Cold outside and IN

Just like the temperature outside the corporate balance sheets of many companies are dropping. The trend to warm the assets of corporate America is to Freeze benefits and wages. Notable corporate giants like FedX announces retirement contribution freeze.

At a time when most experts have been questioning if participants were saving enough for retirement — companies are reducing or elimination matching contributions to save cost and the business in the long run.

Penny-wise; pound foolish
Frozen plans are costly: from a morale stand point; the promise to support the long term and honor the work of near to retirement 45 and older workers is lost and turned to bitter cold statement of its the economy stupid.

While most plans allow the continued employee contributions ( soft freeze), confidence is lost and the ability to meet retirement goals is also lost.

Business necessity may bring more companies to this point, however; it is a strategy not to win.

There are some bright warm spots: McDonald’s shines sunny and bright with a 15% total match pension plan. 11% with a 4% discretionary contribution for 2008 plan year. Wow!

See article posted at:

http://fedexwatch.com/content/pages/fedex_announces_retirement_contribution_freeze/

FIscal Crisis sound familiar

NEW YORK CITY’S FISCAL CRISIS 1975-1976

The original report was created as part of a Macro analysis of the effects of bond defaults.

New York City’s, NYC default of 1975 resulted from: Financial mis-management, an eroding tax base, escalating social program obligations; recessionary pressures, and poor planning; Real Estate devaluation; and large collective bargaining agreements with the Transportation-Workers Union.

Outlined below are the major events associated with the Fiscal Crisis:

Short money supply to pay for necessary services.
National recession and negative expectations resulting from the 1974 oil crisis.
Cost cutting resulted in the forfeiture of federal “Matching Funds.”
Loss of investment capital to the local economy caused a loss of jobs and higher unemployment through an estimated 25,000 laid-off.
President Ford reluctant to aid New York due to recovery and election year political considerations.
NYC Bond rating lowered to unratable highest risk.

The major outcome of municipal bond failures was the enactment of the Securities Act of 1933 and rule 10b-5; which required full disclosure of material events. This requirement was not commonly practiced.

Tax-Exempt securities were considered second only to U.S. Government backed securities and thought to be “risk free.” There had been no major defaults of municipal securities since the 1930’s up to the late 1960’s.

The 25 billion debt in question rocked the markets. This would be a welcomed isolated event in todays recessionary times.

Defaults result in the loss of investor confidence in the relative stability of the market. A default halts economic activity within the defaulted government unit. Historically, each default or threat of default has resulted in greater federal regulations and an increase in the cost of the attainment of governmental borrowing.

Habitat Supporters

Submitted on 2008/12/31 at 3:44pm

Hello Habitat Supporters:

We are so proud of the work that we have accomplished in 2008, much in part to all of your hard work and dedication! We have built 7 homes, a HFHSCC record, which marks 37 homes built since inception. We have recently purchased 14 lots in St. Peters, which will be the first 14 homes of our upcoming 60 home Capital Campaign. The ReStore will celebrate 1 year in business this coming January. To date the ReStore has generated over $130,000 in revenue and saved an amazing 215 tons of solid waste from local landfills. This year Habitat not only gave a hand up to deserving families in St. Charles County, we also tithed over $20,000 to global building in Mozambique and Nepal. We look forward to 2009 and many more great things to come!

We hope that each of you will continue to support Habitat and our mission of providing decent and affordable housing to deserving families in St. Charles County. We have 1 final home in Ashland Meadows under construction, which will complete the 8 home development. We could really use a few extra helping hands to finish construction and hand over the keys to one more Habitat family. Construction is scheduled to be complete by March. Al and his crew will be on-site Wednesday – Saturday 8am-4pm each week. Volunteers are welcome to show up on-site any day, but larger groups are asked to contact the office for more information at 636-978-5712. Directions to the site are attached.

Thanks again for your continued support, we hope you have a Happy New Year! Submitted on behalf of K Brooks.