New York State Is So Broke It Steals From Itself To Pay Off Unapproved Debt
The surrealities of a "healthy" economy never end. The latest indication of the new banrkupt normal is New York State itself. A new report by NY state comptroller Thomas DiNapoli entitled "Highway Robbery: State's ailing road and bridges robbed; State siphoned money to pay for operations and debt service" tells you all you need to know about just how prosperous the ailing economy really is. According to DiNapoli, "only one-third of the money in the Highway and Bridge Trust Fund has actually been used to pay for highways and bridges. The rest has been siphoned off to pay for debt service on back-door borrowing and to fund operational costs for the DMV and the state Department of Transportation." Is that lack of stolen pocket change Mr. DiNapoli can believe in? Apparently not - Mr. DiNapoli's words: "I think outrage and anger is certainly appropriate; we need to channel that into thoughtful public policy." Yet anger is so September 2008. Welcome to the Xanax highs of the new credit bubble.
“This money should be going toward keeping our roads and bridges safe, not to fund state agency operations. The bridge closing in Crown Point is just one more example of why this is so important. If this trend continues, the state will have to transfer nearly $4 billion into the Trust Fund over the next five years. Using this dedicated capital money to pay for operations and debt service is just one more gimmick on the list of New York’s bad fiscal choices.”
Should one cry or laugh here? New York State is stealing from itself, and its own comptroller is bitching against this practice, seemingly powerless to do anything to prevent it in the first place. Perhaps the state's transportation trust fund should put all its stimulus money in CIT stock or whatever the HFT megavol stock de jour is and hope and pray. These days the market has odds that are just a little better than Craps (although the likelihood of being comped by your broker when the ponzi market loses all your money, are still slim to none).
Full DiNapoli report below.
(2 votes)
on Thu, 10/29/2009 - 16:05
#114471
Makes sense to me. Why should any state be putting money into roadways when no one will be traveling due to lack of funds and higher gas prices.
on Thu, 10/29/2009 - 16:08
#114477
Uh, ummm, uh, I thought that a State Comptroller was supposed to manage state monies to prevent this sort of stealing?
on Thu, 10/29/2009 - 16:09
#114478
They are so broke!
HOW BROKE ARE THEY?
They are so broke they went to siphon some funds
and found the siphon had already been hocked.
on Thu, 10/29/2009 - 16:13
#114483
State of NY went to the treasury and the treasurer said "If you close out the account I'll give you a toaster"
on Thu, 10/29/2009 - 18:27
#114611
This brings a whole new meaning to the term "go fuck yourself" doesn't it?
They really are!!!
on Thu, 10/29/2009 - 16:16
#114487
So this means "Victory for the Bulls!" Right?
on Thu, 10/29/2009 - 16:17
#114488
Mr. DiNapoli's words: "I think outrage and anger is certainly appropriate; we need to channel that into thoughtful public indictments."
on Thu, 10/29/2009 - 16:18
#114489
http://www.youtube.com/watch?v=KNQRqAoT-2c
on Thu, 10/29/2009 - 16:26
#114500
I'll just have one rib....Got change for a hundred bro...?Hey lighten up stride-right...
on Thu, 10/29/2009 - 16:18
#114490
mmm xanax, I'll take two please!
on Thu, 10/29/2009 - 19:22
#114672
After your last attempt at publication I don't blame you.
on Thu, 10/29/2009 - 16:21
#114492
I read an interesting bit of research at 13D. The basic idea was that the supply chain was badly broken during the "crisis." (remember that?) The adjustment will mean customers will pay suppliers MORE v. less (creating inflation), may build inventory higher (increasing GDP), and pass those costs along to consumers (inflation).
More to the point of NY state taxes: since government bailed out Wall Street. Next year will Wall Street bail out government?
on Thu, 10/29/2009 - 16:35
#114508
you are not measuring inflation correctly. Where is the consumer going to get the extra credit to pay this bill? The consumer might look at Citi with its 30% interest rate and tell who ever is trying to sell something for more to go f**k themselves. This is not inflation, but the art of deflation. If you think we are going to inflate, you should make the first 30% loan to someone who is 99% certain to never, ever pay you back.
on Thu, 10/29/2009 - 16:32
#114506
http://globaleconomicanalysis.blogspot.com/2009/10/city-of-houston-is-bankrupt-so-are.html
This link is to Mish's article on Houston being broke. It has been covered up by them taking the money due the pension funds of employees and replacing it with bonds (sounds like the social security scheme to me, except they can't bill the beneficiaries for another round of money). I read an article a year or so ago that the average federal employee made over $100K a year. I am sure that included benefits. Regardless of what they say GDP is, what they say unemployment is, what they say consumer spending is, tax receipts and budget problems for all governments say they are a lot worse.
on Thu, 10/29/2009 - 16:36
#114509
As a 50+ year resident of New York, well versed in the financial sector and NY politics, please allow me to save everybody time and effort by suggesting the following theorem:
New York State is a piece of shit whose horrendous balance sheet is only outdone by some of the USA's largest commercial and regional banking institutions.
I hope this helps.
on Thu, 10/29/2009 - 16:47
#114525
Government representing its largest constituency... got it.
on Thu, 10/29/2009 - 18:45
#114628
Ha, you're broke? Don't come up here to Ontario, Canada as we're broke too. $24B broke.
on Fri, 10/30/2009 - 08:42
#114949
No problemo:
The metropolitan commuter transportation mobility tax (MCTMT) is a new tax imposed on certain employers and self-employed individuals engaging in business within the metropolitan commuter transportation district (MCTD).
on Thu, 10/29/2009 - 17:01
#114529
I think this type of stuff is well-represented in most states and medium to large cities at this point.
Pensions are the great unfunded obligation on almost every level.
on Thu, 10/29/2009 - 17:05
#114535
you are correct, however, we are now in recovery and everything is okay now. we can just sit back and watch the money roll into the usa coffers.
all's good now.
on Thu, 10/29/2009 - 17:14
#114538
Phew, that's a load off my mind. For a second, I thought maybe the country had put itself into a completely untenable position by spending a bunch of money we didn't have. Nice to know it's all cool now.
on Thu, 10/29/2009 - 17:14
#114539
Fo sho DH. As we know those tax receipts are just busting all records....
on Thu, 10/29/2009 - 17:17
#114540
I have a sense your in denial......
on Thu, 10/29/2009 - 17:22
#114544
It's a running joke between DH and I associate. Trust me.. there is a good deal of understanding here...
on Thu, 10/29/2009 - 17:30
#114549
yep.
the usa is broke and has horrendous debt
the usa is policing every phucking country in the world except our own.
many of the usa's state and local municipalities are broke.
for all intents and purposes, the usa banking system is insolvent.
the media and government propaganda machines are lying.
lying is more acceptable than telling the truth.
fraud is rampant in our business and political system.
we are debasing our currency.
our central bank is monetizing governmental debt.
our political system is approaching complete dysfunctionality.
most americans are jerking off or watching tv (pls pass the soma)
I happen to believe I am witnessing the downfall of the usa. oh, it will take many years, but the path that we are on is clear.
yes, recovery is on the way.
it was a good run for a couple of hundred years.
history.does.not.lie.
"..a society built on lies and fraud is simply phucked" deadhead
on Thu, 10/29/2009 - 17:44
#114557
How can I agree more?????? HOW? Double space analysis is very effective... I would have you in my fucking fox hole anytime...
on Thu, 10/29/2009 - 17:53
#114575
Settling for the ability to fight for any and lay claim to the scraps of the corrupt while selling out the premise of responsible self governance built upon the foundation of the rule of law applicable to all with preference to none. My forbearer's and descendants would kick my ass were I to do so. - Miles Kendig
on Thu, 10/29/2009 - 22:37
#114798
You're right, okay? But let's be constructive. The whole thing was stupid to begin with and now we have a chance to fix it. If we don't all die.
on Thu, 10/29/2009 - 17:30
#114550
Dear Miles,, it was levity, just levity
on Thu, 10/29/2009 - 17:34
#114556
I do try to put the fun back into dysfunctional... I just wish our government & markets would do the same.. No luck there no matter how much hopium gets consumed.
Cheers
on Thu, 10/29/2009 - 17:42
#114563
I think you have it covered...
on Thu, 10/29/2009 - 18:31
#114619
Every time I line up for my hopium shot, they tell me they're out because all available supplies are being sent to NYC and DC. I'm moving to where the action is.
BTW will someone please place the word "hopium" in the spell check dictionary here on ZH? Considering what's going on around the world, the word is NOT a passing fad.
It's a keeper.
on Thu, 10/29/2009 - 21:36
#114759
Please listen to deadhead folks! Look, of course well be fine, your worrying is starting to appear childish. You can be sure that the smart guys realize that they don't need Main Street to participate in this recovery. Our egos are inflated. Truth is we're just not worthy of their time, and we need to realize that and stop complaining.
Just look how the farmers in Zimbabwe were proven unnecessary for that country's economy to go sky high! The proof is in how their currency & GDP went up to incredible non-relative heights! If they had a stock market, it would have been up 150,000% last year alone. And GDP? Wow, incredible! Makes our 3.5% look like a joke.
I'm so mad I missed my chance to invest there. I would have turned an ounce of gold, or maybe even an ounce of silver into 500 Trillion Z-Dollars last year. That kind of chance only comes once a lifetime right?
Why is it so hard for Main Street to understand that it is redundant and unnecessary and when will it get with the program?
on Thu, 10/29/2009 - 22:52
#114804
No money for pensions. Lots of money for wars.
on Thu, 10/29/2009 - 19:12
#114658
I hereby challenge New York, my state California has got to be numero uno. If not then Ca and NY are tied, remember that Ca's budget brings with it, humor.
on Thu, 10/29/2009 - 19:29
#114679
The greatest satisfaction I'll have is to see those Mob run fat fuck Union Bosses who rape the state for every piece of entitlement they can get loose everything for their membership because the State teet's run dry.
I have to stop reading this site at least until my blood pressure drops. it's getting to the point were i'm hopeing for the kaos of a total collapse just to say see you fuckers see what if you done. Like Heston in The Planet of The Apes.
on Thu, 10/29/2009 - 21:47
#114769
Not gonna happen. Obamanomics provides money for everyone. The worse off you are, the more you get. I expect NYC real estate to double (in nominal dollars) over the next 3 years.
on Fri, 10/30/2009 - 07:11
#114902
Would somebody please hit the reset button.
on Fri, 10/30/2009 - 09:00
#114964
The hijacking of municipal payrolls by public employee unions, and municipal compensation and benefit packages in general are what will finally destroy our system. The math is so far out of balance it's unfixable anymore. (Look at the City of Chicago, and how they are selling off assets furiously to keep the muni payroll and benefit structure alive for just one more day...it is collpasing now.)
The fact that public employees are even allowed to unionize will be judged by history as utterly absurd.
Think about it: Public employees are unionized against themselves! They're taxpayers, too, right?!
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