الجمعة، 26 يوليو 2013

Spain Levies Consumption Tax on Sunlight

Proving that idiocy truly has no bounds, Spain issued a "royal decree" taxing sunlight gatherers. The state threatens fines as much as 30 million euros for those who illegally gather sunlight without paying a tax.

The tax is just enough to make sure that homeowners cannot gather and store solar energy cheaper than state-sponsored providers.

Via Mish-modified Google Translate from Energias Renovables, please consider Photovoltaic Sector, Stunned
The Secretary of State for Energy, Alberto Nadal, signed a draft royal decree in which consumption taxes are levied on those who want to start solar power systems on their rooftops. The tax, labeled a "backup toll" is high enough to ensure that it will be cheaper to keep buying energy from current providers.

Spain Privatizes the Sun

Via Google translate from El Pais, please consider Spain Privatizes The Sun
If you get caught collecting photons of sunlight for your own use, you can be fined as much as 30 million euros.

If you were thinking the best energy option was to buy some solar panels that were down 80% in price, you can forget about it.

“Of all the possible scenarios, this is the worst,” said José Donoso, president of the Spanish Photovoltaic Union (UNEF), which represents 85% of the sector’s activity.

Before the decree it took 12 years to recover the investment in a residential installation of 2.4 kilowatts of power. Following the decree, it will take an additional 23 years according to estimates by UNEF.
Petition of the Candle Makers Revisited

And so the "Petition of the Candle Makers" comes to pass.

I have written about the "petition" on many occasions, but here is the latest reference: Extremely Difficult to Keep Up With Economic Stupidity
Reflections on "Unfair Competition"

Corporations always consider it "unfair" when any other company can do things faster, smarter, or cheaper than they can. The buggy whip industry once protested cars.

Today, land-line telecom companies have to compete with wireless and they don't like it. Now, we see protests about VOIP (voice over internet protocol).

Technology marches on. But France does not like it. The French solution is to tax Skype because it has an "unfair advantage".

This is an age-old unwinnable argument.

Petition of the Candle Makers

The ultimate irony is France's preposterous "unfair advantage" argument was lampooned by French economist Frederic Bastiat back in 1845 when he penned 'Petition of the Candle Makers'.

In his article, candle makers were incensed that the light of the sun could be had for free. The sun's unfair trade advantage was to the "detriment of fair industries" who could not compete against the sun's price.

Something had to be done to "shut off as much as possible, all access to natural light, and thereby create a need for artificial light" so that "industry in France will encouraged".
The moral to this story is "Don't propose something purposefully stupid hoping to make a point. Some idiot might actually think it's a good idea and do it".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

الخميس، 25 يوليو 2013

Interesting Hussman Tweets on Case Shiller PE, Institutional Selling, Book Values

Here are a few interesting John Hussman Tweets from today.

On Valuations

Valuation Note: Shiller earnings = 6.3% of current S&P revenues vs. historical norm of 5.3%. At normal margins, Shiller P/E would now be 29

On Institutional Unloading vs. Retail Buying

Institutions have never dumped more stock onto retail investors as they have in the past 4 weeks.

On Book Value (Re-tweeted by Hussman)
Chanos says more companies >3x book value now than March 2000.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Durable Goods: Seen and Unseen (the Good, the Bad, the Ugly)

Inquiring minds are digging into the latest Durable Goods Report by the Census Bureau.

New orders for manufactured durable goods in June increased $9.9 billion or 4.2 percent to $244.5 billion, the U.S. Census Bureau announced today. This increase, up four of the last five months, followed a 5.2 percent May increase and was at the highest level since the series was first published on a NAICS basis in 1992. Excluding transportation, new orders increased slightly. Excluding defense, new orders increased 3.0 percent. Transportation equipment, also up four of the last five months, led the increase, $9.9 billion or 12.8 percent to $87.1 billion. This was led by nondefense aircraft and parts, which increased $6.5 billion.

Durable Goods Seasonally Adjusted

Durable GoodsSeasonally Adjusted
MonthlyPercent Change
June 2013May 2013April 2013May-JuneApril-MayMarch-April
Total:
Shipments…………229,757229,773226,9150.01.3-0.6
New Orders…………244,494234,581223,0034.25.23.6
Excluding transportation:
Shipments…………160,646160,465160,2110.10.2-0.4
New Orders……………157,420157,369155,7740.01.01.8
Excluding defense:
Shipments………217,464217,701215,110-0.11.2-0.3
New Orders………………230,302223,629213,1243.04.92.6
Manufacturing with unfilled orders:
Shipments……161,645161,836158,586-0.12.0-0.9
New Orders………183,051173,160161,8425.77.04.8
Primary metals:
Shipments…………24,91524,37924,6982.2-1.30.6
New Orders………25,40525,46625,307-0.20.62.3
Fabricated metal products:
Shipments………28,94329,00929,090-0.2-0.32.2
New Orders……29,61729,59329,7120.1-0.41.2
Machinery:
Shipments…………34,21734,62434,255-1.21.1-2.3
New Orders………35,39234,57234,3962.40.51.2
Computers and electronic products:
Shipments………27,47127,25927,5690.8-1.1-3.1
New Orders………21,66122,23921,541-2.63.24.6
Computers and related products:
Shipments………2,2832,3072,336-1.0-1.2-5.9
New Orders…………2,2652,3132,362-2.1-2.1-3.7
Communications equipment:
Shipments……………4,0494,1173,960-1.74.00.6
New Orders…………4,6205,2334,543-11.715.211.9
Electrical equipment, appliances, components
Shipments…………10,30010,40510,195-1.02.1-0.8
New Orders…………10,51910,71210,358-1.83.40.1
Transportation equipment:
Shipments…………69,11169,30866,704-0.33.9-1.0
New Orders…………87,07477,21267,22912.814.88.0
Motor vehicles and parts:
Shipments…………45,16144,56445,1581.3-1.32.3
New Orders………45,34044,75845,1271.3-0.82.3
Nondefense aircraft and parts:
Shipments………11,84012,6379,709-6.330.2-10.0
New Orders………27,26720,75012,34631.468.118.4
Defense aircraft and parts:
Shipments………4,6274,6694,618-0.91.1-9.5
New Orders………5,1074,3034,10618.74.842.8
All other durable goods:
Shipments………34,80034,78934,4040.01.10.8
New Orders………34,82634,78734,4600.10.91.3
Capital goods:
Shipments…………84,18785,51080,950-1.55.6-3.8
New Orders………103,59695,06483,8079.013.45.4
Nondefense capital goods:
Shipments………74,25375,77071,394-2.06.1-3.5
New Orders………91,60186,19076,3746.312.93.5
Excluding aircraft:
Shipments………65,82266,39965,164-0.91.9-2.1
New Orders……69,52669,01367,5310.72.21.2
Defense capital goods:
Shipments………9,9349,7409,5562.01.9-5.7
New Orders………11,9958,8747,43335.219.429.9


Easily Seen 

Note how orders for aircraft can skew the overall numbers. A closer look at the "New Orders" components will show precisely what I mean.

New Orders

  • Total +4.2%
  • Excluding Transportation +0.0%
  • Primary Metals -0.2%
  • Fabricated Metals +0.1%
  • Machinery +2.4%
  • Computers and Electronic Products -2.6%
  • Computers Related Products -2.1%
  • Communications Equipment -11.7%
  • Electrical Equipment -1.8%
  • Transportation Equipment +12.8%
  • Motor Vehicles and Parts +1.3%
  • Non-Defense Aircraft and Parts +31.4%
  • Defense Aircraft and Parts  +18.7%
  • Other Durable Goods +0.1%

One quick glance at new orders will give you the "easily seen" look at the durable goods numbers. Although such analysis is "easily seen" not many bother. Instead, many rely on the baseline reported number.

But what about the "not-so" easily seen? I am talking about constant revisions and the overall use of the report in general.

Revisions

Alan Hartley of Black Cypress Capital says Beware Revisions.
Today the U.S. Department of Commerce reported new orders for manufactured durable goods. One data point often analyzed by investors within the report is “non-defense capital goods ex aircraft”. This is considered a good proxy for business capital spending in the U.S.

That is all well and good, but we find the data less useful than most.

Why? Heavy revisions.

Take June 2012 for instance.

When non-defense capital goods ex aircraft (non-seasonally-adjusted) was originally reported in 2012, it was $67,693. The following month it was revised to $66,452. It was then revised to $64,906. Today June 2012 was revised yet again to $68,555. Over the course of the year, June 2012 looked as though it had fallen nearly 5% from June 2011, only to be revised today to show an actual gain of 0.5%.
History of Non-Defense Capital Goods Ex-Aircraft Revisions 

Here is the telling chart that  Hartley put together.



Core Durable Goods

"Core Durable Goods" are the "total durable goods orders excluding transportation equipment. The new orders numbers are closely followed by market participants as they provide indications on current economic conditions as well as future production commitments in the manufacturing sector."

Today we see Durable Goods Excluding Transportation is +0.0%. If June 2012 is any guide, the number may be off by 5% in either direction.

Of what use is that?

And the reported baseline number of +4.2% is even more useless. Non-defense aircraft orders are up a whopping 31.4% on the strength of 287 new orders for Boeing aircraft.

Such orders are extremely volatile, and cancelable.

The Good, The Bad, The Ugly

  • The Good: The basline number was up 
  • The Bad: The overall core number was flat; Numerous core numbers were negative 
  • The Ugly: Over the course of the next year (or longer), the census bureau is likely to significantly revise all of the numbers in multiple directions, multiple times.

The bad and the ugly clearly outweigh any good in this report. So don't take today's surprisingly good number seriously.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Only Hope For Italy is Bankruptcy

Via Mish-modified Google translation from Libre Mercado (LM), Enrico Colombatto, Professor of Economics at the University of Turin says in an interview "The only hope for Italy is the bankruptcy of the State"
Enrico Colombatto (EC), Professor of Economics at the University of Turin and director of the Center of Economic Research in the Piedmontese town, offers a groundbreaking proposal: "Do not pay the debt."

It seems unthinkable, but he believes it will be the only way to start fresh, leaving those who have lent money to irresponsible politicians pay for their mistake.

LM: Spain and Italy have very large states, but they are very inefficient. Our laws are stifling, heavy.

EC: In Italy, the public sector is not intended as an aid to the production of wealth and public goods and services. It has been conceived as an observatory to generate political consensus and to please the own clientele. The concept of public is of assistance but not to the public, but the public sector employee. The beneficiary of the public sector is dependent on this sector, not the public.

LM: After six years of crisis we have more spending, more laws, more intervention, ... Where does change start?

EC: By the mentality. It has aggravated the welfare spirit that we have within us. The state is the problem, not the solution.

LM: It's counter-intuitive, but when politicians fail, they want more power. And politicians who are succeeding all want more power to the state. In Spain, demonstrations call for a public banking as a solution to problems. Can we escape this trap?

EC: If we think that the state is the solution, all the problems are going to focus in that perspective. The problem is cultural and ideological. It starts when our children go to school and get to talk about social justice. Children are taught the state should solve every problem: pensions, sickness, education ... The solution is to drop the veil that protects the state. In bankruptcy, people will realize that giving loans to the State, and state guarantees are useless.

LM: A few days ago there was a poll in which the public demanded more taxes.

EC: It is a matter of propaganda. The State says "do not worry, I will only raise taxes on the rich". However, the rich pay more, but also the poor. For example, in Italy, the Monti government introduced a tax on real estate, and 85% of Italians are owners. This is a middle class tax hike. And a country that stifles and suffocates its middle class can not grow.

LM: From your perspective as a university professor, do you have bad omens in regards to a lost generation for Italy and Spain?

EC: Yes and no, It could be 50 years, not just 15. The key will be in the new political class.

LM: Some people think it might not be so bad that we intervene. They prefer to let Germany or the troika decide instead of our politicians.

EC: Because the Germans have many Spanish and Italian bonds, they always favor higher taxation so Southern Europe can pay back those loans. I trust the Chinese more than the Germans. We need a new ruling class because the existing system is corrupt and must be eliminated - No IMF, EU bureaucrats, or Germany.

LM: Where to begin?

EC: You have to start by deregulation. Monti's government has made things worse, especially in the labor market. The regulation is where it was 10 years ago ... well, maybe as it was 150 years ago.

LM:  It is always said that Spain and Italy need to get to compete globally, but many of the labor laws limit the growth of companies, with more regulation and more taxes to the largest companies.

EC: Yes, there are two elements. First regulation, both in general and the labor market in particular, changes to the size of companies. Often the entrepreneur thinks "it's not worth growing, because I will have many new demands." There is also an issue of tax evasion: it is much harder to do it when you're big. And finally, we have the element of funding. To grow need a functioning credit market. And in Italy in the last thirty years, the credit market has served to finance the public debt. There are so many resources that should be used to finance the growth of businesses, but only served to finance the growth of the state. As a result, businesses remain small, because they are funded with self-financing.

LM: Correct. But with this in mind, is there way out of this? Because Italian public debt is the highest in Europe after Greece.

EC: The only hope is the default by the State. We paid about 90,000 million euros in interest. And along with this, we have to face the return of credit. It can't be done.

LM: And the financial system does not collapse?

EC: Why? The underlying conviction is that we will emerge from the crisis by printing money. It is a politically attractive solution, but destructive. The last example in Europe led to Nazism. I do not think we'll get to that, of course, but inflation certainly create social problems and tensions. The question is who should pay? The one who has financed the bad debtor [Spanish or Italian politicians] or the community via higher taxes? The European socialist solution is that losses should be disseminated throughout the population. But this has failed.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

General Obligation Bondholders Beware: Detroit Bankruptcy Affirmed, Governor Shielded From Lawsuits; Triumph of Math Over Unions

As hoped and expected Detroit Bankruptcy Protections Affirmed, Snyder Shielded.
Detroit can enjoy the protections of bankruptcy, including immunity from lawsuits related to the case, a federal judge ruled, extending that shield to Michigan Governor Rick Snyder.

U.S. Bankruptcy Judge Steeven Rhodes in Detroit today blocked lawsuits by public employee groups and pension funds who allegd the state overreached in seeking court protection from creditors. Such claims must be heard in bankruptcy court, Rhodes said. His ruling gives the city the opportunity it said it needs to address $18 billion in debt without disruptions.

Chapter 9 of the U.S. Bankruptcy Code, which covers municipalities, typically prevents creditors from taking actions against the debtor that might interfere with reorganization.

City unions and pension officials claim Snyder, 54, violated Michigan’s constitution by authorizing Orr to file for bankruptcy. Pension funds for retired city workers sued in state court to have the filing declared illegal.

Barring lawsuits against Snyder related to the bankruptcy would be unfair to Michigan’s citizens, said Sharon Levine, an attorney for the American Federation of State, County & Municipal Employees, part of the AFL-CIO.

“We’re taking away very fundamental constitutional rights,” Levine said.

Michael Artz, a lawyer for the American Federation of State, County & Municipal Employees, said outside court after the hearing that while the question of the constitutionality of the Chapter 9 filing should have remained in state court, the union “will fight whatever court we’re in.”
Fights by AFL-CIO Welcome

I welcome these fights by the AFL-CIO. Indeed I hope they spend every cent they have because they are going to lose.

And when they lose, others cities will decide to escape preposterous unions contracts and pension benefits via bankruptcy.

General Obligation Bondholders Beware

Several people emailed me that that bondholders should have nothing to worry about because the bonds are backed by tax revenue.

Really?

If that was the case, then there should be little to no difference in interest rates between such bonds. But there is. Just like there is a difference between Greek bonds and German bonds, even though we heard the ECB say for years "we say no to default".

Well guess what? The market was correct, not the ECB.

All bets are off in bankruptcy court because you cannot tax a hollow shell. And what is Detroit but a hollow shell?

Triumph of Math Over Unions

As for pension claims and the Michigan constitution? Same thing: You cannot pay what you do not have. This is the triumph of math and common sense over union greed, arrogance, threats, and coercion. 

Future Rating Impact

The Bond Buyer says Detroit Filing Could Impact Future Rating Analysis
CHICAGO - As Detroit enters into what would be the largest municipal bankruptcy in the U.S., ratings agencies said the outcome may have a negative impact on unlimited-tax general obligation bonds in future credit analysis.

Detroit emergency manager Kevyn Orr’s restructuring plan treats the city’s unlimited-tax general obligation bonds as unsecured, on par with the its lowest-secured debt, such as retiree health care benefits.

The move marks a departure from traditional treatment of ULTGOs, typically considered among the strongest municipal debt.

Orr’s plan, if accepted by a bankruptcy judge, may affect the way Fitch Ratings analyzes ULTGOs in the future, the ratings firm said in a comment released Friday.

Fitch analyst Amy Laskey said in a telephone interview that it’s still uncertain how broad the impact would be if a bankruptcy judge approved Orr’s plan.

“These are issues we’re talking about internally, how broadly that might extend,” Laskey said. “It would certainly make us reexamine the value to credit quality of having that unlimited-tax pledge versus other tax-supported obligations,” she said.

“Our feeling was that with unlimited-tax general obligation bonds you have the pledge to levy property tax without limitation to pay the debt, and that seemed somewhat more secure [than other tax-supported bonds],” said Laskey. “They do give you a little more financial flexibility because you have the ability and the obligation to pay for them, which you don’t have for limited-tax bonds, certificates of participation, or lease revenue bonds.”

If the city moves into Chapter 9, the case could set precedents when it comes to treatment of ULTGOs, she said.
Once again, I cite common sense: you cannot tax a hollow shell. Bondholders took a risk for higher yield, just as did buyers of Greek debt. If there was no risk, yields on Detroit bonds would not have been higher in the first place.

So, pensioners and bondholders both should take it on the chin.

Detroit Will Be In Bankruptcy 'For A Long Time'

Harvey Miller, partner at Weil, Gotshal & Manges, tells Bloomberg Law's Lee Pacchia that Detroit's recently filed Chapter 9 bankruptcy case will not be an easy restructuring. In addition to the profound economic challenges facing the city and the limited ability of a bankruptcy court to force changes on its government, the fundamental tension between bondholders, pensioners and taxpayers could mean Detroit will remain in tangled up in litigation for a long duration of time. "There's going to be a lot of legal fighting in this," he says.



Link if video does not play: Harvey Miller on Detroit Chapter 9

Expect a lot of municipal bond downgrades before too long. Downgrades are coming, deserved, and welcome.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

الأربعاء، 24 يوليو 2013

Obama's HAMP Program a Stunning Success

Obama had lofty goals of helping 4 million Americans keep their homes with his Home Affordable Mortgage Program (HAMP).

Here are some quick facts:

  • HAMP modified 1.2 million mortgages (70% less than the target)
  • 306,000 re-defaults
  • Another 88,000 at risk
  • The re-default rate is an alarming 30%
  • The re-default rate of those in since 2009 is 46%

CNNMoney has additional details in Watchdog: Borrowers in Obama housing program re-defaulting.
Borrowers who received help through the government's main foreclosure prevention program are re-defaulting on their mortgages at alarming rates, a federal watchdog said in a report released Wednesday.

Nearly 1.2 million mortgage modifications have been completed since the Home Affordable Modification Program (HAMP) was first launched four years ago. Yet more than 306,000 borrowers have re-defaulted on their loans and more than 88,000 are at risk of following suit, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) found in its quarterly report to Congress.

In addition, the watchdog found that the longer a homeowner stays in the HAMP modification program, the more likely they are to default. Those who have been in the program since 2009, are re-defaulting at a rate of 46%, the inspector general found.
Stunning Success

HAMP is certainly a failure compared to stated goals. However, as government programs go, it's easy to make a case that HAMP was a tremendous success.

Here's why. "As part of the Troubled Asset Relief Program, Treasury allocated $19.1 billion to the HAMP program. So far, it has spent $4.4 billion".

The typical government program wastes far more than initially allocated. This government program only wasted $4.4 billion out of a projected waste of $19.1 billion.

It does not get much better than this!

Unfortunately, there is still a big push to waste more money.

Christy Romero, the head of SIGTARP says "Treasury pulled out all the stops for the banks, they should do the same for homeowners".

This same "two wrongs make a right" genius also says "Treasury needs to research why so many borrowers are dropping out of the program."

Really?

What's to research? People are underwater in their homes (still), without a job, or struggling in minimum wage part-time jobs. But hey, give a bureaucrat money to waste and they will. 

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Unions and Fundamental Freedoms: Two Upcoming U.S. Supreme Court Cases

What follows is a guest post regarding two important union cases that the US Supreme Court will hear.

Unions and Fundamental Freedoms by David. A. Bego

The U. S. Supreme Court has agreed to hear two cases in the next year which will determine whether persons will be protected in their exercise of the fundamental right to either choose whether to engage in union representation or to abstain from such representation, and to make such decision absent intimidation from either the union or their employer via the secret ballot election — the same process we use to elect our local, state and federal government officials. Interestingly, both cases stem from the President’s attempt to provide political payback to his allies in Big Labor through the Rogue NLRB.

In the first case, the U.S. Supreme Court will decide if the President acted unconstitutionally when he made several recess appointments to the agency charged with oversight of labor-management disputes, the National Labor Relations Board. The lower courts, culminating in the U.S. Third Court of Appeals both found the appointments unconstitutional (see Supreme Court to Consider Obama Recess Appointments and Appeals Court Nixed Obama’s Recess Appointments). This case not only has important implications concerning the further shredding of our constitution  through ignoring the tenet of the separation of powers of the branches of government by appointing his nominees without review and agreement by the legislative branch.

In the case of the NLRB, the Obama appointees seek to achieve Card Check through Regulation vs. Legislation. Simply put, the goal is to eliminate employees’ rights to a secret ballot election and replace it with Card Check as the means for employees to determine if they wish union representation. If you listened to the Administration’s and Big Labor’s rhetoric, what could be more simple and fair? Unfortunately, it is a process of coercion and intimidation as chronicled in The Devil at Our Doorstep. A process aptly named Death by a Thousand Cuts, which forces employers and employees to capitulate and be subjected to the terms of the so called Neutrality Agreement through ruthless Corporate Campaigns. The so-called “neutrality agreement” is hardly neutral and subjects both the employees and the employer to labor intimidation.

The second case involves a question of the validity of Big Labor’s sacred cow, the aforementioned Neutrality Agreement (see BNA – Supreme Court Agrees to Review LMRA Case Involving Section 302, Neutrality Agreement). To appreciate this case and its relevance, one must understand why this agreement is so important to big labor. As documented in previous blogs, unions have been on a steady decline since 1947 when Congress, following more than a decade of union corruption, passed the Taft-Hartley Act. Of the many important provisions of the Act, perhaps none was more so than the guarantee of the secret ballot election which, for all intents and purposes, eliminated card check.
Since its peak prior to passage of the Taft-Hartley Act, union membership has dropped from approximately 35-40% of the workforce to a low of 11.3% today. Statistics gathered by the federal Bureau of Labor Statistics, included a drop of approximately 400,000 members in the last year alone. Big Labor, realizing its imminent demise, understands it must reinstate card check to survive and is relying on the President and his rogue NLRB to allow them to exploit a little known and hidden clause in the Taft-Hartley Act that allows unions and employers to mutually agree to representation through card check. Unfortunately, it is very rarely an agreement achieved through mutual consent. It is predominantly achieved by Big Labor through outright intimidation of employers and employees. What is interesting about this particular case is that it has been brought by an employee disgusted with the intimidation and the fact he believes his rights to a secret ballot election and protection of privacy have been violated.

One thing certain about these cases is that the justices of the Supreme Court will receive a tremendous amount of pressure from the Administration and its Big Labor buddies to overturn the decisions of the lower courts. The Gasping Dinosaurs, already headed toward extinction, understand all to well that if these decisions are upheld it will be the end of Big Labor as we know it in this country (see If ruling goes Against Labor Union, Organizing Could Get Even Harder). Additionally, the President and his party know all to well they need Big Labor’s financial and ground support to continue to win elections, as well as increase their grip on and expand an already oversized government.

Even more frightening for the future of the United States is what could occur if these decisions are overturned. If they are, the current administration will feel empowered to continue to appoint radical people to high positions, not just in the NLRB, but all areas of government. If they can eliminate the secret ballot election for union recognition and trample on the constitution to appoint government officials how long will it be before they expand these programs to every corner of the government? Can you imagine no secret ballot elections to determine our government officials and instead all being appointed by the President?  These are landmark cases.

About Bego

David A. Bego is the President and CEO of EMS, an industry leader in the field of environmental workplace maintenance, employing nearly 5,000 workers in thirty-three states.

Bego is the author of “The Devil at My Doorstep,” and the just released sequel, “The Devil at Our Doorstep,” based on his experiences fighting back against one of the most powerful unions in existence today.

Mish comment: This article originally appeared on UnionWatch, a site to which I also contribute.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com