Deal Reached to Prevent Michigan Takeover of Detroit; Really? No, Not Really; What's Best for Bankrupt Detroit?

On January 29 Bloomberg reported Bing Races to Beat Michigan Deadline for Union Detroit Deal

Democratic Mayor Dave Bing is racing to wrest concessions from 48 bargaining units to erase a $200 million deficit in the home of General Motors Co. and the cradle of the U.S. auto industry.

Otherwise, the city of 714,000 dominated by Democrats may face a Republican-appointed manager with authority to sell assets and nullify contracts. State Treasurer Andy Dillon has said Detroit will run out of cash by May, and called for concessions by early February.

This week, Bing began firing 1,000 of Detroit’s 11,300 employees. The mayor also proposes a 10 percent cut in payments to vendors and doubling the 1 percent tax on corporations.

Bing, 68, has said the city must trim annual employee benefit and pension costs, which have risen since 2001 to $35,000 per employee from $18,000.

“We are meeting, not daily but more than weekly, and there are sidebar conversations every day,” said Al Garrett, president of AFSCME Council 25, which represents about 3,000 employees. “I’m not sure an emergency manager would be any more Draconian than what the city itself is asking, but it’s a real possibility.”

Deal Reached?

Mayor Bing is taking his script straight from Greece where a deal has been "close" for days, weeks, and now months.

Today's Bloomberg headline does not match the facts presented. Please consider Detroit Reaches Pact With City Unions to Avoid Takeover, Detroit News Says

Mayor Dave Bing and a majority of city employee unions have reached tentative agreement on concessions aimed at avoiding a state takeover.

“This agreement is the first meaningful step in achieving the necessary concessions and structural changes,” Bing, 68, said via Twitter.

The deal, but no details, was confirmed by Al Garrett, president of AFSCME Council 25. The agreement covers about 6,500 of the city’s about 11,000 employees, not including police and firefighters who have resisted a demand for a 10 percent wage cut, he said.

The city and unions must agree to concessions early this month to avoid state action, such as the appointment of an emergency manager with broad powers to cut spending, said state Treasurer Andy Dillon. Dillon is leading a review of city finances, after a preliminary review found it will run out of cash by May, and that it faces a $200 million operating deficit.

Deal Reached? Really? No, Not Really

According to mayor Bing we have an "agreement", albeit an agreement with no details, and without covering police or firefighters. What kind of deal is that?

What's Best for Detroit?

The best thing for Detroit would be if there is no deal, or the state rejects the deal.

Unions are the problem and the solution is to get rid of them entirely. That will not happen under Bing, but it could happen in a state takeover.

Bing is not interested in what's best for Detroit taxpayers nor is he interested is what's best for Detroit school children where shockingly only 25% graduate high schools. Rather, Bing is out to save as much of the status quo as he can, including his own job of course.

Detroit Schools Bankrupt

Flashback July 24,2009: The Wall Street Journal reports Detroit’s Schools Are Going Bankrupt, Too

Detroit is like many urban school districts—large, unwieldy and bureaucratic, with a powerful union that makes the system unable to adapt to changing circumstances and that until very recently had an indulgent political class that insulated it from reform. That insulation came in two forms. The first was neglect. Mayor Kwame Kilpatrick spent several years distracted by a scandal stemming from his affair with a staffer. He resigned last year, pleaded guilty to obstruction of justice, and was sentenced to four months in jail. Had he been an effective mayor, he might have also been a powerful advocate for students.

The other insulating force was a conscious decision to wall off Detroit from charter schools. In 1993, Michigan’s legislature made it difficult to create new charters in Detroit by declaring that only community colleges could authorize charters for primary and secondary schools in “First-Class Districts”—defined as those with more than 100,000 students. Detroit was the only First-Class District. In 2003 the state, under pressure from the Detroit Federation of Teachers, turned down a gift of $200 million from philanthropist Robert Thompson that would have established 15 charter schools in the city. Those charters are needed today.

The net result has been a school system that’s been coming apart as the teachers union has dug in its heels. In 2006, the union illegally went on strike, killing a plan to force teachers to take a pay cut to balance the system’s books.

Collective Bargaining has Morally and Fiscally Bankrupted Detroit Schools

Read that again. Under pressure from the Teachers' Union, Detroit turned down $200 Million. That was in 2003 dollars. Wow. No doubt the union "did it for the kids".

For more on the appalling behavior of Detroit's teachers' unions please see Detroit Public Schools (25% graduation rate) teachers unions opposing highly qualified volunteer teachers.

It is time to kill collective bargaining for public unions, every one of them, and nation-wide, not just Detroit.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Swarms of Mini-Drones to Forever Change Warfare; "Mr. President, We Have a Drone Gap"

As a temporary diversion from economic analysis, inquiring minds are watching an amazing video of swarming mini-drones.



Information Dissemination says UAV Swarms Will Change Warfare Forever

Global Guerrillas discusses Drones in the USA.

Global Guerrillas also discusses the slippery slope of assassinations in DRONES and US Internal Security

Previously, when thinking of killer drones people had images in mind of big extremely high flying predators such as this drone captured by Iran.



Mini-drones flying in organized patterns are a completely different thing.

Some of the ideas expressed in the above articles seem a bit far-fetched, such as swarms of tiny drones attacking ships.

Could they carry enough explosives? According to Wikepedia, it would take at least 4 kg of plutonium (about 8.8 pounds) to build a nuclear weapon, and that does not count housing. Other explosives would seem to be more of a nuisance to a big ship than anything else.

Thus thoughts of using mini-drones as explosive weapons may not be in the cards, but something substantially bigger, say a hundred pounds or so could conceivably work, and could easily be launched undetected a hundred miles out at sea, flying just above the water until it reached shore.

Mr. President, We Have a Drone Gap

Now, having wasted enormous amounts of money on researching and testing weapons shields in outer space, we can turn our thoughts to preparing for the invasion of swarms of yet to be announced killer nano-drones much smaller than the ones in that video. We also need to prepare for micro-drones capable of firing needle-sized poison darts, mini-drones such as one in the video able to fire a single bullet, and of course suitcase-sized drones capable of carrying nuclear bombs or firing a machine gun. Thus, the defense department obviously needs anti-drone drones at the nano-level, micro-level, mini-level, and suitcase-level.

To paraphrase a general in the movie Dr. Strangelove regarding an alleged mineshaft gap, "Mr. President, we have a drone gap".

If you have not seen the movie, please do. It is one of my all-time favorites. The only missing ingredient now is for some nutcase to champion a drone-defense program as the best way to save the economy.

With those sarcastic thoughts out of the way, this drone-diversion is over. It's time to get back to discussing financial Armageddon.

Addendum:

Inquiring minds may wish to watch these big brother videos on drones being used or tested by police.



Link if video does not play: UAV Spy Drones, Police to Tackle Privacy Issues Later

Military drones being used by Local Police



Link if video does not play: Military drones being used by Local Police

German Microdrones, Your Eye in the Sky



Link if video does not play: New German UAV -- microdrone

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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German Central Bank 228 Billion Euros in Debt Rescuing Europe; Bundesbank President Criticizes Merkel's Fiscal Pact, Says "No Grounds for Eurobonds"

Both Angela Merkel and the Bundesbank are walking an extremely fine line of economic policies and treaty arrangements that appear to be in violation of policy statements made by the German Supreme Court regarding transfer unions. Moreover, the Bundesbank president is now in what amounts to an open Feud with Merkel.

Bundesbank 228 Billion Euros in Debt Rescuing Europe

Ambrose Evans-Pritchard at The Telegraph reports Bundesbank Sinks Deeper Into Debt Saving Europe

The operations are part of the European Central Bank's 'TARGET2' network of automatic payments between the national central banks of the Euroland club. The Bundesbank has already provided €496bn (£413bn) to countries in trouble, chiefly Greece, Ireland, Italy and Spain.

The Bundesbank - the dominant body in the euro system - used to keep a stock of €270bn of private securities (refinance credit) before the start of the financial crisis. This was depleted last year as it sold assets to meet growing demands on the TARGET2 scheme.

Once the debt drama began to engulf the bigger economies, the Bundesbank was forced to borrow money to meet its obligations to offset capital flight, since it refused to sell its stash of gold. It now owes €228bn to German banks.

"There are political limits to TARGET2 support. The reason why the ECB started printing money in December was to avoid pushing the Bundesbank deeper into debt," said Prof Westermann, referring to the ECB's provision of €489bn in cheap loans to banks for three years.

David Marsh, author of books on both the Bundesbank and the euro, said the TARGET2 system has the effect of locking Germany ever deeper into monetary union.

"The longer it goes on, the larger the cost of a eurozone break-up since these credits could be wiped out with horrendous losses. It is about time this was the focus of proper debate in the Bundestag, since the German taxpayers may have to pay for it," he said.

Given that German taxpayers are indeed on the hook should something go wrong, I am surprised no one has issued a direct challenge to the German supreme court to stop the madness.

The ECB may indeed have taken over "printing money" but German taxpayers are still liable for their large percentage share of any problems at the ECB.

Target 2 Balances

In Summit Time – Batten Down the Hatches Pater Tenebrarum posted a nice series of charts on Target 2 balances.

click on any chart for sharper image

Target 2 Germany



Target 2 Netherlands



Target 2 Finland



Target 2 Spain



Anyone see a problem here?

If not, please consider this September 26 2011 post citing a ruling by the German Supreme Court:

Germany's Top Judge Throws Major Monkey Wrench Into Leveraged EFSF Machinery, Demands New Constitution and Popular Referendum for Further Powers.

German turmoil over EU bail-outs as top judge calls for referendum

Germany's top judge has issued a blunt warning that no further fiscal powers may be surrendered to Europe without a new constitution and a popular referendum, vastly complicating plans to boost the EU's rescue machinery to €2 trillion (£1.7 trillion).

Andreas Vosskuhle, head of the constitutional court, said politicians do not have the legal authority to sign away the birthright of the German people without their explicit consent.

"The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution)," he said.

"There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people," he told newspaper Frankfurter Allgemeine.

Bundesbank President Criticizes Merkel's Fiscal Pact

Clearly the Bundesbank is walking a very fine line, with huge problems of its own. It does not need additional problems caused by politicians. Thus its patience with Angela Merkel for stepping over the line has run out.

Eurointelligence reports ....

Bundesbank president Jens Weidmann last night criticized the fiscal pact Angela Merkel had forced upon her EU partners at last Monday’s summit, Financial Times Deutschland reports. "The guidelines for the national fiscal rules leave considerable room of manouver and there is no control on a European level to check if they are really respected", Weidmann said in a speech.

Merkel’s former economic advisor also said he thought it was unlikely that the tougher rules of the new stability and growth pact would really be reinforced. "All that gives reason for some doubt", he concluded his assessment of the pact of which Merkel had said in her post summit press conference that its rapid adoption was "a masterpiece".

The Bundesbank president went on to stress that the pact and the debates about control of national fiscal policies in the crisis countries showed that governments were not prepared to relinquish sovereignty to the European level. Therefor there were no grounds for a greater mutualization of debt or the introduction of eurobonds, Weidmann said.

Political Zugzwang

Merkel is under attack by members of her own political part and the president of the Bundesbank as well. As I said in Political Zugzwang, Merkel has no good options.

Zugzwang is a term in chess. A player has to make a move but every move weakens the position. Pass is not an option.

Merkel is in such a no-win position. Everything she does will put her under attack by someone. Doing nothing, is an option in politics but not chess. However, doing nothing also exposes Merkel to attack.

Attacks Fly

Check out this nonsense from former European Commission chief Jacques Delors who says Resistance to eurozone bailout boost 'scandalous'

Former European Commission chief Jacques Delors on Sunday blasted the reluctance of eurozone countries like Germany to boost the size of the Greek bailout and create a system of eurobonds to facilitate lending.

"It is scandalous. You cannot be a member of the euro cooperation and at the same time say no to elementary demands for solidarity with other members within the framework of existing agreements," the prominent European federalist said in an interview with Dagens Nyheter, Sweden's daily of reference.

"It is a mistake of German Chancellor Angela Merkel to refuse to go along with such bonds," Delors said.

Delors' Self-Serving Pomp

What's scandalous if for political hacks like Delors to assume the Eurozone is worth saving, then tell everyone else how to go about it without taking into consideration any restraints others may have.

I suggest the euro is not worth saving. For the sake of argument, however, let's assume the eurozone is worth saving, and start with a look at Merkel's options.

Merkel's Predicament

1. If Merkel proposed Eurobonds, her coalition would collapse and she would be ousted. Moreover, the German supreme court would certainly demand a referendum which would fail. The irony then, is if Merkel did what Delores asked, the eurozone would fly apart right here right now.
2. If Merkel proposed significantly more bailout money, her coalition would also collapse and once again the proposal would be at risk of a challenge from the German supreme court.
3. If Merkel does nothing, she takes heat from political dimwits like Delors and an entire gamut of other nanny-zone supporters. She also takes heat from her coalition.
4. If Merkel steps up the pressure on Greece she hears it from her political opposition, from Delors, and from a whole host of parties representing a myriad of political views.

That my friends is political zugzwang and that is precisely why she called for Greece to Cede Sovereignty to Eurozone "Budget Commissioner".


Her proposal elevated the ire of Greeks as well as the likes of political hacks like Delors.

However, blaming Merkel as Delors did is the height of arrogance. Not only is she at risk from from the German central bank, she absolutely cannot step over a line set by the supreme court.

Thus, the option Merkel selected is the one that makes the most sense.  It was her least-worst option. It also bought her and the eurozone the most time.

It is the only option that has any chance of working.



I think the best thing for the Eurozone would be for Germany to exit. The irony is that would likely happen quickly if Merkel embarked down the path demanded by Jacques Delors.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Survey of European Banks Shows a Sharp Cutback in Lending; Three Reasons LTRO Will Not Get Banks to Lend

The LTRO may have ignited the bond markets and the stock market but it did not do anything for bank lending. The New York Times reports Survey of European Banks Shows a Sharp Cut in Lending

Banks in the euro area cut lending sharply at the end of 2011, according to data published Wednesday, raising concern that Europe was on the verge of a credit crisis that could lead to a deeper recession than expected.

A quarterly survey of commercial banks by the European Central Bank showed a surge in the number of institutions that were becoming more restrictive about who they lent to, because the banks themselves were having trouble raising money and were under pressure from regulators to reduce risk.

“It is obvious that we see a deleveraging, a retrenching process unfolding,” Thomas Mirow, the president of the European Bank for Reconstruction and Development, said in an interview last week. He said the figures from the Bank for International Settlements showed “this is not just perception but reality.” The reconstruction bank provides credit to support the development of free markets in the former Soviet bloc.

Banks tightened their lending standards for businesses as well as for individuals, according to the central bank. Of the banks surveyed, 35 percent said they were applying stricter criteria to business loans compared with 16 percent in the previous quarter. Banks also became more reluctant to provide mortgage loans. And they said they expected credit to become more scarce in months to come.

Germany was an exception. Lending there remained steady, according to separate data published Wednesday by the Bundesbank, the German central bank.

One reason banks in the euro area are reluctant to lend is that they have their own problems raising money. About half said they were still having trouble getting access to money markets, the central bank said. Funds in the United States and elsewhere that lend large sums to banks remain wary of the health of many euro area institutions because of their holdings of European government bonds.

A fifth of banks surveyed said that the need to raise their capital reserves had forced them to restrict lending. But twice that many banks said the flagging euro area economy was the main reason for tighter credit standards.

Three Reasons LTRO Will Not Get Banks to Lend

Contrary to popular belief the LTRO is not going to do much if anything to get banks to lend. Here are the reasons.

1. Banks are capital impaired if not outright insolvent
2. There are few credit-worthy borrowers
3. Banks have three years guaranteed profits by speculating in government bonds

There is much ongoing debate about whether or not LTRO funding will be used to speculate in government bonds and if so how much. The bulk for the money so far as been to rollover debt, but the temptation to borrow from the ECB at 1% and buy 3-year Spanish bonds yielding 2.89%, 3-year Irish bonds yielding 5.43%, or 3-year Italian bonds at 3.8% is extremely high.

Note that even 2-year bonds are in play. For example, 2-year Italian bonds yield 3.17%. Thus, the idea that none of the LTRO will go into government bonds is unlikely to hold up under scrutiny.

Indeed banks are salivating to double or triple the €489bn they borrowed in December. For details please see You Ain't Seen Nothin' Yet; Another Trillion (or Two) Euro LTRO Coming Next Month

The LTRO is good for bank profits, for now, but please remember that speculation in government bonds is what got European banks into trouble in the first place.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Obama Releases Details on His Plan to Bail Out Banks, Fannie Mae, Hedge Funds, Wall Street, Fixing MERS and Screwing Taxpayers at Same Time; Key Aspects of Plan as Presented vs. Reality

Today, under guise of helping "responsible homeowners" president Obama published details of Plan to Help Homeowners and Heal the Housing Market

Key Aspects of the President’s Plan as Presented

• Broad Based Refinancing to Help Responsible Borrowers Save an Average of $3,000 per Year: The President’s plan will provide borrowers who are current on their payments with an opportunity to refinance and take advantage of historically low interest rates, cutting through the red tape that prevents these borrowers from saving hundreds of dollars a month and thousands of dollars a year. This plan, which is paid for by a financial fee so that it does not add a dime to the deficit, will:
• Provide access to refinancing for all non-GSE borrowers who are current on their payments and meet a set of simple criteria.
• Streamline the refinancing process for all GSE borrowers who are current on their loans.
• Give borrowers the chance to rebuild equity through refinancing.
• Homeowner Bill of Rights: The President is putting forward a single set of standards to make sure borrowers and lenders play by the same rules
• Moving the Market to Provide a Full Year of Forbearance for Borrowers Looking for Work: Following the Administration’s lead, major banks and the GSEs are now providing up to 12 months of forbearance to unemployed borrowers.
• Pursuing a Joint Investigation into Mortgage Origination and Servicing Abuses: This effort marshals new resources to investigate misconduct that contributed to the financial crisis under the leadership of federal and state co-chairs.
• Rehabilitating Neighborhoods and Reducing Foreclosures: In addition to the steps outlined above, the Administration is expanding eligibility for HAMP to reduce additional foreclosures, increasing incentives for modifications that help borrowers rebuild equity, and is proposing to put people back to work rehabilitating neighborhoods through Project Rebuild.

State of the Union Analysis

I did an analysis of the proposal based on sketchy details, immediately following the president's State of the Union Address.

Obama Proposes Mortgage Bailouts, Handouts, Copouts Exactly One Paragraph After Stating "Top to Bottom: No Bailouts, No Handouts, and No Copouts"; How the Taxpayer Ripoff Works.

 $10 Billion?! Really?

The proposal as outlined rates to take every "responsible" underwater mortgage held by banks, Fannie Mae, Freddie Mac, hedge funds, foreign banks, and pension plans, and transfer all of them to the FHA. The idea this will only cost $10 billion is absurd.

The "small fees on the largest financial institutions" are absolutely guaranteed to not cover the cost of this monstrous proposal. Indeed there is something in Obama's proposal for everyone except "responsible citizens".

"Let’s never forget: Millions of Americans who work hard and play by the rules every day" will be royally screwed by Obama's proposition in the form of higher taxes down the road.

One key point that I  did not consider at the time came for reader David who said "A refinanced mortgage is a properly documented mortgage. So this also helps to clean up the mess of all the MERS, notes with broken signatures, improperly registered, etc."

There is also a change in availability, one has to be current to take advantage. So taking those points into consideration....

Five Key Aspects of the President’s Plan in Reality

1. Bail Out Banks, Fannie Mae, Hedge Funds, Wall Street, literally everyone holding mortgage-backed paper.
2. Bank of America with all its Countrywide Financial garbage and Wells Fargo with all its Option ARM garbage will be especially big beneficiaries
3. Fix MERS. Every refinanced loan will have clear title
4. Throw homeowners a relatively small bone
5. Screw responsible taxpayers who have no mortgage as well as those who rent

Addendum: 

Reader Barry comments on "responsible" taxpayers.

Hello Mish
I lived in a two bedroom apartment for 17 years with my wife, and then my wife and two sons to save up money.

I did not buy a home until 2 1/2 years ago. I bought my home with cash. I have not been to Disneyland, nor have my children been on any fancy vacations (my sons are now 6 and 8).

Since the government doesn't actually earn any money, it just distributes it, how about instead of giving these billions to those who bought homes they shouldn't have, instead they give it to people like me.

Instead of the money going to the banks to pay off mortgages that should never have been granted in the first place, I would use the money to help pay for my son's college education, my retirement, and maybe a new car which will help employ some Detroit workers.

Seriously, why should those "alleged responsible" citizens get any more consideration than I do?

Anyway, thanks for listening,

Barry

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Rare Triumph of Freedom and Common Sense: Indiana Senate Sends Right-to-Work Bill for Governor Daniels’s Signature

In a triumph of freedom and common sense over forced union slavery, the Indiana Senate Sends Right-to-Work Bill for Governor Daniels’s Signature.

Indiana will become the nation’s 23rd right-to-work state after its Senate exempted nonunion employees from paying dues when working alongside their unionized colleagues.

The vote was 28-22, sending the measure to Republican Governor Mitch Daniels for his promised signature. The Republican-controlled House of Representatives passed the bill Jan. 26, ending three weeks of Democratic boycotts that prevented the chamber from operating.

Republican Senator Carlin Yoder, the bill’s sponsor, said unions “will still be allowed to exist.” During floor debate, Yoder said right to work gives “freedom to those who don’t want to be part of something they don’t believe in.”

Twenty-two states, mostly in the Deep South and the Rocky Mountain West, have enacted right-to-work laws. Republican gains in the 2010 elections prompted legislation in states including Wisconsin and Ohio aimed at restricting bargaining rights for government workers’ unions.

The bill will be sent to Daniels’ desk today and, once signed, will take effect March 14.

The bill does not go far enough. What's needed is the termination of all public union collective bargaining rights nationally. Cities and states are in trouble because politicians have been in bed with unions, driving up costs and taxpayers have to foot the bill.

It's time to end union insanity, and more importantly union slavery. This bill is a step in the right direction. To understand why, please consider ...

 
1. Collective Bargaining neither a Privilege nor a Right
 
2. Paul Krugman, Stephen Colbert, Bill Maher, others, Ignore Extortion, Bribery, Coercion, and Slavery; No One Should Own You!
 
3. Teachers' Unions Don't Give a Damn About Kids; Feeling Guilty, But ...
 
4. Senator DeMint Says Team Obama Acts Like Thugs; Death of Right-to-Work?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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French Consumption Drops Most Since 1997, Increased VAT Supposed to Help

Courtesy of Google Translate, please consider French Consumption Drops Most Since 1997

Last year, consumption of French manufactured goods, food and energy fell by 0.5% on average, the largest drop since 1997. Even during the 2008-2009 recession, the decline was not as marked. December was particularly bad (- 0.7%), raising fears of a difficult early 2012 against a backdrop of rising unemployment. Paradoxically, the government relies on the announcement of a social VAT to encourage the French to bring forward purchases before the increase in the rate in October.

Increased VAT Supposed to Help!?

Straight from the economically insane department, French president Nicolas Sarkozy wants to improve sales by increasing taxes. His belief is consumers will make major purchases before the rise in taxes.

Lovely.

What about the collapse in sales afterword? What about the need to hire then fire masses of workers because companies ramp up production now in expectation of increased sales now (that may or may not even happen), only to get rid of them later?

The idea that borrowing sales from the future will accomplish anything good is preposterous. Generally politicians make such proposals in attempt to speed up the economy by carefully timing tax credits to help their election chances. In this case Sarkozy proposed the opposite way to bring forward sales.

Bear in mind that Sarkozy's VAT increase would happen in October but French presidential elections are in April and May. Those elections are too soon for Sarkozy to benefit from his proposal. Taxpayers would likely put off purchases of major consumer goods as long as possible. Thus, an increase in sales (demand pulled forward) would likely be in July, August, and September, not February, March, and April.

Challenger François Hollande jumped all over Sarkozy's increased VAT proposal. He has a more populist message, far more likely to resonate with voters: Hollande Vows to Tax the Rich, Take Pay Cut.

Election politics aside, the French economy is slowing far more rapidly than most expected. Increased taxes whether on everyone or just the rich, certainly will not help. Such economically inane programs will intensify the strength and the length of the European recession.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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