Thirty Two states are Officially Bankrupt


AnnaG
#31
Quote: Originally Posted by darkbeaverView Post

Thirty-Two States are Now Officially Bankrupt
$37.8 Billion Borrowed From US Treasury To Fund Unemployment Insurance
Global Research, May 23, 2010
Zero Hedge - 2010-05-21
Courtesy of Economic Policy Journal we now know that the majority of American states are currently insolvent, and that the US Treasury has been conducting a shadow bailout of at least 32 US states. Over 60% of Americans receiving state unemployment benefits are getting these directly from the US government, as 32 states have now borrowed $37.8 billion from Uncle Sam to fund unemployment insurance. The states in most dire condition, are, not unexpectedly, the unholy trifecta of California ($6.9 billion borrowed), Michigan ($3.9 billion), and New York ($3.2 billion). With this form of shadow bailout occurring, one can only wonder how many other shadow programs are currently in operation to fund states under the table with federal money.The full list of America's 32 insolvent states is below, sorted in order of bankruptedness.

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Officially bankrupt? I never heard of any States declaring bankruptcy. NZ did a long time ago but it isn't a US state.
 
Bar Sinister
#32
Quote: Originally Posted by AnnaGView Post

Officially bankrupt? I never heard of any States declaring bankruptcy. NZ did a long time ago but it isn't a US state.

I did not know NZ declared bankruptcy. I know that in the 1980s its government was pressured into making drastic cuts by the IMF so that Friedmanites could privatize every government service they could get their hands on, but I did not hear of NZ defaulting on any loans, which is what bankruptcy usually means.

Interestingly after bamboozling NZ into line the same technique was used in Canada - hence the wave of privatization that swept provinces like Alberta. Sadly all the so- called "reforms" did was result in higher costs for the average citizen and fewer and less efficient government services.
 
The Old Medic
#33
New Zealand declared bankruptcy not because of privatization, but because of socialist policies that they simply could not finance.

No government entity has had to declare bankruptcy anywhere, because of privatization. Many governments, at every level, have had to go bankrupt because they tried to provide more than they could pay for through the government.

Keep in mind that absolutely nothing that the government provides is free of charge. It must pay for everything through either taxation or borrowing. Over time, virtually every service that the government provides ends up costing significantly more than if a private company were providing the same service.

This is true with every commodity, including oil, gas, minerals; most services like medical care, street cleaning, maintenance work on buildings; in fact it applies to virtually every service except for law enforcement and the military.

The fastest way possible to inflate costs is for the government to become involved in the delivery of services to the public. There is not a single country on the face of the earth where this has not been the case.
 
Bar Sinister
+1
#34  Top Rated Post
Quote: Originally Posted by The Old MedicView Post

New Zealand declared bankruptcy not because of privatization, but because of socialist policies that they simply could not finance.

So far as I know New Zealand did not default on any of its debts, hence it did not declare bankruptcy. Also you have the events backward. NZ privatized many of its services after it began its drastic cutbacks of its programs, not before.

Quote: Originally Posted by The Old MedicView Post

Keep in mind that absolutely nothing that the government provides is free of charge. It must pay for everything through either taxation or borrowing. Over time, virtually every service that the government provides ends up costing significantly more than if a private company were providing the same service.

This is true with every commodity, including oil, gas, minerals; most services like medical care, street cleaning, maintenance work on buildings; in fact it applies to virtually every service except for law enforcement and the military.

The fastest way possible to inflate costs is for the government to become involved in the delivery of services to the public. There is not a single country on the face of the earth where this has not been the case.

I am not sure where you got your information, but your conclusions are simply wrong. There are many nations which have public programs that are more efficient and cost effective than private programs. In Canada several provinces have public automobile insurance which provides lower cost coverage than any competing private plan. Canada also has government health care as do many other nations of the world - all of these countries deliver health care at much lower cost than the private systems of the United States. The same thing is true in many other areas as well, including daycare and education. Sadly too many in the US have been sold a bill of goods on the merits of the private sector. Private companies excel in many areas, but they generally do very poorly when it comes to providing low cost comprehensive services such as health, education, and many other basic services.
 
ironsides
#35
It might just be time to move to the land of fruit and nuts. Ever wonder why California is on the verge of being bankrupt?


Lifeguard pay of $200K riles Calif. beach city.

NEWPORT BEACH, Calif. – Aurora Toussaint brings her disabled son to the sun-kissed beaches of this Southern California city almost every day in the summer, knowing that the lifeguards who watch from their towers will be there in seconds should anything go wrong.
Yet Toussaint, who quit work and dipped into her retirement early to care for her seizure-prone son, was shocked to learn that most of the fulltime lifeguards in this city earn well over $100,000 in total compensation a year — more than Toussaint made in her previous life as a nurse and more than she believes is right in an economy where pink slips have become common fare.
"When I first heard that I was amazed at how much they make. To think that these are lifeguards! That's more than some doctors make," said Toussaint, 55, as she sat by the beach with her son's therapy dog, Romeo. "It does kind of make me feel like, `Gosh, maybe I should be a lifeguard.'"

http://news.yahoo.com/s/ap/20110520/ap_on_re_us/us_lucrative_lifeguarding (external - login to view)
 
TenPenny
#36
Quote: Originally Posted by AnnaGView Post

Officially bankrupt? I never heard of any States declaring bankruptcy. NZ did a long time ago but it isn't a US state.

When did NZ go bankrupt?
 
JLM
#37
Quote: Originally Posted by TenPennyView Post

When did NZ go bankrupt?

That was probably in the 80s, well advertised at the time and pretty stringent measures were taken, imposed by the (now nearly defunct) I.M.F.
 
TenPenny
#38
So, when did NZ declare bankruptcy?

Quote:

I never heard of any States declaring bankruptcy. NZ did a long time ago but it isn't a US state.

I don't believe they ever did 'declare bankruptcy'.

They had a fiscal crisis, yes.
Go bankrupt? Declare bankruptcy?
 
petros
#39
(going by memory) It was the 90's. It took a GST type tax of 23% to pull them out of it.
 
JLM
#40
Quote: Originally Posted by TenPennyView Post

So, when did NZ declare bankruptcy?



I don't believe they ever did 'declare bankruptcy'.

They had a fiscal crisis, yes.
Go bankrupt? Declare bankruptcy?


New Zealand Bank Bailout - NYTimes.com (external - login to view)

I can't determine if they were officially bankrupt.
 
TenPenny
#41
But the claim is that they were 'officially bankrupt'.

Why is that so hard to prove?
 
petros
#42
One way to tell is a name change. We went from Dominion of Canada to just Canada (a Corporation listed with the SEC) in 1982 as part of financial reorganization after severing from the UK.
 
ironsides
#43
Quote: Originally Posted by AnnaGView Post

Officially bankrupt? I never heard of any States declaring bankruptcy. NZ did a long time ago but it isn't a US state.

Calif. is not going to go bankrupt (Federal Gov., won't let that happen) they just don't have enough money to pay off their debt. Much worse shape than the U.S., they cannot print money, citizens want to give everyone free medical, free education, but do not want to pay the taxes it is costing them. Citizens will not let State Government pass tax increases. As for other States, same reasons apply, government will not let it happen unless it happens on a national level.
 
Vancouverite
#44
Even if you print your way out, there will still be the fundamental problem of the states spending more than they earn. That's as true for the US as it is for Greece.
 
ironsides
#45
Quote: Originally Posted by VancouveriteView Post

Even if you print your way out, there will still be the fundamental problem of the states spending more than they earn. That's as true for the US as it is for Greece.

Some States may not be doing to good, but none are bankrupt not even California. States have to lay off thousands of jobs as they are now to meet their, but s far they are doing it resulting in losts of unemployment, downsizedpolice and fire departments as well as other city functions being cut as well. We will not get as bad as Greece, if we do the rest of the world will not exist on therr own
 
mentalfloss
#46
Quote: Originally Posted by VancouveriteView Post

Even if you print your way out, there will still be the fundamental problem of the states spending more than they earn. That's as true for the US as it is for Greece.

Depends on what you spend on and if that initial investment can reap you a significant economic boon before the liquidity catches up to you.
 
Spade
#47
Thirty - two states, you say... A Kodak moment.
 
Cliffy
#48
Quote: Originally Posted by SpadeView Post

Thirty - two states, you say... A Kodak moment.

I heard Kodak filed for bankruptcy.
 
Spade
#49
Yep, Chapter 11 of a non-fiction best seller
 
darkbeaver
#50
To prevent a run on the banks there will be a bank holiday in the USA sooner than later, that's if the war don't get on soon enough to make plenty smoke.
 
Vancouverite
#51
There's some good news. California no longer has the worst credit rating, (external - login to view) according to Moody's. Illinois is worse off than California - that's Illinois, where the last two governors have gone to jail for corruption.
 
L Gilbert
#52
Quote: Originally Posted by darkbeaverView Post

Thirty-Two States are Now Officially Bankrupt
$37.8 Billion Borrowed From US Treasury To Fund Unemployment Insurance

They've filed bankruptcy and discharge papers have they?
 
Spade
#53
Sic transit gloria mundi.
 
L Gilbert
#54
lol
Nunc tempus est vincere?
 
darkbeaver
#55
Quote: Originally Posted by L GilbertView Post

They've filed bankruptcy and discharge papers have they?

As far as I can determine they have not. So the OP is misleading. The states are only insolvent.
 
The Old Medic
#56
This is pure unadulterated bull manure!

No state is "Bankrupt", not one. In order to be "bankrupt", they would have to be unable to repay debts, and be adjudged by a Court to be "bankrupt". Since all States have the power, and the authority, to raise taxes, and to do whatever is necessary to get adequate meoney to pay their bills, they can not be "bankrupt".

This is some journal attempting to show something that simply is NOT true at all.

Quote: Originally Posted by ironsidesView Post

Calif. is not going to go bankrupt (Federal Gov., won't let that happen) they just don't have enough money to pay off their debt. Much worse shape than the U.S., they cannot print money, citizens want to give everyone free medical, free education, but do not want to pay the taxes it is costing them. Citizens will not let State Government pass tax increases. As for other States, same reasons apply, government will not let it happen unless it happens on a national level.

California is one of the most highly taxed States in the Union. They are NOT at all reluctant to levy taxes, in fact they just raised taxes a year ago, and they are in the process of raising them again. You all REALLY need to learn something about the States, instead of the garbage you have been reading.
 
L Gilbert
#57
This is funny. I mentioned that the states haven't declared bankruptcy and DB said the OP was misleading and now we have someone ranting and raving. lol

 
Spade
#58
Quote: Originally Posted by L GilbertView Post

lol
Nunc tempus est vincere?

Occasionem cognosce
 
darkbeaver
#59
Quote: Originally Posted by The Old MedicView Post

This is pure unadulterated bull manure!

No state is "Bankrupt", not one. In order to be "bankrupt", they would have to be unable to repay debts, and be adjudged by a Court to be "bankrupt". Since all States have the power, and the authority, to raise taxes, and to do whatever is necessary to get adequate meoney to pay their bills, they can not be "bankrupt".

This is some journal attempting to show something that simply is NOT true at all.


California is one of the most highly taxed States in the Union. They are NOT at all reluctant to levy taxes, in fact they just raised taxes a year ago, and they are in the process of raising them again. You all REALLY need to learn something about the States, instead of the garbage you have been reading.

OK they're not bankrupt they're just insolvent. You can say **** here, we don't mind.
 
L Gilbert
#60
Utique. Et sonet ludus similis.
 
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