Cuomo's High Tech Future For New York Looks Not To Be Profitable

"Dreams of windpower, green jobs and high tech sugar plums danced in his head."

         Cuomo and New York State awoke from their fanciful dream of a profitable high tech computer chip factory in Malta, New York to discover the company, GlobalFoundries needs cash and is willing to give up future tax credits which would offset future taxes.   GlobalFoundries wants to trade $700 million in tax credits it has coming to it at a tremendous discount. According to two well-placed public officials, the computer chip manufacturer building a giant factory in Malta approached state leaders recently and sought $165 million in cash promptly.   Although NY State rejected the request, because where would NY State get that cash with all its budget woes.

       Do Cuomo and NY State realize unprofitable facilities always close.   They don't stay open to keep jobs and tax revenues flowing.  Gone are Cuomo's dreams of income tax revenues from the future 1,600 employees and the expansion of local business serving the future employees and the company.   GlobalFoundries said, "We have been exploring many different proposals. ... Whether or not we build out the site will be a business decision based on various considerations, including customer needs and the state's ability to continue to partner with us."

Will Cuomo become a crony capitalist and further investor and the taxpayers become the paying suckers? 
Will this be Cuomo's Solyndra in New York, where NY State loses its $665 million dollar investment already spent?

The windmills in Lake Erie fail.    Two NY solar energy plants close.  Computer chip manufacturing is endangered.  The NYS high tech future fizzles.  What new jobs and income tax revenues will Cuomo expect now?
How will NY State pay off its bonds?

New York State Will Likely Default And Rating Agencies Will Be Liable If They Fail To Properly Rate NYS Bonds

Copy of letter sent August 16, 2011

To: Moody's Investors Service, Inc.,101 Federal Street, Suite 1900, Boston, MA 02110
Standard and Poors, 55 Water Street New York, New York 10041
Fitch's, One State Street Plaza,  New York, NY 10004
Dagong Global Credit Rating Co.,Ltd
29/F, Unit A, Eagle Run Plaza, No.26 Xiaoyun Road,Chaoyang District,Beijing, P.R.China 100125

Re: US Rating agencies will face a large liability for improper ratings for NY State Bonds. Default/bankruptcy coming shortly. Catastrophe in waiting: Average NYS non-financial sector income of $50,400 a yr. results in less net income than average NYS dole benefit of $42,000 a yr.


Dear Rating Agencies:
       How long do the rating agencies think this can continue in NY State?  While NY State pays the average public assistance person $42,000 a year in benefits according to Lou Dobbs's radio show on 8/15/2011, the average non-financial sector NY State income was $50,400.*  And NY State relies more heavily on personal income tax for its revenue than other States.*  When will the federal government cut off NY State's Medicaid program which is run as a fraud, where NY State mischarges the federal government $22 billion dollars to fund its non-medicaid State budget?  Andrew Cuomo's business friendly NY has fizzled.  Meanwhile, Andrew Cuomo failed to begin to change the NY Constitution to end unaffordable pension costs.

      "A word to the wise is sufficient."  The US based rating agencies will have a large liability, if NY State bonds are improperly rated.  The future possibility of repaying NY State bonds not backed by a dedicated revenue source is non-existent.  NY State bonds finance State agencies as well as State government.  Some bondholders, such as Thruway bonds or Dormitory bonds, receive first dibs on revenues, if the State doesn't pay on time.  Other bonds are backed by the full faith and credit of NY State without a dedicated revenue source.  But if the State doesn't have enough cash in revenue, how can it pay?

These are the details:
First, this is the text from NY State Constitution: §7. After July first, nineteen hundred forty, membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired. (Adopted by Constitutional Convention of 1938 and approved by vote of the people November 8, 1938.)

  Then, in regard retiree costs:
  1. Although, Chris Christie reformed pension and benefit costs in New Jersey, Andrew Cuomo failed to ask this session of the Legislature for a Constitutional Amendment to change the above clause which prohibits NYS from changing any retirement contractually promised benefits, such as Health Insurance and Pensions.  Such an amendment must first be passed by this and then the next legislative session and then finally approved by the voters. 
http://cuomotarp.blogspot.com/2011/08/rating-agencies-informed-as-new-york.html

    2. NY State has not funded its retiree health benefits which were part of State workers' contracts with NYS and are constitutionally protected.  NewYork Adds $56.3 Billion To Its Unfunded Liabilities

    3. NY State's pensions are a Madoff style Ponzi scheme where NYS promises a 7.5% "safe return" when that is impossible.  All the undeposited funds needed to properly fund the pension funds and the losses of up to $7.3 trillion dollars are liabilities of NYS.  Any higher taxes to fund this shortfall would create a stampede of taxpayers getting out of NY State..

Then in regard taxpayers

    4. Taxpayers are fleeing NYS at the largest rate in the USA.   Who'll repay the bonds?

    5. NY State has the highest local and State debt per person and the second highest taxes paid per person of any State but New Jersey.    New York Debt per person including local debt is at $24,195. For a family of four about $97,000.   Will NYS raise taxes even higher and borrow more?

    6. Andrew Cuomo will not attract business or its potential taxes to NYS because NYS has the next to lowest business friendly rating of all the States.   When NY businesses repay the $ 3.6 billion dollar Unemployment Insurance loan to the Federal government this November 2011, NYS will become a business pariah.

    7. What happens when the millions of NYS taxpaying residents earning the average non-financial $50,400 or less discover their net income is less than the average dole recipient's $42,000 a year?   Do they leave the State or go on the dole?

  Then, in regard State revenues:   
   8. The NY Comptroller predicts rising numbers of non-taxpayers in the NY State Medicaid system*.


   9. NY State funded 14% of its budget this year with one time funds that will not be available in future years.

   10. Andrew Cuomo's Budget director says, he has no ability to finance spending commitments already.  This was recorded at a 7/20/2011 hearing of Cuomo's Commission on Judicial Compensation: "We don't even have the ability to finance the spending commitment that are already in place, said Robert L. Megna."


    The Bottom Line:

• a rapidly rising NYS expenditure for retiree and others' benefits
• a reduced number of businesses in NYS paying taxes and paying workers
• more NYS Medicaid non-taxpayers
• taxpayers fleeing the State
• NY State will run out of cash from its diminishing revenue sources
• NY State either defaults or goes bankrupt if Congress enables State Bankruptcy by a new law
• a tax revolt when those millions earning the average non-financial income of $50,400 or less realize that the average NYS dole recipient receives $42,000 yr. in benefits

 And the US rating agencies would be sued by all the suckers still holding devalued and defaulted NYS bonds.   And Dagong may have protected foreign investors and exposed the hopeless finances in New York State.

Sincerely yours,

CuomoTARP.blogspot.com

*See Financial Condition Report for Fiscal Year 3/31/2010

P.S. Please access website for working links to all data.  

New York State Rating Downgrade: Who'll Repay The Bonds As Taxpayers Flee?

Who pays the bonds off, when the taxpayers flee.

     Did the media (including Fox News), the politicians of both parties and the media pundits lie to you that the US would/could default on its debt?   Alan Greenspan said on Sunday,""The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default."

  Are New York politicians or the sycophant New York media to be trusted?   Will New York debt be downgraded?  Unlike the federal government, New York can quickly default.

     Here's a buyer's guide to New York State bonds or more likely a seller's guide:
   
1.NY Businesses Howl At $21.25 Per Worker, While Cuomo's Budget Will Require An Additional $478 Per Worker In November.   

2.   New York State has the highest debt per person in the USA ($24,195) and the second highest taxes per person ($6,884).   Andrew Cuomo's Budget director says, he has no ability to finance spending commitments already.  This was recorded at a 7/20/2011 hearing of Cuomo's Commission on Judicial Compensation: "We don't even have the ability to finance the spending commitment that are already in place, said Robert L. Megna, who was speaking on behalf of Governor Andrew Cuomo, who appointed three of the commission's seven members."

3. Cuomo's New York Comes In Second To New Jersey For The Most Taxes Per Person.  New York's Taxes paid by residents as percentage of income are 12.1%   "The state [NY] has one of the highest state and local tax collections per capita, an average of $6,884.     According to the Census Bureau, the top ten counties in the U.S. with the highest property taxes as a percentage of home values are all in New York."

4. Rating Agencies Informed As Cuomo's Budget's Imagined $ 4.3 Billion In Revenue Increases Disappears

a. The Cuomo Business Friendly Bubble Burst, when NY was ranked 49th out of 50 States as Business Friendly.   While the Cuomo stooge at the NY Economic Development Agency described his own policy as "anyone proposing nano-scale technology in Syracuse should be taken out to the woodshed."

b. Cuomo's expected tax revenues took another dive into red ink with latest report.  "A gauge of manufacturing in New York State showed the sector unexpectedly contracted for the second month in a row as new orders worsened, while core inflation rose at its highest pace in three years."


c.  This business contraction affects the revenue increases which finance Cuomo's spending.  Cuomo had balanced his budget with imagined revenue increases and Cuomo used temporary sources for 14.7% of his budget revenue, such as, Federal stimulus money (threatened in present federal debt debate), "voluntary contributions" from NY Power Authority and other authorities (they'll charge you higher rates) and delaying paying NY State Income Tax refunds.

d. Cuomo's unrealized revenue fantasies reported by the Comptroller include:
    i. Personal Income tax receipts in 2011-2012 will increase $2.9 billion or 7.9% (but decreased employment reported)
    ii. User taxes and fees (sales and tobacco taxes)will increase $467 million or 3.3 % (but tobacco tax increase will fail link 1  link 2 and workers earning less or unemployed spend less)
   iii. Business taxes will increase $894 million or 12.3% (but business declines)
   iv. Payroll Tax will increase $63 million or 4.6%  (but, rising unemployment including State layoffs decrease payrolls)
  A budget shortfall of $4.3 billion dollars must be borrowed this year.


5.  New York Pension Books are Cooked

6. Cuomo has a "funds shift [that] would result in the use of state bond proceeds for payment of a portion of debt service on MTA revenue bonds."

7. Cuomo's budget used the "Madoff-like" assumption of a 7.5% safe return on pension investments. and continues to allow borrowing to fund contributions.

8. Cuomo failed to budget in the required repaying of the federal government for Medicaid frauds. This is minimally estimated at $6.4 billion.



Finally, 9. Who'll repay the bonds? New York Exodus As Tax Payers Flee At The Highest Rate In USA.    New York State businesses also will flee.   Small-business lobbyist Mike Durant noted, New York has "consistently ranked worst or in the top three worst in business climate. You can't suck every penny out of people and expect them to remain in New York."

cc: Moody's, Fitchs , Standard and Poors 

The Hand Writing Was On The Wall For Cuomo And New York Bondholders As All US Government Debt Is Dropped By World's Largest Bond Fund

    "The words of the Prophet were written, Sell now and not cry later " ~ CuomoTARP

   "Bill Gross, who runs the World’s Biggest Bond Fund at Pacific Investment Management Co., eliminated government-related debt from his flagship fund last month as the U.S. projected record budget deficits." 

    Note: Bill Gross dumps the bonds first, then makes the announcement, so as not to devalue his holdings before sale or let buyers know he was dumping the bonds.  

   See the words of the prophet in the reprint of the Thanksgiving Post on this blog predicating the devaluation of NY Bonds and the subsequent increase in interest rates requiring a large budget increase to cover the higher rates.    Also, link to Rating New York Bonds

At Thanksgiving Fest, NY Bondholders And Cuomo See The Hand Writing On The NY Capital Walls

The words, Mene, Mene, Tekel, u-Pharsin, written by a God of Justice Disrupt the Albany Victory Celebration (King Cuomo, Silver, Paterson and Sampson in their blue uniforms with their new committees behind them)
  *picture described in note #1 below

  CuomoTARP has obtained two translations for the handwriting "Mene, Mene, Tekel, u-Pharsin" on the walls of the NY Capital Buildings. It was the same Aramaic words the Babylonian King Belshazzar saw on the wall in Babylon around 539 B.C., *See historical note #2 below

        Translation #1: Mene, Mene, Tekel, u-Pharsin translates to Number, number, weigh, divide in two."   And the meaning is the same, for both King Andrew and King Belshazzar, "God has numbered your remaining days in power; your number is up; you've been weighed and found deficient; and your State will be divided up financially and given to its creditors."

 A Creditor: One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions.
~ from Ambrose Bierce's Dictionary

Chinese creditors crack their whip on the Bernanke/Obama money printing scheme.  

Follow the economic reality trickle down below:
    China and Russia have decided to renounce the US dollar

     Fears of Domino Effect Pervade Europe: Loss of Confidence Extends From Ireland to Spain, Portugal; Bond Spreads Widen as Euro Tumbles


     Belgium's debts to record levels in situation made worse by broken political system

    Now, see the world economic reality trickle down into NY on this blog: 
    another $6.8 Billion missing from the Cuomo Budget Plan.  

    NY Comptroller, DiNapoli, now promises safe returns of 7.5%  (or Madoff has a bridge for Sale)


    The Final Prophecy: from the Ghost of NY Yet To Come: the Trophy of Total Fiscal Failure. 
  

Now, the translation #2 for NY Bond Holders:

  Mene:  Count your bond values now
  Mene:  Count your bond values after the credit rate rises, inflation increases and bond desirability decreases  *See notes 3 and 4 below
  Tekel: Same as shekel or watch your money
  U-Pharsin;  Your bond values will be cut in half

The Words of the Prophet to bondholders:
  Sell now and not cry later

*note 1 The hand-writing upon the wall is a print etching and aquatint, hand-colored  by Js. Gillray  and shows  Napoleon, Josephine, French soldiers and women seated at feast with dishes "Bank of England," "St. James," "Tower of London," and "Roast Beef of old England." Napoleon looks in horror at hand of Jehovah pointing to words in sky: "Mene mene, tekel upharsin."  

note 2 from Daniel 5:25–28: "And this is the writing that was inscribed: mina, mina, shekel, half-mina. This is the interpretation of the matter: mina, God has numbered the days of your kingdom and brought it to an end; shekel, you have been weighed on the scales and found wanting; half-mina, your kingdom is divided and given to the Medes and Persians.
That very night King Belshazzar is slain, and Darius the Mede becomes King. (The end of the Babylonian Empire and the beginning of the Persian/Mede Empire)

note 3 short course with graphs showing inverse relationships of bond prices, interest rates, inflation

note 4 simpler explanation of bond value changes

How States And Municipalities Could File For Bankruptcy

Debts are nowadays like children begot with pleasure, but brought forth in pain. ~Moliere

 Clearing up the State and Municipality Bankruptcy Reports:
          Latest News flash: "For state governments, though, there are no printing presses and no lines of credit. States can actually run out of money"  "In the previous two budget years, the federal government ended up bailing out struggling states. In fiscal years 2010 and 2011, states received a combined $127 billion in federal bailouts ... to cover more than a third of the total shortfall."  "Washington is in a tizzy over the ever-expanding federal debt."
       Earlier in the News: it's reported that a Michigan Town Is Left Pleading for Bankruptcy, but the State of Michigan isn't giving permission, because the state fears opening a floodgate for other municipalities.  That's not the case in New York where NY law allows bankruptcy filing by any municipality with State permission already granted under NY Local Finance Law §85.80 Authority for municipality or emergency financial control board to file petition under federal statute. A municipality or its emergency financial control board in addition to, or in lieu of, filing a petition under this title, or the city of New York or the New York state financial control board, may file any petition with any United States district court or court of bankruptcy under any provision of the laws of the United States, now or hereafter in effect, for the composition or adjustment of municipal indebtedness.

         Earlier News:  The fear of state insolvencies has spooked various bond fund managers, who fear management fee decreases, after a report that, "The U.S. government will face pressure to bail out struggling states in the next 12 months, said Meredith Whitney."    Meridith Whitney also said, "U.S. states won’t default,  Instead, they will cut aid to local governments, putting them at greater risk."  The new Congress is now under even greater restraints on borrowing.  And Cuomo has promised to cap local taxes and Cuomo can't now shift State expenses to local governments without them going bankrupt.

          Some people have faith in the claim some bondholders have over pledged revenue, but that is exactly the pledge that could be removed by a bankruptcy court.   The Conservative Heritage Foundation has, "Congress should consider a way for states to file for bankruptcy or its fiscal equivalent. While such a law would raise some serious federalism issues, as long as states are allowed to enter into bankruptcy voluntary, it could be constitutionally acceptable."

        Simple questions: 1. Will Congress borrow more money and increase the deficit to bailout States?

2. Will bond holders with pledged revenue still get paid first or even in total?  (See Finance Bazaar)

3. Will Congress pass a State Bankruptcy Chapter 10?

4. Will New York Bondholders get hurt?

Answers;  1,2 NO      3,4  YES

The Hand Writing Is On The Wall for New York State

A Ron Paul Or A Cuomo And Fixing Your New York Tax Withholding Rates

 "A fool and his money are soon parted."

        Will New York follow California and give I.O.U.'s for tax refunds?   Should this cause you to correct your New York Income Tax Withholding rates?


   Here's a California I.O.U. called a"registered warrant"

But the big California banks didn't want to honor these California warrants. and they were illiquid for using directly for purchases, but the Cuomos would be traditional script which could be used for purchases and bill payments, if someone will take them.
                      A proposed "Cuomo"

$3                               NEW YORK TREASURY I.O.U.                               $3

Tender for all non- public debts if someone will take it

New York Comptroller, Thomas DiNapoli   In Cuomo and in New York State we trust

Backed by the Full Faith And Credit of New York State

$3                                 Three Dollars                                  $3

Nicknamed "the Cuomo"  NY State can print plenty of these to give to you.   Why a $3 dollar value?

       An alternate currency is in use in Mid-Michigan, such as a Ron Paul half troy ounce of silver or a gold Ron Paul

       Of course, the NY script (I.O.U. or the Cuomo) would be backed by the full faith and credit of Andrew Cuomo and NY State, but it could only be used if it was willingly taken, because of
Article I Section 10 of the Constitution: Section 10. No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; make anything but gold and silver coin a tender in payment of debts; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility, 


         Which would you take a Ron Paul half troy ounce of silver  or some Cuomos or some California "warrants"?

        While pondering, sell your New York bonds, change your NY Income Tax withholding so you don't get a refund.

No Whining, No Federal Bailout; You Made Your Bed Of Debt, Lie In It, New York

From Arithmetic for the Economically Challenged Idiots 


For the USA:
1. Total public debt outstanding Dec. 20 $13,868,461,000,000
2. nation's population on April 1 was 308,745,538 
3. USA debt per person $44,805
     And just today, "The U.S. government fell deeper into the red in fiscal 2010 with net liabilities swelling more than $2 trillion as commitments on government debt and federal benefits rose, a U.S. Treasury report showed on Tuesday."

    The federal Government can't bailout New York; it's sinking itself.  You're on your own, New York. 


    New York State reports State-funded debt was $60.5 billion or $3,105 per person and in 2009, NY was the second most indebted State behind California.

    BUT, this debt doesn't include the Pension liabilities from the present phony estimated safe return on pension investments of  7.5%, when the New York fund earned annualized returns of 3.1 percent for the 10 years ended in March 2009, and 1.1 percent over five years and New York state’s $132.6 billion pension fund is the nation’s third-largest. 

   So we need to correct the pension liabilities optimistically with a 3.1% return, or a pessimistically with a 1.1% return.  Doing the arithmetic optimistically, we have 7.5/3.1 x $132.6 billion = $321 billion,  which should be in pension fund, when only $132.6 billion is, or NY has net debt burden owed the pension fund of optimistically $321 billion - $132.6 billion = $188.3 billion or another $9,664 additional debt per person, which should be added to $3,105 per person above.   Making $12,769 debt per person as a better debt estimate in New York.   But now look at the 4.52 million people on Medicaid in NY (don't pay taxes) out of a NY population of 19,541,453  which raises the debt per taxpaying person and each of their dependents to $16,600 each.

The party's over; the hand writing is on the wall and on the paper; the accounting's been done; the prophet heard; the piper must be paid.

The words, Mene, Mene, Tekel, u-Pharsin, written by a God of Justice Disrupt the Albany Victory Celebration (King Cuomo, Paterson, Silver and Sampson in their blue uniforms with their new committees behind them)

CuomoTARP Gives A Christmas Present To New York Bondholders

In God's schekels we trust, all others' schekels we weigh.  From a sign in an ancient Babylon Bazaar

  Trust in Cuomo's charisma?  CuomoTARP updates Financial data relevant to NY Finances and the value of New York State and New York Municipal Bonds. 
1.New York Unemployment rises to 8.3%.
2  Less employment means less taxes

   Trust in Obama/Geithner/Federal Reserve Bank?  Are you fooled by phony low inflation numbers, or do you know gas prices have risen since Obama took office from $1.80 per gallon to $3.31 per gallon (no link needed go to your local gas station).  This cost goes through to all other costs by raising the prices of any goods transported to stores.  
3. Food prices to increase 5% in December.
4. Treasuries rise and therefore NY Bond rates rise. 

  Did you miss the Handwriting on the Wall for NY Bondholders at Thanksgiving?
Mene:  Count your bond values now
 Mene:  Count your bond values after the credit rate rises, inflation increases and bond desirability decreases
  Tekel: Same as shekel or watch your money
   U-Pharsin;  Your bond values will be cut in half
Did you miss the Words of the Prophet to bondholders:
  Sell now and not cry later 

DO You think the Chinese stupid? 

What should you do with rising interest rates and holding bond funds or bonds?
   or what happens if federal rates rise on municipal or State bonds?

      Here's CuomoTARP's Christmas Gift to New York bondholders:

       Sell now and re-buy(?) after the NY interest rate doubles or goes even  higher; otherwise, you lose at least 50% of your bond fund's value.  

NY Bankruptcy, NY Bonds, NY Constitution, NY Pensions; The Resolution

Debt, n.  An ingenious substitute for the chain and whip of the slavedriver.  ~Ambrose Bierce

Neither a borrower, nor a lender be. ~Shakespeare

     We look to the NY Constitution to see why New York must chose bankruptcy if it's available under Federal Law.   Would the federal government refuse to loan or give NY Money, because "Federal loans to States would so increase federal debt so as to lower the federal bond ratings?"   Yes, because there'll be no love lost in the new Congress for bailing out New York's or other States' proliferate spending when the Congress has its own problems.  "The Treasury Department, in its regular budget monthly statement, said the government spent $150.4 billion more than it collected in the second month of fiscal 2011."  New York's deficit is pegged at $15.8 Billion , but if NY gets money, California, Illinois and Michigan will also want bailout money.
Simple question: Will Congress bailout States or create a new Bankruptcy Chapter?
 
        When New York State runs out of money, (technically bankrupt or bankrupt if the new Chapter 10 is adopted), the NY Constitution requires the Comptroller "shall set apart from the first revenues thereafter received ...a sum sufficient to pay such interest, installments of principal. ... at the suit of any holder of such bonds."   The applicable part of NY Constitution is copied below: (note word in red, "may" or it's up to the whim of a New York judge or a federal judge if the bondholder is not a resident of New York )


NY Constitution § 16. The legislature shall annually provide by appropriation for the payment of the interest upon and installments of principal of all debts or refunding debts .... If at any time the legislature shall fail to make any such appropriation, the comptroller shall set apart from the first revenues thereafter received, applicable to the general fund of the state, a sum sufficient to pay such interest, installments of principal, or contributions to such sinking fund, as the case may be,and shall so apply the moneys thus set apart. The comptroller may be required to set aside and apply such revenues as aforesaid, at the suit of any holder of such bonds.

    Supposedly NY Pension Benefits are protected in this article of NY Constitution § 7. ...membership in any pension or retirement system of the state or of a civil division thereof shall be a contractual relationship, the benefits of which shall not be diminished or impaired.

       No way out except for New York to limit its payments to NY bondholders in federal bankruptcy action.

Andrew Cuomo's TARP Used To Protect Bank At SEC And Exorcising The False Hope Demon

Fool me once, shame on you; fool me twice, shame on me. Fool me repeatedly and you'll know I live in New York and I have a "need" to believe.

We offer a free exorcism of your false New York hope demon and any "need to believe in New York's Government or its bonds."

       In a recent report, the SEC Inspector General’s description suggests that [Andrew Cuomo's] tactics hamstrung an efficient and timely prosecution of Bank of America, or that Cuomo throw his Cuomo TARP to cover-up and protect at the SEC.

      What's new about this?   Nothing.  It's Andrew Cuomo's M.O..   Check these links on this blog.

1. Laugh and then cry as Cuomo's M.O., Silver, Sampson say one thing while they are working together towards fiscal disaster

2. See the pattern with Cuomo's M.O. where a criminal is not really punished nor makes adequate restitution.

3. See Cuomo M.O. again as he bungles a prosecution (an inadvertent error?) and executives escape

4. Watch while Cuomo allows $59 Billion to disappear while no one is prosecuted and no money returned

       Honestly, were you fooled by Andrew Cuomo in the above beginning quoted SEC Investigation when he "said he routinely obtained “multiples” of what the SEC obtained in its settlements?"   Do you believe Andrew Cuomo really gets more financial restitution and jail time?
      Now, Read: With Sheeple Fooled; Wolf One, Andrew Cuomo, Spares Under-Wolf Six, Hank Morris




Pick out Andrew among the sheep pattern?

Good, now try to see the pattern in links above, it's called Cuomo's M.O.

What's the Cuomo M.O. pattern?  Is it: missing money not recovered; criminals with no jail time; lots of sound and fury about cleaning out corruption and the result is _________?

Now, reality testing. Can Comptroller, DiNapoli, earn 7.5% safe return on NY Pension investments?  Would you buy a bridge from Bernie Madoff?

Did you see the always repeating pattern (the Cuomo M.O.)?

Now use Einstein's definition of Insanity: doing the same thing over and over again and expecting different results.

Will you sell your NY Bonds? (Y)(N)

If yes, your False Hope Demon was driven out, you're cured.  If no, repeat this exorcism.

The Albany Follies' Sideshow Continues Their Long Run With The New "Cuomo," $3 Script

Responsibility:  A detachable burden easily shifted to the shoulders of God, Fate, Fortune, Luck or one's neighbor.   ~Ambrose Bierce, The Devil's Dictionary


Highlights of the Albany Swamp's Finger Pointing Sideshow on Monday and Tuesday this week.  "Full of sound and fury and signifying nothing [done]"

1. Governor Paterson, playing  CYU or don't blame me next year when I'm gone, called the legislature into session on Monday to deal with a deficit in this year's budget which he estimates is $315 million.

2. Senator Sampson, playing CYU punts the budget cuts till January when the Republicans take over the NY Senate.

3. Comptroller, DiNapoli, claiming Paterson is underestimating the deficit for this year by a factor of three, or merely a billion dollars, while he forgets to include all the other factors such as his 7.5% Safe Return on pension investments.

4. Sheldon Silver dropping the ball in the Assembly hoping that after January, the Republican Senate can be blamed.

5.  Enter, Cuomo with his final soliloquy after meeting Assembly Democrats [saying],“For them to come back and do nothing is very distressing,” 

Show over; applaud please. Pretty please

6. With Public Finger Pointing sideshow ended, Cuomo and the other play actors from the sideshow's cast go back to Cuomo's committees, where, "Nearly half of the people on Cuomo's transition team and economic advisory council either are registered lobbyists themselves or work for organizations that lobby New York's state government and Assembly Speaker Sheldon Silver, Democratic Leader John Sampson, Republican Senate Leader Dean Skelos are all on Cuomo's committees.

Great show, Andrew, Silver and Sampson, too bad that:
  "Meetings are a symptom of bad organization. The fewer meetings the better" - Peter F. Drucker"

 

      Now with the sideshow ended, let's look to California for New York's next step in the new year.   "California is following the long tradition of bankrupt states turning to IOUs when the capital market looks less than inviting."

     Here's a sample of the proposed new $3 NY Script I.O.U. to be nicknamed "the Cuomo"  NY State can print plenty of these to give to you.

$3   NEW YORK TREASURY I.O.U.   $3

Tender for all non- public debts if someone will take it

New York Comptroller, Thomas DiNapoli   In Cuomo and in New York State we trust

Backed by the Full Faith And Credit of New York State

$3                Three Dollars                  $3

   Why was $3 picked as the value?   So that the "Cuomo" will trade above par with the dollar instead of below par like the historic trading value of City of Chicago I.O.U's at up to a 40% discount.

    The third world government of New York will offer an official exchange rate of one Cuomo = 3 U.S. Dollars.    Then, we can look to Illinois where, "Legislators left the capital this month without deciding how to pay 26 percent of the state budget.   And every major rating agency has downgraded the state."    See blog index above for details of NY budget debacle.

"When will the sheeple learn, when will they ever learn?"

Welcome to the Brave New New York World: 

 There's a great new local community business opportunity: a Exchange where Cuomos and dollars can be exchanged.

  If we can't borrow the money, Comptroller DiNapoli can use pension funds to buy NY debt.

  Thank God, we have Andrew's charisma to see us through.

Andrew Cuomo; A Drag Queen; And Dragging New York State Bankruptcy And NY Bond Devaluation Out Of The Closet

In God's schekels we trust, all others' schekels we weigh.  From a sign in an ancient Babylon Bazaar

   Welcome to the NY Finance Bazaar 

 This is your self check-out page where you weigh the future value of NY Bonds.   Will NY go bankrupt? You check which way the balance tips. 


     We'll take NY bondholders and NY residents to some of the stalls in the NY Finance Bazaar.

      Stall 1. The Supreme Court stall.  You may have thought bondholders were protected under US Law and Constitution?   But the US Supreme Court refused to follow the Constitution for Bondholders in these two recent offerings:

a. Supreme Court refused to hear a plea from bondholders and Indiana pension funds, representing $42.5 million of Chrysler's $6.9 billion in secured debt, who contended that their compensation was unfair at just 29 cents on every dollar of their bond value.
b .General Motors' (GM) bondholders asked to take 30 cents on the dollar in new bonds and GM shares in exchange for the their cash or their bonds lost 70% of their dollar value.

      Stall 2. The Illinois stall,  where, Illinois comptroller, Daniel W. Hynes, faces a figure in red of $5.01 billion.   “This is not some esoteric budget issue; we are not paying bills for absolutely essential services,” he says.  Illinois' dysfunctional political class refuses to pay the state’s bills of at least $12 billion (compare this to NY's $18 Billion projected deficit in NY).  There's a spectacularly underfunded Illinois pension system (compare this to NY's Comptroller claiming a unrealistic 7.5% Safe Pension Return on Investments),

      In re: Illinois; "States cannot go bankrupt, technically.  Legislators left the capital this month without deciding how to pay 26 percent of the state budget.  The governor proposes to borrow $3.5 billion to cover a year’s worth of pension payments, a step that would cost about $1 billion in interest."  We can see the future for NY in Illinois.

      Stall 3.  Historical bond trends are for sale:
"For two centuries, the bond market has reminded states that interest rates rise when they, like the  Greeks, the Spanish, and the Italians, spend many more dollars than they collect in tax revenues."
   If NY bond interest rates rise, the added yearly due interest will deplete NY's spending ability.

     Stall 4.  All the sackcloth and ashes you'll need:   Four states are likely to go bankrupt: California, New York, Illinois and Michigan

     Stall 5.  A Prophet is offering: Although there is no mechanism for states to go bankrupt, Congress could change that: This means we can expect a major push for federal funds to prop up insolvent state governments in 2011. This is where a legal mechanism for a State's bankruptcy needs to be created by Congress.

     Stall 6. Throw the ball in the right hole and win a prize:  Where will the new Republican House in the US Congress throw the ball?
 Hole a. Bailout four states to begin with,
or Hole b. Pass the bankruptcy law suggested in the article above in Stall 5?

     Stall 7. The Hope and More Hope stall with hallucinogenics for sale:  Do you believe Comptroller DiNapoli can get 7.5% Safe Return on NY pension investments?  (or Madoff has a bridge for Sale)

     Stall 8. Here are foreign bonds available with great yields:   The average yield for 10-year debt from Greece, Ireland, Portugal, Spain and Italy reached 7.57 percent today and that's for debt backed by Germany and not Geithner/Obama deficit spending.

     Stall 9.  Another Branch of the Hope and More Hope stall with stronger hallucinogenics for sale: Do you think NY's interest rate on bond offerings will stay at 3.357%?

     Stall 10. Strong espresso coffee served with tough love talk:  Knowing what the US Supreme Court did with GM bondholders, do you believe the Supreme Court will force NY to honor NY bonds at their full value or force NY State to honor pledges to pay certain bondholders before using the money for other purposes, or just offer pennies on the dollar value of existing NY bonds?  We can read the analysis of the NY Budget and Bond offering.

      Stall 11. This stall has snake-oil for sale and a "sexy" snake-charmer with a drag queen: 
The drag queen wasn't there, but her "sexiest male" snake-charmer, Andrew Cuomo, was.
"We like to imagine this is sort of how it happened with Andrew Cuomo. We've always imagined he was a, uh, dance man." 
  Well the dance man, Andrew, was still promising to charm at least one snake out of the Albany basket.
   Maybe, if we drop a schekel in his pot, at least one snake will come out of the basket.  Or maybe,  the basket is a closet and we ought check the sexual orientation of the snakes. (read the reports of Andrew's prior M.O. and snake-oil sales)

  Leaving the stink of the snake oil behind, we find the balance scale to check the weight of the schekels NY State is offering. 
Does the scale balance or tip?

      NY goes bankrupt?(Y)(N)

      NY Bondholders will lose over 50% of their bond value? (Y)(N)
      NY Pension Funds can earn 7.5% Safe return on their investments? (Y)(N) 
      Will Andrew Cuomo's "charm" fix NY Finances? (Y)(N)
      How will Fitch's, Moody's and Standard & Poor's finally valuate NY Bonds?

Junk?(Y)(N) or _____?