State Bailouts?

[don]

The latest here in Cali is the shutting down of 2,000 public work projects due to the budget impasse:

The vote by the Pooled Money Investment Board - consisting of the state controller, the treasurer and the head of the finance department - will halt about $3.8 billion in funding through June of next year and could cause some projects to be scuttled.

A representative for the construction industry in the state called it "a very dark day."

In addition to roads, schools and housing projects, parks, veterans homes, fire stations, courts, prisons and environmental cleanups will be affected. Also hit will be projects planned by the University of California, California State University and community college systems as well as the state's stem cell research center in San Francisco.

"If I could vote any other way I would, but we're numbers guys, and we have to pay attention to the numbers," said Mike Genest, director of the state Department of Finance.

http://www.sfgate.com/cgi-bin/articl...MNEM14PUR0.DTL


Estimated job losses are 200,000.


Will it be mechanisms such as this that funnel Federal "superstructure stimulus programs" into state bailouts :confused:

[sn1p3r]

Re: State Bailouts?

I've often wondered this myself but more from a safety/security perspective as in, what happens if you can't pay the police and firemen? :confused:

[jtabeb]

Re: State Bailouts?

I've often wondered this myself but more from a safety/security perspective as in, what happens if you can't pay the police and firemen? :confused:

I don't know, but you should go ask the Romans. It happened to them. I'm not too up on my history, how did it work out for them?;)

[KGW]

Re: State Bailouts?

I've often wondered this myself but more from a safety/security perspective as in, what happens if you can't pay the police and firemen? :confused:

The firemen and the policemen get to live like regular people. . .

[FRED]

Re: State Bailouts?

I don't know, but you should go ask the Romans. It happened to them. I'm not too up on my history, how did it work out for them?;)

What happens is that wealthy communities that can afford to hire private police and fire protection do so. Poor communities that cannot afford them experience rising crime, and homes burn down more frequently there.

The distribution of wealth split that we've harped on here for years becomes a gigantic chasm into which the society falls. Ask the Argentines for a more contemporary example than Rome provides.

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