Seeking Alpha

Tom Au, CFA's  Instablog

Tom Au, CFA
Send Message
In the early 1990s, during the middle of a secular bull market, I began work on "A Modern Approach To Graham and Dodd Investing," that was not particularly suited for the decade of the 1990s, but was ideally suited for the following "Lost Decade" of the 2000s.
My book:
A Modern Approach to Graham and Dodd Investing
  • Another State Goes Belly Up 14 comments
    Aug 24, 2009 12:40 PM
    This time it's Rhode Island, whose Treasurer has warned that the state will have to "shut down" on selected days in order to conserve funds. This follows the de facto default of California, who's paying its bills with IOUs, until it can pass a new budget. New York state is headed for a budge crisis, although not so dramatically. Illinois pays its bills months late. If they were private individuals, they would all be in default.

    To paraphrase the late Senator Everett Dirksen, "A state here, and another state there, and pretty soon we're talking about the United States."

Back To Tom Au, CFA's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (14)
Track new comments
  • optionsgirl
    , contributor
    Comments (5061) | Send Message
     
    You are so right. Here is a sobering article regarding just how bad it is on the state level, throughout the country. Very scary stuff...
    www.cbpp.org/cms/?fa=v...
    24 Aug 2009, 12:59 PM Reply Like
  • ScroogeMcduck
    , contributor
    Comments (516) | Send Message
     
    Wow 2 of the most liberal states in the country coincidence?
    I think not.
    24 Aug 2009, 01:03 PM Reply Like
  • doubleguns
    , contributor
    Comments (8325) | Send Message
     
    I think not TOO!!!!!

     

    More like our future if we dont get a handle on this.

     

    On Aug 24 01:03 PM ScroogeMcduck wrote:

     

    > Wow 2 of the most liberal states in the country coincidence?
    > I think not.
    24 Aug 2009, 01:14 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    Author’s reply » Good point.

     

    On Aug 24 01:03 PM ScroogeMcduck wrote:

     

    > Wow 2 of the most liberal states in the country coincidence?
    > I think not.
    24 Aug 2009, 01:26 PM Reply Like
  • ScroogeMcduck
    , contributor
    Comments (516) | Send Message
     
    The cronies running this country are no better then Bernie Madoff. The government runs the biggest ponzi scheme in the world. Anyone who thinks this health care bill is about health care has their head in the clouds. It's about the need for another cookie jar!
    24 Aug 2009, 01:29 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    Author’s reply » And the two exceptions are Montana and North Dakota, not surprisingly, the most frugal states in the country. Alf Landon's new base?

     

    On Aug 24 12:59 PM optionsgirl wrote:

     

    > You are so right. Here is a sobering article regarding just how bad
    > it is on the state level, throughout the country. Very scary stuff...
    >
    > www.cbpp.org/cms/?fa=v...;id=711
    24 Aug 2009, 01:36 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8751) | Send Message
     
    I was born and raised in Wyoming. No frills there either. The world is harsh and the wind is cold. Be neither a lender nor a borrower. If you can live without it, then you don't need it.
    29 Aug 2009, 02:49 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    Author’s reply » Welcome aboard my followers, Mike.
    29 Aug 2009, 03:07 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8751) | Send Message
     
    Glad to be here. I thought I checked you weeks ago. Was surprised today to see that I hadn't.
    29 Aug 2009, 03:09 PM Reply Like
  • TeresaE
    , contributor
    Comments (3041) | Send Message
     
    Michigan is back in this boat AGAIN. We were here in '06 too.

     

    Since our governor took office in 2002, the game playing has included the following to "balance" the budget.

     

    Removed one year from back property taxes resulting in thousands of tax-forfeited homes in the state with NO employment.

     

    Increased the fees on autos, insurance, utilities, corp/bus filings, driver's licenses, increased fines for BS offenses like driving without proof of insurance ($400), drunk driving and pot possession, etc, etc.

     

    Increased the minimum wage

     

    Increased taxes on ALL businesses - including corporations from outside of Michigan and the US that sell products to Michigan businesses-, except for the REBATE of money spent (NOT taxes paid, but money spent) by Hollywood (they get 40 cents back for every dollar they spend in Michigan. Sweet deal).

     

    The list goes on and on, yet here we are again with no budget and shutdown looming Oct. 1. And this shutdown is looming even though Michigan is using stimulus funds of $1.8 BILLION to "fill the gap" in the budget.

     

    NO systemic changes that will ever get us out of this union & welfare dug hole. None.

     

    The only solutions they can come up wth is to increase taxes (again) and cut services for taxpayers. Of course the "poor" get more money, times are tough you know.
    23 Sep 2009, 03:00 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    Author’s reply » A row of dominoes.

     

    And I was born in Detroit, meaning that I have spent more time in Michigan than I care to.

     

    On Sep 23 03:00 PM TeresaE wrote:

     

    > Michigan is back in this boat AGAIN. We were here in '06 too.<br/>
    >
    > Since our governor took office in 2002, the game playing has included
    > the following to "balance" the budget.
    >
    > Removed one year from back property taxes resulting in thousands
    > of tax-forfeited homes in the state with NO employment.
    >
    > Increased the fees on autos, insurance, utilities, corp/bus filings,
    > driver's licenses, increased fines for BS offenses like driving without
    > proof of insurance ($400), drunk driving and pot possession, etc,
    > etc.
    >
    > Increased the minimum wage
    >
    > Increased taxes on ALL businesses - including corporations from outside
    > of Michigan and the US that sell products to Michigan businesses-,
    > except for the REBATE of money spent (NOT taxes paid, but money spent)
    > by Hollywood (they get 40 cents back for every dollar they spend
    > in Michigan. Sweet deal).
    >
    > The list goes on and on, yet here we are again with no budget and
    > shutdown looming Oct. 1. And this shutdown is looming even though
    > Michigan is using stimulus funds of $1.8 BILLION to "fill the gap"
    > in the budget.
    >
    > NO systemic changes that will ever get us out of this union &amp;
    > welfare dug hole. None.
    >
    > The only solutions they can come up wth is to increase taxes (again)
    > and cut services for taxpayers. Of course the "poor" get more money,
    > times are tough you know.
    23 Sep 2009, 03:10 PM Reply Like
  • nova
    , contributor
    Comments (569) | Send Message
     
    TeresaE wrote:

     

    > Michigan is back in this boat AGAIN. We were here in '06 too. Removed one year from back property taxes resulting in thousands of tax-forfeited homes in the state with NO employment...

     

    NO systemic changes that will ever get us out of this union &amp; welfare dug hole. None."

     

    Well, Detroit autoworker union welfare paradise has lasted for a long time. Living in Dayton, Ohio, back in 1978, my apartment neighbor told me that he did not have to work since his GE union benefits would provide him with 90% of his wages for at least 5 years.

     

    Since the problem did not start yesterday, it will take long and hard time to remedy nonsense that existed for at least the last 50 years. Unfortunately, there are no other ways around.

     

    It is of increadible that Obama and the Congress are in total denial of the reality. It reminds me the French aristocracy just before the French Revolution. France survived but they did not!
    23 Sep 2009, 06:33 PM Reply Like
  • Fred Voetsch
    , contributor
    Comments (832) | Send Message
     
    I believe the mention of the French Revolution may be pertinent because our noble leaders not only ignore those of us who create wealth in this country but they seem downright angry that we would speak up. I find it hard to believe things will get fixed without blood in the streets at some point.
    24 Jul 2010, 02:22 PM Reply Like
  • Tom Au, CFA
    , contributor
    Comments (6774) | Send Message
     
    Author’s reply » You've seen this piece about just that topic, right?

     

    seekingalpha.com/insta...
    24 Jul 2010, 02:49 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Europe's flying. Bought TEF and CEDC.
    Jan 3, 2012
  • Gold stocks didn't follow the underlying metal upward. Might be the thing to own when the metal rises again.
    Aug 30, 2011
  • Even (MCD) seems to be benefiting from the "coffee" craze
    Aug 23, 2011
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.