The Nation's Financial Condition

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Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

lagerhead wrote: Mon Aug 16, 2021 2:23 pm
Farfromgeneva wrote: Mon Aug 16, 2021 2:16 pm
lagerhead wrote: Mon Aug 16, 2021 2:01 pm
Farfromgeneva wrote: Mon Aug 16, 2021 1:46 pm
MDlaxfan76 wrote: Mon Aug 16, 2021 1:31 pm Can this conversation continue without copying the entire thread each time, guys?

Maybe just copy the last two or three exchanges each time?
Tried after your request but came through twice. Cutting editing and even spelling with auto spell correct etc is really brutal in phone while
Holding format in place. Since I can’t make any sense to anyone with the spelling I’m constantly trying to correct, sometimes 3-4x and it’s still changing back maybe I should just give up though. I have three monitors open with work so I don’t want to tie a screen up for this which apparently makes me lazy as well including the 7hrs I worked yesterday in my home office.
There is also a fundamental change in how interest rates. The LIBOR rate which every bank and borrower have used to predict hedge future interest payments is being eliminated and in its place a Risk Free Rate, the Secured Overnight Financing Rate (SOFR) is going to be used for new issuances Jan1, 2022. SOFR has no term rate or structure because it is a look back rate, like REPO. REPO is also having problems with some thinking it goes negative.
I have a buddy who was a strategist at Citi for a while been w Kroll a few years by the name of Ethan Heisler. Kroll doesn’t have a pay wall so anyone can have access to their research. Ethan has been obsessed with this conversion for two years every time I catch up with him, most recently had him come to a regional bank investor conference I was speaking at and same topic on his mind. Anyway, I’d encourage you to check it out he’s very smart in his domain. This was the most recent one which touches on reverse repo don’t recall sofr being in there.

https://documents.kbra.com/report/52349 ... -july-2021

All that being said I don’t think that’s driving this situation. Folks are using other indices like FHLB borrowing rate etc. small regional and community banks don’t get involved in swaps much so typically use prime which is really stale. The term structure can be derived w/o libor though. I think it’s just more barbelled balance sheets these days that’s why the belly of the curve seems to move around more than it used to when you had a real positive sloping curve in the past. Seems like it’s more that the term spread is so flat.
Thanks for the link.

in speaking with the dealers they are concerned they cant hedge issuing a 30 year bond if they don't have a fix/float structure to move the long bond into. Little regional banks like Ameribor, some of the dealer would prefer to see BSBY the Bloomberg rate which does have a forward looking curve and fix/float. Hard to hedge bonds without that structure, issuances may dry up in the short term.
By the way I’m in the midst of placing a syndicated warehouse facility for a “new product” that a NY based Life insurance premium finance investor/fund/lender (indirect through BGAs) in the amount of $50-$100mm with a banks, have soft term sheets for about $65mm and still introducing to new mid sized banks (think $15Bn in assets to $60Bn).

We are using Libor + for pricing now on what will end up being a 3-5yr facility depending on who leads it...
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
lagerhead
Posts: 327
Joined: Tue Sep 04, 2018 4:03 pm

Re: The Nation's Financial Condition

Post by lagerhead »

Farfromgeneva wrote: Mon Aug 16, 2021 2:34 pm
lagerhead wrote: Mon Aug 16, 2021 2:23 pm
Farfromgeneva wrote: Mon Aug 16, 2021 2:16 pm
lagerhead wrote: Mon Aug 16, 2021 2:01 pm
Farfromgeneva wrote: Mon Aug 16, 2021 1:46 pm
MDlaxfan76 wrote: Mon Aug 16, 2021 1:31 pm Can this conversation continue without copying the entire thread each time, guys?

Maybe just copy the last two or three exchanges each time?
Tried after your request but came through twice. Cutting editing and even spelling with auto spell correct etc is really brutal in phone while
Holding format in place. Since I can’t make any sense to anyone with the spelling I’m constantly trying to correct, sometimes 3-4x and it’s still changing back maybe I should just give up though. I have three monitors open with work so I don’t want to tie a screen up for this which apparently makes me lazy as well including the 7hrs I worked yesterday in my home office.
There is also a fundamental change in how interest rates. The LIBOR rate which every bank and borrower have used to predict hedge future interest payments is being eliminated and in its place a Risk Free Rate, the Secured Overnight Financing Rate (SOFR) is going to be used for new issuances Jan1, 2022. SOFR has no term rate or structure because it is a look back rate, like REPO. REPO is also having problems with some thinking it goes negative.
I have a buddy who was a strategist at Citi for a while been w Kroll a few years by the name of Ethan Heisler. Kroll doesn’t have a pay wall so anyone can have access to their research. Ethan has been obsessed with this conversion for two years every time I catch up with him, most recently had him come to a regional bank investor conference I was speaking at and same topic on his mind. Anyway, I’d encourage you to check it out he’s very smart in his domain. This was the most recent one which touches on reverse repo don’t recall sofr being in there.

https://documents.kbra.com/report/52349 ... -july-2021

All that being said I don’t think that’s driving this situation. Folks are using other indices like FHLB borrowing rate etc. small regional and community banks don’t get involved in swaps much so typically use prime which is really stale. The term structure can be derived w/o libor though. I think it’s just more barbelled balance sheets these days that’s why the belly of the curve seems to move around more than it used to when you had a real positive sloping curve in the past. Seems like it’s more that the term spread is so flat.
Thanks for the link.

in speaking with the dealers they are concerned they cant hedge issuing a 30 year bond if they don't have a fix/float structure to move the long bond into. Little regional banks like Ameribor, some of the dealer would prefer to see BSBY the Bloomberg rate which does have a forward looking curve and fix/float. Hard to hedge bonds without that structure, issuances may dry up in the short term.
By the way I’m in the midst of placing a syndicated warehouse facility for a “new product” that a NY based Life insurance premium finance investor/fund/lender (indirect through BGAs) in the amount of $50-$100mm with a banks, have soft term sheets for about $65mm and still introducing to new mid sized banks (think $15Bn in assets to $60Bn).

We are using Libor + for pricing now on what will end up being a 3-5yr facility depending on who leads it...
Hope you have fallback language.

All GBP, EUR, CHF and JPY LIBOR settings, and the 1-week and 2-month USD LIBOR settings, will cease immediately following publication on 31 December 2021
The overnight and 1-, 3-, 6- and 12-month USD LIBOR settings will cease immediately following publication on 30 June 2023
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

lagerhead wrote: Mon Aug 16, 2021 2:38 pm
Farfromgeneva wrote: Mon Aug 16, 2021 2:34 pm
lagerhead wrote: Mon Aug 16, 2021 2:23 pm
Farfromgeneva wrote: Mon Aug 16, 2021 2:16 pm
lagerhead wrote: Mon Aug 16, 2021 2:01 pm
Farfromgeneva wrote: Mon Aug 16, 2021 1:46 pm
MDlaxfan76 wrote: Mon Aug 16, 2021 1:31 pm Can this conversation continue without copying the entire thread each time, guys?

Maybe just copy the last two or three exchanges each time?
Tried after your request but came through twice. Cutting editing and even spelling with auto spell correct etc is really brutal in phone while
Holding format in place. Since I can’t make any sense to anyone with the spelling I’m constantly trying to correct, sometimes 3-4x and it’s still changing back maybe I should just give up though. I have three monitors open with work so I don’t want to tie a screen up for this which apparently makes me lazy as well including the 7hrs I worked yesterday in my home office.
There is also a fundamental change in how interest rates. The LIBOR rate which every bank and borrower have used to predict hedge future interest payments is being eliminated and in its place a Risk Free Rate, the Secured Overnight Financing Rate (SOFR) is going to be used for new issuances Jan1, 2022. SOFR has no term rate or structure because it is a look back rate, like REPO. REPO is also having problems with some thinking it goes negative.
I have a buddy who was a strategist at Citi for a while been w Kroll a few years by the name of Ethan Heisler. Kroll doesn’t have a pay wall so anyone can have access to their research. Ethan has been obsessed with this conversion for two years every time I catch up with him, most recently had him come to a regional bank investor conference I was speaking at and same topic on his mind. Anyway, I’d encourage you to check it out he’s very smart in his domain. This was the most recent one which touches on reverse repo don’t recall sofr being in there.

https://documents.kbra.com/report/52349 ... -july-2021

All that being said I don’t think that’s driving this situation. Folks are using other indices like FHLB borrowing rate etc. small regional and community banks don’t get involved in swaps much so typically use prime which is really stale. The term structure can be derived w/o libor though. I think it’s just more barbelled balance sheets these days that’s why the belly of the curve seems to move around more than it used to when you had a real positive sloping curve in the past. Seems like it’s more that the term spread is so flat.
Thanks for the link.

in speaking with the dealers they are concerned they cant hedge issuing a 30 year bond if they don't have a fix/float structure to move the long bond into. Little regional banks like Ameribor, some of the dealer would prefer to see BSBY the Bloomberg rate which does have a forward looking curve and fix/float. Hard to hedge bonds without that structure, issuances may dry up in the short term.
By the way I’m in the midst of placing a syndicated warehouse facility for a “new product” that a NY based Life insurance premium finance investor/fund/lender (indirect through BGAs) in the amount of $50-$100mm with a banks, have soft term sheets for about $65mm and still introducing to new mid sized banks (think $15Bn in assets to $60Bn).

We are using Libor + for pricing now on what will end up being a 3-5yr facility depending on who leads it...
Hope you have fallback language.

All GBP, EUR, CHF and JPY LIBOR settings, and the 1-week and 2-month USD LIBOR settings, will cease immediately following publication on 31 December 2021
The overnight and 1-, 3-, 6- and 12-month USD LIBOR settings will cease immediately following publication on 30 June 2023
It’s on my mind but not really my role ultimately. General counsel for the borrower fund created the master trust agreement no joke. That’s where I help guide business decision calls on the margin only and otherwise out of the picture. I’m not negotiating docs at all and hoping that’s a clean process. The deal will be uneconomic for fund but they want to be able to securitize this product which are undercollateralized HNW loans where you’ve got a airball between the Cash Surrender Value and the loan outstanding that’s covered only by personal guarantees of the borrowers. Typically a non bank or cap markets lender would require full collateralization. If they can show decent data on this product (zero cum life defaults over a decade on cash and CSV fully collateralized loan receivables) they will be able to securitize it and drive pricing and leverage from 80-85% advance rate at L + 350-375 territory to risk retention 95% advance rate and L (or equivalent) + 150 territory.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

Food Stamps Get Historic Boost
Increased U.S. nutrition assistance follows a rise in hunger during the Covid-19 pandemic

The pandemic has made it harder for families to afford healthy foods, government officials said.
PHOTO: DANIEL ACKER/BLOOMBERG NEWS
By Jesse Newman
Aug. 16, 2021 4:25 pm ET

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The Biden administration unveiled the largest-ever increase in food-stamp benefits, boosting federal nutrition assistance after hunger surged in America during the coronavirus pandemic.

Following a review of the plan governing the nation’s food-stamp program, or Supplemental Nutrition Assistance Program, the U.S. Department of Agriculture said the average monthly SNAP benefit would increase by $36 a person to $169. The increase, which totals $1.19 a day, reflects higher costs for a nutritious diet, the USDA said on Monday.

The change, set to take effect on Oct. 1, marks a more than 25% jump from what participants would have received once temporary pandemic assistance ends. Before the pandemic, beneficiaries on average received $121 a month, the USDA said, though that amount swelled due to temporary coronavirus-related measures. SNAP helps to feed more than 42 million Americans, and the benefit increase is the biggest in the program’s nearly 60-year history.


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Food prices are rising fast as U.S. food companies, facing the steepest inflation in a decade, pass along higher costs to consumers. At grocery stores, prices for foods from soup to meat are getting more expensive as large manufacturers such as General Mills Inc. and Campbell Soup Co. raise prices. Restaurants such as Chipotle Mexican Grill Inc. also are boosting menu prices.

The increases follow a rise in hunger last year as the coronavirus pandemic rocked the U.S. economy, closing businesses and pushing millions of people out of work, according to census data. Across the country, food banks and pantries struggled to cope with a surge in demand for their services as people sought free vegetables, milk and canned goods, hunger-relief organizations said.

USDA Secretary Tom Vilsack said a survey of families receiving food stamps showed that the current benefit isn’t enough to support purchases of healthy foods throughout an entire month, with recipients’ choices growing less healthy toward the end of the month.

The change marks a roughly $20 billion increase annually in the cost of the program, the USDA said. Grocery chains in the past have advocated for a strong food-assistance program. They and other food retailers typically see a bump in sales around the time states disperse SNAP money to recipients.

In 2018, Congress directed the USDA to review the plan used to calculate SNAP benefits. Called the Thrifty Food Plan, it is one of four the USDA maintains that detail how much it can cost to eat a healthy diet at different cost levels. President Biden, in a January executive order, urged the agency to begin revising the plan to better reflect the cost of a healthy basic diet.


The review took into consideration factors including current food prices, typical American diets and updated dietary guidance, the USDA said, and concluded that the cost of a “nutritious, practical, cost-effective diet” is 21% higher than current levels.

For example, the USDA said its revised Thrifty Food Plan includes more fish and red and orange vegetables, reflecting recommendations in the agency’s updated dietary guidelines, released last year. The plan is based on purchasing data collected from stores, rather than information reported by households receiving food stamps, reflecting the current price of foods on store shelves.

Mr. Vilsack said the pandemic demonstrated the importance of the food-stamp program. “During the early stages of the pandemic, people found themselves in a situation they never thought they would be,” he said. “And now maybe they have a little bit better understanding of why we have these programs, and why they’re important.”

Republican leaders of the House and Senate agriculture committees in a letter last week asked the Government Accountability Office to conduct an analysis of the USDA’s review of its food plan, saying the pandemic already had prompted a sizable boost in nutrition spending.

Write to Jesse Newman at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the August 17, 2021, print edition as 'Food Stamps Get Big Boost.'
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

Cathy Wood is this hot new name and she frames her positions one way but she’s a momentum investor, not agile fundamental value investor. Another in a long line of cult of personalities which I blame on Peter Lynch and Jack Welch

‘Big Short’ Investor Michael Burry, Other Hedge Funds Bet Against Cathie Wood’s ARK Innovation ETF
Filings show several hedge funds are wagering ARK will keep falling behind market

At the end of June, Michael Burry’s Scion Asset Management held bearish put options worth nearly $31 million against the ARK Innovation ETF.
PHOTO: ASTRID STAWIARZ/GETTY IMAGES
By Akane Otani
Updated Aug. 17, 2021 4:18 pm ET

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A legion of retail traders helped make stock picker Cathie Wood’s flagship fund one of the hottest investments in the past year. Now, some professional investors are betting on its demise.

The Skeptics
Number of ARK Innovation ETF shares each hedge fund took out putcontracts on
Source: 13F filings provided to the SEC and compiled by WhaleWisdom
Note: Data are as of the quarter through June.
Laurion CapitalManagement
Goldentree AssetManagement
Moore CapitalManagement
Cormorant AssetManagement
LH Capital Markets
Scion AssetManagement
0 million
1
0.25
0.5
0.75
1.25
1.5
Several hedge funds took out fresh positions in the second quarter betting against Ms. Wood’s actively managed ARK Innovation ARKK -0.93% exchange-traded fund, according to the most recent 13F filings with the Securities and Exchange Commission. The filings are a requirement for professional investors and are due 45 days after the end of the quarter.

Among the biggest naysayers was Michael Burry, the pathology-resident-turned-hedge-fund manager whose success in calling the housing market’s collapse was made famous by Christian Bale in the 2015 film “The Big Short.” As of the end of June, Mr. Burry’s Scion Asset Management held bearish put options worth nearly $31 million against 235,500 shares of the ARK Innovation ETF.


Put options, which give investors the right to sell shares at a certain price, typically deliver profits to investors when the stock or fund they are betting against declines in value.

Several other funds that previously hadn’t bet against the ARK fund took on new positions against it in the second quarter, filings show. Laurion Capital Management held roughly $171 million worth of put options against 1.3 million shares of the ARK Innovation ETF. GoldenTree Asset Management, Moore Capital Management and Cormorant Asset Management also held sizable bearish positions on Ms. Wood’s fund.


ARK’s Cathie Wood has amassed a following among retail investors, who cling to her every word on Twitter and television.
PHOTO: ALEX FLYNN/BLOOMBERG NEWS
Ms. Wood’s ARK Innovation ETF raced higher in 2020 and at the start of 2021, boosted by big bets on companies like electric car maker Tesla Inc., Roku Inc. and Square Inc. Ms. Wood’s strategy, which can be best summed up as identifying and betting on companies that she believes are at the forefront of “disruptive innovation,” seemed unbeatable.

Retail investors clung to her every word on Twitter and television, giving her nicknames like “Mamma Cathie,” “Aunt Cathie” and, in the case of South Korean fans, “Money Tree.”

But as shares of technology and other fast-growing companies lost some of their luster over the following months, so, too, did Ms. Wood’s innovation fund. It is down 6.9% this year, while the S&P 500 has risen 18%.

Stock picker Cathie Wood's ARK Innovation exchange-traded fund hasunderperformed the broader market for much of the year after a strong startto 2021.
Year-to-date change
Source: FactSet
As of Aug. 17, 5:03 p.m. ET
2021
Aug.
-30
-20
-10
0
10
20
30
%
S&P 500
ARK InnovationETF
Ms. Wood doesn’t seem fazed yet. She laid out her investment thesis in a series of Twitter posts Tuesday—then capped off her messages by throwing a jab at Mr. Burry’s latest call.

“To his credit, Michael Burry made a great call based on fundamentals and recognized the calamity brewing in the housing/mortgage market,” Ms. Wood said. “I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space.”


One Twitter user chimed in with a nod of respect to both investors.

“Mom and dad are fighting again,” the user wrote in response to Ms. Wood.

Neither Ms. Wood nor Mr. Burry were immediately available for comment.

The Believers
Number of ARK Innovation ETF shares each hedge fund took out callcontracts on
Source: 13F filings provided to the SEC and compiled by WhaleWisdom
Note: Data are as of the quarter through June.
Taconic CapitalAdvisors
Aristides Capital
Balyasny AssetManagement
Berry Street CapitalManagement
Belvedere Trading
Longitude (Cayman)Ltd.
0 thousand
25
50
75
100
125
150
175
The 13F filings, which firms managing more than $100 million are required to submit to the SEC, only reflect holdings through the end of the last quarter—so it’s possible that firms like Scion, Laurion and Goldentree have adjusted their bearish positions since then.

As for the accuracy of hedge funds’ calls, the industry has had a spotty record when it comes to beating the market. While equity hedge funds eked out a gain in July, they underperformed the S&P 500 for the fifth straight month, according to research from Bank of America.

Nevertheless, recent moves from money managers suggest there’s still a crowd betting Ms. Wood’s fund will fall.

In July, Greenwich, Conn.-based Tuttle Capital Management submitted an SEC filing seeking to launch an exchange-traded fund that would use swap agreements to wager against ARK. The value of Tuttle’s fund would rise when ARK falls.

Write to Akane Otani at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Appeared in the August 18, 2021, print edition as 'Hedge Funds Start to Place Bets Against ARK Innovation Fund.'
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

https://www.usbancorpassetmanagement.co ... 23037d8_HS

Summertime, and the Lending Standards are Easing
August 11, 2021

Hand holding stylish round sunglasses with brown lenses at sunset. Putting on sunglasses at sunny summer day near the ocean. Man looking at bright sun through polarized sunglasses. Summer vibes


After the sharp tightening of lending standards across all categories in the first half of 2020, the banking sector retreated in the corresponding 2021 period in universally easing standards.

Rob Hajduch, Principal Credit Analyst

The Federal Reserve (Fed) released the results of its July 2021 Senior Loan Officer Opinion Survey on Bank Lending Practices on August 2nd. The Fed received responses from 75 domestic banks and 22 foreign bank branches, with the results generally corresponding to conditions in the second quarter of 2021. In an 18+ month period in which it was virtually impossible to overuse the term “unprecedented” when speaking about any subject related to the banking sector, the most recent results stand out. After the sharp tightening of lending standards across all categories in the first half of 2020, the banking sector retreated in the corresponding 2021 period in universally easing standards.




Tightening of lending standards last year was not surprising given the uncertainties that abounded following the COVID-19 pandemic outbreak as local economies shut down. What was “unprecedented” was the sense of urgency demonstrated by the sector as it moved to limit damage to its balance sheet. The chart above illustrates loan easing and tightening cycles of consumer loan categories since the first quarter of 2011 when the Fed first began reporting the individual categories. In basic terms, when the plot lines are below the 0% (red) axis, banks are easing lending standards and tightening standards when the lines cross above it. The longer the plot lines remain above or below the 0% axis, the tighter or looser lending standards become. Tightening or loosening cycles are commonly incremental and unfold over extended periods.

The circled area in the chart marks an inflection point in a more normalized environment, where after several years characterized by easing to stable lending standards, the sector began to assume a more conservative posture toward extending credit. Broadly tighter standards persisted until the first quarter of 2020 with the pandemic outbreak, when the system banks moved simultaneously to bolt down lending standards by the end of the third quarter of 2020.

Positively, the restriction of credit did not have a material effect on economic performance, as it corresponded with exceptionally low levels of loan demand with both businesses and consumers hoarding cash and broadly de-levering their respective balance sheets. Even those banks willing to make loans were finding very few takers on the other side of the table.

More constructive was the asset quality deterioration the system was moving to ameliorate never materialized as Federal stimulus programs provided a bridge for displaced workers to continue servicing their debt. The following chart illustrates loan loss rates across all consumer lending categories over the last four decades. It captures the last four periods of major economic disruption (circled red), with charge-offs driven by the Global Financial Crisis of 2008 – 2010 being obvious in its severity. Refreshingly contrary to expectations, loan loss rates have visibly declined since the pandemic outbreak, with the rate reported at the end of the fourth quarter of 2020 (1.50%) only 0.14% above the lowest rate reported over the last four decades.




This resilience was a primary motivating factor for the systems shifting attitude toward lending standards, with the turn beginning in the first quarter of 2021 and accelerating into the second quarter. Easier lending standards occurring simultaneously with rising demand for credit and stable asset quality clear the way to support strong and sustained economic growth moving forward.

Sources

Board of Governors of the Federal Reserve System

Federal Reserve, Senior Loan Officer Opinion Survey on Bank Lending Practices, July 2021

USBAM Research
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

U.S. Jobless Claims Fell to Pandemic Low of 348,000 Last Week
Initial claims for benefits fell 29,000

New jobless claims are down more than 50% since January.
PHOTO: PATRICK T. FALLON/AGENCE FRANCE-PRESSE/GETTY IMAGES
By Bryan Mena
Updated Aug. 19, 2021 8:36 am ET

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Jobless claims fell to a pandemic low of 348,000 last week, suggesting the labor market continues to heal even as the Delta variant causes uncertainty.

New jobless claims are down more than 50% since January, but have hovered in a fairly narrow range between 424,000 and 368,000 since late May.

The Delta variant has caused recent increases in new Covid-19 cases and hospitalizations throughout the country. But while that might cause the pace of growth to ease, some economists say the dynamic between Covid-19 and economic activity has evolved over the past year.


Layoff Gauge
While down from January, applications for unemployment benefits remainabove pre-pandemic levels.
Initial jobless claims, weekly
Source: U.S. Employment and Training Administration via St. Louis Fed
Note: Seasonally adjusted.
2019 weekly average: 218,000
Jan. 2021
Aug.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
“The data we’re seeing shows that while certain consumer areas may be starting to cool, activity does remain solid and labor demand remains extremely strong,” said Robert Rosener, senior U.S. economist at Morgan Stanley. Mr. Rosener said rising numbers of Covid-19 cases wouldn’t necessarily translate to a significant increase in jobless claims.

Employers added 943,000 jobs in July, the best gain in 11 months, according to the Labor Department, which also said job openings reached a record level at the end of June. Both are signs of a strong labor market.

However, there are some indications that the economic expansion is cooling. Retail sales fell 1.1% in July from June, though remain well above pre-pandemic levels, according to the Commerce Department. The University of Michigan’s survey of consumer sentiment fell sharply in the first half of August, as many respondents cited concerns about the Delta variant.

The variant might jeopardize job growth in the short run because of its potential effects on consumer demand, according to Lynn Reaser, an economist at Point Loma Nazarene University in San Diego.

“We are seeing some slowing and reluctance of consumers in restaurants, entertainment and then travel,” Ms. Reaser said. “For manufacturers, the Delta variant is exacerbating parts shortages. Increased worker absenteeism also is disrupting operations.”

As a result, some companies are focusing on maintaining operations rather than looking to expand, she said.

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The economy has steadily added jobs this year, but employers still had 5.7 million fewer positions on payrolls in July than in February 2020, before the coronavirus caused swaths of the economy to shut down. For some, re-entry into the workforce has been bumpy.

Delfina Federico, 57 years old, recently lost a job for the third time in two years. A few weeks ago, a plastics manufacturer let her go from a job as human-resources generalist that she started on July 1. The company told her that her Spanish wasn’t proficient enough for the role, she said. In the fall of 2019, she was laid off from a home-improvement company that went out of business. Last year, she held a short-term job at a nonprofit that served the homeless.


“It’s frustrating,” Ms. Federico said. “But it shows me that I need to finish my education.” The Anaheim, Calif., resident said she is a few classes short of completing her bachelor’s degree, a requirement of many of the jobs she is interested in.

Extended unemployment benefits put in place during the pandemic have allowed Ms. Federico to receive jobless aid for the periods she wasn’t working since September 2019. She applied again, but said she has focused on finding work.

“I’m not going to sit and wait,” Ms. Federico said. “I’m already applying for work, and I’m hopeful.” She has two interviews lined up, she added.

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Employers Competing for Workers Turn to Signing Bonuses and Freebies
Low-wage work is in high demand, and employers are now competing for applicants, offering incentives ranging from sign-on bonuses to free food. But with many still unemployed, are these offers working? Photo: Bloomberg
Extended unemployment benefits and a $300 weekly enhancement on top of state payments will remain in place in California and 25 other states until the week ending Sept. 4. Nineteen other states have ended their participation in those federal programs, and five more removed only the $300 weekly enhancement, according to the National Conference of State Legislatures.

The curtailing of benefits has coincided with reduced enrollment in jobless-aid programs.

The number of benefit payments made through all programs, including pandemic programs established in March 2020, fell to about 12 million in late July, the Labor Department said. That level is less than half as many payments as a year earlier, but still well above the roughly two million made weekly before the pandemic.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

lagerhead wrote: Mon Aug 16, 2021 2:38 pm
By the way I’m in the midst of placing a syndicated warehouse facility for a “new product” that a NY based Life insurance premium finance investor/fund/lender (indirect through BGAs) in the amount of $50-$100mm with a banks, have soft term sheets for about $65mm and still introducing to new mid sized banks (think $15Bn in assets to $60Bn).

We are using Libor + for pricing now on what will end up being a 3-5yr facility depending on who leads it...
[/quote]

Hope you have fallback language.

All GBP, EUR, CHF and JPY LIBOR settings, and the 1-week and 2-month USD LIBOR settings, will cease immediately following publication on 31 December 2021
The overnight and 1-, 3-, 6- and 12-month USD LIBOR settings will cease immediately following publication on 30 June 2023
[/quote]

Hey Lager,

New Treasury newsletter from my buddy is out. Here’s the first place plus link I put in after copied section. Discusses Libor transition in piece.

https://documents.kbra.com/report/53645 ... ugust-2021

rategy
The Bank Treasury Newsletter: August 2021
The Treasury debt ceiling suspension expired at the end of July, and the government is using extraordinary means to continue to pay its bills on time and in full. To date, bank treasurers, who have loaded up their balance sheets with debt directly or indirectly backed by the U.S., are unconcerned, and the risk of default is not a factor in their current investment plans. Notably, the U.S. suffered a loss of one of its AAA ratings 10 years ago this month because Congress failed to increase the debt ceiling after the previous suspension had expired. Also, the Salomon Brothers Treasury auction scandal was front-page news 30 years ago this month. Our publisher, Kroll Bond Rating Agency (KBRA), continues to rate the U.S. AAA.
Regional bank treasurers, facing the same pressure as larger peers to invest excess cash in securities, are divided about adding securities to the portfolio. And while most view bond investments as a necessary evil—even given how dilutive they are for the net interest margin (NIM)—they are unanimous in rationalizing that adding bonds at the low yields prevailing today is still better than earning just 15 basis points (bps) overnight by leaving the cash at the Fed. Some bank treasurers report more comfort in adding duration, reasoning that their deposit inflows will prove very sticky, and encouraged by the fact that noninterest bearing deposits currently fund over 20% of bank assets—a record portion going back 20 years. Bank data shows that the industry has added duration to its balance sheet, not just over the last year, but for the last 20 years, as bank treasurers have been encouraged to reach for yield by the prevalence of interest rates that have hugged historic lows for much of this century. Nevertheless, most bank bond portfolios are in the three-to-four-year duration bucket, and bank treasurers are generally trying to manage interest rate risk when they invest, not take more of it.
Some bank treasurers are now hesitant about adding bonds and are trying to put off major additions to their bond portfolios until 2H 2021. They believe they will be relieved of the need to add securities because loan growth will pick up, deposit inflows will slow, or rates will move higher. To date, rates remain range-bound and the 10-year Treasury continues to hold closer to a 1% yield than a 2% yield, as was widely expected when the year began. Inflationary concerns and speculation that the Fed would move up its timetable to commence tapering quantitative easing have given way to fears of a resurgence of COVID and weaker growth—yet neither concern has had much effect on the 10-year Treasury yield, which has traded in a tight range since the beginning of the summer, and was under 1.3% at publication time. Meanwhile, loan repayments continue to exceed new loan originations, and loan growth has been negative, with the balance of commercial and industrial loans down 2% to $2 trillion just since the end of Q2 2021. This is as balance sheets are still buffeted by the effects of COVID and responses by corporations and consumers toward conservativism and protection of liquidity.
More fundamentally, loan demand remains weak. Corporations and consumers continue to sit on record cash. Even before COVID, bank loan growth was slowing. Fed data shows loan growth fell from an average of 7% over the 20th century’s last quarter, to 4% in the following 20 years leading up to COVID, and down to just 2% in the last year before the pandemic’s onset. Despite this downward trend, nationwide regional banks expressed confidence that trends would turn positive by 2H 2021 or 2022. Their confidence has nevertheless been tested by a partial reversal in some of the economic statistics that have been reported this month, as the public grew more cautious over their summer spending and travel plans in response to the delta variant. According to OpenTable.com, dining out on a national level is well off the pace since the beginning of the summer, though it is still well above where it was a year ago.
The London Interbank Offered Rate (LIBOR) transition continues. At the end of July, the Alternative Reference Rates Committee (ARRC) approved the CME Group’s new Term Secured Overnight Financing Rate (SOFR) index for use in new loan originations and fallback language. Since the middle of March 2021, the overnight SOFR’s volatility—one of its hallmarks after its selection by ARRC in 2017 to replace LIBOR—has vanished, and the rate has held at exactly 5 bps since June 2021 when the Fed raised the rate on its reverse repo facility (RRP) to 5 bps. Meanwhile credit-sensitive indices, such as LIBOR, remain volatile, though the gap between one-month LIBOR and overnight SOFR has been narrowing, to 4 bps from 6 bps just since the beginning of July 2021 through the middle of this month. Bank treasurers remain uncertain about the future regarding when they can no longer use LIBOR in new loan originations starting next year, and they have mixed views on the use of alternative credit-sensitive indices, including the Bloomberg Short-Term Bank Yield (BSBY) index and American Interbank Offered Rate (Ameribor). Many plan to use SOFR, seeing the switch as lowering volatility in their NIMs, which have typically been impacted by gyrations in LIBOR. Generally, the industry is still working on its system needs to support any of these indices for use in lending after the new year.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
CU88
Posts: 4431
Joined: Tue Jul 31, 2018 4:59 pm

Re: The Nation's Financial Condition

Post by CU88 »

States that cut off $300/week unemployment checks didn't get people back to work but did see a 20% decline in spending, costing them $2 billion.

Sort of like the opposite of a stimulus...
by cradleandshoot » Fri Aug 13, 2021 8:57 am
Mr moderator, deactivate my account.
You have heck this forum up to making it nothing more than a joke. I hope you are happy.
This is cradle and shoot signing out.
:roll: :roll: :roll:
User avatar
youthathletics
Posts: 15817
Joined: Mon Jul 30, 2018 7:36 pm

Re: The Nation's Financial Condition

Post by youthathletics »

CU88 wrote: Tue Aug 24, 2021 3:26 pm States that cut off $300/week unemployment checks didn't get people back to work but did see a 20% decline in spending, costing them $2 billion.

Sort of like the opposite of a stimulus...
sales of what, liquor, beer, and cigarettes. :lol: Keep trolling brooksie.
A fraudulent intent, however carefully concealed at the outset, will generally, in the end, betray itself.
~Livy


“There are two ways to be fooled. One is to believe what isn’t true; the other is to refuse to believe what is true.” -Soren Kierkegaard
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

This was interesting to me-Tillman Fertitta buying a bank

NOTICE OF PROPOSED BANK MERGER Notice is hereby given that, on August 23, 2021, MergerCo, Inc. ("MergerCo"), 1510 West Loop South, Houston, Texas 77027, 100% owned by Mr. Tilman J. Fertitta, applied to the Federal Deposit Insurance Corporation ("FDIC") and the Texas Department of Banking ("TDB") for each agency's written approval to merge with and into The Chasewood Bank ("Chasewood"), 20333 State Hwy 249, Suite 100, Houston, Texas 77070, with Chasewood continuing as the surviving entity. As a result of the merger, Tilman J. Fertitta will be the sole shareholder of Chasewood. It is contemplated that all Chasewood branch facilities will remain operating as Chasewood branch facilities after the merger. Any person wishing to comment on this application to the FDIC may file his or her comments in writing with the Regional Director of the FDIC at its Regional Office at 1601 Bryan Street, Dallas, Texas 75201. If any person desires to protest the granting of this application, such person has a right to do so if the protest is filed with the Regional Director on or before September 22, 2021. The nonconfidential portions of the application are on file at the Regional Office and are available for public inspection during regular business hours. Photocopies of the nonconfidential portion of the application file will be made available upon request. Any person wishing to comment on this application to the TDB, either for or against, may file written comments with the Texas Department of Banking, 2601 North Lamar Boulevard, Austin, Texas 78705-4294 on or before the 14th day after the date of this publication. Such comments will be made a part of the record before and considered by the banking commissioner. Any person wishing to formally protest and oppose the application relating to the proposed merger and participate in the application process may do so by filing a written notice of protest with the Texas Department of Banking on or before the 14th calendar day after the date of this publication accompanied by a protest filing fee of $2,500. The protest fee may be reduced or waived by the banking commissioner upon a showing of substantial hardship.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

This Illinois County Is Losing People Faster Than Anywhere in the U.S.
Alexander County, home to Cairo, dropped more than a third of its population in past decade, as big U.S. counties grew and small ones shrank

By John McCormick and Chad Day
Aug. 25, 2021 5:30 am ET


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CAIRO, Ill.—In a nation where more than half of all counties saw population declines during the past decade, nowhere fared worse than Alexander County in far southern Illinois.

Located at the confluence of the Ohio and Mississippi rivers, the county lost 36.4% of its residents between 2010 and 2020, Census Bureau data released this month shows. No other county lost more than 30%.

The exodus amounted to roughly 3,000 people and lowered the county’s population to 5,240. The declining numbers are putting added pressure on already stressed local government finances and leaving the remaining residents questioning whether there’s any future here. A yearslong plan to revive Cairo’s port may be the area’s last hope.

“There is nothing here for people and the whole downtown is gone,” said Loretta Hilt, 74 years old, a lifelong resident here who commutes to Kentucky to work as a senior center cook. “I hope it can be saved.”

Counties by largest population percentage decrease, 2010 to 2020
Source: Census Bureau
Alexander County, Ill.
Schleicher County,Texas
Edwards County,Texas
Dickens County, Texas
Blaine County, Okla.
-40%
-30
-20
-10
0
Alexander County is an extreme example of the nation’s general growth pattern over the past decade: Big counties grew as small ones shrank. That was particularly true along the Lower Mississippi River, a swath of fertile land that runs from southeastern Missouri and Illinois downriver through Tennessee, Arkansas, Mississippi and Louisiana. The area has struggled for decades with unemployment, poverty, lower life expectancy and population loss.


Counties like Alexander outside the Chicago metropolitan area contributed to the overall loss of population in Illinois between 2010 and 2020, the first time the state recorded a decline between decennial census counts since joining the union in 1818. Mississippi and West Virginia were the only other two states to lose population.

Eight of the nine counties in the Illinois portion of the Chicago metropolitan area saw population gains between 2010 and 2020, while 86 of the 93 counties in the state outside the nation’s third-largest metro area saw declines.

Once home to about 25,000 at its peak in 1940, Alexander County now has a population only slightly larger than when it was a key Civil War outpost.


A longtime barbecue joint serves as Cairo’s sole sit-down restaurant.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Cairo (pronounced KAY-ro) has been the epicenter of the county’s loss. A once bustling river port, the town has suffered for decades from the decline of shipping, coal mining, government and manufacturing jobs.

During the past decade, the town alone shed almost 1,100 residents, a 39% population decline to its current 1,733 people. There is no grocery store or fast-food chains and the only nursing home, one of the town’s larger employers, closed last year.

Alexander County, Ill., population
Source: IPUMS NHGIS, University of Minnesota, www.nhgis.org
2020: 5,240
1860: 4,707
1850
1900
1950
2000
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
thousand
A decision by the Department of Housing and Urban Development in 2017 to close two World War II-era public housing complexes in Cairo resulted in the relocation of close to 200 families.


Amid abandoned houses and the charred rubble of former businesses there still are two banks, a couple convenience stores, a car dealership and a liquor store in Cairo. A longtime barbecue joint serves as the town’s sole sit-down restaurant.

Compared with all Illinois counties, Alexander County has the second-lowest median household income—$36,806—and the second-highest poverty rate, 25.3%, the latest Census Bureau estimates show. The county’s unemployment rate in June—the most recent month available—was 9.2%, well above the national average of 5.9% that month.

Numerous other factors have also contributed to the county’s decline. In 2011, months of heavy rain and snowmelt led to some of the worst Mississippi River flooding in nearly a century, resulting in several hundred homes and businesses in the county being vacated. A state prison that employed about 300 workers closed the following year.


Broken down cars are not uncommon in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL

Two people fish on a recent day at the confluence of the Ohio and Mississippi rivers in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Chalen Tatum is one of those whose employment was affected by the prison closure. A lifelong resident of Alexander County, he now commutes about an hour to his maintenance job at another state prison.

“People have been moving out for a long time, searching for jobs,” said Mr. Tatum, who until a few years ago was the chairman of the county board of commissioners.

Change in Alexander County, Ill., population by race or ethnicity, 2010 to2020
Source: Census Bureau
* Any race. Note: Change was fewer than 10 among Asian, Native Hawaiian or Pacific Islander, American Indian or Alaska Native and some other race categories.
White
Black
Hispanic or Latino*
Two or more races
-2,000
-1,500
-1,000
-500
0
500
Residents say the county has also been hurt by its proximity to Missouri and Kentucky, both lower-tax states than Illinois. There is no gas station here in Cairo, they say, because the Illinois gasoline tax is more than double the rate in Kentucky and more than triple what’s charged in Missouri.


Still, Cairo’s location at the fusion of two great rivers is again offering hope.

A plan backed by Illinois Gov. J.B. Pritzker to spend $40 million in state money for a terminal and other port improvements in the town is offering the potential of about 500 union construction jobs in late 2022 or 2023. Preliminary engineering is under way and the state has released $4 million so far for what would be one of the largest investments in southern Illinois in decades.

Roughly 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District. To the south of here, barges don’t need to pass through lock and dam structure as they do to the north, speeding transit to the Gulf of Mexico and allowing for larger and more efficient loads.

“We’ve just got to figure out a way for some of this money that flows by here to stop here,” said Larry Klein, the port district’s board chairman and a lifelong resident.


About 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The proposed 350-acre port, located near two major interstates and rail lines, would be able to handle up to 350,000 shipping containers a year and millions of tons of agricultural products. Once built, there would be jobs in operations as well as tax-and-fee income for local coffers.

Cairo is close to 400 miles south of Chicago, but less than 170 miles north of Memphis. The city, where Black residents are the majority, was slow to embrace civil rights.

In the 1970s, the U.S. Commission on Civil Rights found Cairo had failed to end discrimination in public jobs and government agencies. It also determined that little had been done to limit bias in the private sector.

“We don’t have racial strife here, as we did in the Civil Rights era,” said Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter. “But life has become a struggle because of the lack of the necessities of life.”


Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter, said life has become a struggle.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The Cairo Public Utility Company, a not-for-profit corporation, has stepped in to fill some of the retail gaps. Besides providing natural gas, electricity and sewage treatment, it also operates a hardware store and lumber yard.


Thomas Simpson, who grew up in Cairo and has been mayor since 2019, said he is optimistic that the town is in a rebuilding stage. The area is rich with history from the Civil War, the civil-rights movement and shipping. He pointed to the renovation of an 1865 mansion he hopes will become a bed-and-breakfast. The house sits on Washington Avenue, a road known as “Millionaire’s Row” when the town boomed with wealth from river and agricultural trade.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
PizzaSnake
Posts: 5296
Joined: Tue Mar 05, 2019 8:36 pm

Re: The Nation's Financial Condition

Post by PizzaSnake »

Farfromgeneva wrote: Wed Aug 25, 2021 1:53 pm This Illinois County Is Losing People Faster Than Anywhere in the U.S.
Alexander County, home to Cairo, dropped more than a third of its population in past decade, as big U.S. counties grew and small ones shrank

By John McCormick and Chad Day
Aug. 25, 2021 5:30 am ET


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CAIRO, Ill.—In a nation where more than half of all counties saw population declines during the past decade, nowhere fared worse than Alexander County in far southern Illinois.

Located at the confluence of the Ohio and Mississippi rivers, the county lost 36.4% of its residents between 2010 and 2020, Census Bureau data released this month shows. No other county lost more than 30%.

The exodus amounted to roughly 3,000 people and lowered the county’s population to 5,240. The declining numbers are putting added pressure on already stressed local government finances and leaving the remaining residents questioning whether there’s any future here. A yearslong plan to revive Cairo’s port may be the area’s last hope.

“There is nothing here for people and the whole downtown is gone,” said Loretta Hilt, 74 years old, a lifelong resident here who commutes to Kentucky to work as a senior center cook. “I hope it can be saved.”

Counties by largest population percentage decrease, 2010 to 2020
Source: Census Bureau
Alexander County, Ill.
Schleicher County,Texas
Edwards County,Texas
Dickens County, Texas
Blaine County, Okla.
-40%
-30
-20
-10
0
Alexander County is an extreme example of the nation’s general growth pattern over the past decade: Big counties grew as small ones shrank. That was particularly true along the Lower Mississippi River, a swath of fertile land that runs from southeastern Missouri and Illinois downriver through Tennessee, Arkansas, Mississippi and Louisiana. The area has struggled for decades with unemployment, poverty, lower life expectancy and population loss.


Counties like Alexander outside the Chicago metropolitan area contributed to the overall loss of population in Illinois between 2010 and 2020, the first time the state recorded a decline between decennial census counts since joining the union in 1818. Mississippi and West Virginia were the only other two states to lose population.

Eight of the nine counties in the Illinois portion of the Chicago metropolitan area saw population gains between 2010 and 2020, while 86 of the 93 counties in the state outside the nation’s third-largest metro area saw declines.

Once home to about 25,000 at its peak in 1940, Alexander County now has a population only slightly larger than when it was a key Civil War outpost.


A longtime barbecue joint serves as Cairo’s sole sit-down restaurant.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Cairo (pronounced KAY-ro) has been the epicenter of the county’s loss. A once bustling river port, the town has suffered for decades from the decline of shipping, coal mining, government and manufacturing jobs.

During the past decade, the town alone shed almost 1,100 residents, a 39% population decline to its current 1,733 people. There is no grocery store or fast-food chains and the only nursing home, one of the town’s larger employers, closed last year.

Alexander County, Ill., population
Source: IPUMS NHGIS, University of Minnesota, www.nhgis.org
2020: 5,240
1860: 4,707
1850
1900
1950
2000
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
thousand
A decision by the Department of Housing and Urban Development in 2017 to close two World War II-era public housing complexes in Cairo resulted in the relocation of close to 200 families.


Amid abandoned houses and the charred rubble of former businesses there still are two banks, a couple convenience stores, a car dealership and a liquor store in Cairo. A longtime barbecue joint serves as the town’s sole sit-down restaurant.

Compared with all Illinois counties, Alexander County has the second-lowest median household income—$36,806—and the second-highest poverty rate, 25.3%, the latest Census Bureau estimates show. The county’s unemployment rate in June—the most recent month available—was 9.2%, well above the national average of 5.9% that month.

Numerous other factors have also contributed to the county’s decline. In 2011, months of heavy rain and snowmelt led to some of the worst Mississippi River flooding in nearly a century, resulting in several hundred homes and businesses in the county being vacated. A state prison that employed about 300 workers closed the following year.


Broken down cars are not uncommon in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL

Two people fish on a recent day at the confluence of the Ohio and Mississippi rivers in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Chalen Tatum is one of those whose employment was affected by the prison closure. A lifelong resident of Alexander County, he now commutes about an hour to his maintenance job at another state prison.

“People have been moving out for a long time, searching for jobs,” said Mr. Tatum, who until a few years ago was the chairman of the county board of commissioners.

Change in Alexander County, Ill., population by race or ethnicity, 2010 to2020
Source: Census Bureau
* Any race. Note: Change was fewer than 10 among Asian, Native Hawaiian or Pacific Islander, American Indian or Alaska Native and some other race categories.
White
Black
Hispanic or Latino*
Two or more races
-2,000
-1,500
-1,000
-500
0
500
Residents say the county has also been hurt by its proximity to Missouri and Kentucky, both lower-tax states than Illinois. There is no gas station here in Cairo, they say, because the Illinois gasoline tax is more than double the rate in Kentucky and more than triple what’s charged in Missouri.


Still, Cairo’s location at the fusion of two great rivers is again offering hope.

A plan backed by Illinois Gov. J.B. Pritzker to spend $40 million in state money for a terminal and other port improvements in the town is offering the potential of about 500 union construction jobs in late 2022 or 2023. Preliminary engineering is under way and the state has released $4 million so far for what would be one of the largest investments in southern Illinois in decades.

Roughly 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District. To the south of here, barges don’t need to pass through lock and dam structure as they do to the north, speeding transit to the Gulf of Mexico and allowing for larger and more efficient loads.

“We’ve just got to figure out a way for some of this money that flows by here to stop here,” said Larry Klein, the port district’s board chairman and a lifelong resident.


About 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The proposed 350-acre port, located near two major interstates and rail lines, would be able to handle up to 350,000 shipping containers a year and millions of tons of agricultural products. Once built, there would be jobs in operations as well as tax-and-fee income for local coffers.

Cairo is close to 400 miles south of Chicago, but less than 170 miles north of Memphis. The city, where Black residents are the majority, was slow to embrace civil rights.

In the 1970s, the U.S. Commission on Civil Rights found Cairo had failed to end discrimination in public jobs and government agencies. It also determined that little had been done to limit bias in the private sector.

“We don’t have racial strife here, as we did in the Civil Rights era,” said Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter. “But life has become a struggle because of the lack of the necessities of life.”


Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter, said life has become a struggle.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The Cairo Public Utility Company, a not-for-profit corporation, has stepped in to fill some of the retail gaps. Besides providing natural gas, electricity and sewage treatment, it also operates a hardware store and lumber yard.


Thomas Simpson, who grew up in Cairo and has been mayor since 2019, said he is optimistic that the town is in a rebuilding stage. The area is rich with history from the Civil War, the civil-rights movement and shipping. He pointed to the renovation of an 1865 mansion he hopes will become a bed-and-breakfast. The house sits on Washington Avenue, a road known as “Millionaire’s Row” when the town boomed with wealth from river and agricultural trade.
See any congruity between that micro view and this macro vision?

https://www.theguardian.com/commentisfr ... ial-crisis
"There is nothing more difficult and more dangerous to carry through than initiating changes. One makes enemies of those who prospered under the old order, and only lukewarm support from those who would prosper under the new."
User avatar
Brooklyn
Posts: 10270
Joined: Fri Aug 31, 2018 12:16 am
Location: St Paul, Minnesota

Re: The Nation's Financial Condition

Post by Brooklyn »

U.S. economy grew slightly faster 6.6% pace in second quarter, new GDP figures show


Economists polled by the Wall Street Journal estimate third-quarter GDP will increase by 7%.


https://www.marketwatch.com/story/u-s-e ... 1629982344



The Biden economy is a lot better than that of tRump. As usual, he inherits a Republican created mess and fixes it up.
It has been proven a hundred times that the surest way to the heart of any man, black or white, honest or dishonest, is through justice and fairness.

Charles Francis "Socker" Coe, Esq
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

PizzaSnake wrote: Thu Aug 26, 2021 12:03 am
Farfromgeneva wrote: Wed Aug 25, 2021 1:53 pm This Illinois County Is Losing People Faster Than Anywhere in the U.S.
Alexander County, home to Cairo, dropped more than a third of its population in past decade, as big U.S. counties grew and small ones shrank

By John McCormick and Chad Day
Aug. 25, 2021 5:30 am ET


SAVE


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TEXT

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CAIRO, Ill.—In a nation where more than half of all counties saw population declines during the past decade, nowhere fared worse than Alexander County in far southern Illinois.

Located at the confluence of the Ohio and Mississippi rivers, the county lost 36.4% of its residents between 2010 and 2020, Census Bureau data released this month shows. No other county lost more than 30%.

The exodus amounted to roughly 3,000 people and lowered the county’s population to 5,240. The declining numbers are putting added pressure on already stressed local government finances and leaving the remaining residents questioning whether there’s any future here. A yearslong plan to revive Cairo’s port may be the area’s last hope.

“There is nothing here for people and the whole downtown is gone,” said Loretta Hilt, 74 years old, a lifelong resident here who commutes to Kentucky to work as a senior center cook. “I hope it can be saved.”

Counties by largest population percentage decrease, 2010 to 2020
Source: Census Bureau
Alexander County, Ill.
Schleicher County,Texas
Edwards County,Texas
Dickens County, Texas
Blaine County, Okla.
-40%
-30
-20
-10
0
Alexander County is an extreme example of the nation’s general growth pattern over the past decade: Big counties grew as small ones shrank. That was particularly true along the Lower Mississippi River, a swath of fertile land that runs from southeastern Missouri and Illinois downriver through Tennessee, Arkansas, Mississippi and Louisiana. The area has struggled for decades with unemployment, poverty, lower life expectancy and population loss.


Counties like Alexander outside the Chicago metropolitan area contributed to the overall loss of population in Illinois between 2010 and 2020, the first time the state recorded a decline between decennial census counts since joining the union in 1818. Mississippi and West Virginia were the only other two states to lose population.

Eight of the nine counties in the Illinois portion of the Chicago metropolitan area saw population gains between 2010 and 2020, while 86 of the 93 counties in the state outside the nation’s third-largest metro area saw declines.

Once home to about 25,000 at its peak in 1940, Alexander County now has a population only slightly larger than when it was a key Civil War outpost.


A longtime barbecue joint serves as Cairo’s sole sit-down restaurant.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Cairo (pronounced KAY-ro) has been the epicenter of the county’s loss. A once bustling river port, the town has suffered for decades from the decline of shipping, coal mining, government and manufacturing jobs.

During the past decade, the town alone shed almost 1,100 residents, a 39% population decline to its current 1,733 people. There is no grocery store or fast-food chains and the only nursing home, one of the town’s larger employers, closed last year.

Alexander County, Ill., population
Source: IPUMS NHGIS, University of Minnesota, www.nhgis.org
2020: 5,240
1860: 4,707
1850
1900
1950
2000
0
2
4
6
8
10
12
14
16
18
20
22
24
26
28
thousand
A decision by the Department of Housing and Urban Development in 2017 to close two World War II-era public housing complexes in Cairo resulted in the relocation of close to 200 families.


Amid abandoned houses and the charred rubble of former businesses there still are two banks, a couple convenience stores, a car dealership and a liquor store in Cairo. A longtime barbecue joint serves as the town’s sole sit-down restaurant.

Compared with all Illinois counties, Alexander County has the second-lowest median household income—$36,806—and the second-highest poverty rate, 25.3%, the latest Census Bureau estimates show. The county’s unemployment rate in June—the most recent month available—was 9.2%, well above the national average of 5.9% that month.

Numerous other factors have also contributed to the county’s decline. In 2011, months of heavy rain and snowmelt led to some of the worst Mississippi River flooding in nearly a century, resulting in several hundred homes and businesses in the county being vacated. A state prison that employed about 300 workers closed the following year.


Broken down cars are not uncommon in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL

Two people fish on a recent day at the confluence of the Ohio and Mississippi rivers in Cairo. PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
Chalen Tatum is one of those whose employment was affected by the prison closure. A lifelong resident of Alexander County, he now commutes about an hour to his maintenance job at another state prison.

“People have been moving out for a long time, searching for jobs,” said Mr. Tatum, who until a few years ago was the chairman of the county board of commissioners.

Change in Alexander County, Ill., population by race or ethnicity, 2010 to2020
Source: Census Bureau
* Any race. Note: Change was fewer than 10 among Asian, Native Hawaiian or Pacific Islander, American Indian or Alaska Native and some other race categories.
White
Black
Hispanic or Latino*
Two or more races
-2,000
-1,500
-1,000
-500
0
500
Residents say the county has also been hurt by its proximity to Missouri and Kentucky, both lower-tax states than Illinois. There is no gas station here in Cairo, they say, because the Illinois gasoline tax is more than double the rate in Kentucky and more than triple what’s charged in Missouri.


Still, Cairo’s location at the fusion of two great rivers is again offering hope.

A plan backed by Illinois Gov. J.B. Pritzker to spend $40 million in state money for a terminal and other port improvements in the town is offering the potential of about 500 union construction jobs in late 2022 or 2023. Preliminary engineering is under way and the state has released $4 million so far for what would be one of the largest investments in southern Illinois in decades.

Roughly 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District. To the south of here, barges don’t need to pass through lock and dam structure as they do to the north, speeding transit to the Gulf of Mexico and allowing for larger and more efficient loads.

“We’ve just got to figure out a way for some of this money that flows by here to stop here,” said Larry Klein, the port district’s board chairman and a lifelong resident.


About 80% of all inland barge traffic in the U.S. passes Cairo, according to Alexander-Cairo Port District.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The proposed 350-acre port, located near two major interstates and rail lines, would be able to handle up to 350,000 shipping containers a year and millions of tons of agricultural products. Once built, there would be jobs in operations as well as tax-and-fee income for local coffers.

Cairo is close to 400 miles south of Chicago, but less than 170 miles north of Memphis. The city, where Black residents are the majority, was slow to embrace civil rights.

In the 1970s, the U.S. Commission on Civil Rights found Cairo had failed to end discrimination in public jobs and government agencies. It also determined that little had been done to limit bias in the private sector.

“We don’t have racial strife here, as we did in the Civil Rights era,” said Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter. “But life has become a struggle because of the lack of the necessities of life.”


Tyrone Coleman, a former Cairo mayor and president of the local NAACP chapter, said life has become a struggle.
PHOTO: JOHN MCCORMICK/THE WALL STREET JOURNAL
The Cairo Public Utility Company, a not-for-profit corporation, has stepped in to fill some of the retail gaps. Besides providing natural gas, electricity and sewage treatment, it also operates a hardware store and lumber yard.


Thomas Simpson, who grew up in Cairo and has been mayor since 2019, said he is optimistic that the town is in a rebuilding stage. The area is rich with history from the Civil War, the civil-rights movement and shipping. He pointed to the renovation of an 1865 mansion he hopes will become a bed-and-breakfast. The house sits on Washington Avenue, a road known as “Millionaire’s Row” when the town boomed with wealth from river and agricultural trade.
See any congruity between that micro view and this macro vision?

https://www.theguardian.com/commentisfr ... ial-crisis
Yes, go check out my hometown of Binghamton NY, or any city west of the Catskills and at or north of New Rochelle and including Mt Vernon (Elmira, Rochester little better due to college cluster keeping high educated people around by volume, Syracuse, Watertown, Middletown, Poughkeepsie, etc)

And I’ve stated around here 1-2x that I worry that our unique (and bastardized but closest to pure) blend of democracy and capitalism may ultimately cause a binary outcome race.

But I’m more interested in truly heterodox paradigms not just swinging on the vine in the other direction within the same orthodoxy which is what the dislaxxic and Brooklyn’s desire .
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
Farfromgeneva
Posts: 23816
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Re: The Nation's Financial Condition

Post by Farfromgeneva »

Brooklyn wrote: Thu Aug 26, 2021 10:59 am U.S. economy grew slightly faster 6.6% pace in second quarter, new GDP figures show


Economists polled by the Wall Street Journal estimate third-quarter GDP will increase by 7%.


https://www.marketwatch.com/story/u-s-e ... 1629982344



The Biden economy is a lot better than that of tRump. As usual, he inherits a Republican created mess and fixes it up.
Year over year. If you don’t understand that distinction it’s critical and dilutes the argument. Trump sucks my balls but there’s no apples to apples comparison and that’s the bottom line. We went through a a few quarters of a pandemic. This is just silly.
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
User avatar
youthathletics
Posts: 15817
Joined: Mon Jul 30, 2018 7:36 pm

Re: The Nation's Financial Condition

Post by youthathletics »

Farfromgeneva wrote: Thu Aug 26, 2021 4:46 pm
Brooklyn wrote: Thu Aug 26, 2021 10:59 am U.S. economy grew slightly faster 6.6% pace in second quarter, new GDP figures show


Economists polled by the Wall Street Journal estimate third-quarter GDP will increase by 7%.


https://www.marketwatch.com/story/u-s-e ... 1629982344



The Biden economy is a lot better than that of tRump. As usual, he inherits a Republican created mess and fixes it up.
Year over year. If you don’t understand that distinction it’s critical and dilutes the argument. Trump sucks my balls but there’s no apples to apples comparison and that’s the bottom line. We went through a a few quarters of a pandemic. This is just silly.
You are....

Image
A fraudulent intent, however carefully concealed at the outset, will generally, in the end, betray itself.
~Livy


“There are two ways to be fooled. One is to believe what isn’t true; the other is to refuse to believe what is true.” -Soren Kierkegaard
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

youthathletics wrote: Thu Aug 26, 2021 4:51 pm
Farfromgeneva wrote: Thu Aug 26, 2021 4:46 pm
Brooklyn wrote: Thu Aug 26, 2021 10:59 am U.S. economy grew slightly faster 6.6% pace in second quarter, new GDP figures show


Economists polled by the Wall Street Journal estimate third-quarter GDP will increase by 7%.


https://www.marketwatch.com/story/u-s-e ... 1629982344



The Biden economy is a lot better than that of tRump. As usual, he inherits a Republican created mess and fixes it up.
Year over year. If you don’t understand that distinction it’s critical and dilutes the argument. Trump sucks my balls but there’s no apples to apples comparison and that’s the bottom line. We went through a a few quarters of a pandemic. This is just silly.
You are....

Image
I blame it on my dads side of the family from rural WNY...

https://m.youtube.com/watch?v=XLqR1ZFBPpg
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
User avatar
Brooklyn
Posts: 10270
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Location: St Paul, Minnesota

Re: The Nation's Financial Condition

Post by Brooklyn »

Farfromgeneva wrote: Thu Aug 26, 2021 4:46 pm
Year over year. If you don’t understand that distinction it’s critical and dilutes the argument. Trump sucks my balls but there’s no apples to apples comparison and that’s the bottom line. We went through a a few quarters of a pandemic. This is just silly.

Nonsense. tRump and his apologists all said there was nothing wrong, everything was under control, and the USA was a sweet bed of roses thanks to him, the Chosen. If the moron hadn't diminished the CDC by sabotaging the pandemic control system put into place by Obama*, and had quarantined the infected people who brought in germs from Europe and which spread contagion, we would not have had the economic mess that took place. Had the idjit in chief done the same things done in Canada, Australian, New Zealand, and elsewhere, the economy would have been in far better shape.






* https://foreignpolicy.com/2020/01/31/co ... -response/
It has been proven a hundred times that the surest way to the heart of any man, black or white, honest or dishonest, is through justice and fairness.

Charles Francis "Socker" Coe, Esq
Farfromgeneva
Posts: 23816
Joined: Sat Feb 23, 2019 10:53 am

Re: The Nation's Financial Condition

Post by Farfromgeneva »

Brooklyn wrote: Thu Aug 26, 2021 9:01 pm
Farfromgeneva wrote: Thu Aug 26, 2021 4:46 pm
Year over year. If you don’t understand that distinction it’s critical and dilutes the argument. Trump sucks my balls but there’s no apples to apples comparison and that’s the bottom line. We went through a a few quarters of a pandemic. This is just silly.

Nonsense. tRump and his apologists all said there was nothing wrong, everything was under control, and the USA was a sweet bed of roses thanks to him, the Chosen. If the moron hadn't diminished the CDC by sabotaging the pandemic control system put into place by Obama*, and had quarantined the infected people who brought in germs from Europe and which spread contagion, we would not have had the economic mess that took place. Had the idjit in chief done the same things done in Canada, Australian, New Zealand, and elsewhere, the economy would have been in far better shape.






* https://foreignpolicy.com/2020/01/31/co ... -response/
Why does this remind me of an old quote: 2 + 2 = Squirrels
*Artist formerly known as the brewmaster, aka Afan, aka Cusetube lacrosse
Now I love those cowboys, I love their gold
Love my uncle, God rest his soul
Taught me good, Lord, taught me all I know
Taught me so well, that I grabbed that gold
I left his dead ass there by the side of the road, yeah
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