California may need emergency $7 BILLION loan
That’s just a bridge loan, the real deficit is quite higher:
“On Wednesday, California Treasurer Bill Lockyer said the most populous U.S. state’s cash reserves may be exhausted near the end of October, and various state-funded services are at risk of grinding to a halt.”
Presumably that budget accord was a fantasy.
It’s not just the Golden State. “Taxifornia” is just the distant early warning signal– everyone else is right behind us breathing down our necks- starting with the federal gummint. Their hand will be forced by this assinine bailout bill. To maintain our standing in the world, the gummint will have to both raise taxes and devalue the dollar (makes it easier to pay off the debt).
So we get the best of both worlds!
Wait there’s more!
Prepare for higher taxation from not just the fed, but state and muni too.
But don’t worry, we’re not alone! This is going to be global meltdown!
There are reports today that Iceland might be going bankrupt. Mostly because credit in the EU is severely dried up.
Yet banks are hoarding cash, so the issue LIQUIDITY it is SOLVENCY AND TRUST (i.e “confidence”).
In other news, why are Shittygroup (C) and WFC fighting over the turd known as Wa-CHOKE-ia (WB)? Does it have anything to do with the Mother of All Golden Parachute & Retirement Plan for Failed Bank Executives aka No Banker Left Behind Bailout Bill, and the juicy turds they can offload to the treasury at par value?
I betcha Stanley Kubrick knows.
When someone told director Stanley Kubrick “you can’t polish a turd,” he replied, “you can if you freeze it.”