God, it’s ugly out there. Have you checked in with your financial adviser? How’s your retirement account?
I snuck in a round of golf with a buddy on Wednesday and in between shanks and digging worms he tells me he lost a cool $100k in the past couple of days. Most of us don’t have that to drop, but losing a quarter or a third of a retirement account is enough to pull out the whiskey bottles. Is it time to stick your savings under the mattress? And now the federal government, our government, is in the insurance business, extending the nation’s largest insurance company $85 billion.
Meanwhile, Bridgeport, Hartford and New Haven, the three largest cities in the state, are talking major layoffs, with budget deficits growing by the day. If you’re a union official how do you strike the balance between standing up for your workers while saving jobs from the layoff hatchet? Nearly three months into his first full budget year, Mayor Bill Finch is looking at a deficit in the millions. Layoffs are likely. And if you really want to get sick to your stomach the projected gap between revenues and expenses for next year’s budget is just as ugly.
I spoke with Congressman Christopher Shays this morning and he obviously wasn’t happy with the overnight Wall Street news. He’s been talking to city developers to see where he can assist some projects such as Steelpointe, and particularly those facing some environmental issues. Unprompted, he said that Finch’s dismissal of Nancy Hadley, Johnny Fabs’ director of Economic Development, was a mistake. The city, he said, lost a lot of development momentum. New guy Don Eversley has a lot to learn.
Shays’ opponent Jim Himes, who cut his teeth on Wall Street, released the following statement Thursday about the financial mess:
In the past few weeks, we have seen financial giants crumble: Freddie Mac and Fannie Mae needed a government bailout, as did AIG, while Lehman Brothers went out of business. This crisis is the direct result of government policy that has removed the referee from the playing field. When Chris Shays supported the Gramm-Leach-Bliley banking reforms, he made no effort to regulate this rapidly changing sector of our economy. In fact, he has said that “the last thing I like seeing is regulation.” We need to return the referee to the field. If financial institutions are going to be bailed out like banks, then they should be regulated like banks.
That is why I support a system of smart regulations that will account for recent changes in our financial markets. In Congress, I will support a regulatory overhaul that ends the current alphabet soup structure and establishes a sensible, system-wide monitor that alerts us when a bank has taken on too much risk. We should also change corporate governance so that CEOs are accountable to shareholders. For too long, CEOs have lived in a world where success is rewarded, but there’s no price to pay for failure. That must change. Finally, America must always be the best place in the world to do business. Any regulatory overhaul should keep international financial norms in mind, so that our financial markets remain competitive.
Chris Shays does not seem to understand the scope of this problem. In fact, he thinks our economy is “fundamentally strong.” The truth is, investors need to have confidence that their money is going to grow, not disappear, when they invest. Smart regulation will restore confidence in our markets and help our economy get back on track. As someone who spent twelve years working for one of the firms that has avoided this mess, I have valuable experience to lend to this important effort.
Hey, life goes on. Let’s try to figure out all the madness next Thursday, Sept. 25 at the OIB party at Captain’s Cove Seaport at 5:30. First cocktail on OIB, plus we’ll have munchies. Bring friends. Start rumors. We’re a family!
Stinky Nails Woody
Speaking of family, I’m a happy man today. Darn woodpeckers have been turning the cedar siding into swiss cheese. I can’t do anything about them because they’re protected. But, they’re not protected from my cat Stinky. “Look,” says my wife Mo, sweeping the evidence on the deck into a dustpan. That’s a nice beak. Pecker must be two inches long. (No, not mine.) Good ol’ stink-ass downed everything but a few feathers and the head. That’s my boy!
News release from Mayor Finch:
Mayor Finch Announces Consolidation of Two City Departments as Part of Continued Cost-Saving Measures
Central Grants Office and Department of Housing and Community Development Will Merge
BRIDGEPORT, Conn. (Sept. 17, 2008) – As part of his continuing effort to increase efficiency and help reduce costs, Mayor Bill Finch today announced the consolidation of the city’s Central Grants office with the Department of Housing and Community Development.
This consolidation will bring all of the city’s grant functions under one umbrella, which will help advance the mayor’s mission to increase affordable housing and aid in improving the city’s neighborhoods and schools, while saving the city money.
“Having the city’s entire grant funding resources in one place will create efficiencies in manpower, and in meeting critical funding deadlines,” Mayor Finch said. “We will be able to target resources more effectively while achieving our objectives with the least cost to the city as possible.”
This consolidation is just one of a number of ways the Mayor has worked to help bring the city’s budget under control by: reducing the size of the city’s workforce; cutting overtime; transitioning school-based health clinics to a state-funded model, and improving city efficiencies through implementation of the Citi-Stat model.
“Both of these departments deserve praise for their work. Central Grants, under the interim direction of Dawn Twistol for the past seven months, has done an outstanding job in securing grant funding for the city. I am confident that this newly reorganized department will achieve even greater success going forward,” said Mayor Finch. “In addition, the Department of Housing and Community Development has made great strides during the last two-and-a-half years in demonstrating the city’s capacity to administer its federal programs.”
“The new office will provide all City departments and the Bridgeport community with one centralized location to access a wide variety of grant funds. This will enable all of us to implement Mayor Finch’s mission statement for Bridgeport which will help to move the City forward even in these difficult economic times,” said Deputy CAO for Housing and Community Development Alanna Cavanagh Kabel, who will head up the as yet to be named department.
News release from Congressman Christopher Shays:
Shays Hails $6.9 Million in LIHEAP Funds
Washington, D.C. – Congressman Christopher Shays (CT-4) announced today Connecticut would be receiving $6,962,123 in Low Income Home Energy Assistance Program (LIHEAP) funding.
“I am grateful for this funding, which will benefit many across our state in the coming weeks,” stated Shays. “As gas and home heating prices continue to rise and consumers are feeling a bigger and bigger pinch, LIHEAP will provide critical short-term assistance.”
“But the key,” Shays continued, “will be a long-term energy policy to decrease U.S. dependence on foreign oil, protect the environment, build a market for renewable energy and promote energy conservation.”
Last week, Shays joined 22 of his New England colleagues in writing to President George Bush, requesting he release emergency funds from LIHEAP to New England .
Shays is the lead cosponsor of Congressman Peter Welch’s (VT-At Large) legislation to double the funding of the Low Income Home Energy Assistance Program (LIHEAP) in Fiscal Year 2008 (FY 08) from $2.57 billion to $5.1 billion.
The bipartisan legislation H.R. 6427, the Warm in Winter and Cool in Summer Act, will provide Connecticut with an additional $59.8 million in LIHEAP funding for FY 08.
Shays also has introduced H.R. 1945, the Energy For Our Future Act, a comprehensive bipartisan energy reform bill which has three principal goals for our national energy policy: improving the fuel efficiency of passenger vehicles; incentivizing the purchase of energy-efficient appliances; and repealing extraneous tax breaks for industries that are very profitable and have plenty of incentive to develop additional supply.
Last month, Shays introduced H.R. 6784, the Home Heating Oil Assistance Act, which helps middle and lower income families with their home heating bills this winter.
The Home Heating Oil Assistance Act would allow for a refundable tax credit of up to $500, or 33 percent of the amount of the residential heating costs, whichever is lower. The eligibility threshold would be $200,300 in the case of a joint return, $182,400 in the case of a head of a household and $164,550 in the case of an individual who is not married.
News release from CT secretary of state:
Nader in, Barr out
Bysiewicz Releases Official Candidate List for November 4th Ballot
Hartford: Secretary of the State Susan Bysiewicz today officially announced that Winsted, Connecticut native and Independent presidential candidate Ralph Nader (I) has received more than enough valid petition signatures to guarantee a spot on the November 4th ballot. The Libertarian Party, however, did not reach the 7,500 signature threshold for petitioning candidates to qualify. As a result, Libertarian candidate Bob Barr will not appear on Connecticut’s ballot.
“I believe Democracy is best served when voters have more choices; it forces candidates to talk about a wider range of issues,” said Bysiewicz. “This November when Connecticut residents head to the polls every federal race on the ballot will have at least one minor party candidate. These successful petition drives show the healthy state of our democracy. Voters in Connecticut continue to seek out candidates for office who have integrity and will work hard to find answers to the problems they face every day. It is very encouraging to see so many people with a desire to run for federal and state office. I congratulate all the candidates that have made the November ballot.”
In total, 42 petitioning candidates for President, Congress, and General Assembly (excluding cross-endorsed candidates) qualified for November’s ballot. (A full list of candidates for state office is attached)
In the 1st Congressional District, Green Party candidate Stephen Fournier has qualified to run against Congressman John Larson (D) and Republican Candidate Joe Visconti.
Green Party candidate G. Scott DeShefy has collected enough petition signatures to qualify to run against 2nd Congressional District Congressman Joe Courtney (D) and Republican candidate Sean Sullivan.
Ralph Ferrucci is the Green Party’s nominee in the 3rd Congressional District against Congresswoman Rosa DeLauro (D) and Republican candidate Bo Itshaky.
4th District Congressman Chris Shays is being challenged by Democratic Candidate Jim Himes and two petitioning candidates: Green Party candidate Richard Duffee and Libertarian Candidate Michael Carrano.
In the 5th Congressional District, petitioning candidates Harold Burbank (Green) and Thomas Winn (Independent) as well as Republican State Senator David Cappiello are running against Congressmen Chris Murphy (D).
Does BAD INFORMATION prompt people to make bad decisions?
Answer: YESSIREE!
What’s the biggest cause of bad information?
Answer: 43 years of deficit spending and the resulting inflation which has produced a ton of bad information, causing doctors, lawyers, accountants, former mayors, city councilmen and Presidents to make bad decisions. Here’s the good news: Current events are forcing us to make better choices and darkness precedes sunrise – ask any weatherman!
BEST WISHES to Mayor Finch whose situation puts him in the awkward position of having to make needed but unpopular decisions early in his term. Eventually, I hope the pendulum swings back in his direction because what’s good for The Mayor, is good for Bridgeport.
I’d be curious to know the number and positions that were cut–let me guess–more “little people” and fewer “in people.”
Yes, Lennie, “life goes on” particularly if you’re not a taxpayer in Bridgeport. – What’s your mil rate in Redding?
I know I’ve had to alter my way of life over the past several years in order to pay the increases in taxes that are levied on us here. I don’t know where else to make cuts. So life isn’t going on as we would like (in Bridgeport).
The consolidating of two departments, hopefully, is a good idea and I would endorse any scheme that the mayor is certain will create efficiency in City government. Perhaps he’s taking a lesson from the private sector! However, before venturing out, he ought to take a look at his own office. My understanding is that there is a lot of tree-trimming that needs to be done right there.
How we can justify giving one of the most important corners in Black Rock to an “art center” for one Dollar a year is beyond all comprehension. The taxpayers are having to pay interest on bonds used to purchase the corner and to forego the tax revenue that would be ours should it be put on the tax rolls; not to mention the revenue which the general fund would garner if it were sold at market value.
Wake up City Council!
Hopefully this move will prevent the city from being a five and dime operation with blown Grants. I was always more of a F.W. Woolworth kind of guy. They always had better fountain service.
Alanna Kabel:Central Grants::
Godzilla:Tokyo
Hi Con:
Mil rate in Redding is 21. What was it when you left Greenwich? Yikes.
Les Misbarack!
A beautiful musical video!!!
www .youtube.com/watch?v=W3ijYVyhnn0
Leading economists are saying that a major cause of this economic bubble burst is due to subprime lending. That means that when congress in the 90’s and Clinton and now Bush failed to take the lead in NOT forcing banks to give mortgages to the unqualified, those banks found a loophole and sold them to the unregulated financial houses. A lot of people are getting hurt because people like Dodd, Hillary, Barney Frank, Rangel, yes even Barack, and others cared more about re-election and campaign donations than the people they swore to defend. There’s enough blame to go around DC. They forced banks into red zones when they should have been creating jobs so that these people could qualify the old fashion way…work for it.
Dodd needs to pack it in but hopefully not into the Obama cabinet. Put him in HUD and you’ll really see problems.
Leading economists on both sides of the aisle know the problem lies at the feet of Congress and our current and our former President. I pray Prez Obama has the strength to stand up to the lobbyists. BTW, isn’t Himes involved in a Wall St. type business? Hmmm, will he vote to strongly regulate his buddies? On this one I’ll stay with Shays.
Independent Soul Great Post and right on the money. Dodd and Obama received the most pac money from the Fannie May & Freddie Mac lobby. We already know that Dodd received breaks from Country Wide Mtg. As chairman of the banking committee he should have been on top of this scam.
One Year ago I sold a house for $270K and the couple that bought this house took out a 108% mortgage. This couple worked in the service industry. I often wonder how they are doing. It seems that the banking and mortgage industry sold everyone on the premises that everyone is entitled to own their own home whether they can afford it or not. Just ride around BPT and look at the empty houss or the houses in forclosure. It’s criminal what has happened to people’s dreams and hard work.
Independent Soul,
Who’s Kool Aid are you drinking? Lehman Brother’s? Morgan Stanley’s? The government made banks make bad loans! Give me a break. On this one McGain is right; greed made banks make bad loans.
Unfortunately, the stock market is no longer judged by good business practices but merely by a company’s perceived value. And the CEO’s bonuses are not tied to profit and loss but to stock market values.
So all of the sub-prime loans were made to make the banks look better. More revenues. Higher perceived values. And no attention at all is paid to the real balance sheet values.
And Jim Himes, I mean Jimmy Himes, has been off of the street for sometime now. He now runs a non-profit that builds affordable housing.
Gets off of Wall Street. Dives into affordable housing. That sounds like a man with vision.
Grin: I suggest you read the Community Reinvestment Act to see that the feds mandated banks to invest in areas and with people who they knew could not afford the mortgages. They did as they were told and saw the loophole that they could sell these risky loans to financial houses that were not regulated. Sure there is greed….just like the greed of Dodd in dealing with countrytime, or Rangel owning units in subsidized housing. greed is greed and there’s enough greed and blame to go around. The real issue who has the guts to set things right? I bet McCain’s (Cindy) 7 houses are paid for, and Dodd will be looking to head up HUD under Obama. Race you for the table scraps!!!!
Wondering on #10:
Top Recipients of Fannie Mae and Freddie Mac
Campaign Contributions, 1989-2008
1. Dodd, Christopher D-CT $133,900
2. Kerry, John D-MA $111,000
3. Obama, Barack D-IL $105,849
4. Clinton, Hillary D-NY $75,550
Thank god Dodd didn’t have 7 houses.
The Congress St. bridge didn’t seem to generate much concern until they started building the children’s prison downtown. Makes you wonder. Where was all this concern for downtown and eastside businesses when we actually had downtown and eastside businesses?
Salut, Hector! I’ve lived in Connecticut for nearly 38 years. One thing I’ve noticed is that a problem doesn’t become an issue until it is an issue, e.g., falling apart, breaking down or already kaputsky. The Metro North rail cars, for example. Most of the cars in operation are well past their sell-by date, and I mean WELL past it. The seats are lumpy and uncomfortable from having literally millions of butts sitting on them, the heads use an antiquated waste disposal system that was obsolete at the time the cars were manufactured. The efficiency leaves a wee bit to be desired, to say the least. Get on the wrong car and your nostrils are accosted by the acrid smell of chlorine and stale urine. Good thing they serve booze on the train . . .
The Congress street Bridge is an eyesore, one the ugliest in Bridgeport. It is a shame that city and state officials have so little concern for what happens to the people living on the East Side. The majority of the adults over there hold down jobs. They work hard. They also like to spend their money. If it were easier for them to get downtown, I would bet that they’d spend their money there, in downtown Bridgeport. Oh, my God, what a concept! More shoppers downtown, patronizing local businesses! And all the self-important jerks holding elected office have to do is put their egos out to pasture and do what is right and good for the people of the city of Bridgeport. Ah, but I’m dreaming. With Don Mario Testa trying to play out his petty feuds with Bill Finch and John Stafstrom (vicariously, through the city council), nothing will get done. This is stupid, this lingering anger, this spitefulness and the unfathomable need to “get even.”
Joel thought you would like to know that Obama’s two main Financial Advisors are the former heads of Fannie Mae and Freddie Mac. Both were fired a few years ago for incompetence.
I heard that Dick Cheney shoots his friends.
Why did Joe Lieberman cross the road?
To go from the left to the right.
Hey guys, a quick report from the field. I have been working with a group of Obama supporters along the PT apartments where people vote at Longfellow. We registered 103 people this week and all of them will be registered at the Longfellow. There are Obama signs starting to come out now, we are running a big grassroots campaign and it is going good. This coming week we will be out on the East End where the Dunbar precinct is located. And as of October 1st we will have a precinct captain for each polling place and that includes the polling stations that have two precincts in them. Example Bassick, which has two precincts. I will keep you updated on how it’s going out there.
Lennie:
Responding to your question. I don’t know what the mil rate was when I left Greenwich but I think it’s now 10 or less. I could check it out if it is really of interest to anyone. I do recall that when I left Greenwich the personal property tax on my car was $232.00. One year later the City of Bridgeport clobbered me with $962.00 for the same car (only depreciated). THAT’S WHY I SUGGESTED TO SENATOR ROB RUSSO THAT INSTEAD OF SITTING ON HIS BUTT AND BASKING IN THE SECURITY OF HAVING GOTTEN US $250,000 FOR THE BOE AUDIT, HE MIGHT JUST DO SOMETHING MORE, I.E. TO HAVE THE STATE EXACT A COMMON TAX FOR PERSONAL PROPERTY AND THEN DISTRIBUTE IT TO THE MUNICIPALITIES. THE CURRENT SYSTEM IS UNFAIR.
How about it Rob? When you finish that task I’ll think of something more for you to do.
Statewide mill rates – read ’em and weep!
www .courant.com/classified/realestate/hc-class-real-millrates0501,0,4623522.htmlstory
HereWeGo (#21)
Thanks for the website. I’ll make note of it. But there it is for you Lennie:
Current Mil Rates:
Bridgeport 42.2
Greenwich 7.85
Is that unfair and inequitable???
I just checked out those rates, I thought we had it bad then I saw Hartford, Waterbury, New Haven and New Britain! What gives? All those little towns don’t pay anywhere near what the big cities pay and they use our services. They should make everyone in the state pay the same rates. Car insurance is also unfair if you live in a city compared to a small town. I could never figure that one out. And they probably drive further to go to work than the people who live in the cities.
You’re right City Kitty (#22). I noted those mil rates but I thought they should fight their own fight. – But then maybe we should join together, as the song goes from the hit show, “Boyfriend”: “There’s Safety in Numbers”.
How about it Rob? Lets start forming alliances with the representatives from those cities and start moving our agenda forward.