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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (240463)	3/10/2010 1:10:51 PM
From: Jim McMannis	Respond to of 306849

Roll back expenses 8 years. Problem solved.

To: BWAC who wrote (240463)	3/10/2010 1:31:19 PM
From: neolib	Respond to of 306849

A large fraction of State government spending is in the areas which are subject to continued inflation due to poor productivity improvement. Education, social services, and health care. All these things are somewhat predicated on one on one service provided by well educated and compensated individuals, and the problem is further compounded when these people are state employees, because the state is 1) rather more generous on benefit & retirement compensation and 2) rather poorer at performance reviews and productivity encouragement, both compared to private enterprise. Its no wonder that States are facing serious problems when we dip into a recession, because the above problems were masked by swollen revenue during the housing inflation and lots of state income is related to RE taxation. The states of course figured the goose would keep laying golden eggs indefinitely, "this time being different" and all.