Trends for 2009:

[Crewleader]

The Death-Spiral of Local Government and Small Business

December 29, 2008
charles hugh smith


State and local governments are responding to shortfalls in tax revenues and spiraling pension costs by raising "fees" (a.k.a. taxes or junk fees) just as the backbone of the economy--small business--is struggling for survival. The more government employees demand "what was promised" in pensions, the more small businesses will fold, cutting government revenues in a death-spiral with only one end: state, county and city insolvency.

I am starting a new series today entitled "Trends for 2009" which will attempt to describe those trends which will be working beneath the MSM-induced "everything's gonna return to 2007 real soon" fantasy.

Let's start with the death-spiral of state and local governments raising taxes and fees to offset their collapsing tax revenues.

http://www.oftwominds.com/blog.html

[DontTreadOnMe]

1. #1 Trend for 2009

#1: Companies will need to layoff employees to remain profitable. (also see "Circular Firing Squad)