From Ponzi to Madoff to Hevesi to DiNapoli; New York's Pending Budget Collapse Is Due To Phoney Promise Of Safe 7.5% Pension Investment Return And Losses In Manufacturing Sector

FOR IMMEDIATE RELEASE
Plattsburgh, New York, United States of America (Free-Press-Release.com) November 15, 2010 -- CuomoTARP.blogspot.com latest post is entitled, "From Ponzi to Madoff to Hevesi to DiNapoli; New York Learns Anew About Bond Losses And A Phony Safe 7.5% Pension Return." Whereas, 1. Madoff had promised safe returns of 10% before the economic recession began.
2. The SEC warns that Ponzi schemes share common characteristics:
High investment returns with little or no risk
Overly consistent returns.

3. NY Comptroller, DiNapoli, now promises safe returns of 7.5%, when the NY pension plan for the prior ten years, when higher safe returns were possible, never earned over 4%. This is his improvement over DiNapoli's claims that the NY Pension Funds were getting 8% expected returns for his first three and one half years in office.

The blog then looks at Greece, where, "Greek bond yields, a measure of investor confidence in the country's finances, rose on Monday, with the rate on 10-year paper up to 11.280 percent from 11.184 percent on Friday," and "The Greek economy shrank 4.5 percent in the last 12 months, official data showed on Friday. Gross domestic product contracted by 1.1 percent in the third quarter."

Returning to NY, where "The Federal Reserve Bank of New York reported its manufacturing activity index dropped to minus -11.1 points in November, from a positive +15.7 points in the previous month. The Empire State Manufacturing Survey index is considered a bellwether of the manufacturing sector which has been a key strength in the economic recovery. It was the first time the index fell below zero since July 2009, the month after the worst recession in decades was officially declared over. The sharp 27-point decline surprised analysts, who had forecast on average a slip to a positive 11.7-point reading. The new orders index plummeted to minus 24.4 points, from positive 12.9 points in October."

The blog notes: 1. tax receipts are down (24.4 points) from manufacturing (a bellweather) of non-government sources; there's a 420% increase in the taxpayer share of pension costs;
2. NY's borrowing costs for next year which earlier were predicted at $5.6 Billion with the TIC (True Interest Cost) of recent offering: 3.357% will quickly move up to paying the Greek rate of 11.28%. Thus NY's borrowing costs will move up from $5.6 Billion to $18.8 Billion. ($5.6 Billion times 11.28% divided by 3.357% = $18.8 Billion)

The blog concludes, But alas, as Ponzi and Madoff learned, economic reality (interest rates, revenues and spending) is a harsh task master, irregardless of your protectors.
So:
Follow the money, Comptroller DiNapoli!
Oops, the money's disappeared!
Hoping for the Tooth Fairy, an understanding Congress, iou's for bond holders or State workers?
Quick sell your NY Bonds.
Greek bonds pay 11.28% guaranteed by the EU.
Who's guaranteeing NY Bonds?

More information can be found online at http://CuomoTARP.blogsot.com

Andrew Cuomo     DiNapoli     Greek Bond Interest     Madoff     NY Budget Collapse     NY I.O.U.     ponzi     Sell NY Bonds     Thomas DiNapoli