Paradoxium's Financial 'Tao of Fail' Extravaganza!

[Paradoxium]

Oh trust me, I'm definitely working toward making a move sooner rather than later. I may have to make a change in plans though since I was initially planning on moving to Chicago, but with Illinois seemingly right behind California as far as being "on the verge of teH fail" I guess that would probably not be a smart move. Is Pennsylvania doing okay? Philadelphia was second choice on my list.

Refer to this link for more numbers: http://www.cbpp.org/9-8-08sfp.htm

You are going to have to do most of the homework on this topic yourself... especially to see what fits your lifestyle and demographic preferences.

Truth be told, most states are actually facing budget problems. The ones I cited are "above average" in terms of fail. But I can tell you the states that do not face budget problems and I doubt you have any interest in them:

Alaska
Montana
North Dakota
Wyoming
West Virginia

Both California and say Vermount have budgetary problems but California is obviously more epic fail than the latter. So you need to consider these things. Also note Texas "was" one of the states that did not have a problematic budget (at least not big enough to be listed until now)

ALSO, according to CreditReport.com... the highest average consumer credit ratings states are:

South Dakota 710
Minnesota 707
North Dakota 706
Vermont 706
Massachusetts 703
New Hampshire 703
Montana 701
Iowa 700
Wisconsin 699
Maine 699

 

[Paradoxium]

Note that Texas survived the mortgage debacle because of the land prices and oil. But if oil remains 40'ish a barrel.... it will be in trouble.

 

[Malice]

Quite possibly...
Texas still has a good economy

 

[Kelly]

Our city mayor's "state of the city" address, warned that we in Houston will be feeling the hurt of this economy soon, if not already.

Several chemical companies have already started laying off.....so it won't be long before Texas feels the crunch as well.

 

[Paradoxium]

It will be interesting to see what happens in the upcoming years, how things coalesce. I fathom a ton of the brightest are going to drain away in fail-States like California. While Texas has its problems it's nothing like California. Some of the reverse gold rush might head the way of Texas.

There are two things I imagine that can be done:

1. Bailout some of these states for short term relief by mortgaging the future
2. Fix up there core problems, suffer in the short term, but have a future

I am willing to bet Obama is going to choose the first. In fact most politicians would, Obama or McCain. It's the politically feel good solution. It leaves the mess for the next administration.

 

[Malice]

Our city mayor's "state of the city" address, warned that we in Houston will be feeling the hurt of this economy soon, if not already.

Several chemical companies have already started laying off.....so it won't be long before Texas feels the crunch as well.

Yeah, and other companies as well.
Time will tell

 

[SuBe]

If we had a FairTax, none of this would have happened.

 

[Malice]

If we had a FairTax, none of this would have happened.

Yup...number 1 on my presidential agenda!

 

[Paradoxium]

California Pension Funds Close To Bankruptcy

The two largest pension funds in California, the California Public Employees’ Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), have lost billions of dollars in value. Hundreds of thousands of retiring state employees and teachers now face the stark choice of accepting much reduced pension checks or working past their retirement age.

More tasty fail from the failstate of Failingfornia

 

[redfirebird2008]

Note that Texas survived the mortgage debacle because of the land prices and oil. But if oil remains 40'ish a barrel.... it will be in trouble.

I would think Alaska is going to be in trouble soon. Their entire economy is based on high oil prices.

 

[Kelly]

I would think Alaska is going to be in trouble soon. Their entire economy is based on high oil prices.

Yes and no.....they have diversified quite a bit in the past few years.


What they need to be worrying about at the moment is an erupting volcano.


And unless the prices of these hybrid cars comes WAY DOWN FAST, they won't be seeing to the masses out there, only those who can afford them.......

 

[redfirebird2008]

Yes and no.....they have diversified quite a bit in the past few years.


What they need to be worrying about at the moment is an erupting volcano.


And unless the prices of these hybrid cars comes WAY DOWN FAST, they won't be seeing to the masses out there, only those who can afford them.......

Native Alaskans get paid oil revenue. It's a handout. We Texans don't get oil revenue. Ergo, Alaska needs high oil prices for whatever budget they come up with. When you're handing out money to the citizens of your state and you have a budget based on $60-70 per barrel oil, you find yourself in trouble pretty quickly when the price of oil drops to the $30-40 range like it is right now.

 

[Fading]

I thought California was supposed to be this shining example of a wonderful, progressive state.

Not trying to offend anyone, but California always seemed like an odd state to me. Live in Indiana myself, and what little I see coming out of California makes it look like a circus at times (look at the last few elections...Gary Coleman, a porn star, and now their governer is the Terminator...)

In Indiana atm I'd say we're the middle of the road. Gas prices aren't insanely high like what I hear some of you mention, but it's not as low as some places I've heard of either. The price of living is not bad at all, but wages aren't stellar.

I rarely go to Illinois, have a sister there, but don't live there so can't comment. Kentuky still seems to be fine tho. Don't smoke myself, but I'm only an hour away so occasionally cross into Kentuky and pick my bro up a carton of cigarrettes ($10 cheaper there). In fact a lot of things seem cheaper in Kentuky than here in Indiana.

 

[Kelly]

Native Alaskans get paid oil revenue. It's a handout. We Texans don't get oil revenue. Ergo, Alaska needs high oil prices for whatever budget they come up with. When you're handing out money to the citizens of your state and you have a budget based on $60-70 per barrel oil, you find yourself in trouble pretty quickly when the price of oil drops to the $30-40 range like it is right now.

They will be fine, they may not get the rebate check they have in the past....but that hasn't been happening all that long anyway. So I doubt many Alaskans base their budgets on that check....

We'll see....

 

[Timstuff]

Actually Connecticut's was suppose to be temporary...in like 1991. I'm a resident of that state but at school in New York, should be interesting however since I graduate in May and a broadcast journalism job right out of college isn't a certainty

I'm from Connecticut too, and I'm going back for summer vacation to see my family. I'm not exactly sure what exactly the effects of all this doom and gloom are, or if I'm going to notice when I go home, but it does make me worried to see our state on that list.

 

[Paradoxium]

Well for now, the worst states to be in are basically Michigan and California.

On another note:

Worst states for job hunting

1. Michigan
Unemployment rate: 7.6 percent
Population: 10,071,822
Mean annual wage: $41,230
Top industry: Trade, transportation and utilities (18.4 percent)***

2. Mississippi
Unemployment rate: 6.8 percent
Population: 2,918,785
Mean annual wage: $30,460
Top industry: Government (21.2 percent)

3. South Carolina
Unemployment rate: 6.6 percent
Population: 4,407,709
Mean annual wage: $33,400
Top industry: Trade, transportation and utilities (19.4 percent)

4. Alaska
Unemployment rate: 6.5 percent
Population: 683,478
Mean annual wage: $43,920
Top industry: Government (25.9 percent)

5. California
Unemployment rate: 6.1 percent
Population: 36,553,215
Mean annual wage: $44,180
Top industry: Trade, transportation and utilities (18.9 percent)

6. District of Columbia
Unemployment rate: 6.1 percent
Population: 588,292
Mean annual wage: $61,500
Top industry: Government (33.3 percent)

7. Ohio
Unemployment rate: 6 percent
Population: 11,466,917
Mean annual wage: $37,360
Top industry: Trade, transportation and utilities (19.3 percent)

8. Arkansas
Unemployment rate: 5.9 percent
Population: 2,834,797
Mean annual wage: $30,870
Top industry: Trade, transportation and utilities (20.6 percent)

9. Nevada
Unemployment rate: 5.8 percent
Population: 2,565,382
Mean annual wage: $36,000
Top industry: Leisure and hospitality (26.5 percent)

10. Kentucky
Unemployment rate: 5.7 percent
Population: 4,241,474
Mean annual wage: $33,490
Top industry: Trade, transportation and utilities (20.4 percent)

*Unemployment rates, mean annual wages and industry percentages obtained from BLS in January 2008. Percentages based on nonfarm payrolls, seasonally adjusted.
**Population figures based on U.S. Census Bureau data.
***Top industries are those that employ the largest percentage of a state's labor force

 

[Paradoxium]

State Senator Greg Walker filed a bill to request Indiana be able to use a gold standard. So I guess it appears one state might not fail.

 

[Kelly]

Actually if you are a teacher....Alaska pays really well, and there are plenty of jobs....*smiles*.....

 

[Paradoxium]

Actually if you are a teacher....Alaska pays really well, and there are plenty of jobs....*smiles*.....

Private or public sector?

 

[Paradoxium]

http://www.in.gov/legislative/bills/2009/IN/IN0453.1.html State Senate Bill 453
http://indianahonestmoney.com/

Interesting. Actual change for once.

 

[Kelly]

Private or public sector?

Public....

 

[danielisthor]

Actually our unemployment rate here in California, according to the media, is pushing 10%. I think they said in the Los Angeles area it's at 11%.

 

[Ahura Mazda]

I am surprised that in New York, the rate is not increasing. I would have expected to see a great increase with the job cuts at the banks.

 

[Malice]

Is anyone concerned that the top employer in many of the states is
GOVERNMENT ?

 

[Paradoxium]

I am surprised that in New York, the rate is not increasing. I would have expected to see a great increase with the job cuts at the banks.

I attribute this to how present their statistics:

Source: econlib.org

How Is Unemployment Defined and Measured?

Each month, the federal government’s Bureau of Labor Statistics randomly surveys sixty thousand individuals around the nation. If respondents say they are both out of work and seeking employment, they are counted as unemployed members of the labor force. Jobless respondents who have chosen not to continue looking for work are considered out of the labor force and therefore are not counted as unemployed. Almost half of all unemployment spells end because people leave the labor force. Ironically, those who drop out of the labor force—because they are discouraged, have household responsibilities, or are sick—actually make unemployment rates look better; the unemployment rate includes only people within the labor force who are out of work.

Not all unemployment is the same. Unemployment can be long term or short term. It can be frictional, meaning someone is between jobs; or it may be structural, as when someone’s skills are no longer demanded because of a change in technology or an industry downturn.

They are using the U3 as a measure of unemployment which is kind of flawed (as reasoned in the above quote). U6 is more accurate. It includes people who dropped off unemployment rolls (benefits ran out), part timers who want full-time and those who gave up job hunting.

http://www.bls.gov/webapps/legacy/cpsatab12.htm

That said, perhaps the bank jobs are not that high in "quantity" in the overall picture. But given how much they get paid, they account for a chunk of the "tax revenue" for the state given the progressive system. Hence, NY's recent shortfall and need to slash everything across the board including education and health, and their increases in tax all over the board.

So while NY is no Cali, it's still not a pleasant place to live in for the long term, at least not a place you want to raise your children unless you can afford private school or something.