Thursday, March 4th, 2010
Wall Street Parties as Great Cities Fail
With the Mother of All Bear Rallies about to enter its second year and the banking business going like gangbusters, one could lose sight of the fact that quite a few American cities, counties and states are facing the most dire economic circumstances since the Great Depression. San Francisco became the latest casualty of hard times when it put more than 15,000 of its 26,000 workers on notice that they will be laid off at the end of this week. Most supposedly will have the option of being rehired to work shortened hours, but they will not be returning to the same jobs. For one, employees with many years on the job will lose their seniority and many supervisory positions will be eliminated. And for two, the city will no longer be bound by certain past agreements with the unions. By cutting workers back to 37.5 hours and reducing their paychecks by 6.25 percent, Mayor Gavin Newsom hopes to save $100 million. However, the total budget shortfall for the 2010-11 fiscal year is $522 million, so the city will need to come up with additional, presumably drastic, ways to close the $422 million gap that will remain.

Mind you, this is not some depressed town with a down-and-out manufacturing base and no economic options. In fact, the tourist economy has remained relatively robust, and redevelopment has turned the once-dingy South of Market area and warehouse district into thriving incubators for new businesses. But like so many other large cities, San Francisco has been expanding its payroll at several times the rate of the private sector in recent years, resulting, for one, in more supervisors making six-figure salaries than any of the rank-and-file workers and taxpayers can comprehend, much less pay for.
>> See for yourself why Rick’s forecasts have been called, ‘uncannily accurate.’ Get a full week of Rick’s Picks on us.
***
Rick’s Picks For Today
Each day Rick’s Picks subscribers receive Rick’s timely forecasts on a rotating basket of stocks, commodities and futures. Shown below is a randomly chosen sample of what paid subscribers see today. If you’d like to see the rest of Rick’s Picks for today, sign up for a risk-free trial.
The price of copper jumped on Sunday night in response to the earthquake news from Chile, leaving a large gap that was filled on Tuesday with one tick to spare. From there it rallied back toward the Sunday high, without pausing at the midpoint of the emerging pattern. The D target of 3.6110, entailed by the midpoint breach, would be a level not seen since August 2008.
Other issues covered today (subscribers only):
***
Online Hidden Pivot Method Training
The next edition of Rick’s popular Hidden Pivot Webinar will be held on March 10th and 11th. This two-day online event is designed to teach you the risk-averse trading strategies Rick has taken to his seminars around the world. Once you have learned the proprietary secrets of his Hidden Pivot Method, you will approach trading and investing with enough confidence to make your own decisions without having to rely on the advice of others. For more information, or to register, click here.
***
Rick’s Picks publishes updates 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick’s Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick’s Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. For support, tech or subscription-related questions: subscriptions@rickackerman.com