California is at its downturn.
Just like the last recession, the unions begin using their extra legal powers to extract more money. I see the squeeze in a sudden tightening of the payment cycle for water and garbage, with increasing penalties. The county teachers threaten strike over all the corruption in school building, in a declining student population.
I am sure this will be a statewide phenomena, as does Jerry. It is our early signal of the downturn, and it is moving east.
The Vanguard founder says:
The founder of Vanguard Group thinks a conservative portfolio of bonds will only return about 3 percent a year over the next decade, and stocks won’t do much better, with a 4 percent annual gain over a similar period. This is “totally defeating” for pensions, which “are not going to be able to meet their 7.5 percent or 8 percent obligations,” Bogle said in a Bloomberg Radio interview that aired Thursday. “The only return you get on a bond is from the interest coupon,” with fluctuations in prices eventually evening out and becoming relatively negligible over the longer term, he said. Given a portfolio of about half corporate bonds and half U.S. Treasuries, the blended yield is about 3 percent today. “So that’s what you get over the next decade,” he said. “It is almost a given that it will end badly,” he said.
Jerry and the Brownshirts will be hammering the middle class out here. It is going to be a huge mess.
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