2012: A Year not of Doom but simply a 'Wake-up'

Well, today was the last stock trading day of 2011.. yay~

It ended -69 points today..  yay~

AP reported, "The Standard & Poor's 500 index closed 2011 a fraction of a point below where it started the year." meaning all the ups and downs, rosy forecasts and talk of green shoots, soft patch, rough patch, dips, blips, bleeps and bloops, and ultimately everything ended as it began...  yay~

Of course that never stops experts from trumpeting stocks to watch for 2012- that's always been the name of the game- 'Buy' when market is surging, 'Buy' when its plunging, and 'Buy' all days in-between.

We've no idea what 2012 will bring but we believe it will be bad,  though not Doom & Destruction 'bad'.  We're no 'doom & gloom' site and do not look at 2012 as the boogeyman year others have painted it to be.  There will be difficulties and troubles but we do not accept the notion of Apocalypse, anarchy or anything along those lines.

We have taken no pleasure in providing information this year that was troubling or unsettling.   Its just that 2011 could easily be called 'The year of continual Denial' and that word is just an anathema to us;  we loathe the denial state because it is so utterly unproductive and stagnant to the mind and soul.

We believe 2012 will be the year of the 'Wake-Up'-- the year people generally realize there's no government 'cavalry' coming to the rescue to fix things immediately.  It will be a year where more everyday people finally begin publicly demanding more of their elected officials and stop believing the pollyanna spin pushed in TV and print news;  clever catchphrases just won't cut it in 2012.

We'll continue to be here in 2012- through all the many ups and downs (and yes there will be 'Ups'- life works like that)  When there's something genuinely good to report, we will happily do so.  And if things get really bad, we will be here to boost spirits with constructive and productive ways of getting through it all.

Just remember, that while after all the Intense build-up leading to Christmas as THE day, that there was a Dec 26th, then a 27th.   Do not look at 2012 as a Doomsday date..  Do not believe the Mayan prophesy bullshit or any other fearmongerers...  2012 is just a sequence of days.. a continuation of life; a journey that whether it be personal, national or global, is one of ups and downs.

See everyone on Monday or Tues. depending on whether anything worthwhile occurred this 3 day weekend to write about~

PEUGEOT 4008 (LIVE)

Se il frontale e' molto riuscito e anche originale ( non mi convince molto la parte bassa del paraurti nella zina fendinebbia..)
Il posteriore e' piuttosto semplice, troppo semplice.
Certo che la derivazione dalla Mitsubishi ASX si nota non poco.

CHEVROLET CRUZE FACELIFT (SPY)

OPEL INSIGNIA SPORTS TOURER CROSSFOUR (FOTO UFFICIALI)

Modifiche veramente posticce...non si tratta di un paraurti specifico, ma di applicazioni sopra quello gia' esistente...sembra quasi un kit della Irmscher.
Cmq nel complesso risulta credibile ad ancora molto bella da vedere.
Disponibile solo 4x4 con motorizzazioni 2.0 CDTI 165 Cv e 195 Cv.

OPEL MOKKA / BUICK ENCORE (SPY)

Molto somigliante al posteriore della ANTARA...

Pet Peevin'

I have many pet peeves and they vary from those pretty much everyone agrees with, like people who purchase 20 items in a '10 item or less' line, to important issues like rising costs of living, to irrelevant, trivial things like how TV soap operas constantly break up and re-unite characters just to then re-break them up soon after.  (If you ever watched a soap, you're nodding in agreement on that)

Now when it comes to coverage of finance and the economy, I have quite many peeves but I'll just delve into one that repeats quite often in corporate mainstream news-- a 'positive' or 'optimistic' story that really is anything but...  Something just irritates me beyond words when I read them.

Let's take some time to really delve into one of these puff pieces:

US job market ends year in better shape -- (AP)  "The long-suffering job market is ending the year better off than it began.  The number of people applying for unemployment benefits each week has dropped by 10 percent since January. The unemployment rate, 8.6 percent in November, is at its lowest level in nearly three years."


OK, let's stop there a moment.   The writer makes his claim so matter-of-factly yet consciously chooses for the most part to avoid delve into why the statistics are what they are.   First, notice its not New people applying for unemployment that went down, but rather overall applications.  Whats' the difference?  Well once you reach 99 weeks of benefits you can't apply anymore.. that's it-- Done.  And This is year 4 of the recession-depression so there's a whole lot of people who still need benefits to survive yet legally prevented from applying again.  Secondly, the 8.6% unemployment is a total joke.   When people stop looking for work because they've given up hope of finding employment, they're taken off the statistical classification of what 'unemployed' is.  Thus the number magically goes down.

Its funny- the article actually mentions this truth--  in paragraph 12., "In November, the unemployment rate fell to 8.6 percent from 9 percent to its lowest level since March 2009. About half that decline was attributed to the 315,000 people who gave up looking for work. When people stop looking for a job, the government no longer counts them as unemployed."


And yet Mr Know-Nothing AP writer, you had the audacity to treat 8.6% as a positive stat and reason to say the US is in 'better shape'   Grrr...


Let's continue with this fluff article...  


"Factory output is rising, business owners say they're more optimistic about hiring and consumer confidence has jumped to its highest level since April. Even the beleaguered housing market is looking slightly better."


Is it?   Just 14 days ago AP had this headline:  "US Factory Output Declined Sharply in November"   Guess that writer didn't bother to tell his colleague who said its rising.    Consumer confidence did go up to 64.5 but its important to understand the context-- '100' means consumers believe the economy is on good footing, it has been under 100 for over 4 years now, and the Consumer Confidence Board bases its monthly findings on a sample of 5,000 people.  Remember, the population of the US is now around 310 million.  And finally, what is housing optimism built around?  The building of rentals.  Do these rentals have tenants lined up?  No, not really but they're being built anyways.

~ My how they are building more dwellings all the time!


Here's more optimistic nonsense...


"The economy likely grew at an annual rate of 3 percent or more in the final three months of this year, analysts say. That would top the 1.8 percent growth rate in the July-September quarter, and the 0.9 percent growth rate in the first half of the year.  Employers have added an average of 143,000 net jobs a month from September through November. That's almost double the pace for the previous three months. Although it's below the pace from the first quarter of 2011... The Associated Press surveyed 36 economists this month who said they expect the economy to generate an average of about 175,000 jobs per month in 2012. "


Where to begin?  Every time the government announces figures on GDP, it always ends up adjusted weeks later.  For instance, this is Reuters' headline from today:  "U.S. GDP Third Quarter 2011: U.S. Economy Grew Less Than Estimated Last Quarter"  So forgive me if I don't blindly accept 3% growth in 4th Q.  Also, this punce who wrote the AP article I am forced to eviscerate, treats 143k jobs created as a great thing.  It takes a minimum monthly creation of 225k new jobs to keep up with rise in population.  We're creating a little more than half that and media trumpeting as success.  Even the writer admits that's still below the jobs created betw. January-March of 2011.


I could go on... I won't.

The question I always try to ask myself is -Why are shit articles like this written?  Does the writer really want to lie like that or is it a moronic editor of a paper or news gathering agency who demands something positive?  Or maybe its readers themselves who on the whole Refuse to accept the reality of things, and articles like this are welcome comfort.


I can't answer for others..  Personally I can't stand fluff.  


There's a somewhat popular though not too "classy" saying-  "Don't pee on my leg and tell me it is raining".    


Perhaps for many people out there, they would prefer it.

FIAT L -ZERO (SPY)

                                     

Il rischio e' che esca come una caricatura della 500...

Good, Bad & Ugly of 5yr stocks- Part II

The last business week of the year is usually a slow one in the stock market-- trading volume is low, most people are on vacation, and so any ups or downs really don't mean anything beyond the immediacy of the moment.  So we're not really going to waste time covering it until next week.

We did want to continue a little game we played a week or so ago called 'Good, Bad & Ugly" where for fun, one finds out how much would a $100,000 investment in a particular stock be worth today, if purchased  exactly 5 years ago today.

Let's start with some 'Good':

YUM! brands (They own Pizza Hut, Taco Bell, KFC...)


December 28, 2006  --  $29.40  (3401 shares based on $100k)
December 28, 2011  --  $58.98

People love their pizza and other greasy fast food..  that initial $100k investment would be worth $200,590 today.

McDonald's

December 28, 2006  --  $44.33  (2255 shares based on $100k)
December 28, 2011  --  $99.58

A person who held onto McDonald's stock would have seen a profit of over 100% and a net worth of  $224,552

Dollar Tree 

December 28, 2006  --   $20.06  (4985 shares based on $100k)
December 28, 2011  --   $83.90

This would have been an excellent stock to have bought 5 years ago.  Today, you'd have a net worth of $418,245, a profit after 5 years of over $318k

Now once again, we merge 'Bad' and 'Ugly'.  Obviously no one would hold onto a crashing stock for five straight years but for academic exercise, we'll pretend there's some silly-stupid people out there who would and these would be the repercussions:

Alcoa

December 28, 2006  --  $30.01  (3332 shares based on $100k)
December 28, 2011  --   $ 8.52

A silly-stupid person who held onto Alcoa for 5 years would have $28,388 left from an original $100k investment.

Sears

December 28, 2006  --  $167.93  (595 shares based on $100k)
December 28, 2011  --   $33.33

The stock has dropped slowly up until the last few months.  Nonetheless, that $100k investment is now worth $19,831, a drop of over 80% in 5 years.

American Apparel, Inc.

December 28, 2006  --  $ 9.19  (10,881 shares based on $100k)
December 28, 2011  --   $ 0.76

Yes, American Apparel is worth less than $1 per share, and a silly-stupid person would have $8,269 left after his/her initial $100k investment

The Morale: Stock market is a crap game.  You can win big, you can lose big...

Question is-  Do you feel lucky?

BMW 1-SERIES 3 DOORS (SPY)

Curioso di vederla dal vivo in confronto con la nuova MB classe A 3 porte...
Vedremo...

RENAULT KERAX (SPY)

Renault Trucks and Volvo Trucks are testing a new generation of construction trucks, as evidenced by this spy shot. Now it is difficult to recognize the design of next Renault Kerax and Volvo FMX,(?) but the fact that both models will be maximum unified with each other is clear now.

Volvo FMX ?

What's another $1.2 Trillion among friends...

Once upon a time, many many weeks ago, there was this big battle in Washington between elephants and donkeys over extending the debt limit to $15.14 Trillion dollars. This was supposed to carry the nation's obligations to after the 2012 election.   And after lots of back and forth posturing, and much brouhaha, it was predictably passed because no one had the courage to say 'Stop the Madness' and actually Mean it... 

And to prevent any public frictions that might affect any individual or political party's ability to win an election, the agreement was that the cap on the debt would automatically by raised until 2013 whenever the President requested it officially unless Congress voted to block the debt-ceiling extension.  Lawmakers would have 15 days within receiving the request to vote, which was and is largely symbolic because the president can veto it and Congress would be unlikely to muster the two-thirds majority to override it.

And along the way, that extra money went to pay interest on its debts to China, provide aid to post-Mubarak Egypt and the Libyan rebels during its needless military enterprise to assassinate Ghadafi. It also went to Europe, specifically its banks, cleverly diverted through the US run International Monetary Fund.  Why those adorably sweet, naive American people really got little to no direct benefit and yet hardly complained a peep.

And now this...

Obama to ask for debt limit hike: Treasury official (Reuters) -- "President Barack Obama  is expected to ask for authority to increase the borrowing limit by $1.2 trillion, part of the spending authority that was negotiated between Congress and the White House this summer.  The (original) deal called for raising the debt ceiling by $2.1 trillion to serve the nation's borrowing needs into 2013 and also included mandatory cuts to the federal budget deficit. Since then, the extension has been increased twice by a total of $900 billion.

The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request."

$16.394 Trillion...

Well, maybe some of this additional $1.2 Trillion will go to actually help Americans, and not just in sneaky ways that hurt far worse in future like the social security draining payroll tax break.

Kinda doubt it..

P.S.   Oops--forgot this part.   US GDP was just revised down to $15.176 trillion.   So that means if every single penny of GDP was diverted to pay the US debt and nothing else after the debt hike occurs, we'd still owe a little more than $1.2 Trillion..

Heyy.. isn't that the figure the President is requesting?..

Desperation means Desperate measures

Back from Christmas weekend..

Nothing too much to write about today- nothing news worthy took place.  

So instead, lets take a moment to play Nostradamus-- peer into the crystal ball, or make sense of the tea-leaves..

I saw this headline over the weekend from Yahoo Finance:  

A Down Stock Market Guarantees Obama Will Lose in 2012 --  ""A lot of people look to elections to try to decide which way the stock market is going..." says Robert Prechter, founder and president of Elliott Wave International. "Mine is the opposite, I look for mood as the major cause."...  "We think the stock market actually is a better predictor of who's going to win the election, than the election is of where the stock market is going.  This coming year, if my scenario works out, stocks are likely to be lower. And if that's true, the incumbent is likely to be thrown out, not be reelected.""

I agree with both the assessment and the fact that 2012 will be a horrible year for the stock market as it finally wakes up to reality that it can't pretend all is well and get stronger while the global economy is seeping further into depression.  Eroding earnings reports between Jan - March will be wake-up, and then all bets are off.

So what should one expect to see from government in '12?

Well, you better expect Obama to do Anything and Everything humanly possible to make sure the market shows a positive for 2012, even if the overall economy is the same or worse.  The market can go drop itself into an abyss in 2013, but this year-- Gotta Get Re-elected... Full Speed Ahead!

That's just how politicians think.  This one is no different.

And if the above headline is correct, expect Obama to tell Bernanke (though he really needs no prodding) to open the financial spigots and start Quantitative Easing 3, 4, 5 and so on--  trillions.. zillions..  quadrillions... whatever $$ created out of thin air and backed by nothing, to ensure the market has fresh money to speculate in, especially in commodities (Hello higher prices of food, gas, clothing, etc..)  

Gotta get that Dow up.. gotta get re-elected.  

And by the same accounts, expect Obama to direct the Federal Reserve and US Treasury to directly and covertly pump as many trillions of US taxpayer dollars as possible into Europe and their banking system to stabilize the euro zone with a nice one-year long can kicking.  

No way in hell will the President allow the incompetents in Europe to mess with his re-election bid.   And remember, Sarkozy of France and Merkel of Germany are facing re-election in 2012 as well, so you do the math...

Now... it is A&G's educated opinion that in 2012, all the king's horses and all the king's men aren't going to be able to prop up this global banking cartel again.   

Its THAT bad out there.  

But still, you better expect in 2012 a concerted Full Push by Obama and all world leaders to keep this game going.  And with the right mixture of fear of unknown and naivety of optimism, most of the populace will be openly and actively wanting Federal action.

And I know.. I know.. those disgusting Republicans want the stock market to go up too...  Its really a shame how brainwashed most are into believing a strong market means a strong or recovering US economy.  The Dow should be at 8,000 if based solely on the reality of things.  That means its up another 33% through artificial and manipulative means.

Its really no different than the payroll tax deduction passage "celebration" last week..  I mean really, How stupid can people be?! --  To hell with social security's ability to remain solvent tomorrow as long as I, Mr or Ms Worker can pocket $20 more a week Today.

Your elected leaders are counting on that same mindset in 2012...

The truth behind today's jobless numbers

~  You don't have to have horns and a tail to be evil

Well the artificial, utterly-pretend "Santa Rally" is doing well today.. Dow is up something or another... Does it even really matter?  Its more manipulated than play-doh.

According to AP, "Stocks gain after claims for unemployment benefits drop to the lowest level since April 2008"  But see, there's a missing element which shows this stat is a complete distortion-- these aren't "new" claims, i.e. people just recently unemployed.  These are people who were getting benefits who currently aren't.  Remember, unemployed individuals can not get benefits after 99 weeks, so the stat implies less people are needing unemployment benefits.  That is bullshit, pardon my french.   Its just more and more people who still need benefits aren't allowed to apply anymore... thus, a lower number.

Now I guess the goal of the article was to read it and feel hopeful or optimistic that things were getting better.  It even mentions that somehow this will translate to more Christmas shopping,  "Economists think the improving job market, strong holiday shopping, and cheaper gas prices will leave consumers with more money to spend".

Doesn't it make you sick that these people can actually make a living by writing this?

~ "American Financial media-- you make me proud"

Seems lately CNN/Money is the only mainstream news source who even tries to report reality.  This was written today:  "The U.S. economy was weaker than previously thought in the third quarter, according to a government report...   Gross domestic product, the broadest measure of the nation's economic health, grew at a 1.8% annual rate in the quarter. That's down from the previous estimate of 2% growth.

Growth less than 2% is considered so weak that it can essentially feel like a recession, leaving consumers and businesses worried about spending and the economy at risk of actually falling into a new downturn should there be a financial shock..."

Hmm, somehow the cockroach investors weren't concerned about that.

Can't have a Santa Rally on That can you?

Its really all a game.. a horrible, depressing game where genuinely bad people with wealth and influence make more and more profit while the masses of people, generally good and decent, must financially suffer while being spoon fed a pack of lies that their well being will only improve when the market strengthens.

We're not a predicting/forecasting type of blog but we would wager that 2012 will be the year global investors and banks stop laughing in our faces and take the severe financial hits they should have taken  and deserved to have taken in 2008.

Call it a hunch.. We call it a sure bet.

More media lies & Understanding where we are- truly

If there's one type of finance/economics related news article I despise reading in this current recession-depression more than any other, its any article related to real estate.  The reasons are simple: 1) With almost 100% certainty the article is nothing more than propaganda to seek to instill false confidence in the market and 2) The constantly lying, biased, agenda driven National Association of Realtors (NAR) is Always quoted, and quite often the only source the writer of such stories goes to.

Here's another false optimistic puff-piece article written today, this time by Reuters:  Home Sales Hint at Recovery After Deep Slump -- "Homes sales surged in November, adding to hints of recovery..."


OK, that's how the article begins.. very happy.. all is well.. no need to keep reading further.  The news headline skimmers get to have a nice smile.  Now what was the statistical basis for all this hopefulness?


"The National Association of Realtors said on Wednesday that sales of previously owned homes increased 4 percent from October to an annual rate of 4.42 million units.  At November's sales pace, the 2.58 million unsold homes on the market represented a 7.0 month's supply, the lowest since February 2007 and a sign a backlog of inventory that has been weighing on the market was slowly clearing."


Ah.. The NAR.. that same group that admitted last week it fudged its figures for the past five years resulting in inaccuracies as to how it kept track of sales figures.  "(NAR)  had overstated home sales from 2007 to 2010 by 14.3 percent"


The article goes on to give reasons to justify the statistical blunders as if they were accidental.  Don't want to anger your only source of quotes for real estate news, you know.


So the gist from the article is finally.. Finally the corner is being turned..

Uh-huh.. OK, so what does CNN/Money write?


Foreclosure Sales Still Pummeling Home Prices -- "Nearly five years into the crisis, foreclosures are still weighing heavily on home prices.  A whopping 46% of homes sold in November were either short sales or REOs -- as homes repossessed by lenders are called, according to a survey by Campbell/Inside Mortgage Finance. "


Gee, that doesn't sound good..  Hmm, maybe... just maybe that is why home sales surged in November?   And since the survey wasn't done by NAR, maybe its actually.. um.. believable?


"There is no shortage of distressed properties: More than 6 million borrowers are delinquent 30 or more days, according to LPS Applied Analytics. Two million are already in the foreclosure process, and most of these homes will be repossessed or sold as short sales.  "The huge glut of distressed properties coming to market is why there will be no home price rebound this coming year and maybe into 2013," said Guy Cecala of Inside Mortgage Finance, a publisher of mortgage information and news."


Wait a minute.. Reuters said there's 'hints' of recovery.  NAR indicated it.  And yet 2013 is over 12 months away and even then, prices still may not begin to rebound.


Who's right?

~ Well at least HE's happy...


Alright, I'm going to try my very best to explain as simply and clearly as possible what is going on the last few years to the American people.  Officially a recession began in December 2007.  As a nation, we really weren't aware of it till October 2008 thanks to the market crash.  December 2011, and its year four.  A recession of 36 or more months is officially a Depression.  That is what we are all in.


While time has passed, rather than those in power enacting laws to make our lives better, or at least to arrest and charge those who caused this mess, we're given words-- lots of pretty words.   Words like recovery, hope, green shoots, soft patch, blips, dips, dings and 1000 cutesy-cute terms to make most people blissfully unaware of how bad things are and how solutions are not coming soon.


Now we talk often here about how trillions of dollars have been spent to prop up the banks and Wall St.   Why?  Here's the deal-  the leaders sincerely Do want the economy to improve and things to get back to normal But ONLY by returning to the original system and set of rules which caused the problems we're dealing with now.  


In other words, the government and Fed's strategy is to improve the economy by getting you and I to spend money we really don't have  i.e.  get into further debt, so that companies will see a returning consumer base and thus, start rehiring again (though at lower salaries).  This is what you do in typical recessions... of course this isn't "typical" but, you know..

Now,  notice since the recession began, there never was any talk out of Washington about personal debt forgiveness?  I mean None.   It would have cost just under $3 Trillion to cover the entirely of American personal debt.  That $3 Trillion would have ultimately gone to the banks holding the debt and everyone would have had a clean slate.  This would have meant instant stabilization of housing because why would one foreclose on a property if the remaining underwater mortgage debt was gone.  Also, no need for personal bankruptcy.  Over 1.5 million Americans were forced to file in 2010 alone.  No need to file if you don't owe anything.  And it would have essentially meant hundreds of millions of 'New' customers free to buy homes, cars and anything else wanted or needed.  We keep being told the US economy is 70% driven by consumption so isn't that what we all want... consumers?


It's all a business ultimately.  Government has no motivation to help you keep your home or your possessions.  Its only motivation is as long as you have a workable FICO score, to keep borrowing, and stimulate the economy.  And if you and I end up foreclosing on our homes or going bankrupt?  Oh, that's totally fine- the legal mechanisms in place help stimulate the economy as well- legal fees, sheriff's notices, auto repo, auctions, etc.  


So here we are-- Christmas 2011, and we're in a bad fix as a nation.  And we have really terrible leaders- both currently in office and those seeking to become the next head of state.    And we have two parties that are owned by the same interests yet fight over Everything and nothing.   


But on the positive, people are waking up-- slowly.  They are realizing that as individuals and as a nation, real solutions are needed to make life better and get things back on track.   



And the corporate media is going to have to work harder than ever before in 2012 to pull the wool over your eyes...

~ Elmo says: Wakey-Wakey.. HeeHeeHeeHee...

LEXUS LF-LC CONCEPT [NAIAS 2012]

...

Un concept ibrido derivato dalla LF-A...
Il mascherone e' i fari anteriori sono VERY VERY NICE..
..il posteriore rimane un mistero...

Payroll tax cuts- more harm than good

Everyone seems to think the way to jump start the economy is through tax reductions.  Republicans, for instance, push the Lie that the only thing holding corporations back from mass-hiring, is a dramatic reduction in corporate taxes on businesses and personal income taxes for the very affluent.  This will magically get America working again(at dramatically reduced wages) and any deficit in tax revenue these tax breaks would cause, can easily be made up through "Flat Taxes" where even the poorest of the poor have to pay because you basically tax on purchases including basic essentials.

Now many Democrat politicians (those owned by Wall St) are just a stupid as Republicans.  Obama last year pushed though a 1 year payroll tax which he and many Democrats are seeking to extend into 2012.  Now the Republicans are for it as well, but just have differences as to whether the tax will be a 2 month extension or for another year.

No one really bothers to take the time to explain what this tax cut really is--

So we will...

Last year, we addressed this issue by writing, "To make up for the loss of the expiring Making Work Pay tax credit -- the middle-class tax cut that no one really noticed -- the White House extracted a one-year reduction in the Social Security payroll tax paid by employees from 6.2 percent to 4.2 percent.   This means a larger Social Security deficit which fiscal conservatives will use to their advantage later on as a reason for cutting back benefits and increasing the age of retirement."

Now this really needs to be understood on many levels...

First, when you pay into your Social Security payroll taxes, the funds are matched by your employer.  So every $10 you keep in your pocket, your employer keeps in his/her pocket, and thus $20 Less is going to pay for Social Security, which only causes the date of its ultimate insolvency to speed up.

Second, not everyone pays equal amounts in payroll taxes.  If you make $30k a year, that 2% saved equals $600 that a person pockets to be used for bills or such.   OK, we understand to a person making $30k, that is a lot.   Now the payroll tax Also benefits the person making $300k a year as well as the person making $3 million/yr. That means to the person earning $300k, he/she is pocketing $6,000 that would go to fund Social Security, and the $3 million salaried person gets to keep $60,000.

Now don't forget what we mentioned a paragraph ago.. the employer matches funds.  So a $30k salaried employee keeping the 2% difference equals $1200 less into Social Security; $12,000 based on the $300k salary, and $120,000 less based on the $3 million salary.

~ "We think payroll tax cuts are just Fahbbbulousss, dahling~

To keep things very simple, the median salary for a US worker is somewhere around $45k.  So let's pretend that is the exact average salary based on 160 million employed Americans.  The payroll reduction of 2% based on $45k equals $900 per person, then double it to cover employer payment and you have $1,800.  Now multiply by 160 million and in essence, last year $288 Billion dollars was diverted from Social Security so that clueless, spineless politicians could seek to curry favor among voters while offering no real solutions to fix the economy.

Now in 2012 for the first time in 3 years, there is a cost of inflation adjustment for those receiving Social Security equaling 3.6%.  If the payroll tax break is extended, you take that 2% not going into the fund, and the 3.6% more leaving to go to recipients, and now fund is being drained by a rate of 5.6% more than 2 years prior.  Then take into consideration that unemployment is still unofficially around 17%  (8.6% officially?  Sister, please!) and that means you do not have a growing population working and paying any taxes into the fund..

And one day sooner than even projected today, someone's going to come along and say that Social Security is insolvent and draconian measures i.e. benefit cuts or extensions of age to which one can receive benefits, will occur.  Some may try to end the benefit program altogether if political will ever allows them safe cover..

See where this is headed?

And all because want people want Now! and then worry Later