How are states and municipalities surviving?

Discussion in 'Economics' started by bond_trad3r, May 10, 2009.

  1. Since they can't print their own money and all. I've heard much of the stimulus was in reality just a bailout for the states. 2010-2011 budgets should be interesting as the economy deteriorates further.

    I've been a harsh critic of Florida's budget process, but recently I've been satisfied. It's far from perfect, but a couple more years of sharp economic declines will be exactly what the state needs to cut the waste out of government.
  2. This was a bail out of the Government. If the banking system was allowed to clean its self up then Government would not have been able to borrow.

    If the Banking system could have failed without cutting off funds to the Government then we would not see all of this money being made available.

    The Government will never allow their source of funds to dry up.
  3. Municipalities are hiring lobbyists for bailout money, raising taxes, writing more traffic tickets.
  4. What about all those short term debt instruments they bought based on Sub-Prime Mortgages?
    Didn't all of that blow up in the states' collective faces?
  5. I'm not sure.

    :eek: :eek: :eek:
  6. googled: which states have budget shortfalls
    "States are facing a great fiscal crisis. At least 47 states faced or are
    facing shortfalls in their budgets for this and/or next year, and severe fiscal
    problems are highly likely to continue into the following year as well.
    Combined budget gaps for the remainder of this fiscal year and state fiscal
    years 2010 and 2011 are estimated to total more than $350 billion." . . .
    Updated March 13, 2009

    googled: which municipalities have budget shortfalls
    "The effect of the weak economy on Philadelphia’s budget cannot be
    overemphasized. Unfortunately, Philadelphia is not alone. The gap
    between state and local revenues and expenditures grew to record
    proportions - over $100 billion - in the third quarter of 2008, according to
    the Bureau of Economic Analysis. As a result, State and City
    governments across the United States have been required to take
    significant action to address large projected budget shortfalls. The maps
    show how other cities have dealt with the crisis—both in FY09 and for