The Next Round of Bailouts? How Would We Pay for Them?

[Frisco_Slug_Esq]

More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.

"Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney told the CBS 60 Minutes programme on Sunday night.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars' worth of defaults."

New Jersey governor Chris Christie summarised the problem succinctly: "We spent too much on everything. We spent money we didn't have. We borrowed money just crazily. The credit card's maxed out, and it's over. We now have to get to the business of climbing out of the hole. We've been digging it for a decade or more. We've got to climb now, and a climb is harder."

(Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble)

NEW YORK (AP) — New York's incoming governor, Democrat Andrew Cuomo, says he won't raise taxes even though he will inherit a budget deficit of at least $9 billion when he takes office in January. Ohio Republican Gov.-elect John Kasich is promising to cut taxes, despite a shortfall of about $8 billion.

And in California, incoming Democratic Gov. Jerry Brown — who ardently pursued innovative clean energy and environmental protection programs during his first stint in office, in the revenue-rich 1970s and '80s — will have to figure out this time how to close a budget gap projected at more than $25 billion.

Twenty-six states elected new governors last month — 17 Republicans, eight Democrats and one independent — and now they are going to have to reconcile their principles and campaign promises with some harsh fiscal realities: This is the worst budget climate for the states in at least a generation.

Cumulatively, the states face budget shortfalls of nearly $140 billion next year, according to the Center on Budget and Policy Priorities, a Washington think tank. To make matters worse, billions in aid to states from the federal government's $800 billion stimulus plan is set to dry up early next year.

32 States borrow Billions from Feds to cover extended unemployment Benefits.
What ever happened to the Paygo law?
Are we still operating on the 2:1 million-man math multiplier of government spending?

http://www.guardian.co.uk/business/2010/dec/20/debt-crisis-threatens-us-cities
http://www.google.com/hostednews/ap...5nmdtg?docId=da77f6e9572949d5a3426587f9fe8174
http://www.hawaiireporter.com/VlONR...ral-government-to-cover-unemployment-benefits

 

[kbate]

We know (from reading LaTrouvere and others) that unemployment benefits lead to economic growth because the long-term unemployed spend every dollar they receive, while employed tax-paying citizens are an economic drain because they do not pay high enough taxes and every tax dollar not paid, is a loss to the government.

Therefore, it is plainly obvious, that we should offshore as many jobs as fast as we can in order to double or even (dare I say) quadruple the long term unemployed so that we might pay off the federal debt at several times the current rate - which admittedly has been fast since the Democrats started setting the national budget again.

 

[Frisco_Slug_Esq]

That's a very excellent plan kbate...




Your ability to be on the same page with Dem is uncanny.
__________________
I'm Hungary for some €PIIGS!
A_J, the Incredulous

 

[busybody..]

We know (from reading LaTrouvere and others) that unemployment benefits lead to economic growth because the long-term unemployed spend every dollar they receive, while employed tax-paying citizens are an economic drain because they do not pay high enough taxes and every tax dollar not paid, is a loss to the government.

Therefore, it is plainly obvious, that we should offshore as many jobs as fast as we can in order to double or even (dare I say) quadruple the long term unemployed so that we might pay off the federal debt at several times the current rate - which admittedly has been fast since the Democrats started setting the national budget again.

Kbate the Sane!

 

[Johnny_Ray_Wilson]

Well, we could could use the US Armed Forces to collect debts owed to us from foreign countries - Mafia style. But nooooo, the global community would perceive us as bullies. On the flip side, we should back the fuck off from trying to mold other countries in our image.

 

[Frisco_Slug_Esq]

Well, we could could use the US Armed Forces to collect debts owed to us from foreign countries - Mafia style. But nooooo, the global community would perceive us as bullies. On the flip side, we should back the fuck off from trying to mold other countries in our image.

Nuh-UH!!!!

We'll be using GAY soldiers now...

GAYs are not bullies, they don't force people/organizations to do things they're not comfortable with!

*nods*

 

[off2bed]

Infinite credit.












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