shedlock

Scranton Pennsylvania is Broke – Paying Minimum Wage to Employees

Scranton, Pennsylvania’s, the state’s sixth-most-populous city (population of 76,089 in 2010 census), is down to its last $5,000 and has no way to pay salaries. The mayor wants an immediate tax hike of 29% and 78% over three years. In every sense of the word, Scranton is bankrupt. NPR reports Scranton’s Public Workers Now Paid...

By Mike Shedlock

Union Reforms From Multiple Places Including US Supreme Court

At long last unions are on the run and losing battles in multiple places at once. Let’s take a look at some dates and headlines. June 7, 2012 LA Times: 2 big cities OK cuts to worker pension costs Landslide victories on ballot measures to cut pension costs in two major California cities emboldened reform...

By Mike Shedlock

Stockton CA Files Bankruptcy, Largest City Ever

The city of Stockton, California, is Bankrupt. It has stopped making bond payments and will become the largest city in the US to seek protection via US bankruptcy law. The bankruptcy was inevitable. California law requires blame to be assessed. To be sure there is plenty of blame to go around. Here are a few...

By Mike Shedlock

Sacramento “Teacher of the Year” Laid Off; Who is to Blame?

I have a great deal of sympathy for Michelle Apperson, the Sacramento “Teacher of the Year” who was laid off. Assuming she deserved the award, she should not have been laid off. Sixth-grade teacher Michelle Apperson passed down a simple message to her students. “My favorite teachers growing up were the ones who challenged me...

By Mike Shedlock

Detroit’s Implosion is the Legacy of Unions Unwilling to Adapt

Cash strapped Detroit has lost 60 percent of its population since 1950. What’s left is a sprawling mass of vacant, worthless homes stripped of copper and anything else worthwhile. Does it make sense to have streetlight in these areas? What about paving cracked sidewalks? What about other services? Is anything salvageable? To save money, huge...

By Mike Shedlock

California Deficit Soars to $16 Billion

California, like Greece is perpetually in fiscal trouble. Overoptimistic revenue forecasts coupled with spending $2 billion more than expected has California in a deep hole. Governor Jerry Brown has the same non-solution as ever, hike taxes. Brown wants a “temporary” (as in seven years) tax hike. Given we all know there are no such things...

By Mike Shedlock

Public Sector Unions are Bankrupting Illinois

Governor Pat Quinn rammed through the largest tax hikes in Illinois history last year. On January 13, 2011, Governor Pat Quinn signed off on a 67% hike in personal income taxes and a 46% hike in corporate taxes. The result is not what the governor thought. Businesses have fled, more have threatened to leave and...

By Mike Shedlock