State Debt Woes Grow Too Big to Camouflage

State Debt Woes Grow Too Big to Camouflage

finance.yahoo.com

California, New York and other states are showing many of the same signs of debt overload that recently took Greece to the brink -- budgets that will not balance, accounting that masks debt, the use of derivatives to plug holes, and armies of retired public workers who are counting on benefits that are proving harder and harder to pay.

(visit the link for the full news article)

This is going to be messy. After selling off public property and trying to raise money in any other conceivable way, many states are going to find themselves unable to recover.

The solution will be another federal bailout, but in exchange the states wil end up being forced to drop any grievances with the feds and maybe even lose some level of sovereignty.

finance.yahoo.com
(visit the link for the full news article)

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[edit on 30/3/10 by MikeboydUS]

Already posted.

www.abovetopsecret.com...

Sorry about that. Please leave you good comment there too.

reply to post by anon72


ATS rules allow for a thread in breaking news and a thread in the accessory boards. Carry on.

Seems to me that spending is the big issue. Why not cut the pensions instead of laying off state workers. The pensioners probably already have their houses paid off and could take a 20% cut in pay. The workers though are still paying for their houses and supporting their families. It never ceases to amaze me how the government will lay off the workers but never touch the pensions...


Another thing that pisses me off is the lay off cops and teachers which are community services THAT I PAY FOR THROUGH PROPERTY TAXES. Why not cut the pensions and enititlement proframs first because THOSE PEOPLE are not working and thus don't deserve the money.

reply to post by jkm1864


A pension, is for someone that dedicated many long years of his life working hard for retirement. Sure cut off your own grandfather. You know what the FED should have just given the bailout money to the American people in the first place. 1.7 trillion dollars = a decent chunk of change even divided 300,000,000 ways.

reply to post by DaMod


the u.s government is no different than any other government in this world .they promised us the moon to get elected into office and we all got the shaft from them in every conceivable way possible and then some.
they are as inept at understanding the credit and debt system that screwed us all over that you all must be getting mighty sore.
the world bank lends money to the banks at 1% interest rate the bank jacks it up after making 100 imaginary dollars per dollars . that they lend to us and the government .the man gets a better rate than we the people . the biggest problem is COMPOUND INTEREST which compounds the problem to pay it back ,ever notice that you never get ahead in this world and money in most of your bank accounts is minimal and every time you use their banks they come up with more creative was to fleece our pockets .
our governments seem to think that our pockets are bottomless especially now that they are empty ,and the banks have fleeced us all ,including the GOVERNMENTS -remember their lies it is only 3.5% interest. funny thing is 3.5% on $100,000.00 mortgage should only be $3,500.00 interest not the $135,000.00 in interest on top of the $100,000.00 . this is compounding interest at it`s best ,raped again .
and our GOVERNMENTS want us to buy their bonds so we can pay them to pay off THEIR DEBT AS THEY TOOK IT OUT NOT US. on top of all the insane taxes that we pay so that we can all be GROSSLY MISREPRESENTED BY THEM.
it is amazing that banks fail due to mismanagement by their over paid exec`s.and we the people have to bail them out the same with the auto sector the employees had to take cuts equivalent to 10 years of negotiating and the exec`````````s took no pay cut s. and all the exec`s got their hefty bonuses and perks in all of these cases ,and now 1/2 of the worlds work force is out of work due to the bank`s and yet in this day and age the bank`s are all reporting RECORD PROFIT``S.
THE BOSTON TEA PARTY WAS NOT SUCH A BAD IDEA IT CAN GET WORSE ASK MARIE ANTOINETTE.