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.