Dow down 7.9% in May; Worst Since 1940

May 28 (Bloomberg) -- REPORTING: U.S. stocks slid, capping the worst May for the Dow Jones Industrial Average since 1940, while the euro slumped and Treasuries rose as a downgrade of Spain’s debt rating and escalating tensions on the Korean peninsula triggered a flight from riskier assets.

Obama's Redistribution of wealth Victorious!

Edited from an Article written by: By Dennis Cauchon, of USA TODAY

The paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.

Then, at the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010. Presenting an unprecedented situation for the economy of the United States.

It's true that the records reflect a long-term trend accelerated by the recession and the federal stimulus program to counteract the downturn. The result is a major shift in the source of personal income from private wages to government programs.

The fact is, this trend is not sustainable, says University of Michigan economist Donald Grimes. Reason: The federal government depends on private wages to generate income taxes to pay for its ever-more-expensive programs. Government-generated income is taxed at lower rates or not at all, he says. "This is really important," Grimes says during the interview.

Let's face it, the recession has erased 8 million private jobs. Even before the downturn, private wages were eroding because of the substitution of health and pension benefits for taxable salaries. This new report is troubling.

Here are the facts: The Bureau of Economic Analysis reports that individuals received income from all sources — wages, investments, food stamps, etc. — at a $12.2 trillion annual rate in the first quarter.

Key shifts in income this year:

• Looking at Private wages. A record-low 41.9% of the nation's personal income came from private wages and salaries in the first quarter, down from 44.6% when the recession began in December 2007.

• Considering Government benefits. Individuals got 17.9% of their income from government programs in the first quarter, up from 14.2% when the recession started. Programs for the elderly, the poor and the unemployed all grew in cost and importance. An additional 9.8% of personal income was paid as wages to government employees.

Obviously the shift in income shows that the federal government's stimulus efforts have been effective, says Paul Van de Water, an economist at the liberal Center on Budget and Policy Priorities.

"It's the system working as it should," Van de Water says. Government is stimulating growth and helping people in need, he says. As the economy recovers, private wages will rebound, he says.

On the other hand, Economist Veronique de Rugy of the free-market Mercatus Center at George Mason University says the riots in Greece over cutting benefits to close a huge budget deficit are a warning about unsustainable income programs. While the government may be able to print money, it does not produce anything.

Economist David Henderson of the conservative Hoover Institution says a shift from private wages to government benefits saps the economy of dynamism. "People are paid for being rather than for producing," he says. In the meantime, government continues to grow and the private sector shrinks.
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Speaking Of That

The gathering revolt against government spending

This just in from Michael Barone. Perhaps the country will wake up soon!

This month three members of Congress have been beaten in their bids for re-election -- a Republican senator from Utah, a Democratic congressman from West Virginia and a Republican-turned-Democrat senator from Pennsylvania. Their records and their curricula vitae are different. But they all have one thing in common: They are members of an Appropriations Committee.

In case you don't know about the illegal immigration problem in the U.S.

Showing results for photo van with illegals. Search instead for photo van with illeagals

1.     Amarillo.com | Local News: Agent stops van full of illegal ...

May 15, 2010 ... Amarillo.com - Agent stops van full of illegal immigrants 05/15/10. ... Spotted Photo Galleries · Get Out [Entertainment Guide] ...
www.amarillo.com/stories/051510/new_news9.shtml - Cached

2.     Elmira Heights: 4 illegal immigrants handed over to U.S. Border ...

Apr 29, 2010 ... While investigating a complaint of a suspicious van on Prescott Avenue in ... village police discovered four illegal immigrants who have since been turned over to U. ... Photo Gallery: Watkins Glen High School prom ...
www.stargazette.com/.../Elmira-Heights-4-illegal-immigrants-handed-over-to-U.S.-Border-Patrol - Cached

Cinco to Midnight: The Great Mexican End Game (American Thinker)

By Selwyn Duke

 Recently, columnist Charles Krauthammer expressed support for amnesty for illegals, while Newt Gingrich advocated a path to what he called "legality." The two men stipulated that border control must come first, but still, what makes two conservatives such weak sisters on this issue? Perhaps part of the answer was provided by Dick Morris, who said that immigration is a losing issue for Republicans.

Morris is no pillar of principle, but he knows political trends. What's his reasoning? Over the short term, a hard-line immigration stance benefits many politicians; as for the long term, however, there's something called demographic change.

Emergency fund to quarantine euro

JAMES G.NEUGER AND GREGORY VISCUSI

May 9, 2010

BRUSSELS: European leaders have agreed to set up an emergency fund to halt the spread of Greece's fiscal woes, seeking to prevent a sovereign debt crisis from shattering confidence in the 11-year-old euro.
Jolted into action by the sliding currency and soaring bond yields in Portugal and Spain, leaders of the 16 euro countries said the workings of the financial backstop would be hammered out before the markets opened tomorrow.