How bad is it? Arizona applies for bank loan.

[antigop]

http://financialweek.com/apps/pbcs.dll/article?AID=/20090106/REG/901069974/1036

Arizona, which may run out of cash in 60 to 90 days, is in talks to open its first-ever line of credit from a bank, seeking up to $5.7 billion so it can pay its bills, the state treasurer said.

Arizona’s financial troubles are severe. Its state government faces a $1.2 billion shortfall in its $9.9 billion budget over the remainder of its fiscal year, likely to be addressed by deep spending cuts. Revenues tumbled after its once red-hot housing market crashed, sending ripples through its broader economy.

Arizona’s unemployment rate climbed to 6.3% in November from 4.1% a year earlier. Non-farm payrolls shrank by 83,100 jobs, or by 3.1%, over the 12-month period.

As a result, Arizona’s coffers have been thinning at “unprecedented” speed, forcing it to begin talks with Bank of America State Treasurer Dean Martin told Reuters in a telephone interview late on Monday.

“We just don’t have any cash,” Mr. Martin said. “We’re not in a sustainable financial situation.”

[islandmkl]

1. calling all states:

get your figures accumulated and jockey for position...

[Idealism]

2. America is not going to bail out these dinosaurs

They have made bad decisions time and time again and have not adapted to what the American people want. Put out a product the public wants next time :sarcasm:

[amerikat]

3. What will they use for collateral?

The state Capitol, cactus? How about the bank gets to rename the state. The Bank of America's State of Arizona?
:sarcasm: