46 Of 50 States Could File Bankruptcy In 2009-2010

[L0oniX]

<snip> Many States are already scurrying to cut unwanted costs, cut State-funded programs, raise taxes, not issue tax refunds to their citizens, and borrow money just to survive in 2009. Unfortunately, many banks — the same banks the Fed bailed out — are refusing to loan money to the States and their Treasury agencies.

Gee the bail out is really helping ...someone other than us.

<snip> It’s very possible you’ll see the end of the United States as we know it. If the Fed doesn’t bailout the States when their cash dries up and the banks don’t loan them money, then our States will be left in financial ruin. This would be a tragic and unprecedented event never experienced in the United States.

No State has ever filed bankruptcy, but it could be coming to a State near you this year.

We are on the brink of something far worse than the Great Depression.

http://freedomarizona.wordpress.com/2009/01/30/46-of-50-states-could-file-bankruptcy-in-2009-2010/

[Earth_First]

1. What. The. Fu*k. n/t

[Cessna Invesco Palin]

22. What the fuck is that some rightwing nutjob has a blog. n/t

[Veritas_et_Aequitas]

2. Many banks — the same banks the Fed bailed out — are refusing to loan money to the States

That point is worth emphasizing.

[L0oniX]

4. I guess that when the school busses don't show up, people will take notice.

[L0oniX]

3. O well ...thanks for all the responses and good luck with your state programs.

I thought people might be interested that once again the banks we bailed out are not helping anyone or anything but themselves.

[Buns_of_Fire]

44. Patience, grasshopper...

Not all of us see the same post at the same time.:hi:

We have definitely learned our lesson* from the first part of the bailout. Here's hoping the O-Man and his team are prepared to hold some well-shod feet to the fire from this point forward.


* That lesson being that if anyone expected these greedheads to do anything more than feather their own nests -- without being forced to -- I've got some prime Florida property, about 1/2 mile from the beach, that I'd like to talk to them about.

[Coyote_Bandit]

5. And West Virginia

which is the home of some of the poorest citizens in our nation isn't among those states.

http://en.wikipedia.org/wiki/Economy_of_West_Virginia




Perhaps we should substitute the government of West Virginia for that of the United States. They at least seem to be able to limit their spending to what resources they have available.

[blue_onyx]

6. Not going to be a pretty year for most states

Michigan has a fairly small deficit this year but will need to cut 1 billion or more for the next budget year. It will be almost impossible to raise taxes because we did that in 2007 and our Governor was only able to increase taxes after the MI GOP forced a government shut down. Unfortunately, I think Michigan and most other states will have to resort to cutting important things like education funding.

[OhioChick]

7. I hear you....

It hasn't been pretty for some time here in Ohio.

K&R

[Le Taz Hot]

9. They're sending out I.O.U's here in CA.

Try taking one of those into your local supermarket. No welfare checks. No food stamps. This is going to get REAL ugly.

[OhioChick]

10. I read that the other day.....we're all screwed....

Just some sooner than others.

[IDemo]

17. I don't suppose they'd mind if taxpayers sent them IOU's this year?

[TahitiNut]

8. Michigan's flat (e.g. REGRESSIVE) income tax structure compounds the problem.

It's an appallingly regressive state tax system.

[L0oniX]

11. Florida has no state tax ...we are going be hurt the worst.

It's so bad here that the illegal aliens are going back to Mexico.

[glowing]

14. Yep, people are disapearing. Children are not showing up for school.

Illegal aliens are going back to country of origin.. might as well be surrounded by family and home, than weather the storm in the USA, where its super expensive to be poor. I'm just wondering when the anger will be enough that we collectively get the govt to work for all of us. I wish that the 2million people who showed up for the inauguration stayed in town until we got universal healthcare and a bailout for the regular joe and the elimination of poverty once and for all.

[TahitiNut]

15. Spend a day in the inner city of Detroit and tell me about "hurt the worst."

Over 1 in 50 are homeless. Houses stand abandoned. Highest foreclosure rate in the nation. Highest unemployment rate in the nation, as a state and as a county. It's post-apocalyptic in may areas of Detroit ... poverty and infrastructure collapse most only see in movies. It staggers the mind.

[blue_onyx]

18. "Poverty and infrastructure collapse most only see in movies"

Ironically, the vacant buildings and "post-apocalyptic" image (in addition to the tax incentives) are attractive to film makers who are coming to the area in great numbers.

[L0oniX]

19. Expect another Road Warrior movie soon n/t

[TahitiNut]

20. Yup. 'Gran Torino' was filmed on location in Detroit as well as Royal Oak, where I live.

Filming locations for
Gran Torino (2008) »

Detroit, Michigan, USA

Grand Rapids, Michigan, USA

Grosse Pointe Park, Michigan, USA

Grosse Pointe, Detroit, Michigan, USA

Highland Park, Michigan, USA

Royal Oak, Michigan, USA

Warren, Michigan, USA

http://www.imdb.com/title/tt1205489/locations

Just in the last year or so, many other filmmakers have come here, including ...
# Deadheads (2009)
# Derrière, Le (2009)
# Prayers for Bobby (2009) (TV)
# Whip It! (2009)
# Youth in Revolt (2009)

Over 368 movies have been filmed on location in Detroit over the years and recently at an increasing rate.
http://www.imdb.com/List?endings=on&&locations=Detroit,%20Michigan,%20USA&&heading=18;with+locations+including;Detroit,%20Michigan,%20USA

[whopis01]

40. Try New Hampshire - no state income tax - no state sales tax

That really hurts at a time like this.

[blue_onyx]

16. Yes, I wish we could change that

It would have to be changed through a ballot proposal because there's no way a 2/3 majority would be reached to change it in Congress. I don't understand why the requirement for a flat income tax was put into the Constitution in the first place. I hope a progressive income proposal is put on the ballot in 2010.

[Azlady]

12. 5th recommend - I was talking with a county assessor from Los Angeles...

He was on vacation as when he got back he was going to have to lower values on homes, thus reducing the income to the county, this is one hell of a ride we are all on and it is the most frightening of my life.

[L0oniX]

13. We had over 70 at the homeless feeding this Saturday and some said they were not recieving...

food stamps anymore. Everything is being cut here.

[RB TexLa]

21. Louisiana is bankrupt, but our republican governor still thinks we can afford roads and brags

about spending the money on them.

[Coyote_Bandit]

23. Here

They increased real property taxes to build a new convention center, a new sports stadium and to do major road repairs necessitated by decades of neglect. Rental properties are overbuilt here and tenants have not been impacted by the tax increases. Meanwhile, my property taxes will nearly double this year from what they were in 07. Some commercial properties here have seen their property taxes increase six times over.

I'm thinking maybe it's time to have a fire sale and sell the house and the ever increasing tax liability that accompanies it. I know I don't have to go far to get nicer, newer digs on a much larger piece of dirt for a whole lot less in tax payments.

I'm guessing this city is on the verge of bankruptcy - as it should be based on its fiscal practices.

[Waiting For Everyman]

24. All the states spend too much on executive perks, and not enough on

actual services. They've bought in to the corporate model. That will have to change too.

[L0oniX]

32. Yea they lay off the actual people that do the work and keep all the managers and supervisors.

[customerserviceguy]

25. Is there a provision of the bankruptcy code

that I'm not familiar with where states can actually "file" for bankruptcy? Where a state's creditors can actually come in and start collecting the taxes, sell off the state parks, etc?

Or was this just a poorly worded figure of speech here?

[Mike 03]

26. What will this do to the safety of municiple bonds as investment instruments? Anybody

know?

[dgibby]

27. SC is in big trouble, too.

Unemployment hit 9.6%, Charleston County is preparing to close 5 schools plus the only day care for special needs children. In addition, crime is up-6 murders in Jan., plus an increase in suspicious fires.

Of course, SC keep voting republican , so I suppose that doesn't help much. I have a bad feeling that this is going to get much worse before it gets better(if it ever does).

My neighbors and I are going to plant a community garden, including fruits and veggies. I cut down some older trees to open up both yards for more planting and more sun. Will add some fruit trees, plus a grape arbor. My yard is small and I have pets, so the neighbors are going to grow the larger plants in their yard. He lost his job about 18mos ago and I'm retired, so the garden will be very beneficial.

I'm seriously considering investing in a CSA group this year. I haven't found anyone yet who isn't happy with them. Good produce, meat, cheese, milk, etc.

In addition to the above, I shop the resale stores, habitat, goodwill, etc. Can't begin to add up the deals I've gotten on furniture, building materials, etc.

Hopefully, things will get better eventually, but I'm not waiting to find out.

[Still Sensible]

28. Pure Horseshit

Wasted a good two minutes on this clown.... damn

[progressoid]

43. I was going to say BULLshit but the sentiment is the same. n/t

[B Calm]

29. No money for social spending.. I can see it now, republicans gleefully

masturbating to the prospect of keeping working people over a barrel and in a position to "work cheap or starve".

[nichomachus]

30. Conservatives must be devastated

They were hoping for all 50 to be bankrupt by this time -- they must have slipped up somewhere.

How else can they end all social programs, all public works, and public education if every state isn't bankrupt?

Traitors all.

[L0oniX]

31. LOL

[Blue-Jay]

33. That's IT! I'm moving to Montana!

Or perhaps I'll just settle for poking a sharp stick in my eye.

[L0oniX]

34. Not many jobs there ...do ya like being a cowboy?

[Blue-Jay]

38. I used to train & ride a lot when I was a kid.

On the other hand, I never looked good in a cowboy hat, I hate shirts with snaps instead of buttons, and Wrangler® Jeans tend to ride up in the crotch.

[yodoobo]

35. Hmm... I think I'll cut back on my state tax withholding

I don't want to be left with an IOU like the folks in california.

[pinto]

36. A warning on budget shortfalls from a rabid anti-tax advocate?

Seems an odd juxtaposition.

[L0oniX]

37. Certainly is

Even if some of it is bogus there's no doubt that many states are in financial trouble.

[pinto]

39. Agree on the budget issue. I'm in CA and we have some widely reported problems.

Unfortunately we have a triple albatross on our budget - 2/3 legislative vote requirement on any taxation, long standing loopholes/burdens of Prop 13, and an obstructionist (R) party.

[ColbertWatcher]

41. All the state budgets went to Iraq. (EDITED TO ADD)

One question: of those four states, which one(s) provides more in taxes than it takes in services?

[yy4me]

42. Massachusetts is about to belly-flop. Not only will there be and

are huge budget cuts everywhere but the towns are starting to close Public Libraries. Seems that they must remain open a fixed number of hours to remain certified. Rather than adjust this rule, should the state not soften some of these old rules to allow partial weekly hours? Twenty or so hours of open library is better than a closed library.

This is now happening in the small town of Winthrop, (just over the river from Boston) which has a population of 20,000 people. I cannot figure out the stubbornness of the rule makers on this one. As things get worse, more towns will be doing the same thing.

The list is long and sad.

Never thought I'd see the day ...........

[Zynx]

45. That's not at all what that means. I have been following this issue on behalf

of the Wisconsin State Budget Office. Only four or five states are in serious trouble. The rest can reduce spending or raise taxes to survive. Bankruptcy is on the table for a small number. Most states will close their deficits, but it will be very very painful without the federal bailout.