From the Boston Globe:

WASHINGTON - A new nationwide campaign is warning Americans that unless the federal government puts its financial house in order, the country could be bankrupt in a generation.

The project, organized by Peter G. Peterson, an investment banker who served as commerce secretary in the Nixon administration, and David M. Walker, the former comptroller general of the United States, aims to build grass-roots support for wholesale changes to the federal budget - though the overhaul would require middle- and upper-income Americans to give up some cherished government benefits.

Peterson and Walker said yesterday that the campaign, sponsored by the nonpartisan Peter G. Peterson Foundation in New York, will kick off next week with a documentary called “I.O.U.S.A,” the first salvo in an aggressive, multimillion dollar effort that will include television advertisements and Internet outreach.

Peterson, the foundation president, and Walker, the chief executive, said the widening gap between government revenues and spending will eventually destroy the confidence in the American economy that has led international lenders to continue to finance the national debt.

“We are going to get a crisis like most Americans have never seen,” Walker said during a breakfast sponsored by The Christian Science Monitor.

The national debt is now more than $9 trillion.

See the link for the rest of the article. Peterson’s group also puts out a color brochure titled, The State of the Union’s Finances.

Press release from said website:

DALLAS, TEXAS - JUNE 16, 2008 /PRNewswire/—Ross Perot, business leader and former presidential candidate, announced today the launch of “PerotCharts.com,” a public information website that contains objective, factual information about the current economic crisis in America. The site is being launched as an alert and appeal for American citizens to inform themselves about federal government spending. Perot said, “The U.S. national debt reached $9.4 TRILLION on April 30, and it is increasing by more than $1 billion every day. We are leaving our children and grandchildren with debt they cannot possibly pay.”

The rest on the other side of the jump…

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Richard Fisher, President of the Federal Reserve Bank of Dallas, spoke today in front the Commonwealth Club of California, the country’s oldest and largest public affairs forum. A transcript of what he said in entirety can be found on the Dallas Fed’s website, here. Cliff Notes on the other side of the jump.

Read More…

http://www.reuters.com/article/ousiv/idUSN0952458820080511?pageNumber=1&virtualBrandChannel=0

A California man who has defaulted on nine homes and expects banks to foreclose on all of them, forcing him into bankruptcy, says he now considers it a mistake to have invested in the real estate market.

Shawn Forgaard, a 37-year-old software company project manager, bought one home for his family to live in and nine more as investments. He stands to lose all the investment houses in the mortgage meltdown but says he has come away wiser from the experience.

“Everyone stumbles. I’m not going to hide or run or live in denial, or with regrets,” Forgaard told Reuters in an interview. “On the surface it looks like total devastation but it’s just the opposite. I’m confident our lives will be much, much richer as a result.”

Forgaard bought a house in Santa Cruz, about 60 miles (100 km) south of San Francisco, in 2000. Four years later, using $800,000 in stock options, he began snapping up investment properties, putting 10 percent to 40 percent down on negative amortization loans — in which payments do not cover the interest so that a borrower’s balance grows over time.

It was those “neg-am” loans, which include triggers causing payments to balloon if the debt reaches a certain percentage of the original balance, that would come back to haunt him.

“I knew I was sitting on time bombs,” Forgaard said. “I knew the market was going to go soft and I knew that property values would decline. But I figured that I had enough equity to survive the storm and sell or take the loss and refinance.

“I didn’t anticipate a downturn of epic proportions such that home values are 40 percent less than they were,” he said.

That’s because you’re a fucking idiot.

While this type of scenario is very rare… having one or more investment homes was not and just as many primary homes are foreclosed so too are many many of these investment homes. They will all be counted in those numbers you see on TV when they report how many homes are in foreclosure. I’ve never seen them seperate it down into primary and secondary homes.

http://www.lewrockwell.com/…

The government of Vallejo, California, files for bankruptcy, thanks to diminished returns from its tax-thefts to pay its tax-eating police, fire, and other unions. (Via Drudge.)

UPDATE from Tim Wangelin: a list of the 242 public servants publicly serving the tax-payer of Vallejo by making $100,000 or more a year.

UPDATE from Robert Mayer: “Vallejo, California’s motto of ‘City of Opportunity’ couldn’t be more appropriate…if you’re government bureaucrat, that is. Using the handy online search tool you linked to, I was shocked to discover that this city of a mere 125,000 employs 77 people in the fire department who make over $150K per year! Is this the most fire-prone city on the planet or what?”

http://www.lewrockwell.com/…

Writes Kitty Carr: “I loaded that database [of government workers in bankrupt Vallejo, CA, making more than $100K), and the number is actually 292, not 242. The highest salary is $435,638 (Police Department token woman) and the lowest is $100,499 (Community Development Department, which is not to be confused with the Development Services Department.) Of the 292 on the list, there are 148 members in the Police Department and 100 members in the Fire Department.

“Thirty-one government ‘workers’ make over $200,000, including nine in the Police Department and 30 in the Fire Department.

“According to 2003 Census data, the population of Vallejo is 119,708. The per capita income for 1999 was $20,415, but I think it is now somewhere between 54,000 and 61,000.”

UPDATE from Steven St. Jean: “The ‘police department token woman’ mentioned by Kitty Carr was one Joann West, a spokeswoman who took a retirement payout of over $435,000 last year. Realizing it was in ‘public relations’ trouble for such malfeasance, the city spent yet more tax money to hire a propaganda expert. Who did they hire? You guessed it:

“‘On Monday, Vallejo hired West, a former spokeswoman for the city’s Police Department, to guide the city through the intense public scrutiny that’s sure to come in the next few months.

“’West was the highest-paid Vallejo employee last year, taking a $435,638 payout when she retired from the Police Department.’”

City of Opportunity indeed… for bureaucrats.