on the edge by paul krugman

Op-Ed Columnist
On the Edge
By PAUL KRUGMAN
Published: February 5, 2009
A not-so-funny thing happened on the way to economic recovery. Over the last two weeks, what should have been a deadly serious debate about how to save an economy in desperate straits turned, instead, into hackneyed political theater, with Republicans spouting all the old clichés about wasteful government spending and the wonders of tax cuts.

It’s as if the dismal economic failure of the last eight years never happened — yet Democrats have, incredibly, been on the defensive. Even if a major stimulus bill does pass the Senate, there’s a real risk that important parts of the original plan, especially aid to state and local governments, will have been emasculated.

Somehow, Washington has lost any sense of what’s at stake — of the reality that we may well be falling into an economic abyss, and that if we do, it will be very hard to get out again.

It’s hard to exaggerate how much economic trouble we’re in. The crisis began with housing, but the implosion of the Bush-era housing bubble has set economic dominoes falling not just in the United States, but around the world.

Consumers, their wealth decimated and their optimism shattered by collapsing home prices and a sliding stock market, have cut back their spending and sharply increased their saving — a good thing in the long run, but a huge blow to the economy right now. Developers of commercial real estate, watching rents fall and financing costs soar, are slashing their investment plans. Businesses are canceling plans to expand capacity, since they aren’t selling enough to use the capacity they have. And exports, which were one of the U.S. economy’s few areas of strength over the past couple of years, are now plunging as the financial crisis hits our trading partners.

Meanwhile, our main line of defense against recessions — the Federal Reserve’s usual ability to support the economy by cutting interest rates — has already been overrun. The Fed has cut the rates it controls basically to zero, yet the economy is still in free fall.

It’s no wonder, then, that most economic forecasts warn that in the absence of government action we’re headed for a deep, prolonged slump. Some private analysts predict double-digit unemployment. The Congressional Budget Office is slightly more sanguine, but its director, nonetheless, recently warned that “absent a change in fiscal policy ... the shortfall in the nation’s output relative to potential levels will be the largest — in duration and depth — since the Depression of the 1930s.”

Worst of all is the possibility that the economy will, as it did in the ’30s, end up stuck in a prolonged deflationary trap.

We’re already closer to outright deflation than at any point since the Great Depression. In particular, the private sector is experiencing widespread wage cuts for the first time since the 1930s, and there will be much more of that if the economy continues to weaken.

As the great American economist Irving Fisher pointed out almost 80 years ago, deflation, once started, tends to feed on itself. As dollar incomes fall in the face of a depressed economy, the burden of debt becomes harder to bear, while the expectation of further price declines discourages investment spending. These effects of deflation depress the economy further, which leads to more deflation, and so on.

And deflationary traps can go on for a long time. Japan experienced a “lost decade” of deflation and stagnation in the 1990s — and the only thing that let Japan escape from its trap was a global boom that boosted the nation’s exports. Who will rescue America from a similar trap now that the whole world is slumping at the same time?

Would the Obama economic plan, if enacted, ensure that America won’t have its own lost decade? Not necessarily: a number of economists, myself included, think the plan falls short and should be substantially bigger. But the Obama plan would certainly improve our odds. And that’s why the efforts of Republicans to make the plan smaller and less effective — to turn it into little more than another round of Bush-style tax cuts — are so destructive.

So what should Mr. Obama do? Count me among those who think that the president made a big mistake in his initial approach, that his attempts to transcend partisanship ended up empowering politicians who take their marching orders from Rush Limbaugh. What matters now, however, is what he does next.

It’s time for Mr. Obama to go on the offensive. Above all, he must not shy away from pointing out that those who stand in the way of his plan, in the name of a discredited economic philosophy, are putting the nation’s future at risk. The American economy is on the edge of catastrophe, and much of the Republican Party is trying to push it over that edge.

comment = another unhappy camper ???

Anonymous to me
show details 7:42 PM (44 minutes ago)

Reply

Anonymous has left a new comment on your post "comment = reply":

Seems more people are of the same mind that the board can't reply to any questions because they have no idea about what their duties as board members are!.... The board seems to get elected on a popularity vote and how much bull___ they can feed the members. Look who's on the board and for how many years they've been there and you don't have to be an Einstein to figure out why LA is in the state it is. If we are in business by the end of this year and not bankrupt, the way they're spending money, it might be a miracle. All property owners better start banding together to save our investment or else use the loss as a write off on 2009 taxes as a casuality loss.This isn't funny any more with no manager, code officer a board which is none factor and leaving the operation up to underpaid employees, how long do you think they will perform with the way the board treats them. This board had some pretty interesting resumes to get elected and look what a state we are in with their guidance. If I worked like that in my job I would've been fired long time ago1 Maybe a group should start, by the blogger, to demand answers for where our money is going or look into this group everyone wants to throw stones at CCLA and maybe they can help save our campground

ANON -- YES LA HAS PROBLEMS AND THEY DIDN'T START RECENTLY -- THEY STARTED YEARS AGO UNDER OTHER BOD'S WATCH -- THE PROBLEMS HAVE ACCELERATED AND BECOME EVEN WORSE UNDER THIS BOD'S WATCH -- THE INFRASTRUCTURE AT LA HAS BEEN DETERIORATING FOR MANY YEARS -- THE UTILITIES SUCH AS WATER, SEWER AND ELECTRICAL GRID ARE WORN OUT AND OVER TAXED -- THEY HAVEN'T BEEN UPGRADED OR MAINTAINED SINCE THEY WERE INSTALLED -- THE BOD SOLD THE MEMBERS A PROGRAM TO ADDRESS THESE PROBLEMS BUT IT HAS BEEN A COMPLETE FAILURE-- THE SCOPE OF THE WORK AND THE PROGRESS OF WORK HAS BEEN INADEQUATE TO THE MONIES BEING SPENT-- THIS BOD IS PISSING AWAY THE MONIES FOR THESE PROJECTS--

THE COMMUNITY IS IN TERRIBLE PHYSICAL SHAPE-- QUALITY OF LIFE ISSUES ARE RAMPART WITH DERELICT TRAILERS AND PROPERTIES THAT AREN'T MAINTAINED FOR YEARS ON END--

THE EMPLOYEES ARE WORKING UNSUPERVISED AND WITH NO DIRECTION-- NO MANAGEMENT FOR OVER HALF YEAR AND NO SUPERVISION OF THE OPERATIONS -- THE WORKERS ARE NOT AT FAULT -- THEY ARE TRYING THEIR BEST WITH THE LITTLE THEY HAVE TO OPERATE WITH

THIS BOD IS RUNNING LA INTO THE GROUND -- THE FINANCES MAY VERY WELL HEAD SOUTH WITH THE CURRENT ECONOMIC CONDITIONS IN THE COUNTRY YET THE BOD HAS SHOWN NO LEADERSHIP IN TRYING TO CONTAIN COSTS OR CUT COSTS-- THEY HAVE NO APPARENT CONTINGENCY PLANS FOR OPERATING WITH FINANCIAL CONSTRAINS-- THEY DEFINITELY HAVE MADE NO ATTEMPT TO TO EXERCISE ANY FISCAL CONTROL --

THE MEMBERS NEED TO START TO FIND NEW PEOPLE TO RUN FOR THE BOD -- THE SITTING BOD CROP IS NOT HIGHLY REGARDED AND HAVING PREVIOUS BOD MEMBERS RUN AGAIN IS NOT THE ANSWER -- IF THEY DIDN'T DO ANYTHING IN THE PAST WHY WOULD THEY DO ANYTHING IN THE FUTURE????

I AGAIN SAY I AM TRYING TO PUT TOGETHER A EMAIL LIST OF MEMBERS SO THAT WE CAN COMMUNICATE INFO ON POSSIBLE FUTURE BOD CANDIDATES AND THEIR POSITIONS ON ISSUES -- I ALSO INVITE ANYONE WITH OPINIONS TO SEND ME THEIR COMMENTS SO I CAN PUBLISH THEM FOR THE COMMUNITY -- IF WE CAN DEVELOP A DIALOGUE AMONG MEMBERS PERHAPS WE CAN UNDERSTAND WHAT THE MEMBERS WANT IN THE FUTURE

MY EMAILS ARE lachipper@gmail.com or ubfriend@aol.com

--- CHIPPER

unhappy in la !!!!!

Anonymous to me
show details 6:33 PM (2 hours ago)

Reply

Anonymous has left a new comment on your post "waiting":

With the board having to decide on two positions do you think it will be made by December or November? With the way they are playing around with the managers position, and not caring about how our money is going out the door, do you really think they , on a whole care, are really interested in the good of LA or again only their personal gains, which they all have already in electric, sewer and road upgrades. I hope evryone remembers the circus that is going on at election time and does something about the mess we are in. If you think this is bad now just wait until the summer when people are disgusted with the way things are or are broke and dues are not coming in watch for people just to walk away from the properties and the few left will have to pay all the bills. This board is destroying everything that was good and attracted people to LA so we all must bear the pain. REMEMBER AT ELECTION!!!!

comment reply

Anonymous has left a new comment on your post "comment reply":

Penthouse in NYC, maybe you should run for the board and straighten things out!!!...There are a lot of property owners in LA that have management positions in the other world outside of Lake Adventure and am quite sure they, along with retirees, would be an asset. I feel if you don't have a solution to the problem don't create another. Once the board opened up the finances with the budget and salaries to all they unleashed a whole new source of anger with property owners who are NOT happy with the way things are being run and to let everyone know how much people are being paid for what they do, those of us working probably feel slighted when we are being asked to take from 10 to 15% pay cuts and pay more for medical and are happy to have a job!!! I don't know where the board works, if they do, or if they read papers or watch TV because if they did they would understand why owners are upset about employee's salaries and the spending the board is doing. If they continue, with the economy the way it is, look for more dues increases and less owners paying dues, be real will you make car payments or pay lake Adventure. This board and manager, if we have one by now, must get a handle on spending and cut costs to survive. The time is now and not wait until the summer and have an emergency meeting and say dues must go up or the park will close and if the township levies severe fines against us, and the DEP as in the past to the tune of 10K, where will this money come from. Property owners voiced their opinions against a management company but with the shape Lake Adventure is in now that may be our only chance for survival, or maybe the property owner who knows the problems that exist and did interview for the job and where was the result of his interview posted????

comment reply

Anonymous to me
show details 10:51 PM (2 hours ago) Reply


Anonymous has left a new comment on your post "comment + seasonal operations":


First this should be discussed in private( Financial issues). An employee or their family member shouldn't be involved. I would love to be a fly on the wall in my employers office and find out information. This blog is great for interaction among the owners but it is open to all (employees/contractors/owners).Never a good thing.



We need to cut back on our spending. Jobs have to be cut.Money has to be saved. In the next few years we may lose lake adventure if we don't act. We need the right people on the board who know how to help the community. Put the Ego's aside and deal with the issues. This is a serious situation.


And for the New York comment, if we don't come to your state and spend you better have a money making tree.

comment + 12' wide issue -- more

Anonymous has left a new comment on your post "comment + 12' wide issue":


Good point. I didn't buy property to make a monetary winfall but invested in a place that will be fun for the family but that won't continue if the appeal is gone if old, rusted and abandon trailers increase. People selling their lots with a trailer can't even get back the money they paid for their lot 10 years ago which may not be the case at some other communities. My neighbor said she would give her lot away for free just to get rid of the dues and taxes and it's still on the for sale by owner list. I know I'm not going to make money when I try to sell my lot, my thought is I don't want any abandon trailers in my neighborhood so I don't have to consider selling sooner than planned. We need new housing whether it be 12' wides or 8.5' wides but I hear many are waiting for 12' wides and the longer they wait the older and less appealing the neighborhoods appear to prospective buyers. In looking at new trailers the cost of a tipout was only slightly less than a 12' wide. Right now the dealers have a lot of '07 and '08 stock of 12' wides and are offering good discounts on them while the 8.5' still have to be special ordered at full price. The park models do depreciate quickly but for about the same money you get a better built home. If you check the specs of 8.5 vs a 12' you'd notice just about everything is upgraded on the 12'er making it more energy efficient for both heating and air conditioning.

comment + 12' wide issue

Anonymous has left a new comment on your post "comment + 12' wide issue -- more":

All this 12 wide issue talk is interesting, however, a 12 wide trailer cost at least $40,000.00 and the average selling price of properties with trailers is much less then that. Anyone who is considering their property at LA an investment is sadly mistaken. These are RV which depreciates as rapidly as an automobile. Don't get me wrong, I love LA and always will but as far as an investment I have never considered getting back what I have put into my place. So before you consider spending a lot of money on a new 12 wide trailer remember it is for enjoyment not investment.

comment reply

Anonymous has left a new comment on your post "comment":


I didn't buy a lot and trailer to go "real camping" I bought them for summer weekends and vacation otherwise I would have bought a tent and sleeping bag. We pay almost 40% more in annual dues than other local rv communities yet I don't think our amenities are 40% better. We could lower our dues a little if we weren't paying retainers to lawyers for five years to get 12' wides approved. It's been over one year since anyone representing LA has met with the township on this issue. If I'm mistaken about the time table please let us know. You have a good idea about collecting wood, maybe we should consider having a neighborhood clean up day in autumn and storing old tree branches in the maintenance area for just such a snow emergency. I have bundles of logs in back of my house that I paid for, at LA we could get all the wood we needed for free.

anon -- you sure are right on about this place == people have major investments at la in trailers, decks, screen houses and etc. and that should be of concern to them-- obviously the camper lives in a pup tent or a pop up and he's happy as a clam but the rest of us who have an monetary interest in la have a right to demand more and expect that la is run professionally and has a capable management in charge-- also we expect and should have a bod that enhances our investment and protects our interests even if they're not looking after their own -- if this bod can't do this then they should be replaced -- it has been a year of one failure after another, manager fired and no replacement, 12' issue allowed to die, quality of life continues to decline, no oversight or progress with the lateral project or electrical upgrades, closing of laundry with no alternative facility or plan to upgrade or replace the service, no emergency preparedness or procedures to handle emergencies, an across the board reduction in fees during an extremely dangerous financial crisis in the country with no consideration what they'll do if member's fees defaults escalate and hinder their ability to pay the expenses, no evidence of a plan or attempt to reduce discretionary spending and modify operations in the event of heavy defaults-- this is a perilous time for la community and it's very doubtful this bod has control-- the members may indeed pay a very high cost for this incompetence of this bod

staffing

yes the staffing at la is questionable and the bod and past management and bod allow this community to be staffed full time year round-- this is mismanagement of the assoc funds --

la is a seasonal community with 95% of the members arriving between mid may thru labor day-- approx 12 weeks but we have full time staffing year round --- WHY????--why do we pay for 40 weeks of ft staffing when they have no work load??? because the bod and past management don't have any incentive to save money and no one wants to make the tough decisions-- the members allow this to continue and until they say stop-- it will go on

with the tough financial situation at hand i believe the defaults on dues will greatly increase and then the bod will dip into the la reserve (a small reserve that won't go far when the cash stops flowing)-- now the credit markets are so tight gm, ford, chrysler can't raise or borrow money -- what chance do you think la will get a loan to carry it over a rough patch---NONE--yet the bod allows mismanagement of la funds

back to staffing -- yes in the winter m-f you have several ft people working in the office -- can someone tell me what they could possibly be doing -- l have worked 40 years in facility management positions and i can tell you there is not enough work to justify operating with this staffing level-- they are there because they're there and tradition is this is how la does things-- well someone better wise up because the rooster will come home to roost and when la is chained shut at the gate it will be too late-- this bod is again unable to manage la finances, assets, employees, or just about anything else -- they need to hire a capable manager, get the hell out of the way and let la be properly operated-- then they can run for the bod and tell the members what a great job they're doing for the members and get reelected forever

unanswered questions

a few observations and wondering what's going on with the following:

MANAGER SELECTION PROCESS AND THE WINNER IS?

THE 12' WIDE ISSUE WITH THE NEW LAWYER?

THE 12' WIDE ISSUE STILL A VIABLE ISSUE OR DEAD ISSUE?

THE CLOSING OF THE LAUNDRY -- TEMPORARY OR PERMANENT?

THE REMODELING OF THE LAUNDRY -- ON HOLD OR DEAD ISSUE?

ACCOUNTS RECEIVABLES HOLDING UP OR ARE DEFAULTS INCREASING WITH THE TOUGH ECONOMIC TIMES?

ANY CONTINGENCY PLANS TO SAVE MONEY IF DEFAULTS CLIMB?

any one got any answers it would be good to know since many members are interested in these matters -- maybe some one from the bod will respond (don't hold your breath)

#87

GOING OUT WITH A BANG

THIS GUY HAS REALLY HAD IT !
Andrew Lahde, manager of a small California hedge fund, Lahde Capital, burst into the spotlight last year after his one-year-old fund returned 866 percent betting against the subprime collapse.

Last month, he did the unthinkable -- he shut things down, claiming dealing with his bank
counterparties had become too risky. Today, Lahde passed along his "goodbye" letter, a rollicking missive on everything from greed to economic philosophy. Enjoy:

Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.

Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.

There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.

I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.

So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.

I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.

On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government.

Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.

Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country?

Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.

With that I say good-bye and good luck.

All the best,

Andrew Lahde

comment replys

Anonymous has left a new comment on your post "comment reply":

Very interesting, maybe the increase was NOT necessary to begin with and people finaly realized their multi year plan was a joke. First off, who made that decision?? Oh yes, the majority board members who can't make a decision on hiring a manager, and the previous manager who broke the bank.The person who is for a recall may be on the right track. Maybe we are paying close to $1k more than what is needed to run this place and maybe a major investigation of previous boards and manager is in line, and not by this board but by an audit firm and possibly law enforcement. There is entirely too high of a cash flow at LA that tighter reins should be tugged.


Anonymous has left a new comment on your post "comment reply":

Very interesting, maybe the increase was NOT necessary to begin with and people finaly realized their multi year plan was a joke. First off, who made that decision?? Oh yes, the majority board members who can't make a decision on hiring a manager, and the previous manager who broke the bank.The person who is for a recall may be on the right track. Maybe we are paying close to $1k more than what is needed to run this place and maybe a major investigation of previous boards and manager is in line, and not by this board but by an audit firm and possibly law enforcement. There is entirely too high of a cash flow at LA that tighter reins should be tugged.

#97

In ways large and small, Washington coddles rich

GREAT EDITORIAL ON FINANCE REFORM IN YESTERDAY'S USA TODAY -- a must read

In ways large and small, Washington coddles rich


cut and paste on the link below to read the entire article

http://blogs.usatoday.com/oped/2008/10/in-ways-large-a.html#more

#101

NOT GOOD TIMES

FANNIE MAE freddi mac LEHMAN BROS bear sterns WAMU wachovia AIG merril lynch

777

la contingency plans in place???

#112

comment reply

Anonymous to me
show details 6:27 PM (2 hours ago)

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Anonymous has left a new comment on your post "comment reply":

How much could a collection agency cost? Half a mil is a lot to be lost each year and it seems like it would be worth the investment even if we recovered 1 or $200,000. The LA website states electrical upgrades will start this month on Forrest Glenn and Blue Aspen.


anon -- you're right --- now la gets nothing in most cases and once people get behind in a payment or two they will never catch up-- then they all but abandon their property -- any thing la recovers through a collection agency is more than they get now and when word spreads that the CA is after members it may get others to pay up rather than let their dues slip into default and have a CA after them-- the thing is the bod doesn't have a better method to collect default payments and no one on staff wants to be a bad guy and do it so it's either ignore the problem ( which they're doing now) or get a collection agency -- not hard to figure out

it would be nice to have a count on the number of properties that this crew is doing in a given period of time -- there is no accountability for this work progress or the lateral work progress -- the bod says we're doing these jobs -- well then they should back it up with numbers otherwise 10 years down the road we're still doing these projects and the members are still paying the bills--- members need to have accountability and so far there is none-- how many people would hire a contractor to do a job at their home without some idea of the contractors progress and accounting of the job -- you just hire them and they work and keep sending you a bill as they see fit -- NO ONE WOULD DO THAT -- WHY DOES THE LA BOD THINK THEY CAN OPERATE THIS WAY--

comment reply

Anonymous has left a new comment on your post "BAD DAY !!!!!":
It seems like more property owners are concerned then you think. Spending has always been a problem in the past with previous boards and it seems this one may be following suit. As far as going bankrupt if you read the last financial report we should be stable, again, unless the BOD does some stupid spending.The BOD must work together and not worry about certain employees and property owners and make decisions fairly to ALL property owners. Everyone should also realize we employ the staff and they do not employ the owners.Also, with all the delays in choosing a property manager we should look towards Appletree Mgt. that runs Eagle Lake and if you're curious how good they are take a visit to Eagle Lake where their dues are lower then ours and the comeback from owners here will be they pay their own electric, well, the average electric bill is under $100 for a season. Before people think this would not benefit us think about someone who doesn't take input from owners who helped the board member get elected and is now looking for paybacks, if you don't think this is happening I know a bridge in NY that I can get you a good deal on.


anon---- yes i'll take that bridge -- what color is it? ---well i know that everyone thinks that the finances are stable and in good shape -- but remember a mill ot two isn't much -- a lot of people have that in a savings accounts or under their pillow-- today that's chump change -- la wastes money like no end --there are all kinds of areas that need a review at la -- everything from the staffing to the operations at la to the way the discretionary spending is controlled-- these are things that should be reviewed periodically on a regular basis and not only at times when finances are stressful--- operations continue unabated as if la operated at full tilt year round when in fact this community is a seasonal operation when 95% of all members visit in about 12 weeks of the summer -- during the rest of the year la should have operations cut back and staffing levels reduced to reflect the off season status-- everyone else in the poconos operates this way --why not la????? the members are literally providing a virtual welfare state for employees who have no work load or any fuctions that require full time status in these 40 weeks of the off season---- WHY????? because the bod can't make the right decisions or are afraid to make the tough decisions-- they are more interested in maintaining their board seats than tending to the la operations-- any change will bring about a screaming response from the 20 nesters who live at la almost all year ( wink -- wink) and these people want all services and all staffing avialable all the time -- if they don't get it they will go after the bod members who took away their operations and staffing -- they will wage a campaign against those members when the bod elections comes around--- it doesn't bother the nesters that other la members are subsidizing their lifestyle and virtual full time status here at la --and that this subsidy is wasting other member's money-- they're only interested in their self preservation of a very cheap lifestyle here at la -- not unlike welfare???---so changing anything at la is very risky for the board members-- so the chances that the bod will make the right decisions is slim to none

#126

BAD DAY !!!!!

TOUGH TIMES ????

the weekend is over -- it's monday and now 2 of the biggest financial institutions in the country have gone under -- lehmans and merril are gone joining bear sterns -- fannie and freddie are in receivership of the usa government-- aig is near death -- should be gone by next weekend - wamu and wachovia right behind them -- the usa financial market is having the worst time since the '29 market crash -- it has already attained a larger $ loss than '29 -- things are deteriorating and collapsing very quickly --

why is this important to la????-- well i believe la may have the worst financial emergency since la was created -- the dues receivables could very well be a disaster by spring -- there may not be enuf $ to pay for la --this bod needs to seriously begin to figure out how to operate la with a lot less income -- they need an emergency plan to be able to cut costs at la -- that will mean making tough decisions like what and where to cut -- operational schedules, payroll, discretionary spending, capital improvements and any other area where costs can be contained -- if they don't start planning now and begin to understand what they will do if la gets in trouble then if that happens then the board will be derelict in their duties and should resign en mass-- i have very little confidence -- in this bod -- many are incompetent and arrogant and i doubt they even understand the magnitude of what la could be facing-- the members may very well need to be ready to act in case the la bod fails in protecting la and the members interest -- over this winter we members need to keep an eye on them to protect our interests -- i will report about any actions that bod implements-- but don't put too much hope into that to happen with this bod--i would like to know what others feel about this issue and what you think could be done if la gets into financial trouble-- post a comment or email me at lachipper@gmail.com