Dec 27. Debt limit joins fiscal cliff

–Geithner informs us the debt limit either has been hit or will be by year end, adding further drama to fiscal cliff talks. Many analysts say lack of action may push the US into recession…probably in recession already.
–News today includes Jobless Claims expected 365k. New Home Sales expected 375k. Consumer Confidence expected to fall to 70 from relatively strong level of 73.7.
–A few miscellaneous notes; Social Sec’y Admin reported a deficit of $47.8b in fiscal 2012, with record 8,827,795 on disability. In June 2011 there were only 94.75 million people employed full time in the private workforce, 17.8 m employed by government (fed’l state local), so about 112.5 million employed full time. Amazing that disability is more than half the am’t of gov’t workers and nearly 8% of all full time workers.
–Chicago Tribune notes slowing barge traffic due to low water level of Mississippi. I saw another article that said levels are down 16 feet, barges are forced to carry lighter loads, and higher prices for transported goods are likely to result.
–Before Rahm Emanuel became mayor of Chicago, Daley privatized parking meters in the city. Rates for street parking are going up in 2013 from 5.75 to 6.50 per hour downtown (13% but less outside city center). As a part of this deal, the city owes the company for lost revenue due to street closures, and due to free parking for disability tags, an am’t having grown to $61 million. The city is disputing the bills, which arise in large measure from lost revenue from disability parking…the city representative says there is widespread abuse (is that the parking company’s fault?)…and they want to settle for about 10% of the amount outstanding.
–Another example of the global trend of a previous deal made by former gov’t agents being saddled onto the current population.

Posted on December 28, 2012 at 7:40 am by alexmanzara · Permalink
In: Eurodollar Options

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