Monday, December 15, 2008

Bailouts Are US

"The nation's governors urged Congress to pass an economic-stimulus package for states, warning that their collective budget shortfall could rise to $140 billion by mid-2010. ... On Tuesday, a group of about 40 governors is scheduled to meet with President-elect Barack Obama in Philadelphia to discuss the proposal. Mr. Obama has repeatedly pledged to helpstates cope with the economic downturn. ... In California, Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called lawmakers into a special session to address a $11.2 billion shortfall. The state's revenue gap is expected to hit $28 billion over the next 19 months, and without quick action, the state said it is likely to run out of cash in Febsurary. ... The governors association package, which seeks about $60 billion to finance infrastructure projects, is designed to square with one of Mr. Obama's core campaign proposals", Christopher Cooper and Brad Haynes at the WSJ, 2 December 2008.

Municipal bonds look like they are hazardous to your financial health.

8 comments:

Anonymous said...

Munis are "hazardous to your health."

You see what the power of the printing press can do! I bet the municipalities (and states) wonder why they can't print money like Uncle Ben. :)

Independent Accountant said...

Anonymous:
That's my point. When Zimbabwwe Ben (ZB) brings municipal bonds under the Federal umbrella, the US will have another source of inflation. Can ZB say no after the Wall Street bailouts? Not if he wants to avoid joining Marie Antoinette.

Junior said...

Jesus, is there no end?

By the end of 2009, the Fed is going to own it all at this rate...

Independent Accountant said...

Junior:
The "end" will come when the dollar is no longer accepted as a medium of exchange. That's called hyperinflation. If you haven't read anything about Germany's 1918-1923 experience, do so. I've got a link to an article about it at this blog. That's an order from your "old man". Don't worry about not being a CPA. There are 350,000 CPAs in the US, many of whom know nothing.
Look at Zimbabwe Ben, (1590 SATs). Do you think I stand in intellectual are of him?

Anonymous said...

Such a broad brush IA... Is every muni like poison? Everyplace a disaster?

ZB Ben = Marie Antoinette? Slow train coming...

Edgar Alpo said...

The states should declare bankruptcy and get it over with.

Anonymous said...

States cannot declare bankruptcy. Only cities, countiers, and other localities.

Anonymous said...

States don't declare bankrupcy, they just refuse to pay...