Maryland is for Crabs– But Maybe Not This Year

MoonHowler

Crab season begins April 1. However, the crab processing plants in Dorchester County, Maryland might not be opening, thus contributing even more to the recession. There simply are not enough workers to staff the crab plants. Chesapeake Bay area watermen are pleading with Congressman Frank Kratovil to do something about the situation.

For the past 10 years or so, the workers have come from Mexico and Central America on special visa for seasonal work. Now government red tape is causing so much of a delay that the entire industry might be affected.

So why don’t local folks take these jobs? Kids are working elsewhere. Crab processing is dangerous work and it used to be generational work. Kids would go with parents and other family members and learn to process crab. Nowadays, you have to be at least 16 years old with parent permission to even go in the plants. Most of the American crab pickers are now senior citizens.

At first, there were enough temporary worker visas — not just for crab picking, but for landscaping, construction and other seasonal businesses. But as Americans became concerned about immigrants taking residents’ jobs, Congress began limiting the number of H2B visas and creating other obstacles for businesses that depend on temporary workers.

This year, the H2B program was limited at 66,000 temporary visas. None of those went to the people who had been working in Dorchester County’s crab processing plants.

According to WJZ.com, a Baltimore TV station, the crab industry out of the Bay is on the verge of collapse while Maryland congresspersons scramble to save the day.

Read More

A Slippery Place in the US Work Force

MoonHowler

Part 2 of the NY Times series, Remade in America continues looking at the plight of the newest immigrants. According to the NY Times:

The United States has experienced the greatest surge in immigration since the early 20th century, with one in five residents a recent immigrant or a close relative of one.

The series moves from Prince William County to Morristown, Tennessee where the source of income comes from the furniture industry and the poultry industry. The industrial city in eastern Tennessee has seen a huge increase in immigration the since around 2000. The population is now about 10% Latino, some legal and some illegal. It is estimated that about half of the Latino population is here illegally.

The recession has hit this area very hard. The resources available to citizens and legal residents do not exist for the undocumented immigrants who must fend for themselves. Most help comes from local churches. Remarkably, most do not want to leave. Most do not want to return to their country of origin (most in Morristown are from Mexico) because they feel their country holds nothing for them.

Instead, as the recession deepens, illegal immigrants who have settled into American towns are receding from community life. They are clinging to low-wage jobs, often working more hours for less money, and taking whatever work they can find, no matter the conditions.

Despite the mounting pressures, many of the illegal immigrants are resisting leaving the country. After years of working here, they say, they have homes and education for their children, while many no longer have a stake to return to in their home countries.

“Most of the things I got are right here,” Mr. López said in English, which he taught himself to speak. “I got my family, my wife, my kids. Everything is here.”

This area has a 2-tiered blue collar system.

Hispanic immigrants — many hired through temporary staffing agencies that offered no vacation pay or health coverage — were on the bottom, in jobs where they faced little competition from Americans.

The audio slide show summarizes the plight of several different immigrants. Strange how things change when we put a face on a situation.

Do We Have a BAAAAD Reputation?

MoonHowler

Apparently Businessweek has even heard of Prince William County’s dirty little secret. In a March 6 article entitled, “ Signs of Life from the Real Estate Market,” Prince William County is highlighted as being abuzz with real estate buyers. That was the good news. Read on hear the bad news:

Across the country in Prince William County, Va., outside Washington D.C., buyers are out in force. The market, where subprime loans and boom-time construction were rampant, was badly damaged in the downturn. Making matters worse, a controversial law in Prince William County that allowed police officers to enforce immigration laws helped drive out many of the Central American immigrants who came in to work on building the new homes during the boom. Many of those immigrants who moved to neighboring Fairfax County allowed their Prince William County homes to go into foreclosure, said John McClain, senior fellow at George Mason University’s Center for Regional Analysis.

Proximity to D.C. Helps
The good news now is that inventories of unsold homes are shrinking because of the accelerating sales, though homeowners who could afford to have also likely taken their properties off the market, McClain said. In January, 3,346 homes were on the market compared to 5,355 in January, 2007, McClain said. In January, 647 homes sold in Prince William County compared to 312 a year earlier. Home prices, however, fell 34%.

One factor that could help Prince William County toward recovery is its proximity to Washington D.C., one of the few local economies with relatively good prospects thanks to its federal government and defense contractor jobs. Woodbridge, Va., in Prince William County, came in at No. 14 in our ranking. Woodbridge sales jumped 32% in the fourth quarter while median home prices dropped 18% to $215,500, according to First American CoreLogic.

The drop in inventory and the rise in sales are “good signs” for Prince William County, McClain said.
“We are at that point with that trend [in Prince William County] where the economics have to kick in,” McClain said. “Prices have to stabilize and then start up again.”
Erick Blackwelder, associate broker with Exit Realty in Woodbridge, said buyers have flocked to the market and have already bought many of the foreclosed homes that were in good shape. The remaining foreclosures are largely “junk,” he said.

“It started in April 2008,” Blackwelder said. “It was like all of a sudden, somebody flicked on a light switch and there were buyers galore.”

How many people would find Prince William County an attractive place to relocate after reading an article like this one? “To make matters worse….” seems to say it all.

Full Story

Some Stimulus for Virginia Schools

MoonHowler

Someone just sent me that latest from Virginia Education Association Director of Government Relations Robley Jones. Good news for the schools:

The significance of President Obama’s American Recovery and Reinvestment Act (ARRA) is just beginning to sink in. Bush bailed out the banks and Obama has bailed out the schools! U.S. Department of Education ARRA funding for the 2009-2010 school year for Virginia includes the following:

State Fiscal Stabilization $1,202,770,052
Title I – $165,311,666
Ed. Technology – $10,801,292
IDEA Part B – $261,415,033
IDEA Part B, Pre-School – $9,470,492
Grand Total – $1,696,587,551

Dr. Frank Barham, the Executive Director of the Virginia School Board Association wisely sent a message to school board members across the state last night offering that, “Our [VSBA] advice is that you implement no RIF policies, amend or adopt new budgets until you get the printout from the state in the next few weeks.”

Please urge your superintendent and school board to follow Dr. Barham’s advice.

I am not sure what all this means but it tells school boards and superintendents to hold off on major decisions until the ink dries.

It looks like almost $1.7 billion dollars is being pumped into Virginia schools. I suppose what would be critical is when and how the money will be divvied up. PWC Schools are short $57 million. Will our notoriety for having the most foreclosures in the state give us a bigger piece of the pie?

Corey, now is your opportunity to put your “money where your mouth is” , I know you want to!

Elena

Here is the perfect opportunity, for Corey, to implement his new found direction, away from the divisiveness of immigration and towards rebuilding our community.  In the Washington Post today, the article focuses on the business license requirements in Prince William County.

Supervisor Martin E. Nohe (R-Coles), a small-business owner who expressed reservations about the business license requirement last year, said it could put Prince William at a competitive disadvantage because people in other counties can apply for their certification online or by mail.

“Anything that makes it harder to do business or adds an additional burden to small-business owners is fundamentally unfair,” he said.

Prince William’s ordinance went into effect July 1. The county issued 286 licenses last year. In January, it issued 148 licenses.

Mark Klein, another accountant whose clients are upset about the new law, said the policy strikes him as anti-business and is inconsistent with the county’s objective to promote economic growth.

As we can so easily recall, only yesterday, Corey was sharing his new found direction for the county.

Stewart’s approach is to push Republicans away from their emphasis on social issues and back in the direction of pocketbook concerns. Stewart, once the leading voice on tackling immigration, now carries a mantra of lower taxes to gatherings of statewide Republicans, to lawmakers in Richmond and to the board chambers where he helps guide county policy. And he has championed it in a manner unfamiliar to many who clashed with him on immigration.

You know the old saying Corey, ” you can’t turn the page, until you’ve read the one you are on”. It will be impossible to “turn the page on immigration”, unless and until, you deal with the consequences the various policies and your rhetoric have reaped upon our community. Repealing this measure is your chance to demonstrate your intentions to lead this county in a new direction, focusing on the issues that most of us care about–our long term fiscal health, our schools, and our ability to attract a great commercial base so that we are not dependent on our real estate taxes to thrive.

Happy Cyber Monday!

MoonHowler

Today is the shopping day known as Cyber Monday.  It always falls on the first Monday after Thanksgiving. Unlike Black Friday, is not associated with bricks and mortar stores but instead, with online retail.

Obviously, Cyber Monday hasn’t been around long enough to pass the test of time, but it has been well- entrenched for the past decade.  Cyber Monday has evolved into a major marketing event and is highlighted  with sales, free shipping and other lucrative enticements. 

Let us know here of any special deals you find.  Free shipping is always attractive since shipping and handling  can add quite a bit to any purchase.  Electronics, music, toys and jewelry are big items.  Let us know what you find.  All good ideas are welcome.

Black Friday? Red Friday! Where’s the $$$?

MoonHowler

Red Friday for the blood spilled today. Shopping just ain’t what it used to be. A Walmart employee was trampled to death in a stampede of shopper in Long Island today. Meanwhile, out in Palm Desert, CA, 2 men were killed in a Toys R Us.

On the economic front, the Dow Jones Industrial Average, aka the Dow was up 1300 points in 5 days which is an all time American record. It was the biggest point gain in the history of the US stock market.

What does all this mean? Is the end in sight as far as the recession? If people are out there trampling and killing others to buy things, there must not be a real shortage of money. Supposedly, the retailers did very well from first reports, even though customers were looking for deep discounts. Are people spending beyond their means? Are these same people those who haven’t paid off Christmas from last year?

Does anyone have an exciting Black Friday story to tell?

All Eyes are on the PWC Budget

MoonHowler

The BOCS Halloween Financial Retreat begins today. Instead of going to some swanky place to convene, to their credit, the PWC BOCS are staying put and doing their work right at County Complex.

Their task is daunting. Running a county on a $190 million dollar shortfall is not for the faint of heart nor for one with a personal agenda. Pre-released agenda documents pretty much spelled out how dire the situation is.

At root of the financial problem is the huge, disproportionate amount of foreclosures in PWC. Each foreclosure lowers the property values of the houses around it. Many people have seen an almost 50% drop in the value of their home in the past 2 years.

The loss of value of the homes naturally changes the property tax assessments. As if things weren’t bad enough, sales tax receipts have dropped for 5 months in a row. The county is hurting.

Each county department was directed to create a budget with 10%, 20%, and 30% cuts. Looking through the documents, there were some extremely severe cuts. All eyes will be on the public safety departments first.

According to the Washington Post:

Read More

Charging Bulls, at Least for the Day: The Stock Market Rallies

MoonHowler

Dow 9,387.61 +936.42 (11.08%)
Nasdaq 1,844.25 +194.74 (11.81%)
S&P 500 1,003.32 +104.10 (11.58%)

Wow! What a day. We needed this. Is the stock market giving the finger to the economic crisis, sort of like it gave the finger to 9/11?

No, we aren’t out of the woods yet. The stock market is a reaction and a prediction of what investors think will be happening in the future. However, let’s hope the bottom is in the past and we are on an upwards climb and today’s rally was a sign of good things to come on the financial horizon.

[Update: Today was the largest single-day gain ever for the Dow]

Retirement Plans: What’s a Person to Do?

MoonHowler

Today’s Washington Post is just full of financial articles today. Section F, the business section, has so much information in it, your head will spin.

One article in particular that caught my eye was “Retirement Wreck: Are 401(k)s Still Viable for Saving? (F1). It discusses the gradual movement from defined-benefit plans, like social security and employer pensions to defined-contribution plans like 401(k), 403(b) where the employee has ownership of the plan and the risk, regardless of how little they know about investing or the stock market.

In the past 15 months Americans have lost around 2 trillion dollar’s worth of retirement savings housed in pensions and 401k-type plans. Ouch! 401k plans generally have more stocks in their portfolios than do pensions, so they have been hit the hardest.

Historically (or back as far as 1976), it has taken as short as 5 months to as long as 8 years to recover from a bear market. The article warns about letting fear take over. Those who panic and withdraw their funds face penalty and lock in their losses.

Is the advice solid? Who knows. It seems to be pretty much the same that the experts on TV like Suzie Orman and Ali Velshi advise us.

Click on the Washington Post link above for the entire article.

8.3 Trillion Dollars Lost Since A Year Ago

MoonHowler

The stock market tanked again today. People are scared. Trading was heavy as people tried to scoop up bargains.

According to the NY Times:

Stocks Plunge Again in Last Hour, Dow Below 8,600

A late-day decline once again pushed stock markets down
sharply Thursday. The Dow Jones industrial average declined
about 7.3 percent or 678.91 points on the day to close at
8,579.19, about 40 percent below its peak close of 14,164.53,
exactly a year ago. The broader Standard & Poor’s 500-stock
index was down nearly 7.6 percent on Thursday

These are scary times. We are at a 40% correction at the moment. Today was the biggest percent drop since the crash of 1987.

Economic Fix: Buy Out, Bail Out or Must Fix?

MoonHowler

Several threads showed people asking for a dedicated thread on the economic crisis we are in. Bear Sterns is gone. Lehman Brothers is gone. AIG was saved. Who will be left standing? Will CEOs keep bringing in their huge 20 million dollar salaries on your tax dollar? Are people profiting on the losses of others?

What happens if the government does nothing? Is the Senate mistreating public servants like Treasury Secretary Henry Paulson or Federal Reserve Chairman Ben Bernanke? Does the Senate not get it or are they just grand-standing for political reasons?

You asked for it, you got it. All Pearls of wisdom go here.