Let States Go Bankrupt

Discussion in 'Politics' started by ScreamingEagle, Dec 28, 2010.

  1. ScreamingEagle
    Offline

    ScreamingEagle Gold Member

    Joined:
    Jul 5, 2004
    Messages:
    12,885
    Thanks Received:
    1,609
    Trophy Points:
    245
    Ratings:
    +2,158
    After two years of bailouts, “stimulus” spending, TARP and earmarks, the country took a deep breath and is now beginning a discussion about the unsustainable trajectory of federal expenditures and the reforms necessary to right the country’s fiscal ship.

    This is all good and healthy. However, Washington is not the only place with an overspending problem. We are now starting to see greater attention being paid to the dire financial straits of state governments — which pose just as grave a threat to the country.

    New Jersey Gov. Chris Christie, who knows what it’s like to begin fixing a state where profligacy has carried the day for far too long, said on “60 Minutes” last Sunday, that, for states, the “day of reckoning has arrived.”

    This day of reckoning has convinced policy experts, political observers and some on Capitol Hill that federal legislation allowing states to file bankruptcy might be the only way to avoid a federal bailout of the most fiscally reckless states in the union.

    Opinion: Let states go bankrupt - Grover G. Norquist and Patrick Gleason - POLITICO.com
     
  2. Madeline
    Offline

    Madeline BANNED

    Joined:
    Apr 20, 2010
    Messages:
    18,505
    Thanks Received:
    1,624
    Trophy Points:
    0
    Location:
    Cleveland. Feel mah pain.
    Ratings:
    +1,624
    Wow. Bankrupt states? That'd mean all the debt they owed was no longer collectible -- overdue Medicaid reimbursements, salary, benefits, overdue contract payments, etc.

    My only complaint is, this doesn't distribute the pain fairly or rationally. But there will be pain -- there has to be.

    Hang on to your hats time, I guess.

    BTW, I think Christie rawks. The man tells the truth -- a rare quality in a politican. I wish he'd reconsider running for the presidency.
     
  3. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    That's what you get when people try to get everything at everyone else's expense.

    I won't say I hate to say Itoldjaso, 'cause I love to say Itoldjaso.
     
  4. PoliticalChic
    Online

    PoliticalChic Diamond Member

    Joined:
    Oct 6, 2008
    Messages:
    55,662
    Thanks Received:
    15,567
    Trophy Points:
    2,190
    Location:
    Brooklyn, NY
    Ratings:
    +24,777
    State, unlike federal, budgets, cannot run as deficits. “Virtually all states have balanced budget requirements, so they must take actions to close these deficits.” (State Budget Deficits for Fiscal Year 2004 are Huge and Growing, Revised 1/23/03) So, what to do? Simple: conjecture a better world!

    a. In 2008, states reported that their public-employee pensions were underfunded by a total of $438 billion. But independent estimates say the underfunding is closer to $3 trillion. Why? The states make up estimates of return at unbelievable levels: the median investment return factored in by state pensions is 8% a year! AEI - The Market Value of Public-Sector Pension Deficits

    b. “The official state estimate in underfunded pension liabilities to New Jersey’s public workers stands at $46 billion. It is one of the highest liabilities in the nation, averaging $5,200 per capita. The estimate is based on an assumed rate of return on pension assets of 8.25 percent –“ National Taxpayers Union - Overvalued and Underfunded: New Jersey?s Pension Time Bomb

    c. Now, what happens if the state cannot pay the pensions? Taxpayers are legally obligated to make up any difference between what’s been promised and what can actually be paid. Pension Pulse: Pension Woes May Deepen Financial Crisis

    Now, where is the government going to get all of the money necessary to cover the promises made to unions?

    Have you seen this:
    "Obama Administration begins the “grab” for retirement accounts

    S 3760, introduced August 5 by Jeff Bingaman (D-N.M.) and John Kerry (D-Mass.) would require that employers of workers currently not covered by any retirement program pay 3% of compensation into mandatory, automatic IRA accounts. That would also have the effect of increasing the assets that the US government could then seize.

    This is the Republican privatization of Social Security scheme trotted out during the Bush years, retooled and now focused on the private savings of the middle class. Now, instead of forcing you to invest any portion of your Social Security retirement in the stock market, a move which would have seen one of the greatest thefts of wealth and its redistribution to the crooks and thieves on Wall Street had they been successful, the Democrat faction has taken up the cause of confiscating private investment accounts to fund the rampant overspending of government using retirement savings of those who were able to contribute to 401(k) and IRA accounts and who have savings in private pension funds. "

    Nationalized retirement accounts: The coming confiscation of the retirement savings of the middle class The PPJ Gazette


    Or this:
    "For some time, there have been rumblings that the federal government might try to solve its budgetary problems by nationalizing (i.e., stealing) the money that millions of Americans have set aside for retirement in 401(k) plans and the like. One way they might do this is to confiscate the cash on hand in exchange for a promise to make future payments in the form of an "annuity." An involuntary annuity, in that scenario."
    Power Line - Are the Feds Trying to Nationalize Your Retirement Savings?
     
  5. Soggy in NOLA
    Offline

    Soggy in NOLA Platinum Member

    Joined:
    Jul 31, 2009
    Messages:
    32,679
    Thanks Received:
    4,316
    Trophy Points:
    1,130
    Ratings:
    +11,411
    Part of the bankruptcy has to be a come to Jesus meeting over public employee pensions and other obligations. My gut tells me that somehow, vendors and muniholders will get the shaft (see GM bondholders for reference) and the pension obligations which are bankrupting them, will somehow get spared.
     
  6. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    Grover Norquist!!

    :lol::lol::lol:

    Starve the beast!! Yahooo!

    One of the biggest idiots out there..and very dangerous too.

    Just recently a couple of towns stopped paying their city employees, pensions. And they've pulled a few of those ex-employees, like firechiefs and such..out of their apartments.

    Dead.
     
  7. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    Awwwww......Ain't that too goddamn bad.
     
  8. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    Probably.
     
  9. Soggy in NOLA
    Offline

    Soggy in NOLA Platinum Member

    Joined:
    Jul 31, 2009
    Messages:
    32,679
    Thanks Received:
    4,316
    Trophy Points:
    1,130
    Ratings:
    +11,411
    Tragic while that may be, there is an old saying.. "that which cannot continue, will not continue."

    There ain't no mo money.

    :eusa_drool:
     
  10. Sallow
    Offline

    Sallow The Big Bad Wolf. Supporting Member

    Joined:
    Oct 4, 2010
    Messages:
    56,535
    Thanks Received:
    6,132
    Trophy Points:
    1,840
    Location:
    New York City
    Ratings:
    +7,394
    If there's money to do a billion dollar deal with Raytheon to build missile defense systems that don't work..then there is money to pay the pensions of ex-firechiefs and other government employees..that PAID into the system.
     

Share This Page