Thirty Two states are Officially Bankrupt

Quote: Originally Posted by darkbeaver

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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Quote: Originally Posted by AnnaG

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

Quote: Originally Posted by The Old Medic

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

Quote: Originally Posted by The Old Medic

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.

Quote: Originally Posted by AnnaG

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

Quote: Originally Posted by TenPenny

When did NZ go bankrupt?

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

Quote: Originally Posted by TenPenny

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?

Quote: Originally Posted by AnnaG

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

Quote: Originally Posted by Vancouverite

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.

Quote: Originally Posted by Vancouverite

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.

Quote: Originally Posted by Spade

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

Quote: Originally Posted by darkbeaver

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

Quote: Originally Posted by L Gilbert

They've filed bankruptcy and discharge papers have they?

Quote: Originally Posted by ironsides

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.

Quote: Originally Posted by L Gilbert

lol
Nunc tempus est vincere?

Quote: Originally Posted by The Old Medic

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.