Thursday, February 23, 2017

Funny Money

Remember Obama and the Dems bailing out Wall Street firms “to big to fail”? Coming soon, various states.

Picking on California, they are some $443 billion in debt.


That is over $1,000,000 per resident.

California has a net gain in jobs but at what cost? Seems enormous subsidies are what is fueling that growth while regular businesses are leaving the state.


Picking on New York, and not using the newspaper with the most sterling reputation.


Note the reference to back door borrowing. Common in many states.


Who holds the debt? A lot of it is you, in your pension funds, IRAs, and 401Ks. 


Total state debt per various sources is around $1.8 trillion. That doesn’t necessarily include underfunded pension obligations.

US Government debt may exceed $13.62 trillion.

What happens when some state defaults? Not if, when. Does Uncle Sugar bail them out?


Depressing figures to be sure. At least we now have a chief executive that understands finance. His predecessor never had to meet a payroll and probably can’t balance a checkbook.

6 comments:

LL said...

Barack couldn't run a lemonade stand at a profit.

Trump will tread softly on state debt, hoping that an enlarging economy will allow the pension funds to grow themselves out of the fix that they're in. The alternative is to crash the system and pay that price. The liberal states (who are in this fix) such as CA and IL are the worst offenders - as you'd expect.

Fredd said...

Donald Trump's predecessor couldn't possibly run a lemonade stand for a profit. Barry had absolutely no clue what an income statement was for, or what the letters "P&L" stood for, much less EBITDA.

The guy was an economic imbecile. But, he was black, and that was more important to low info voters than being smart.

Well Seasoned Fool said...

Lemonade stand.

A growing economy might fix the problems given fiscal sense by the state 'leaders'. Not a given.

Well Seasoned Fool said...

Lemonade stand II.

Barak is a bought and paid for tool.

Old NFO said...

It will be REALLY interesting when CA, NY, or IL goes to .gov for a bailout and Trump says no... :-)

Well Seasoned Fool said...

It will be grim.