economy

Politicians (mysteriously?) quiet about the dealership closings

l3wis May 16, 2009 7Comments

Though I couldn’t give two shits about a car dealership closing in Sioux Falls (in case you have not noticed they are like pimples on a teenager’s ass in SF) the affect the major closings across the country will have on our economy and job market in the this country will be staggering. So why haven’t we heard one single freaking word from the politicians in Washington? Because we know who they protect, the execs at big banks not Joe the worker. I have felt that it would have been wiseer to bailout the car companies instead of the banks. The banks don’t employee nearly as many people, and the smaller banks who are not struggling would have divided them up and in essence eliminated the monopolies. It would have been good for everyone involved. Unfortunately for the auto industry, when they fail they have a huge ripple effect. This is just an example of ONE dealership owner;

The Edge of Love video

(CBS) Tammy Darvish owns 18 car dealerships, most of them in Maryland. Two were dropped Thursday and she’s waiting for word on a third. Three hundred people stand to lose their jobs, and 233 local vendors stand to lose business, reports CBS News correspondent Nancy Cordes.

“It could be a cleaning company, it could be towing companies, companies that we buy our tires from,” Darvish said.

So I ask again? Where is Washington on this crisis? Ironically asleep at the wheel.

economy Sioux Falls

While most American cities are cutting back, Sioux Falls’ 2009 budget jumps $89 million to over a half a billion, and it is only April

l3wis April 28, 2009 6Comments

A $70,000 Laser. I couldn’t think of a better expenditure for a city during a recession.

Tax receipts down. Who cares.

5,000 jobs loss. Whatever.

Commercial construction down 50% from last year. It doesn’t matter.

I was looking at the Sioux Falls budget report yesterday and I found the final numbers, interesting, to say the least. While most cities are cutting like crazy the city of Sioux Falls is gearing up to SPEND MORE. $89 million more. And it is only April! Many of the expenditures are carry over from the previous year, but really? During a recession the city wants to spend MORE instead of LESS?

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Okay, I am not surprised, but where is our MSM on this?

I combed thru the 22 page document to see if I could find anything ‘glaring’. I only found one thing (well two*), $33 million for rail relocation. Though I support the project, I don’t think taxpayer’s should foot the entire bill. I think we should use Eminent Domain to force the RR out, and pay them market value for the land. They can figure out the rest. Either way, it is 10 years overdue. *I also got a chuckle out of the Parks and Rec buying a $70,000 laser. Because during down times, you can always fall back on crappy free entertainment at Falls Park.

So once again, I ask, where is the MSM? You would think if the city was spending a cool $33 million to move the tracks, it would be a HUGE news story. Nope. Nothing. Nada.

So the RR relocation is $33 million. So what is the rest? My guess is that contractors have been begging for work, and since the private sector is deader then a doornail, they want the city to pony up.

Don’t believe me? The rumor is the tree trimming contractors are the ones pushing Project TRIM, because no one else is hiring. So my assumption is the contractors are doing the same by pressuring the city planning office for work.

Is it a city’s job to help out private industry. Yes, in some cases it is. Like deregulation and tax increments. But when it is work that can wait, taxpayers concerns should come first. It seems these days when the private sector is in trouble they want a bailout, even in Sioux Falls, but when the working stiff is in trouble, government tells him to go to Hell.

economy SF City Council Sioux Falls

Economics Major to take city finance department to task for their poor economic contingency plan?

l3wis April 22, 2009 2Comments

I saw this on the agenda for next Monday’s Sioux Falls city council informational meeting,

Mark Weber, a Sioux Falls resident with an advanced degree in economics, will be giving a presentation on; Local Labor Market and Sales Tax

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I also thought his name sounded familiar and found this from an Argus Leader story;

But Mark Weber, a Sioux Falls resident with an advanced degree in economics, warns that city officials would be wise to plan for a scenario where tax revenues actually decrease from the previous year. Rising unemployment levels will impact sales tax collections and lead to greater delinquencies in property taxes.

“Nowhere in this contingency plan is a plan for a more drastic alternative,” Weber said. “I believe their department is in a world that doesn’t reflect the reality that’s coming.”

Despite slowing growth last year, the city actually finished with $1.6 million more than budgeted, caused by some one-time funds and better-than-expected revenues from investment income.

I can’t wait to hear the presentation.

I thought it was peculiar because citizens are not really allowed to speak at informational meetings unless invited or asked to by invitation from the city or a councilor. He would have had to ask permission. I heard that some councilors were surprised he got the permission, because they have a feeling he is going to chastise the Finance department.

economy

Makes you wonder how bad the books really are? Huh?

l3wis April 22, 2009 0Comments

VIENNA, Va. (WUSA) — David Kellermann, Acting Chief Financial Officer and Senior Vice President of Freddie Mac, was found dead this morning.

Fairfax County Police officials tell 9NEWS NOW they responded to his home around 5 a.m. after his wife alerted them to his suicide.

Kellermann was 41 years old.

According to Freddie Mac’s website, Kellerman was with Freddie Mac for more than 16 years and named Acting Chief Financial Officer in September.