Deflationary pressure?

Five States brace for shutdowns
Time is running out for the legislatures in Arizona, California, Indiana, Mississippi and Pennsylvania to solve budget gaps.

“Of the 46 states whose fiscal year ends today, 32 did not have budgets passed and approved by their governors as of Monday afternoon, according to the National Conference of State Legislatures.” [LAT]

Also:

Ten States Race to Finish Budgets [WSJ]

How much of the problem is that taxes (“income” via sales, income, property levies) increasingly go to pay down debt- bonds, interest on borrowed money, etc. to finance pet projects, build Taj Mahal’s to stupidity and the petit bureacracy, overpaying their pet contractors in the process?

From my POV politicians imprudently leveraged *everyone’s* future to make *their* careers.

How different is that REALLY from Wall Street firms which for years goosed earnings to earn record bonuses?

Of course, if they hadn’t crashed the car from blind drunkenness, nobody would be in harm’s way, right? In a sober moment, perhaps you’d realize a crash was inevitable.  As a drunk driver who was sued civilly by the man whose car he ‘borrowed’ once said:

“I take full responsibility… but you should have never trusted me, so it’s really all your fault.”

I’m starting to doubt CA will ever get that bullet train from LA to SF.


We’re all subprime now!

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