ALL MARYLAND AND BALTIMORE POLS ARE NEO-LIBERALS, NOT DEMOCRATS!
Below you see the financial industry just as strong and predatory as always. Absolutely nothing has been done to reign them in and they have super-sized their wealth while tens of trillions of dollars in corporate fraud are left to be recovered.
Moody's and S & P are two stock rating agencies that were ground zero for the massive subprime mortgage fraud. They and MERS allowed the hundreds of millions of subprime loans be laundered through Wall Street and delivered all over the world. We were supposed to see change in how stocks are assessed because, as anyone would know.....the entity being assessed can easily pay off the assessor. NOTHING HAPPENED AND NOW MOODY'S IS TELLING YOUR POLITICIAN THAT THE PUBLIC PENSIONS THAT LOST 1/2 THEIR VALUE BECAUSE OF FRAUD NOW NEED TO BE CUT AGAIN.
Remember, it was City and State Comptrollers who sent public pensions into the stock market out of the safety of bonds in 2007......just so they could be used to buoy big banks. That is why so many are now attached to Citigroup and Bank of America....the two banks most involved in the subprime mortgage fraud. THIS WAS PUBLIC MALFEASANCE AND HAS YET TO HAVE UNIONS/PUBLIC JUSTICE TAKING THIS TO COURT TO RECOVER LOSSES.
Comptrollers sent these pensions and the rating agencies provided the fraudulent high ratings. MOODY'S SHOULD HAVE ITS ASSETS SEIZED AND GIVEN TO PENSION FUNDS TO RECOVER THE 1/2 OF VALUE LOST. If your politicians are not shouting for this justice.....they are neo-liberals and need to go!
THERE IS NO STATUTES OF LIMITATION WHEN A GOVERNMENT SUSPENDS RULE OF LAW.....WE HAVE TIME TO DO THIS!
The damages from massive financial fraud of tens of billions of dollars? $22 trillion. WALL STREET OWES AMERICANS LOTS OF TRILLIONS!
Five years ago today, Lehman Brothers went bankrupt.
Instantly and inevitably, the house of cards otherwise known as Wall Street collapsed.
But after getting bailed out by the American taxpayers, Wall Street is doing just fine.
The people of Main Street? Not so much.
Here are some numbers to think about this Sunday morning.
- Amount the crash cost the U.S. economy: $22 trillion
- How much everyone would get if that $22 trillion were divided equally among the U.S. populace: $69,478.88 JUST FOR DAMAGES
- Assets of the four biggest banks in America — JPMorgan Chase, Bank of America, Citigroup and Wachovia/Wells Fargo — when they were “too big to fail” in 2008: $6.4 trillion
- Assets of those four banks today: $7.8 trillion
- Of the 63 former Lehman Brothers employees identified by a bankruptcy examiner as being aware of an accounting scheme Lehman used to mask its true finances, number who are employed in senior financial services positions today: 47
- Number of the 25 banks responsible for the bulk of risky subprime loans leading up to the crash that are back in the mortgage business: 25
- Chances that an American voter thinks that regulating financial products and services is “important” or “very important”: 9 in 10
What? Moody's does not recommend recovering massive fraud to bring pensions back to the black! Rather, they are telling your pol to cut pensions more to make up for the losses from corporate fraud!
Moody's Proposes Making Pension Liabilities a Bigger Factor in Bond Ratings Posted
By Liz Farmer | September 19, 2013
States and localities with big pension liabilities could see changes to their overall bond rating if new rules proposed this summer by Moody’s Investor Service are adopted.
Moody’s is proposing giving more weight to pension liabilities and other long-term debts in its overall scorecards for rating general obligation (GO) bonds. The agency would increase the weight to 20 percent from 10 percent and decrease the weight for economic strength to 30 percent from 40 percent. Weights for governance and management (20 percent) and financial strength (30 percent) -- the other two factors in the way Moody’s scores its GO ratings -- would stay the same. The step by Moody’s is just the latest in what has become a marathon of changes by various organizations in recent years that aim to place a bigger emphasis on pensions’ effect on fiscal health.
Interested parties and stakeholders have until Oct. 14 to submit comments to Moody’s.
In its methodology paper, Moody’s noted that debt burden trends are an indicator of a population’s capacity to absorb additional obligations. In the event that a local government’s capital needs are great, this may foretell future financial distress. Thus, a bigger weight should be given to such burdens when considering an overall GO rating. Moody’s said in a release that it chose to reduce the weight on economic health because it recognizes that some local governments are either unwilling or unable to capitalize on the strength of their local economies (i.e., a city may not be able to raise taxes because of anti-tax sentiment).
But municipalities with a large unfunded liability may not necessarily see their rating automatically fall under the new rules, Moody’s said. “We recognize that funding levels naturally will rise and fall as retiree activity diverges from actuarial assumptions, as benefits change, or as investment returns fluctuate. In the case of an unfunded pension liability, Moody’s will examine the reason that it has arisen and the entity’s ability and willingness to address it over a reasonable period of time, which is broadly defined to encompass the working life of the beneficiaries so that liabilities are not passed onto a succeeding generation."
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Only if such an analysis showed a pattern of underfunding annual pension contribution requirements, would a large unfunded liability “be viewed as a negative credit factor because it is a claim on resources that reduces financial flexibility,” Moody’s said.
Moody’s maintains GO ratings or issuer ratings for approximately 8,200 local governments: 2,960 cities, 864 counties and 3,362 school districts.
The methodology change, if kept intact, should bring more attention to dangerous unfunded liabilities earlier on in a municipality’s downward spiral and potentially help retirees, said Frank Shafroth, director of George Mason University’s Center for State and Local Government Leadership. He pointed to cities that have declared bankruptcy like Central Falls, R.I., where retirees had to give up half their pension income, and Detroit, where Emergency Manager Kevyn Orr has said pension cuts will be part of the restricting plan, and said that retirees have far less leverage in bankruptcy than out of it. If cities have more consequences for bad pension finance local officials may be more inclined to right the ship while it’s still feasible.
“We all have a human responsibility to protect these people,” Shafroth said. HE SAID AFTER MASSIVE FRAUD TAKES 1/2 OF PENSION VALUES IN 2008!
The methodology proposal comes after a change Moody’s made earlier this year to the way it calculates pension liabilities. In April, Moody’s announced it would adjust pension debt using a long term bond index rate, a discount rate that would likely result in rates of return smaller than the 7 to 8 percent assumption over 30 years that most governments use in calculating their pension liabilities. The Governmental Accounting Standards Board (GASB) has also taken steps that have the effect of highlighting unfunded liabilities previously hidden in government financial reports. Beginning this year, net pension obligations must now be included as a liability on governments’ balance sheets. Governments should also use what GASB considers a more reasonable discount rate – one that more accurately reflects the current rate of return (generally between 3 and 6 percent for most funds) rather than the higher, historic rate of return.
Remember, I have been telling you for two years there is an economic crash coming that will be bigger than 2008 and it will be the bond bubble? THAT IS WHY YOUR NEO-LIBERAL HAS USED CREDIT BONDS AND TIFs .......TO BREAK THE PUBLIC BUDGETS!
So, in Baltimore we have to go to court to stop a $1 billion school building fund that will cause massive harm to the public schools in the city and cost residents billions in higher interest rates than is being sold to the public now. THIS IS PUBLIC MALFEASANCE I TOLD THE CITY SOLICITOR......
YES, HE SAID, IT IS!
What happens when this bond deal happens after a massive economic collapse? The state/city defaults on its share of the funding.....the investors simply by a CDS for the bonds that will crash....and interest rates will climb from near 0 to 2-3%. That represents billions of dollars in financing only. Remember, it was O'Malley's claim to fame that he tied the city and state with billions of dollars through Wall Street financial instruments during the financial frauds of the 2000s....this is a new decade.
Stocks are about to plunge, Wells Fargo warns
By Alex Rosenberg | CNBC – Fri, Sep 20, 2013 7:24 AM EDT
Gina Martin Adams is sticking to her guns.
The Wells Fargo strategist has been bearish on stocks all year, even as she watched the S&P 500 (^GSPC) add 21 percent. And on Thursday's " Futures Now ," Adams reiterated her call that the index would close out the year at 1,440.
"Our target is based on fundamentals," Adams insisted. "We're basing our target on typical valuation measures, given the level of interest rates and also on earnings forecasts. And that's why our target is relatively low."
In fact, "low" is somewhat of an understatement. Adams' target implies that the market will drop 16 percent in little more than three months, erasing everything that stocks gained after the year's first day of trading. This makes her one of the lone bears on the Street.
So what could produce such a dismal fourth quarter for stocks? First of all, Adams is highly skeptical about the rally that the market has enjoyed thus far.
"It's all about emotion at this point. The entirety of the S&P 500's increase this year has come via the multiple," Adams said. "It's been simply through the amount that investors are willing to bid up the value of the future earnings stream."
Indeed, the S&P 500's price-earnings multiple has risen from 17 on Jan. 1 to nearly 20. That means the market has largely been rising due to investors' willingness to pay more for those earnings.
Adams goes on to argue that the recent rise in Treasury yields could put an end to this inclination.
"The multiple is one of the most valuable components" of the rally, and "typical drivers of the multiple are interest rates." So despite the fact that yields have cooled off recently, "simply the fact that we moved from 1.6 [percent] on the 10-year Treasury rate to now the 2.7 [percent] range is a potential tremendous shock over the next six months," Adams contended.
Adams believes that stocks haven't yet digested the rate rally. "Stocks tend to follow rates over time," she said. "Typically, when you get a 100 basis point [or 1 percent] move in Treasury rates, you get a contraction on the P/E multiple on stocks of about a full turn. That, by itself, implies you get something of a 10-percent-plus correction in stocks."
And while the Fed's decision that it wouldn't slow its rate of asset purchases has driven the market to yet another all-time high this week, Adams doesn't believe the surprising announcement will ultimately make a difference.
"Unless bonds can actually rally substantially with the so-called Fed bid, and the Fed is able to manipulate yields significantly lower, the damage has been done, and I think the cat is quite frankly out of the bag."
Couple the rise in rates with slow earnings growth, and Adams believes the market is in for a very tricky fall.
"We're going to have to face the music come October," she said.
Below you see a package that any raging corporate politician would love.....what wonderful movement of public schools into private hands! Aren't they clever! It is true they have made an absolute mess of our schools.,...school choice and Teach for America does that. BUT THESE AMBITIOUS POLS WANT TO HAND OUR SCHOOL BUILDINGS OVER TO WALL STREET BECAUSE THE GOAL IS TO MAKE EACH SCHOOL A PRIVATE BUSINESS! What better way than to load the schools with tons of debt just as the economy is ready to crash!
HOW FULL OF MALFEASANCE AND FRAUD!
Remember, we can rebuild all schools in Baltimore and more by simply recovering billions in financial fraud still owed Baltimore by Wall Street. These pols say....NO...WE PREFER TO HAND BILLIONS MORE OF DEBT AND INTEREST RATE PAYMENTS TO WALL STREET PROFITS!
Rebuilding schools, rebuilding BaltimoreThousands are choosing city life; if we build better schools, they will stay
February 04, 2013|By Tom Wilcox, Wes Moore and Tom Bozzuto
Over the last 10 years leaders from the private, public and nonprofit sectors have begun to transform Baltimore's approach to its future. Traditional public subsidies have given way to strategic investments and tough decisions, using market-based techniques to reform our schools, rebuild our population, and make our neighborhoods safe, clean, green and vibrant.
Now, the General Assembly must do its part to strengthen the city's future by passing legislation to reshape how the city makes improvements to its public school buildings. The city's plan is straightforward and achievable: act aggressively now to build or rebuild our school buildings and give every child in the city a welcoming school environment that will help engage them in learning.
It is a proposal that will help kids, create a stronger school system, bolster the city's prospects for growth and benefit the entire state.
Legislators must be reminded that Baltimore has already taken many hard steps to improve its educational system. A "choice" system gives middle and high school students the opportunity to "vote with their feet," with dollars following those students to the best-performing schools. A union contract sets a national standard for holding teachers and principals accountable for their students' performance. And focused initiatives have increased the high school graduation rate and the number of preschoolers who are "ready for school." And schools that fail to meet increasingly rigorous standards are being closed.
These steps and more show that our civic and private leaders are serious about creating great schools that will change the trajectory of inner-city youth while attracting the middle class families necessary to any city's success.
Now, the focus is on providing a physical environment in Baltimore schools comparable to that in schools across Maryland. The legislative proposal to revamp the school system's capital process would lead to major and accelerated improvements in our school buildings, benefiting kids, teachers, staff and families.
The school system has done its homework, commissioning a study that put a price tag on infrastructure needs in every school building in Baltimore, and it has developed a plan that would shutter buildings, cut or merge programs, and renovate or rebuild 136 buildings.
The city schools bond financing plan to rebuild its inadequate infrastructure may be the best opportunity that Baltimore has had in a generation to cement its revitalization. Under the plan, an independent entity would be created to borrow significant funding through a bond issue to jump-start much-needed capital improvements, and use state and local funding to repay the bonds. It's important to note that the plan requires no extra money from the state, just a commitment to stand by current annual commitments. The timing is perfect. Interest rates are low; construction costs are manageable.
This effort in the General Assembly must be viewed not simply as a bricks-and-mortar educational initiative. Rather, it is part of a comprehensive effort to push for major changes that can move Baltimore forward and restore the city's role as an economic engine for Maryland.
The signs of momentum are apparent, whether it's ongoing downtown development, the bustling rental market driven by young professionals' interest in city life, or the emerging high-tech economy fueled by robust educational, medical and federal institutions. Across the city, private sector initiatives such as Healthy Neighborhoods Inc. are reestablishing "middle neighborhoods" that have wonderful assets but need a boost to continue to strengthen.
The bottom line is that thousands are choosing city life. If we can improve the schools they will stay. These young people can, by themselves, fulfill Mayor Rawlings-Blake's modest goal of attracting or developing 10,000 new taxpaying citizens.
The nonprofit Teach For America already pledged to fulfill 10 percent of the mayor's goal by helping their teachers engage in neighborhood leadership opportunities as they develop lasting ties with our city.
Such commitments from the nonprofit sector must be met by similarly ambitious initiatives from the public sector that enhance city life and build a business-friendly environment.
We have pressing goals: reducing crime, building a better transportation infrastructure that supports employment opportunities, and fostering an energetic business environment. But perhaps overriding them all is the need for a strong school system that will attract new families and new employers.
There is more hard work ahead to capitalize on the educational progress already achieved, but we can take a major step forward right now by changing how we build our schools.
A quarter century ago, state leaders overcame a host of issues to finance and build not one but two stadiums, leading to the winning seasons we now celebrate. Surely we can come together now to give our youth and our city and state the future they deserve.
Tom Wilcox is President of the Baltimore Community Foundation. Wes Moore is a best-selling author and host on the OWN television network. Tom Bozzuto is Chairman and CEO of the Bozzuto Group. All are trustees of the Baltimore Community Foundation.