This will be the next crisis

[flintlock]

Collapsing state budgets are going to be THE story sooner than many think. Dumping even more onto the unemployment rolls and further reducing consumer spending. A nation so heavily dependent on government jobs and consumer spending won't take it well.

http://money.cnn.com/2009/06/24/news...gets/index.htm

[pwcmba]

Re: This will be the next crisis

And so it goes-

http://www.chicagotribune.com/news/c...,2964245.story

"The umbrella agency that oversees the Chicago Transit Authority, Metra and Pace says the latest shortfall is around $61 million. That comes on top of even larger gaps announced earlier this year."

[ricket]

Re: This will be the next crisis

And so it goes-

http://www.chicagotribune.com/news/c...,2964245.story

"The umbrella agency that oversees the Chicago Transit Authority, Metra and Pace says the latest shortfall is around $61 million. That comes on top of even larger gaps announced earlier this year."

All that interest paid out over the years for scandalous, mathematically impossible laons, is finally catching up.

Whoops, theres no money left? Gee I wonder why? Oh, that would be because all the interest to service the debt was never created, so now there is a huge gap in the imaginary (interest+principal) versus the real (principal) that was created.

And people act surprised...

[dummass]

Re: This will be the next crisis

My first clue was when Bloomberg started putting their "experts" on the air hocking muni bonds.

[Kadriana]

Re: This will be the next crisis

I know a lot of teachers and cops are loosing their jobs around here. Oh well, it's not like they do anything important anyways, right? :/

[cjppjc]

Re: This will be the next crisis

All that interest paid out over the years for scandalous, mathematically impossible laons, is finally catching up.

Whoops, theres no money left? Gee I wonder why? Oh, that would be because all the interest to service the debt was never created, so now there is a huge gap in the imaginary (interest+principal) versus the real (principal) that was created.

And people act surprised...

I love when you do this. It always REMINDS me to think about what you are saying.

[Master Shake]

Re: This will be the next crisis

I know a lot of teachers and cops are loosing their jobs around here. Oh well, it's not like they do anything important anyways, right? :/

Whenever there's a budget crisis, the government party starts laying off the most useful public employees first to raise the public outcry and gin up support for more taxes. In the school systems, the central admin staff and heads of bullshit programs like Diversity blahblahblah and Multicultural yaddayaddayadda remain employed, while the people doing the real work of teaching kids face cutbacks and layoffs. Real police face cuts while the parking meter enforcement division sees business as usual.

[ricket]

Re: This will be the next crisis

I love when you do this. It always REMINDS me to think about what you are saying.

Sometimes it takes repetition to get a simple, yet complex point across.

Whenever there's a budget crisis, the government party starts laying off the most useful public employees first to raise the public outcry and gin up support for more taxes. In the school systems, the central admin staff and heads of bullshit programs like Diversity blahblahblah and Multicultural yaddayaddayadda remain employed, while the people doing the real work of teaching kids face cutbacks and layoffs. Real police face cuts while the parking meter enforcement division sees business as usual.

I think they should stop paying interest on loans first. Only pay the principal (for starters) with the intention of being reimbursed for every penny in interest ever paid. That alone would free up enough money to pay firefighters, police, etc to patrol the streets. It's like the politicians are willing to sacrifice peace and stability so that the banks will continue to fund their re-election campaigns.

[touchring]

Re: This will be the next crisis

interesting, in comparison, you have this:

http://www.futuregov.net/articles/20...credit-scheme/

Singapore’s Ministry of Finance (MOF) has revealed details of the plan behind the Jobs Credit Scheme, the S$4.5 billion (US$3 billion) initiative introduced earlier this year to save jobs by subsidising part of employers’ wage bills.

http://www.channelnewsasia.com/stori...408214/1/.html

The Ministry of Education (MOE) is hoping to recruit another 3,000 teachers this year, but if this target could not be met “so be it”,

[Slimprofits]

Re: This will be the next crisis

"Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression," Chiang said. "The state's $2.8 billion cash shortage in July grows to $6.5 billion in September, and after that we see a double-digit freefall."

We should be in a full blown national crisis by next summer.

Actually let's see what happens with heating bills in the Winter of '09 - '10.

Those mid-term elections are going to fun.

[ax]

Re: This will be the next crisis

We should be in a full blown national crisis by next summer.

Actually let's see what happens with heating bills in the Winter of '09 - '10.

Those mid-term elections are going to fun.

As a Floridian, this scares the piss out of me:

"This special report was prepared by committee staff and presented to the Senate Banking & Insurance Committee on December 9, 2009. It notes that the Florida Hurricane Catastrophe Fund "has a nearly $19 billion maximum potential shortfall for 2009."

http://www.flains.org/content/view/2655/38/

Hoping for another mild hurricane season...Imagine what property values will be here is we have another Rita.