More troubles for 2010…

Where I see more trouble in 2010 is from cities and states as they get into deeper budget trouble and cut jobs and spending which leads to more job losses in the private sector that sells to government.

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Month to date tax receipts are now in for the entire month of December. They’re down 7.7% from December 2008, which is exactly the same rate of decline as November’s. We know that the TBAC and Treasury officials were not anticipating that in their debt sales forecast for the first quarter. They had assumed that a recovery was taking root and would continue to do so.

But I thought that we were in the midst of a strong economic recovery? So say all the pundits, all the Tout TV folks, everyone…

So how come I can’t find it in the sales tax receipts of the states, and I also can’t find it in the Federal tax receipts?

http://market-ticker.denninger.net/archives/1821-Wheres-My-Recovery-Tax-Receipts.html
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We are playing every game in the book with our governments at all levels and they are failing to spur consumer spending significantly. The consumer and many corporations know they have to deleverage and that can last years. We have a lot of stores sitting empty in our malls here in Phoenix and that is hurting other stores still open due to the loss of walk-by customers that used to go to the closed stores.

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How a supposed boon has become a fiscal burden

Remember how $200 billion in federal stimulus cash was supposed to save the states from fiscal calamity? Well, hold on to your paychecks, because a big story of 2010 will be how all that free money has set the states up for an even bigger mess this year and into the future.

http://www.financialarmageddon.com/2010/01/unintended-contraction.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+financialarmageddon+%28Financial+Armageddon%29
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States that have to come up with matching funds are finding their tax revenues won’t support the match. That article points out the strings attached to “free money,” from the Federal Government and for many states it isn’t good.

China is another issue that may hit our economy as they are looking at slowing lending to avoid a bubble. Add the problems in Greece, Portugal, Italy, Ireland, Iceland, and you have even more potential to see trouble here in 2010.

Will it happen? Will the Alt-A and Option ARMS and Commercial loan problems drive the markets in 2010? Can stimulus spending prop those sectors up? A lot of unknowns and timing will be very difficult but, all the policies that put us in this mess are still in place and being used.

ALERT: 2010 MORTGAGE RESETS ARE DOUBLE 2008′S RESETS

he US housing market is on implosion alert!

Massive mortgage resets for 2010 & 2011 are near!

Okay, 2008’s biggest month of mortgage resets were in Sept 2008; $64 billion in mortgages reset that month, and the monthly average was $40 billion for 2008. For 2010, August is the biggest month with $97 billion in mortgage resets, and the 2010 monthly reset average is $83 billion – DOUBLE THE AMOUNT OF MORTGAGE RESETS FOR 2008!!!

http://investment-blog.net/alert-2010-mortgage-resets-are-double-2008s-resets/

- JanPaul

Related Posts:

• Why is market getting giddy again? What changed in last 2 weeks?
• Where do you look for what is really going on with sales? Denninger lays it out in simple terms.
• Let’s see, that passing of the crisis would be in 2020? 2030?
• US Treasuries and Retail sales
• Here is another thing about bank closures:

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