32 States Now Officially Bankrupt: $37.8 Billion Borrowed From Treasury To Fund Unemployment; CA, MI, NY Worst

Tyler Durden's picture

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Moneygrove's picture

And when will the ceo`s bring back the jobs from china ??????????? p.s. I want a ceo tax now !!!!!!!!!!!!!!! 

Keyser Soze's picture

Pah. Billions? The word 'billion' has no fear anymore. After TARP et al, I fear only trillions. And when you owe trillions, you are Zimbabwe and move to someone else's currency.

Problem Is's picture

"Zombies"

Zombie States:  Cali  =  Citi  =  TBTF
That is my theory anyway. Having been born in Cali and lived here most of my life, Cali needs the TBTF breakup.

The politicians are douche bags of Congressional proportions. These jackass legislators even pay themselves like douche Congress...

The economy is big enough that the fraud, bribery and systemic corruption are of national levels. Economies of scale have clearly failed in this state.

$20 Billion Budget Deficit
Every year the douche baggery that is the legislature plays the same game with Governor Broke Ass Arnold. They lie their asses off about revenue projects and declare a budget deal which has to be balanced.

They then wait until after Xmas... would not want to scare the sheeple and keep them away from the malls... sales tax revenue you know... and then admit a multi billion dollar deficit... last 3 years running...

Steroid Arnie
What is Broke Ass Arnold's solution to the current $20 billion budget deficit?

We need to build a $12 billion CEMENT ditch between the north and LA.... Yeah sell those bonds Arnie...

'Roid Boy, make like a Palin tree and leave early...

mrhonkytonk1948's picture

I suspect this will be papered over - if at all possible - at least until after the mid-terms.   The public employees unions are not to be trifled with.

silvertrain's picture

 Thats one of the 1000000+ reasons they will fight against an audit....

 The commercial shorts on gold were still at a mind blowing 480k..Unreal..People that hide stuff have stuff to hid..It must be very important to them..That makes me want it even more so..

thesapein's picture

You tricked me.

"officially..."

I agree they should be declared bankrupt, but thinking so does not make it official.

 

 

John Self's picture

States aren't eligible to be debtors under the Bankruptcy Code, so it's impossible for this to be official.

lawton's picture

Arkansas didnt see it that way during the depression.

thesapein's picture

So Tyler is speaking in nonsensical riddles?

faustian bargain's picture

maybe 'bankrupt' is metaphorical...for bankrupt.

digalert's picture

California, land of fruits and nuts is tops...whoohoo

snowball777's picture

Land of $1.2T SDP, 36M people, gerrymandering that make our districts do yoga, and fucking Prop 13.

We need more fiscal restraint (public sector unions bedamned), but our real issue is that we've handicapped our ability to pass taxes to offset our laws so everything is a ballot initiative that is funded by bonds...good for the jerkoffs at the country club (yeah you Meg...you mormon GS / Mammon whore), bad for CA.

$6.9B / 3.6M (at 10% unemployment...although my county is less and has only 4% mort default rate) == $1919.67...or about 2 weeks worth of our max unemployment payout before taxes per capita.

 

G-R-U-N-T's picture

Snowball,

"but our real issue is that we've handicapped our ability to pass taxes to offset our laws."

YOU CAN'T HAVE ANY MORE OF OUR MONEY!!!!!!!!!!!!!!!!!!!!

In California an Austrian actor tried to subjugate the Unions, I mean the Assembly, and wound up as a eunuch, and eunuch's end up becoming beholden to their masters.

The last looting extravaganza attempt initiative was prop 1A, and Californian's said no f*&%$#g way. It went down in flames, even though most republican's in the Assembly endorsed the bill while signing pledges of no new taxes months before. Radical left ideology, and the hypocrisy of the right will always end up with their own annihilation. Sometimes it comes at a snails pace, and when Californian's are in enough pain things will change. Another attempt by radical Government parasites to loot the Californian citizenry, that would dwarf all other previous tax increases is AB32 (California Global Warming Solution Act). Thank God we got enough signatures to at least put the "California Job Initiative" on the ballot for November. Californian's I hope, will be smart enough stop the the AB32 Fraud by voting for this initiative.

 

 

 

 

 

Dburn's picture

Lets hear it for Indiana at 1.7 Billion who recently financed a 1 Billion (766 million before interest) stadium for the Indianapolis Colts while state has been in the top 5 or 10 in bankruptcies and foreclosures for going on three years now. They just couldn't bear to part with the Colts for those 8 week-ends (a few more if Manning didn't Choke) a year that many downtown businesses, owned by out-of-state chains get more business while the downtown businesses around the state get less.

The hurrying "Hoosiers" led by one time Bush Budget Director Mitch "My Man" Daniels who most famously said as Budget Director "The country is awash in cash" when asked about one tax cut after another just as the trajectory had changed slightly towards possible solvency or at least a negotiated haircut.

He then went on to ride the wave of Bush popularity into the Governor's house and stayed in there thanks to the populace who couldn't get enough them thar' Colts, where in a brilliant stroke of , marketing genius, the stadium was named Lucas Oil Stadium as Gas climbed to $4.00 a Gallon. So most of the Hoosiers stayed at home because with gas prices and no jobs, how could they pay $50 for a back bench seat in the new stadium (plus $10 for parking) ?

Boooyahh to being in the top ten again.

cossack55's picture

Let's not forget the Pacers holding up the city for 15 mil a year to operate their monument to stupidity, Conseco Field House (remember Conseco, they just recently changed their name to some other crap).  They are just to broke to pay for the operation even though they derive all income from annual events.  Not to mention I just saw on the front page of the Indy Star where your man Mitch is accellerating buiding of I-69 so people can get to Evensville, In 20 minutes faster, though I have no clue why one would want to get to Evansville for any reason.  Must be that free goobermint money.  Say, isn't that part of Illuminati Rick Perry's Trans-Texas corridor?  Huh, good thing I'm not a cynic.  And not to mention the water company soon to go private. A $100 mil company with  $5 bil unfunded repair bill.  What a deal.  Mitch for Prez in 2012.  Oops, I forgot. No US in 2012.

Dirt Rat's picture

Whoa, other Hoosiers on this tin foil hat board. Vincennes reporting in here. We have good farmland down here and tight knit communities with a huge streak of xenophobia. Plus, we're remote and kind of difficult to get to. I think we'll weather the approaching storm quite well down here.

cossack55's picture

No doubt. I've relatives in Vincennes and Knox County does produce the best tomatos and melons on the planet.  Watch out for the Meth plague though.

plocequ1's picture

Per Alex Jones, The plan is working. NWO, Here we come. This is not good

Apostate's picture

It's so darkly amusing that Alex Jones is actually looking prescient.

It's as if the elites are using his show like a business plan.

He's been... extremely wrong on many things. 

RabidLemming's picture

Alex Jones may not be 100% correct 100% off the time. He is correct more than he is wrong and he has always been the loudest voice in warning people of the coming storm... like his style or not the proof is in the pudding. All that he, Celente and Chapman have warned about is slowly starting to come true. 

Beans, Bandaids, and Bullets bitches!

 

 

DosZap's picture

RL,

Don't forget Schiff..............he's been on top of this since before it started, 1998-99...........

See the votes he got in Conn?.

Sucked,like 10..........they got like an ex-dancer for the candidate.LOL

One more example of FISCAL insanity..........

Can you imagine Schiff,Both Paul's reaming ass's?.

Would have been great.

cossack55's picture

Prescient my posterior.  He just read "Atlas Shrugged".

Lower Class Elite's picture

Ayn Rand: Zarathustra for sorority girls.

DosZap's picture

Apostate, even a blind Hog finds an acorn once in while......... Anyone with HALF a brain, knows this entire debacle is / has been orchestrated, and will continue to be. This is not a Human directed systematic destruction........ We are being set up, for the ONE to come.( and no, not the 12th Imam)......... Time is short gents, and much shorter than anyone knows.IMHO

HFT1's picture

Nice let the revolution begin, PLEASE!

Nikki's picture

Since we in Michigan are a much smaller State than Cali, it is only fair than we be graded on a curve. We insist on being number 1 in unemployment and per capita bailout. Still think driving your import car is cheaper than a Ford, GM or Chrysler ?. Have you found the Fine print in the cost yet for your imported goods (not just cars my friends) ?... You will when taxes go up.. Unless you are a bk attorney, welcome to the trickle down... An appropo euphamism if there ever was one...

Nikki's picture

Ouch. Junked by a Hyundai owner, convinced that there is free trade between the US and many of our trading partners, trade imbalances don't matter and we can be a nation of paper traders instead of manufacturers while spending for other's wars, welfare , health care and retirement on your children's credit card.

Free trade is a lie.
Our freely made personal sacred consumer choices can hurt others, be they UAW douchebags or little Chinese slave girls.
Our deficit spending is a fraud commited against future Americans.

Just post 'wrong with explanation.....' and then junk the post.

fuu's picture

If they are junking you, you must be doing something right.

cossack55's picture

Sorry, Nikki.  I was reading your post at about 2:45 AM and had not imbibed enough coffee yet.  I missed your point entirely.  Will not happen again.  BTW, I drive a Ford and love it and the 260k miles it has carried my ever expanding posterior.

NERVEAGENTVX's picture

Don't worry the economy is recovering beautifully! Chrysler is adding a second shift at jefferson north assembley,1,100 new workers!<end sarcasm> of course not the prevailing wage jobs, the 14$ an hour  poverty line jobs.

Nikki's picture

Zall right brother, sarcasm can remain on, I like it. The deflationary wage spiral will hit more than those Scheisseler folks. When was the last time you had a raise ?... Your cost of living any cheaper ??.

Yep. Economy is getting better, if you are a banker.

snowball777's picture

My granddad worked his entire 45 year career at Ford.

What if their Toy-motor is made in TN (well, before the flood)?

How's that cadillac health plan treating you?

Checks for not working still being cashed okay?

Don't blame us for you letting dickheads like Rick Wagoner make nothing but SUVs in a gas hike okay?

Nikki's picture

In all honesty, I cannot defend the jobs bank or Dickhead Wagoner. No one can. I cannot defend the $85 hour compensation package for UAW thugs either. What I will vigoruously defend is the virtuous cycle of consumer capitalism espoused by Henry Ford. There are only about 20% of Americans with higher education (some of that is surely a joke) and the rest, whether for lack of intellect or means, are unskilled. If I am well compensated for the design of the car or tv etc.. And you are adequately compensated for building the car or tv (more skill, more pay), weboth participate in the economy as consumers.... And (shit) as taxpayers. As the sociopaths, crooked and truly worthless amongst us are absorbed into goverment jobs we can withstand the parasite for a while. Our adequate compensation allows others (Disney, restaraunt, tourism) to also participate in the virtuous cycle. When we decide or allow the parasites or several of the spokes in the wheel to break, our cycle gets fucked. In my greater point, now that we have allowed textiles, steel and manufacturing to be decimated by outsourcing, the parasites are revealed to be killing the
host. Your Alabama made Hyundai was designed in Korea and built by low wage workers. Their pinto pay check and health care plan is a weaker spoke in our cycle's wheel and their spending habits will show this.

Ahhh crap, I am rambling on my first coffee. Let me summarize and apologize. If you don't see how we need each other and have used our mutual need for mutual benefit and now that we shred each other to pieces by denying our mutual need then I cannot win you over and we are lost. If it's every man for himself then societ's collapse is inevitable.

Guns and gold bitches....

Now press junk..

spekulatn's picture

Fuk the junk, Nikki. 

I say, well said you!

RockyRacoon's picture

One little metropolis at a time, like Chinese water torture.

$3 million in debt, Central Falls, R.I. in receivership.

Declaring fiscal insolvency, city officials Wednesday persuaded a Superior Court judge to appoint a receiver to take over municipal finances, a process that could end up with new contracts imposed on the city’s unions and vendors.

Receivership is the state-law version of federal bankruptcy. The court-appointed receiver has the power to approve or reject purchases and payments and, if the court approves, change contracts with unions and vendors and hire and fire municipal employees.

City Solicitor John T. Gannon said the city is in the middle of all its municipal employee union contracts. Mayor Charles D. Moreau has been trying to negotiate concessions, he said, but without success.

Central Falls’ slogan is “A City with a Bright Future,” but the present has been pretty grim. Its high school, where 96 percent of its 800 students live in poverty, was targeted for a state-ordered reorganization because of consistently low scores and graduation rates. The entire teaching staff was threatened with dismissal until the administration and the teachers union reached an agreement last weekend.

In its petition to the court for appointment of the receiver, the city administration said it has an anticipated deficit this fiscal year of $3 million on a city budget of about $18 million and an anticipated deficit $5 million in the budget year beginning July 1. The officials said the shortfall could not be covered by austerity measures.

Beside the budget shortfall, the city’s pension fund for its police and fire retirees has $4 million, way short of its accrued liabilities of $35 million. Gannon said the city pays out $2.2 million a year in pension benefits from the fund.

In addition to unilateral cuts in pay and benefits enacted by the East Providence School Committee in January 2009, the city has also cut benefits for police officers and school custodians, laid off municipal custodians and threatened major changes in the firefighters’ contract. The Fire Department pact is in the midst of what may be a year-long arbitration.

KEY POINTS: Central Falls

Population: 18,928

Budget: $17.8 million

Municipal employees: 151 full-time positions

Employee costs: $7.6 million

Anticipated deficit 2009-10: $3 million

Anticipated deficit 2010-11: $5 million

LeBalance's picture

“A City with a Blight Future”

Herne the Hunter's picture

for (i = 1; i++; i = 10) {
    LOL
}

Stepney's picture

With code like that we can see why the Indians are taking all the jobs.

sethstorm's picture

The problem is that's offshore level quality, not US.  Abysmal and easily fixed by the person who got offshored.

Oh regional Indian's picture

Sorry, I had to get the tea out of my nose, laughed so hard when I read US and quality in the same line.

Yes, sarcasm aside, which Quality US products are you holding up for inspection Seth?

Ahhhh, all of dem armaments, made of mil spec parts on Military budgets. Yup, that's quality all right, with a 30 X safety factor and limitless budget, that kind of quality is easy.

Code? Mwwwwharhhh...... hmmmmmm..... ok, next....

So, any of you brilliant folk follow the CAFR story?

http://cafr1.com/

Been around a while. Seems entirly credible.

TD? I think CAFR deserves scooootiny (oops, bad Indian quality of spoolings).

Espeshully in light(and dark) of your headlining storyine here in which is A post tate!

Thank you.

A Kooallitty bitty conshus Injun (brown, not red!)

Okay.

PS: This is an edit, too heavy on the sarcasm re. American quality, have seen absolutely awesome Hobbyist/Garage tinkerer/craft etc. work, was speaking of things like GM/Ford etc. Industrial mfg., which really hardly exists there anymore anyways.

And code-wise, as a silicon valley veteran, most code jocks were Indian/Chinese, in house, local, not offshore. Most offshore is support anyways.

Why did I do this edit? Because I found the creeping trash/yahoo culture on comments creeping into my system, is all.

Mr Creosote's picture

Methinks Ben and Timmy's efforts in protecting the economy shall be as effective as those of the Black Knight.

http://www.youtube.com/watch?v=zKhEw7nD9C4

Cow's picture

Just because a state borrows money to pay unemployment insurance does not mean it is bankrupt.

 

deadparrot's picture

True, if you think of it like a person taking out another credit card. You are just adding to your existing debt. However, states have much more strict budgets. They must fund education, police, fire department, etc. Considering states are facing decreasing revenues and increasing expenses, in this situation, they are effectively insolvent. 

Iam_Silverman's picture

Nice cow.  Butler cross?

From a TLH breeder.

"Just because a state borrows money to pay unemployment insurance does not mean it is bankrupt."

Good point.  If someone gets a payday loan or has a mortgage, they might not be totally insolvent either!  I see what the states are doing as a defensive move - since the unemployment terms keep being extended by the federal government, why not make them fund it?

oklaboy's picture

It is the only "legal" way that staes with balanced budgets restrictions to add debt, off the balance sheet. They don't or have not budgeted any excess funds, because they have none. All budget gimmickery. They have to pay it back after one year, or intrest compounds. Barry will either own you in the end or just forgive the loans all together.  We are in for one helluva crash, sooner or later.   

JoshRoman's picture

 

So we all know that a lot of states are insolvent, but this isn't even close to proof and in no way can be construed as bankruptcy.

First off, no source is cited in the original article.  

Second, there are a number of reasons a state might borrow funds from the federal government to cover unemployment insurance shortfalls rather than dip into their general budget, in debt or not.   If you've got a rich uncle willing to give you a $100 bucks to cover some bills, why spend your own $100?

Major states will default in the next few years, certainly, but you guys sound like a couple of pimply-faced teenagers with their first Victoria's Secret catalog.  Wait for the real thing...

 

hack3434's picture

Open your own blog and write about it. 

fxrxexexdxoxmx's picture

 If you've got a rich uncle willing to give you a $100 bucks to cover some bills, why spend your own $100?

That sounds like some SEIU bullshit. The rich uncle in your example is me and my families taxes. It is stealing food from my children.