| |
What's PlayingBazaarsNov. 21
St. Stanislaus School benefit, 9 to 4 in Kolbe Hall, Adams. Bake sale, snack bar, games, Chinese auctions, money raffle, crafts, and pierogi.
Blackinton Union Church, 1373 Massachusetts Ave., North Adams; 10 to 2. Crafts table, bake sale, Chinese auction, the Christmas table, and kid's grab bag. Lunch $4, $2 kids.
First Congregational Church, North Adams, 9-2.
Nov. 28
Becket Federated Church, Route 8, holiday bazaar from 9-3. Lunch, crafts, baked goods, holiday and other items. Information: Mary Peltier, Parish House, 413-623-5217.
Dec. 5
Holiday Fair at First Congregational Church, 25 Park Place, Lee, from 10 to 3; handcrafted items, raffles, children's shop, bake sale, cut Christmas trees and lunch from 11 to 1. Includes angel-themed goods from SERRV. Information, 413-243-1033 or www.ucc-lee.org.
Dec. 12-13
North Adams Country Club, crafts 9-4; food from That's a Wrap from 11-2. Information: Sheryl Morehouse at 413-822-3329.
Planning a bazaar this season? Submit information to info@iberkshires.com to have it listed here. |
Sales FliersDaily DigestMammography Dispute
The government's issued controversial new guidelines stating that women shouldn't get annual mammograms until age 50, rather than age 40.
iBerkshires will be meeting with local medical experts Monday. Have a question you'd like answered on this issue? Send it info@iberkshires.com with "mammogram" in the subject line. |
ObituariesSportsMedia PartnersElection
Trying to remember who won what and why? All the information is right here. |
Related Stories |
| |
The Independent Investor: What’s up with the Stimulus Plan?By Bill Schmick
iBerkshires Columnist
09:40AM / Friday, July 10, 2009
With the unemployment rate at 9.5% and an economy that continues to give mixed signals about a recovery, both economists and politicians are talking about the need for a second stimulus plan. I suggest it may be a good idea to first examine why the existing stimulus plan may not be working as well as it should.
Whether the Administration “misread” the economy, as Vice President Joe Biden claimed on television last weekend, or simply “we did not have enough data” as President Obama said in a subsequent statement is really not the issue. In my opinion, unemployment is the issue as it is both upfront and personal and a visible sign of recession to most of us. It scares the Be Jesus out of consumers and creates fearful and often times unhappy voters come election time.
Now one can argue that Americans simply lack patience. After all, very little of the stimulus money has been spent and it will take time before the $787 billion trickles through the economy. Another argument made by the Administration is that without the stimulus money unemployment would be far higher than it is, which I believe is a fair comment. Finally, we are reminded that the unemployment numbers are a lagging indicator of the economy and do not give an accurate picture of where we are heading.
It is true that the unemployment rate lags the economy, but new claims for unemployment benefits are a leading indicator. Those claims peaked in March at about 674,000 lost jobs. In times past new claims have fallen sharply from peak levels, but not this time. Since the peak (22 weeks ago) we are still seeing substantial new claims in the 600,000 area although the latest week came in at 565,000 claims, the best so far. That indicates that although things may be improving, they are doing so at a snail’s pace. In addition, two other leading indicators, temporary workers and hours worked, are both continuing to decline.
So why isn’t the stimulus having a bigger impact on job growth? Well, one reason could be the nature of the present job losses, which have inordinately impacted teenagers (22.7%), and adults who lack a high school diploma (14%) as compared to those with a college degree (4.6%) according to the Center for American Progress. That should be no surprise to readers. Wages and jobs for lesser skilled and uneducated labor in this country have been falling for years. Those jobs have been shipped overseas in increasing numbers to places like China and India.
“Sticky wages” is another explanation. Companies have found it easier to reduce output and cut employment rather than drop wages among their workforce. The minimum wage and labor contracts can also hamper wage reductions. This phenomenon makes the old relationship of economic recovery and wholesale job creation less correlated than in the past. It appears that American business during the last few recessionary periods has shed unskilled and uneducated laborers and substituted by hiring more educated and higher skilled workers coming out of each recession.
The original concept of President Obama’s Stimulus Plan, The American Recovery and Reinvestment Act of 2009, was intended to put Americans back to work through massive infrastructure projects which were “shovel ready”. This made sense on two levels. Our Bridges, highways, levees and schools are crumbling after over a century or more of disrepair. Infrastructure is also good for business growth which would spur economic recovery. It would also employ many in that segment of society which has been hit the hardest by this recession, the unskilled or less- educated worker. Unfortunately, by the time the House and Senate got through with the stimulus package, just $111 billion was left for infrastructure and science, $280 billion went to tax relief, another $144 billion went to state and local municipalities to fill budget gaps and the final $155 billion went to healthcare, energy and education.
All those areas were certainly worthy of assistance during this recession but if the purpose of the act was to alleviate unemployment and jump- start the economy then the money (what little of it that has been dispensed) has been misplaced, in my opinion. The President ran on a platform of healthcare, alternative energy and education among other issues. I’m sure he had the best of intentions by using some of the stimulus money to address those areas. The problem is those areas require long- term investment and payback will be measured over decades not months. The majority of the funds ($424 billion) were spent on tax relief which has little impact on job generation although it does go a long way in preventing further job losses especially at the state and local level.
Still some of the money has had an impact. All you have to do is drive down Route 8 in Cheshire or Route 22 in Columbia County to see our stimulus plan at work patching pavement and potholes. I just wish more of that money was out there generating jobs.
Is it too late to turn things around? Probably. I can’t imagine our elected politicians re-writing the act or even dispensing the funds at a more rapid pace. You see, much of the money is ear-marked to be spent in the administration’s third year in office. That’s not an unusual tactic in politics. It insures that running for re-election in the following year will be aided and abetted by the tailwinds of large-scale government spending.
So given that most Americans are already fairly cynical about both the stimulus program and the financial bail-outs the government has implemented thus far, it is hard for me to believe that they will go for another round of spending, especially with the trillions in debt we already owe. That leaves patience, something many voters may find hard to accept when economists forecast the unemployment rate could top 11% or more. Fortunately, elections are still a good ways off so there is still a window of opportunity to get it right. Let’s hope they do.
Bill Schmick is a registered investment advisor and portfolio manager with Berkshire Money Management (BMM), managing over $180 million for Americans in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at 1-888-232-6072 (toll free) or e-mail him at wschmick@berkshiremm.com. Visit www.afewdollarsmore.com for more of Bill’s insights. |
CNN's "On The Money" show just reported exactly what Schmick wrote about. (Congratulations Bill on being ahead of CNN).
The show will re-air over the weekend if anybody is interested.
It's amazing how much blow-back Obama is getting from Democrats. Personally, I'm a Democrat (very pro gay rights as well as federally funded stem cell research). And it's somewhat disheartening not to see a cohesive voice from the party.
But the CNN report gives good reason for economic concern - from both sides of the aisle. Japan had SEVEN stimulus efforts and low-interest rates and their economy has gone nowhere for two decades.
I'm a huge Obama supporter, but the non-executive Democratic voice may be right on this one. Let's have more stimulus. Let's, at least, follow Barney Frank and give the TARP money to people losing their homes.
| | from: CNN show | on: 07-11-2009 |
|
Obama’s “stimulus” is a train-wreck- these jobs figures are far worse than the ones the White House warned us about if we DIDN’T pass the bill- so it was passed, and then unemployment soars anyway?
He said it would top-out at 8%, we give him a trillion dollars, and he and Joey Pluggs now tell us they "underestimated" as it pushes 10%?
-oh please
Instead of creating jobs, interest rates were bumped up, the dollar slid… and it didn’t help anybody get any work. Much of this is due to the fact that Obama’s agenda has mortified almost every machine of job-and-growth creation in the country.
The One couldn’t deliver the type of “temporary, targeted, and timely” bill that he promised repeatedly, and regardless of his image in the press, Obama simply lacks the the political stature to control Pelosi and Reid… who hit the trough hard, while bickering like siblings.
And the lack of GOP co-conspirators exposed Obama politically… this legislation now looks to be a HUGE gamble. And when all this pork-n-welfare fails to generate any real economic gains, the Democrats will face a bloodbath in 2010.
http://reaganiterepublicanresistance.blogspot.com | | from: Reaganite Republican | on: 07-11-2009 |
|
No one is saying Obama is good or bad. I don't get it. It's about spending and the timing & the placement of that spending.
I also don't get what's funny about www.BerkshireMM.com. The site looks fine.
Do you mean the www.FireYourStockBroker.net site?
That one does look cheaper. Is it funny because it is self-loathing? Are the free portfolio reviews any good?
I'm definitely missing something. I feel lost. | | from: Nancy Reagan | on: 07-10-2009 |
|
| I agree with Loving Obama and give him a chance. Also fun to google Harris Berkshire Money Management". Keep up the good work Bill. | | from: Another Obama Supporter | on: 07-10-2009 |
|
| Don't give up on our new president or MA governor. Obama and Duvall will get this mess straightened out. I also like the IBerkshires required disclosure for Harris Berkshire Money Management. Honesty is a good thing Bill. Even for you New Yorkers. | | from: Obama Rocks | on: 07-10-2009 |
|
| Bill, Good article on the status of how Obama is spending our money. Patience is key. Also, glad IBerkshires has made you disclose your relationship with Harris Berkshire Money Management. Its better to be honest than be sorry. Keep up the good work and don't forget that we all live in crystal palaces. | | from: IBerkshire reader | on: 07-10-2009 |
|
|
Enter your email address below to receive our FREE iBerkshires.com Newsletter
|
|
