Michael Snyder - December 27th, 2012 - The beginning of the year has traditionally been a time of optimism when we all look forward to the exciting things that are going to happen over the next 12 months. Unfortunately, there are a whole bunch of things about 2013 that we already know are going to stink. Taxes are going to go up, good paying jobs will continue to leave the country, small businesses will continue to be destroyed, the number of Americans living in poverty will continue to soar, our infrastructure will continue to decay, global food supplies will likely continue to dwindle and the U.S. national debt will continue to explode. Our politicians continue to pursue the same policies that got us into this mess, and yet they continue to expect things to magically turn around. But that is not the way that things work in the real world. Bad decisions lead to bad outcomes. Instead of realizing that what we are doing is not working, our "leaders" continue to give us more of the same. As a result, there are going to be a lot of things about 2013 that will not be great. Sticking our heads in the sand and pretending that everything will be "okay" somehow is not going to help anyone. We've got to make people understand exactly what is happening and why it is happening if we ever hope to see real changes. The following are 16 things about 2013 that are really going to stink...
#1 Taxes Are Going To Go Up...
#2 The Middle Class Is About To Be Scorched By The Alternative Minimum Tax...
#3 The Economy Will Continue To Get Worse...
#4 Good Paying Jobs Will Continue To Be Shipped Out Of The United States...
#5 Small Businesses Will Continue To Be Destroyed...
#6 Hunger And Poverty Will Continue To Explode To Unprecedented Levels...
#7 The Number Of Americans On Food Stamps Will Continue To Increase...
#8 Millions Of Americans Are About To Lose Their Unemployment Benefits...
#9 Our Infrastructure Will Continue To Rot And Decay...
#10 Many Of Our Major Cities Will Continue To Be Transformed Into Festering Hellholes...
#11 State And Local Governments Will Find Ways To Squeeze Even More Money Out Of Us...
#12 Drug Cartels Will Continue To Easily Cross Our Borders And Terrorize Our Citizens...
#13 Social Decay Will Continue To Accelerate...
#14 Global Food Supplies Will Continue To Dwindle...
#15 Wall Street Will Continue To Resemble A Giant Casino...
#16 The U.S. National Debt Will Cross The 17 Trillion Dollar Mark...
Ron Paul On The Fiscal Cliff: "We Have Passed The Point Of No Return" - Zero Hedge - Tyler Durden - December 29, 2012 - In a little under three minutes, Ron Paul explains to a somewhat nonplussed CNBC anchor just how ridiculous the charade that is occurring in D.C. actually is. This succinct spin-free clip should be required viewing for each and every asset-manager, talking-head, propagandist, and mom-and-pop who are viewing the last-minute idiocy of the 'fiscal cliff' debacle with some hope that things will be different this time. "We have passed the point of no return where we can actually get our house back in order," Paul begins, adding that "they pretend they are fighting up there, but they really aren't. They are arguing over power, spin, who looks good, who looks bad; all trying to preserve the system where they can spend what they want, take care of their friends and print money when they need it." With social safety nets available to rich and poor, there is no impetus for change and "the country loses," but Paul concludes, the markets are starting to say "there is a limit to this."
Bob Shiller On The 'Housing Recovery': "Highly Uncertain, It's Risky" - Zero Hedge - Tyler Durden - December 28, 2012 - Sometimes, taking a break from the mainstream view of the world is healthy for our sheep-like tendencies to follow the herd. To wit, Robert Shiller can't understand the enthusiasm for the long-term recovery outlook of the housing market. With rentals rising and home-ownership dwindling, Shiller, in this Bloomberg TV clip, questions the positivity noting that the outlook is 'fuzzy' at best; and in fact in the short-term is negative as MoM things have deteriorated modestly (though seasonally). He note that the focus has been on multi-family residences and "if you are sitting in a suburban single-family house - what is your outlook? Highly uncertain - It's Risky!" And in one of the most prescient comments of recent weeks, Shiller admits something that many others should try: "[the outlook] could be up; but I don't see how anyone knows?" adding that another plausible outlook for the next five years is that "housing stays right where it is now," adding that Zillow's 1.3% annual real growth expectation could be too optimistic.
Payback time: Florida homeowners foreclosing on banks - CNN Money - Les Christie - December 26, 2012 - Since the housing bubble burst in Florida five years ago, more than 400,000 borrowers have had their homes foreclosed on by their lenders. But for some, it's payback time. Hundreds of homeowners and condo associations are foreclosing on banks that have failed to pay dues and other expenses on the properties they've repossessed. When banks foreclose on a home they become responsible for paying fees to the homeowners association -- both any unpaid fees going back as far as 12 months and all expenses going forward. In many cases, however, banks are failing to pay, leaving these associations short on cash, according to Miami-based attorney Ben Solomon. But now, homeowners groups are putting liens on the properties until banks pay up and foreclosing on them if they don't. Related: American Dream homes: Prices in 9 cities So far, Solomon's firm has filed more than 1,100 liens against banks on behalf of homeowners and has pursued 131 foreclosures. In more than 90% of the cases, he said, the banks settle by paying the bills. The banks' failure to pay dues has consequences. Other homeowners have to make up the difference, or the homeowners associations may lack the money they need for things like routine maintenance, security, water and garbage collection. Don Gonzales owns a townhouse in a condo community on a golf course in Homestead, Fla., where Solomon recently filed suit to foreclose on JPMorgan Chase (JPM, Fortune 500) to recover $20,000 it owed on more than two years of dues and common charges.
"I own two properties and it really ticks me off when the banks don't pay their fair share," he said. "Everybody else has to make it up."
5 fiscal-cliff effects on your wallet - MarketWatch - Kelli B. Grant - December 29, 2012 - As Congress continues working toward a deal that could avoid the fiscal cliff, consumers may want to consider what going over it could mean for their wallets. The most talked-about impact, naturally, would be higher tax rates. (This fall, we estimated that taxpayers in the bottom quintile would see their bill increase by $412; the middle class, by $1,984. Read “What a fiscal-cliff plunge would cost you.” ) But experts say the cliff’s broad budget cuts affecting nearly all government agencies would have a trickle-down effect that would hit consumers in less expected ways in 2013 and beyond—some involving price hikes, others decreases. “There is a dizzying variety of things the government pays for,” says Jack Plunkett, chief executive of consulting firm Plunkett Research....
Cheaper gasoline... Longer airport waits ... Pricier groceries... Bigger retail discounts... Riskier foods and drugs...
Yes, we can fix Social Security (but it won't be pretty) - Life Inc. on Today - Allison Linn, TODAY - December 24, 2012 - ... Experts say there are two ways to fix Social Security, and neither of them are pretty: reduce benefits or increase revenue... The proposed switch to calculating cost of living increases using the chained Consumer Price Index instead of the current method would result in smaller annual Social Security raises. That’s because that method assumes that people change their spending habits when prices go up. Proponents say the switch could save billions and is a more realistic method of how Americans really adjust to rising prices. But opponents say the chained Consumer Price Index isn’t a good way to measure the needs of older and disabled Americans, because their expenditures are disproportionately focused on things like health care. A family of four may choose to eat more chicken if beef prices go up, but an elderly person can’t easily choose to spend less on heart medicine, they argue. Under the current rules, the maximum taxable earnings for Social Security in 2012 is about $110,000. Some argue that an easy fix would be to simply raise the cap on Social Security taxes to include higher wages. Baker, of CEPR, proposes raising the cap to around $190,000, reflecting the growing wealth at the top of the income scale. Raise it higher than that, he said, and wealthy earners will just start finding ways to dodge it. But others say that it’s unlikely politicians will propose raising taxes on high earners now, when many expect those taxpayers to already see increases as part of the fiscal cliff negotiations.
U.S. retailers scramble after lackluster holiday sales - Reuters - Nivedita Bhattacharjee and Jessica Wohl - December 26, 2012 - The 2012 holiday season may have been the worst for retailers since the 2008 financial crisis, with sales growth far below expectations, forcing many to offer massive post-Christmas discounts in hopes of shedding excess inventory. While chains like Wal-Mart Stores Inc and Gap Inc are thought to have done well, analysts expect much less from the likes of book seller Barnes & Noble Inc and department store chain J. C. Penney Co Inc. Shares of retailers dropped sharply on Wednesday, helping drag broader indexes lower, as investors realized they were likely to be disappointed when companies start to report results in a few weeks' time... Growth was always expected to slow this season, though an improving employment picture and rising home values had helped mitigate the worst fears. But then Superstorm Sandy hit the East Coast in late October, mild weather blunted sales of winter clothing and rising concern about the "fiscal cliff" became more of a reality, dragging down already-pessimistic forecasts. The latest sign of trouble came from MasterCard Advisors Spending Pulse, which reported holiday-related sales rose 0.7 percent from October 28 through December 24, compared with a 2 percent increase last year. The preliminary estimate from SpendingPulse was in line with other estimates showing weak growth during the holiday season, when retailers can book about 30 percent of annual sales - and in many cases, half of their profit.
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