Where did these local governments invest their pension funds?
Future innovation will be funded by the government, a government backed by a military larger than that of the combined military of the rest of the world, until the private sector gets deleveraged enough to start putting money into longer term projects.
re: Is US Innovation Flaming Out?The problem isn't insufficient spending. For one thing it's a belief that an infinite growth curve in world made from finite resources as sustainable. It's silly things like government mandates of ethanol with is a negative net return on energy, being too afraid of nuclear power to shift off burning carcinogenic coal, thinking a group that can't even form it's own militia is the enemy we should be afraid of, etc. etc. Sending out welfare checks isn't going to do it.
re: Is US Innovation Flaming Out?Also, the same problem with mark to market accounting which assumes the future revenues are not only secure but that they support the bubble valuations. Now that the effective money supply is contracting nobody wants to mark to market anymore. All of these flaws were revealed w/Enron where sadly nobody seems to have done anything to fix the problems.
re: Is US Innovation Flaming Out?Stocks, bonds, real estate and cash. Calpers holdings went from $253B at end of 2007 to $183B in 2008. On top of that many don't have the cash flows to meet contributions (which are probably too low in the first place.) Promises nor pay outs have been adjusted.
The New Jersey League of Municipalities is urging mayors and elected officials to lobby their state lawmakers to support legislation allowing towns and schools to make half their required payments into the state pension system. Supporters of the legislation include Gov. Jon S. Corzine, who has said towns need the measure in order to keep property taxes in check during the recession.
Corzine also needs the measure to pass in order to offset mid-year state aid cuts his administration needs to fill an estimated $2.8 billion deficit in the state's current fiscal year spending plan.
Opponents have expressed concerns that the state pension system already is underfunded and that permitting additional deferrals could backfire and result in drastically higher property taxes in future years.
The proposed deferrals would allow towns and schools to defer as much as 50 percent of their required pension contribution in 2009, 40 percent in 2010 and 20 percent in 2011. Full payment would be required in 2012 and the deferred payments also would have to be made up over a period of 15 years.
Then there are the shenanigans of many municipalities who have been issuing low cost bonds to turn around and buy what Wall St. was selling in their ponzi schemes. Many of these bonds are likely to start defaulting as cash flows are proven to be insufficient.
Need suggestions on how to galvanize the long-term innovation in this country which is what creates the jobs. We need to encourage startups and risk capital is sorely lacking.
Bailing out Wallstreet may stem the collapse of the financial system, however we still need to get the entrepreneur out there motivated enough to try. Right now the system seems unable to get capital to early stage companies.
The CIGS and other thin-films technologies that Obama expects to lead the energy revolution came about through govt funding of long-term research.
Looks like the govt can play a big role to get US innovation back on track.
re: Is US Innovation Flaming Out?I expect it to worsen, now that everyone is on the govt. payroll.
I guess the only thing that will curtail such egregious abuse is transparency followed by accountability. Something that WallStreet, Washington and the lobbyists will fight tooth and nail to avoid.
My panick derives form this administration having proven too inept to give me hope. I hope they'll get that magic of gov't-Academic-Military-private sector balance correct. But they give little confidence buidling evidence.... (Did you see the D.C. CTO FBI raid going on right now? Who the hell is Obama surrounded by anyway?!)
My only hope at the executive level is Obama's youth and idealogy (and I'll presume him innocent here) can bring himself full circle, recognize his huge short comings like - inexperience causing to trust total bastards and.... - getting duped into becoming president by PC billionaires and the funded radical left in and out of media
what will you do with our suggestsions? they are within this thread. I'll also add these... - stop all stimulus bill spending activity - declare a tax free year (~2010) so my CEO can regroup with his team and figure out how to keep some mroe custoemrs and employees - use stimulus spending to defend our nation and fund necesary research through the proper blend of academic-military-private - decentralize Gov't so we are ruled by people within our own reach (e.g. so we're not controlled by out of touch elitists) - reform the financial system form the FED on down to private through LAW ENFORCEMENT! The laws are already their for fraud etc. and policy changes shold render deriviatives and all CDO's activity illegal
re: Is US Innovation Flaming Out?Update this Forum/Board so that you do not have to open each post to read it - come on Lightreading - innovate!
Last rant interesting - the right wing rich elitists have injected their propaganda into you well.
Problems we face now have been fueled by a "corrupt government under Bush/Cheny" and by the ultra rich right wing "feeding" off the masses and essentially robbing the country. So stopping the criminal theft is job one. Bush Co. though pretty much robbed it all before leaving.
Now "putting stimulus" into public programs is right - not giving over paid CEOs a tax break and raise. - Continue stimulus into public programs (schools, roads, utilities, communication, etc.) - Nationalize the banks temporarily and reset them then regulate them properly going forward. - Nationalize the majority of the Healthcare Industry and Health related Insurance Industries and provide healthcare for all. No one should be making outrageous profits from another's misfortune. - Nationalize the Oil industry. Obscene profits and tax breaks eliminated. Obscene use of the Military to support the Oil industry all paid by the taxpayers is ridiculous - where is our pay back? Why is the Oil industry not bailing out the Auto makers? Why are they not building roads/bridges? No a very small group is making record profits from the masses. - Investigate past/current Wall Street& Corporate scams and put people in Jail ASAP The right wing elitists want everything privatized - why? - so they can make money from it.
Think about Bush's attempt to Privatized Social Security. Well if that would have happened then at this point SS would be broke (robbed) and all in less than 2-3years.
Lastly no thank you - we already had the Bush crime family for 8 years. - murdered millions and stole trillions Time for someone with an interest besides greed, power and suppression.
Where did these local governments invest their pension funds?
Future innovation will be funded by the government, a government backed by a military larger than that of the combined military of the rest of the world, until the private sector gets deleveraged enough to start putting money into longer term projects.
DW