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'Maryland's economy clearly will be deteriorating'

Published 11/23/08

Bad news is constant news these days as Maryland's government tries to get a handle on its revenue picture for next year. An economic forum held Friday by the state's Board of Revenue Estimates began with listing a litany of benchmarks state Comptroller Peter Franchot described as "setting all the wrong records."

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Initial claims for unemployment insurance have hit their highest levels since 1992, with continuing claims at a peak since the 1980s; consumer prices had their largest monthly drop in 60 years; retail sales fell to the lowest point in 40 years; and permits for single-family homes reached a 24-year low.

"There is little doubt that the national economy is in recession," said David Roose, the director of the state's Bureau of Revenue Estimates. "Maryland's economy clearly will be deteriorating."

Although the housing sector showed signs of improvement in September, the situation in October - when the financial crisis hit the global economy - has plunged the industry back into uncertainty.

"We had hope in September," said Michael Owings, the president of the Homebuilders

Association of Maryland. "We have dropped back significantly."

Although 2008 sales are shaping up to be almost 25 percent down from 2007, the population of first-time home buyers could help boost the industry once prices bottom out, he said.

How long prices stay at their nadir, however, is critical.

"When we do hit bottom, are we going to skid across it like a frying pan?" Mr. Owings said. "That would be catastrophic to say the least."

The hopes of other industries are lying with consumers as well. A shaken consumer base is showing up in the way people are investing, representatives of the banking and financial sector said, as they gravitate toward less risky ventures.

"People are asking questions that they have never asked before about their investing practices," said Laura Gamble, the Maryland president of Bank of America. "It is across the (investor) board."

Ms. Gamble recalled talking to someone with a net worth of tens of millions of dollars who was "petrified" about spending money on a planned trip to London.

"A level of panic is so great," she said. "It is that level of paranoia that has just really paralyzed people."

That paralysis is flowing into the automobile industry. Maryland has a net loss this year of 13 dealerships that had been in business for an average of 40 years, said Peter Kitzmiller, the executive director of the Maryland Automobile Dealers Association.

"There is a significant amount of pent-up demand," he said. "There are a lot of customers out there who would love to trade for a more fuel-efficient vehicle."

Ultimately, people need to get back in the showrooms, Mr. Kitzmiller said, and the potential failure of the American car industry has to be avoided.

"If it does (fail), it is going to make the Lehman Brothers failure look like a church social," he said. "It certainly would have a dramatically negative impact on this state."

Of course, not every sector of the economy is struggling so badly. In fact, business is up 8 percent this year for Chuck Ferrar, the owner of Bay Ridge Wine and Spirits in Annapolis, although the past two months have been slower.

The abundance of state and federal government jobs in the area help insulate the Annapolis area from the worst consequences of a recession, Mr. Ferrar said. In addition, people are entertaining at home more than going out to bars and restaurants.

"Overall, my industry is holding its own," he said. "It's true, an ill wind does some good for someone."

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Ted: - December 2, 2008

Too bad your forgetting that the money that the Bush Rebumplicans are spending is being borrowed from the Chinese and Saudis. Your children and grandchildren will thank them in the future with a devalued dollar and a 70% tax rate.

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IM Freeman - Annapolis, MD - Karma: Neutral


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Gee IM - December 1, 2008

Why do you tag me as an R?? I am a Dem through and through, just tired of seeing people blame the wrong side for this whole economic mess. And I suspect you are afraid to try and explain it since you are lacking any actual facts to back up your plundered treasury fantasy. BTW, where do you suppose this massive war spending actually goes??? Couldn't be to US business or personnel, could it??? Next fantasy please....

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Ted G. - Edgewater, MD - Karma: Bad


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corection. - November 28, 2008

Economy

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c. b - bowie, MD - Karma: Bad


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?????? - November 28, 2008

Cut off all government aide for a year and the deficit would be paid off and the econpmy would be booming.

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c. b - bowie, MD - Karma: Bad


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TED - November 27, 2008

I would love to explain the economics of the situation but you would probably be confused by the terminology. Why do you assume that I am a Democrat? I am registered Republican but there are people in the party such as yourself who can't see the light of day. Rebumplican you are, Republican I am.

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IM Freeman - Annapolis, MD - Karma: Neutral


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PS - November 26, 2008

Look at the economic numbers before 2006 and try to figure out what happened to change them. Hint-it wasn't the WAR.

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Ted G. - Edgewater, MD - Karma: Bad


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Nope IM - November 26, 2008

Can't stick this one on Bush. Your boys started the whole ACORN infested, Fannie Freddie wild and wacky credit game, and then your boy Bill Clinton pumped up the volume, then Senators Dodd and Obama took a bunch of cash to squash dissenting views until it all imploded. If the media wasn't campaigning so hard for the Obamassiah, everyone would know this is a DEM debacle, y'all did it, no excuses this time. Screwed over "your people" once again. Be thankful they aren't smart enough to figure it out...

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Ted G. - Edgewater, MD - Karma: Bad


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who is this Bush guy? - November 26, 2008

wow, the amount of credit you give Bush is amazing. War on drugs? Yeah, that was just a little before Bush's time (like by 30 years). Next thing you tell me is that Bush invented the internet. Typical Dem response, you will do whatever you think will win you popular support, but when it doesn't work, you are the first to point the finger at the other guy.

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Johnathan Locke - Edgewater, MD - Karma: Good


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Wrong Ted: - November 26, 2008

This mess started when a Rebumplican president wasted our treasury (thus cutting support to the states) on a war in Iraq, a war in Afghanistan, a war on "Terrorists", a war on drugs, and a war on immigrants just because he had a "Daddy Complex"

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IM Freeman - Annapolis, MD - Karma: Neutral


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Wrongo Nils. - November 24, 2008

Come on Nils, stop reading Kos. The start of most of this loan mess was the Dems and Bill C. pushing the banks to make bad loans to people that could not cover them. Of course a large portion were minorities so this was a little payback for all those Dem votes. And then along came Penny Pritzger and her sham bank and made a up a whole new form of risk to cover these things. Do a little Wiki and read about it. And now we will have the benefit of Ms. Pritzger's shenanigans as Sec of Commerce, guess we'll see all kinds of new schemes. Too bad we can't all inherit vast somes of cash.

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Ted G. - Edgewater, MD - Karma: Bad


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Face it... - November 24, 2008

It's just not possible to 'attack' illegal aliens. They by their very definition are 'illegal'. If there was as much support for defending the laws and processes that LEGAL immigrants must follow, perhaps there would be a more productive community of 'Legal Immigrants'...one that doesn't put such a strain and drain on our current economy. Face it, illegal aliens are killing America, and the American dream for others.

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JJ Thomas - Annapolis, MD - Karma: Neutral


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To Put It Bluntly - November 24, 2008

The good times had to end. Now it's time to tighten the belt and live within our means.

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J. Jovkovich - Annapolis, MD - Karma: Neutral


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How do we fix this? - November 23, 2008

Aside from voting out Martin O'Malley and his support of illegals and CASA, and every other liberal in office, what can we do? Maybe Brian should run for Mayor and/or Governor. That way, once he is in office, he can undo the damage that O'Malley has done. We'd have to prosecute CASA and close them down for illegal activity. We can start taking care of our own, putting our tax dollars to work, fixing the deficit by trimming the fat. We'd have more money then to give our children the education they deserve. There would be less burdens on the hospitals, the police departments, etc. Sending the illegals packing with a 1 way ticket back at their countries expense would be grand. I don't see any of this happening, or Brian running for political office, but if we all band together, we can take back what is rightfully and legally ours.

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D. Martin - Edgewater, MD - Karma: Bad


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Obsessed - November 23, 2008

The "liberal" policies where the liberal amounts of deregulation the Republicans gave to the huge financial institutions. They got what they wanted and then created a house of cards with our financial system. These "conservative" institutions abandoned sensible business practices in favor of making as much money they could in any convoluted way they could...much of it on the backs of the poor suckers they shouldn't have been giving loans to in the first place. Saying illegal immigration is responsible for the economic mess is just silly. I agree with what D. Martin alludes to. It seems there is a core group here that is so obsessed with illegal immigration that they need to bring it up regardless of the story.

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Nils Pedersen - Arnold, MD - Karma: Neutral


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Casa and Liberals - November 23, 2008

U.S. wide Liberal policies caused the crisis by giving loans to idiots, neer-do-wells, illegals and 'protected class' people that don't pay bills. In Maryland CASA has provided an inlet for illegals (Mostly Hispanics) to get these 'NINJA' (No Income No Job Assessed) loans. Various other dirtballs have lived scott free paying NO rent and NO Mortgage because of these Liberal policies.

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Emma G. - West River, MD - Karma: Neutral


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In addition CW, - November 23, 2008

You stated in your post that it's a time-honored tradition to "blame some other", and in this case you are right. I am casting blame. I blame CASA of Maryland for aiding and abetting illegal aliens by using our tax dollars, when our tax dollars could better be spent aiding legal citizens of Maryland who are suffering in this unstable economy. I blame Martin O'Malley for allowing my tax dollars to be used to help an illegal alien find a job instead of my friend, relative, or neighbor who is in desperate need of assistance. I blame the bleeding hearts who cry out that we should help illegal aliens, when the fact of the matter is illegals are criminals who are breaking the laws of our land, abusing our taxpayer funded services, and evading taxes at the expense of those of us who work hard each day, abide by our laws, and pay our taxes. I blame our government for their fear of possibly appearing "not politically correct", and instead allow illegal aliens to trample on our civil rights. Indeed our economy is suffering, and I do not see in any way how using our tax dollars to aid and abet illegal aliens is a part of any intelligent economic solution.

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Brian A. - Annapolis, MD - Karma: Neutral


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illegals - November 23, 2008

Maryland's economy is deteriorating just like other states, the housing bubble burst, the financial market is in shambles, the economy is coming to a halt. We did this to ourselves. We didn't heed our own advice. We didn't learn our lesson from the Great Depression. "Great Depression in the United States," Microsoft? Encarta? Online Encyclopedia 2008 http://encarta.msn.com ? 1997-2008 Microsoft Corporation. All Rights Reserved.

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D. Martin - Edgewater, MD - Karma: Bad


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Prove me wrong. - November 23, 2008

The fact of the matter is Maryland is becoming a sanctuary state because we are the last state on the east coast to hand out drivers licenses to illegals. They are also coming here because they have the support of CASA of Maryland. Do you know anything about CASA? It's an pro-illegal alien organization funded by OUR TAX DOLLARS. This organization aids and abets illegal aliens in our state at the expense of the taxpayer. It helps illegals find jobs with employers who knowingly hire illegal aliens at low wages so the employers can profit and pocket more money. And as a result, the legal, taxpaying trade skill workers in our state are suffering & losing jobs in record numbers. And since so many illegal aliens are flooding into our state, we are seeing an increase in taxes since we have to "foot the bill" for the share the illegal aliens do not pay. However, illegal aliens are reaping the benefits of our taxpayer funded services such as public school education and emergency health care. That's a fact. In a recent article on this site, it was argued as to whether or not Maryland should count the number of illegal alien children in our schools. And you know who is fighting it? Pro-illegal alien group CASA. They don't want taxpayers to know the huge expense of educating non-English speaking students of illegal aliens, since after all, WE are the ones footing the bill to educate them. See your health care premiums rise lately? With 300,000 illegal aliens residing in Maryland yet NOT paying into our tax system, well you can see why our pockets need to be drained more to cover their share. I bet you have heard of a friend or a neighbor or a relative who is truly suffering with the current economy. And it's a shame to know that although there are legal citizens of this state struggling to make ends meet, O'Malley is rolling out the red carpet for illegal aliens, welcoming them into Maryland with open arms.

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Brian A. - Annapolis, MD - Karma: Neutral


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rules of participation - November 23, 2008

If I read correctly in the rules of participation, it stated, "No attacks on individuals or groups based on race, gender, sexuality, ethnicity or other classification". It seems that one of our posters has used this story about Maryland's deteriorating economy as ALL the illegal aliens fault. I've noticed anytime there is a story about illegal aliens, ICE, CASA, unemployment, that our poster gets on his soapbox and starts preaching the same ole sermon. Spare me. There are plenty of jobs out there, just look at all the help wanted ads, job postings, full time/part-time, and no, they are not all looking for just skilled workers. If the unemployed really wanted to get a job, they'd get one, even if it might be beneath them, but NO, take a job beneath them, they'd rather wait and collect unemployment and wait for that perfect job to come along. So instead of helping Maryland's economy by getting a job and paying taxes, they would rather collect unemployment. This doesn't help Maryland's economy.(Don't wait too long though, an "illegal" might get it). And guess what, those people sitting on their behinds and waiting for the unemployment check to come aren't the illegal aliens. They are people that probably look like you and me. So before you point all the blame at Maryland's deteriorating economy on the illegals and CASA, I would check again. What comes around, goes around, if employers want to risk fines, penalties, jail time to hire illegals and pay them under the table, then they deserve to be put out of business and pay fines, penalties and the like.

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D. Martin - Edgewater, MD - Karma: Bad


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C.W. of Crofton - November 23, 2008

Hey C.W. exactly where was Brian A. wrong? He stated what is currently occurring in our country while you put a few sentences together that state nothing. Just because you say it isn't happening or doesn't exist doesn't make it so. Educate yourself before you perpetuate new-age ignorance...

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Don Williams - Davidsonville, MD - Karma: Neutral


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Illegal aliens doing fine - November 23, 2008

It is a time honored tradition through out history and around the world that humans, when fearful about their economic security, must blame some "other". The list of "others" is long and often the consequences of the type of thinking of the Brian A's of the world can be ugly. Brian and others like you, please educate yourselves. You are perpetuating age-old fears and are doing nothing to contribute reasonably to the solution to our problems.

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C. W - Crofton, MD - Karma: Bad


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Illegal aliens doing fine - November 23, 2008

Thanks to CASA of Maryland, illegal aliens are flocking into Maryland and finding jobs with ease thanks to CASA of Maryland and the employers who willingly hire illegal aliens. Our economy is struggling, our legal, taxpaying citizens are losing jobs to illegal aliens, and CASA of Maryland is benefiting from OUR tax dollars and using those funds to aid and abet illegal aliens. While your neighbors, friends, and family members are being laid off or seeing their hours cut back, illegal aliens simply walk into CASA of Maryland and find an endless list of trade skill jobs from employers who are looking to pay illegals low wages and under the table. What this is doing is forcing the honest, law abiding employers to cut back or fire employees because they simply cannot compete with those companies that employ illegal aliens and thus can under-bid for various contracts. While we all face higher taxes, higher health care premiums, and financial struggles, illegal aliens continue to evade taxes in our state, use our emergency rooms as their primary care physician, and make money under the table which they send back to their own country. They are taking advantage of our "sanctuary state", and they know full-well that O'Malley will always defend and protect the illegal aliens of this state rather than the hard-working, legal taxpayers.

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Brian A. - Annapolis, MD - Karma: Neutral

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