The Comedian's "Economic Holocaust" ping list...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
bttt
FTA The 10 most insolvent U.S. states are: California, Florida, Illinois, Arizona, New Jersey, Michigan, Nevada, Oregon, Wisconsin, and Rhode Island. These states make up about one-third of the U.S. population.
See anything in common here, except for Florida and AZ????
Let em die.
Democrats = Dig deeper to get out of hole.
CUT ENTITLEMENT PROGRAMS and institute policies that cause illegal immigrants to leave, cut taxes and get government the ‘f’ out of the way.
Will there be a bailout? Or will the administration choose harsh medicine?
Do we really need to ask? Yes, there will be a bailout. Yes, the dollar will break support and head down. Yes, gold will continue its bull market trend.
Hope California goes as soon as possible!!
Fire 2/3 of employees and eliminate state pensions!!
I don't live in CA, so don't know how Orange County is doing today - they surely didn't disintegrate and disappear. They are surely not a pariah and I just wonder if they had any difficulty selling bonds thereafter and at what interest rate. They could pose as poster children for bankruptcies - "See? No one grew two heads or came down with warts!"
Speaking as a resident of what is probably the first State to have to repudiate it’s debt, Illinois, I say let us crash and burn.
I pray everyday for CA to go Bankrupt- we could be back in action real fast if we dissolved the union thuggeraucraty
States will raise taxes and fees to make up the shortfall if the situation becomes critical. They rather risk losing businesses and see people leave, but that all takes time before that impacts the state. In the meantime there are many who cannot leave and they will be the ones fleeced. States will avoid defaulting because it means decades into the future where no one will loan them money nor buy their bonds. That is a fate worst then political unpopularity.
Freepers we live in dangerous times. When government and financial elites blow up our economy, that is the era where the middle class will be destroyed. Remember in any economic change (globalism, free trade) or crisis (depression, hyperinflation, default, etc) the middle class will always be sacrificed and the rich (who control the system) will protect themselves.
A booming and expanding economy is the only period where the middle class and upper middle class grows. IMHO we are too powerless to force change on our corporate and government elites, unless we chose violent armed revolution. Most Americans are not prepared to do that, and even if they do, does one replace chaos with chaos. The only path left is democracy. Democracy is too slow to bring on change, because our smaller number elites are too nimble and will counter faster then the voters. By the time we are mobilized to change, the crisis is already upon us.
The only thing we have power to do is protect our families from the coming financial storm of inflation as our bankers/fed reserve/US Treasury made a strategic decision to borrow and inflate our way out of debt. People should have started preparing since the meltdown in 2008. It is still not too late to prepare, but time is running out.
Spending, spending, spending - with no reservations...
Then, the worst state of all - Illinois does exactly the opposite of what they should to rectify the situation - they keep spending, then jack up income taxes by 66% - thus further screwing businesses and individuals.
The #1 method of stimulating the tax income of states is to LOWER taxes so that more $ is available for spending, investing, paying salaries, and thus feeding the economy which PRODUCES revenue...
But hey-— it’s ok. Obama is gonna bail his Chicago thug jerks out...again...
Put yer money down, ladies and gents. the winner gets a lovely pile of cash from the taxpayers!
The House originates all spending bills, & it is controlled by Pubs. So any bailout will be the work of REPUBLICANS who can easily block any bailout.
Certainly Obama would love to have all that bailout money pass through his sticky hands. The game of Wealth Redistribution always means some of the money will end up in his pockets through kickbacks, er... contributions. But his slush fund is not big enough to bail out even one of the mentioned states.
I imagine any bailout will follow the TARP script of “too big to fail”. The RINOs (with tears in their eyes & earmarks in their pockets) will join the Rats, & the deal will be done.
Frankly, I think these states are trying to hold off any bailout until after Obama is reelected to avoid any backlash from the voters affecting his chances in ‘12. TARP was very unpopular with voters. A bailout of states will be even more unpopular.
Extraordinary times call for truly unique solutions. Rather than conducting business as usual, with all the lemmings marching steadily toward the cliff, we should have a new law that removes all but one representative from those states with a debt greater than $100M times the current number of representatives. This would cut the number of Congress-critters by nearly 35%, give states an incentive to get their finances in order, and prevent at least a portion of the inept from having a voice in governing the rest of the states that are making the hard decisions to stay solvent.
Just a thought.
Congress will not approve allocation of money for bailouts.
There are two other avenues for states to get money - the executive branch and the judicial branch.
There are no doubt many avenues open to allocate funds to states by executive order. Last I read there were still funds available in porkulus. That’s one way. It would be unpopular, but Obama is between a rock and a hard place. He’ll do what the unions want him to do.
States in trouble can mount lawsuits claiming their state bears an unfair burden for the care of illegals, children, subsidized college students, senior citizens, mentally ill, addicted - you name it. Other states who don’t have this type of burden should share the cost. A liberal sympathetic court would agree.
When liberals don’t get their way through legislation, they usually turn to the courts, so I think that’s what they’ll do.
Nevada, which is 90% owned by the federal government, the BLM and the UN is insolvent because the Feds don’t know how to enforce the No Trespassing signs on the US border.
Anyone applying for substantial financial payments should apply to the US Treasury before even stepping on the Governors doorstep.
There is absolutely NO Reason why the feds should own more than a few acres of Nevada!
I don't understand why states NEED bankruptcy. Other than a few items assigned by the Constitution to the Federal Government, states are soveriegn. Don't want to pay pension obligations? Pass a law and don't pay them.