Honest to goodness, I dreamt about the economy last night. I was part of "thinktank" coming up with ways that businesses can increase trade. I don't remember if I came up with any spectacular ideas, but when I woke up at six o'clock to do some exercises before breakfast, I was honestly happy the alarm clock worked.
Then this morning on one of the early morning news channels, I heard that a number of large national equipment manufacturers were laying off thousands of employees. That was followed by the announcement by Sprint that it too was laying off thousands of employees.
The morning paper had a story about many homeowners with a mortgage and without a job who are likely heading to bankruptcy court unless Washington lawmakers can figure out a better plan.
So where's the light at the end of tunnel? I wish I knew.
Luckily, I live in a state that has been insulated from the worst of the nation's economic woes. With the exception of Melroe -- the makers of the Bobcat steer loader -- there really hasn't been any wholesale layoffs. And at least some of the 150 former Melroe employees have been hired by contractors who look to have steady employment for the foreseeable future in retrofitting the existing seven power plants with more advanced air emissions controls. There's about a billion dollars worth of work that's been announced in the lignite industry alone for the next four to five years.
Couple that forecast with the major drilling plans of several oil exploration companies in the Bakken Formation, a large, deep formation that is reached by horizontal drilling and two of the state's "bread and butter" industries appear to be well set to offer good paying jobs to many of our state's residents...and perhaps some newcomers as well.
Both the oil and gas and lignite industries are also major tax payers in North Dakota so the state's budget, which right now is experiencing a record surplus, looks to be healthy. This means pay raises for state employees and teachers at colleges and public schools. Other states, including neighboring ones to North Dakota, are preparing to cut the number of teachers and the curriculum choices they offer. So once again, our state looks financially healthy.
All this at a time when other parts of the country are reeling. So is it all rosy in North Dakota? Certainly not. Cattle prices are depressed, which hurts our ag economy. However, compared to others states -- like Minnesota and California, North Dakota seems to be weathering the recession/depression better than most. And lower cattle prices mean I don't have to pay as much for the next shipment of beef for my freezer.
Perhaps, after having written this, I'll be able to sleep better tonight. How does my view compare to what you are seeing?
Recipe - Aunt May's Famous Wheatcakes
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Now Playing - Forever Young by Alphaville RECIPE: MAY PARKER'S FAMOUS
WHEATCAKES Originally made by my pal Pete's Aunt May, these wheatcakes are
a great...
10 years ago
5 comments:
Steve,where does the public fit into all of this?Are we being over-looked?After reading your previous blog it makes me wonder where we are economically.One group of people eating out at $20+ a whack and another group of people standing in food lines for a bowl of soup.I have alot more questions than answers.I can't figure out if we should be saving money or spending more to boost the economy.I have heard both.I think I'm doing all I can!That is spending everything I make every month.I'm not going to affect the auto industry much,because I haven't bought a new car since 1975.Would borrowing money for a car be helpful or worse for the economy?No-one is saying what to do,are they?It's quiet out there.I rent a car once in a while,maybe that will help.Who is being hurt worst?The folks I know,myself included, are still having dinner out.On the other hand,I know food banks are going through record amounts of food.Spend all you can and someday if you're in a food line you will know you should have saved more.I really can't say.I would feel better if someone (he/she) would get on TV and tell the people what WE should be doing to help.Maybe were doing the right thing by doing nothing different.That's hard to believe because doing what we're doing got us into this mess.I think we are all to blame,aren't we?I don't really think so.I feel a little like someone is saying "this is none of your business" and won't be until you don't have shoes and food.If it's not that dire I would like to know that,too.I think the public could help if we knew what to do.A little help from the folks out there could go along way toward mending our land.
RV - Going back to a post of mine from a couple of months ago...the most troubling part of this whole thing is that no one is willing to acknowledge what mistakes were made and identify who made them. If we don't know what went wrong, I'm afraid the same people are going to make the same mistakes again and again. Giving away money that is simply printed by the U.S. Mint at the expense of our children and grandchildren's future is a case in point. If my family starts living beyond our budget, my wife (not me, of course) tells us that we have to cut back. No more trips to Red Lobster, no more double ply toilet paper (I'm not kidding, just ask the kids). So why doesn't our government follow suit? Is it really a different set of economic rules (let's call it voodoo economics) that governs the United States as opposed to what works for our families? Just asking. Someone said that the family is the smallest societal group...so as the family goes, so goes society. As families know, we should live within our means and so should the country. Oh no! I just realized why I was having nightmares about the economy last night. Because it's the blind leading the blind. Like an axiom so proudly proclaims, "People in Washington have a whole lot of common sense, because they have never used any." A deficit means that you don't have any more money. The first rule of holes is this: when you are in, quit digging. Nuff said.
I quit agree,Steve!But are you suggesting a company(Citigroup)who just borrowed 45 Billion from the government,whos stock price went from the Fifties to the three-fifties.A company laying off 50 something thousand employees might want to cancel the order for the fifty million dollar Dassault Falcon 7X Jet.Where are the wives?I'll bet these bank guys are glad congress ask the auto industry bosses about the corprate jets and not them.As I recall the bankers were the "Good ole boys" and they got their money at night.How about let's ask the public what should happen to the jet,They're buying it.Do you want to pay several million in cancellation fees or fifty million so these guys can fly around in style?
Well I can't say it isn't any better or worse in AZ. I agree with the problem that no one wants to stand up and take responsibility for the banks and businesses that have went under. Further more, what gets me is that the people that ran the business into the ground are still at the helm. What makes Washington think that they will do any better the second time around. I also am feeling the pinch. I have been retired for 9 years and it looks like I will have to at least find a part time job. As they say my
401K has become a 201K. It will be tough as there are a lot of people looking for work also.
A little accountability would go a long ways. Printing money is no answer, it's a problem that causes inflation. I just renewed a CD for six months. The banker said I could get a better interest rate if I went for 18 months. I said, "Forget that...in 18 months interest rates on CDs could be 20 percent if we keep printing money." Right now the money is 1 percent and could have earned 1.75 percent for the longer time period. Well, at least it isn't 40 percent of its value like my stocks did in 2008.
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