Comments on: States, Cities Hit Hard by Credit Crisis, Falling Revenues http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html Sun, 22 Nov 2009 20:56:49 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Richard Kline http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19308 Richard Kline Sat, 04 Oct 2008 05:38:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19308 Gov. Schwartznegger: what an irresponsible grandstander. Got elected promising hugs and payouts to all---but no taxes. Borrowed $15B in a bond issue _at the height of the boom_ so as not to raise taxes. No signficant rainy day funds; no fiscal planning for the inevitable cyclical downturn. Revenue reform: bupkis. Turns up on Congress Sell-out Day pressuring the pols with a "Vote or we die" message. And then sticks his well-paid hand out and sez, "Now, wet my beak, too," so he doesn't have to raise taxes. Schmuck: that's Austrian for self-dealing faker. <br/><br/>---And on CA, no dice, no deal, no Payout. Let 'em reform their revenue and boost their intake first. Then, maybe we get Federal aid. Now, it's just the users asking Daddy Feddy to pay for their fix. No. Freeze in the sun down there, folks, till yah clean up your lousy act. You want services?: Pay for 'em, just like everybody else. Out of your own pockets, for once. Gov. Schwartznegger: what an irresponsible grandstander. Got elected promising hugs and payouts to all—but no taxes. Borrowed $15B in a bond issue _at the height of the boom_ so as not to raise taxes. No signficant rainy day funds; no fiscal planning for the inevitable cyclical downturn. Revenue reform: bupkis. Turns up on Congress Sell-out Day pressuring the pols with a “Vote or we die” message. And then sticks his well-paid hand out and sez, “Now, wet my beak, too,” so he doesn’t have to raise taxes. Schmuck: that’s Austrian for self-dealing faker.

—And on CA, no dice, no deal, no Payout. Let ‘em reform their revenue and boost their intake first. Then, maybe we get Federal aid. Now, it’s just the users asking Daddy Feddy to pay for their fix. No. Freeze in the sun down there, folks, till yah clean up your lousy act. You want services?: Pay for ‘em, just like everybody else. Out of your own pockets, for once.

]]> By: PrintFaster http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19300 PrintFaster Sat, 04 Oct 2008 03:35:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19300 From Anonymous<br/><br/>"However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out."<br/><br/>Ask the founder of the US Treasury, Alexander Hamilton. The US government finances were founded on Hamilton taking over states' debt. He cemented federalism with his deft maneuver.<br/><br/>The treasury does print money, everytime it prints tBills/notes/bonds. These are then monetized (this means turned into money, same as monetizing gold turns it into money) by the Fed. From Anonymous

“However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out.”

Ask the founder of the US Treasury, Alexander Hamilton. The US government finances were founded on Hamilton taking over states’ debt. He cemented federalism with his deft maneuver.

The treasury does print money, everytime it prints tBills/notes/bonds. These are then monetized (this means turned into money, same as monetizing gold turns it into money) by the Fed.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19289 Anonymous Fri, 03 Oct 2008 23:09:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19289 It used to be said by liberals that if we can put a man on the moon then certainly we can do blah,blah,blah. Now it will be said, for at least a couple of decades, "If we can give $700 billion to Wall Street then certainly we provide $$$ for blah, blah, blah. It used to be said by liberals that if we can put a man on the moon then certainly we can do blah,blah,blah. Now it will be said, for at least a couple of decades, “If we can give $700 billion to Wall Street then certainly we provide $$$ for blah, blah, blah.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19254 Anonymous Fri, 03 Oct 2008 19:54:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19254 "However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out."<br/><br/>I'm sure they can print it. “However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out.”

I’m sure they can print it.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19247 Anonymous Fri, 03 Oct 2008 18:56:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19247 I smell another bailout bill! I smell another bailout bill!

]]> By: maynardGKeynes http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19237 maynardGKeynes Fri, 03 Oct 2008 18:24:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19237 If there is one group of entities I wouldn't worry about, it's the state governments and municipalities. These are the most politically connected people in the country, and rest assured, Congress is going to give them whatever money they need to meet their obligations, deserving or not. Moreover, it's pretty obvious that the states are a primary transmission mechanism for the Keynesian stimulus -- -- the federal highway money, infrastructure projects, federal aid to education, welfare, Medicaid etc. etc. In the short to intermediate term, the Treasury can easily intervene directly to assist the frozen municipal issuance market, the source of California's current short-term funding problem, by swapping short duration paper. Over the longer term, it would not surprise me to see the federal government try to grab the municipal bond insurance business vacated by Ambac and MBIA -- -- talk about a money maker for the Treasury. If there is one group of entities I wouldn’t worry about, it’s the state governments and municipalities. These are the most politically connected people in the country, and rest assured, Congress is going to give them whatever money they need to meet their obligations, deserving or not. Moreover, it’s pretty obvious that the states are a primary transmission mechanism for the Keynesian stimulus — – the federal highway money, infrastructure projects, federal aid to education, welfare, Medicaid etc. etc. In the short to intermediate term, the Treasury can easily intervene directly to assist the frozen municipal issuance market, the source of California’s current short-term funding problem, by swapping short duration paper. Over the longer term, it would not surprise me to see the federal government try to grab the municipal bond insurance business vacated by Ambac and MBIA — – talk about a money maker for the Treasury.

]]> By: eh http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis.html#comment-19231 eh Fri, 03 Oct 2008 18:07:00 +0000 http://www.nakedcapitalism.com/2008/10/states-cities-hit-hard-by-credit-crisis-falling-revenues/#comment-19231 Saw an earlier story that reported California had asked the federal government for a $7b loan. However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out. Maybe he ought to ask the Chinese or the Arabs -- they're the ones with the money.<br/><br/>You could not make this stuff up. Saw an earlier story that reported California had asked the federal government for a $7b loan. However, with the deficit likely to set a record this year, not to mention the debt set to surpass $10t within days, I have no idea why Schwarzenegger believes they have money to loan out. Maybe he ought to ask the Chinese or the Arabs — they’re the ones with the money.

You could not make this stuff up.

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