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Presenting Obama's Plan To Bail Out The (Otherwise Perfectly Solvent) States

Tyler Durden's picture


We all know by now that Meredith is a witch: an unpatriotic, racist bitch, who eats kittens for breakfast, who deserves to be grilled by Joe McCarthy's exhumated corpse for telling communist truths, pardon, lies (just a Freudian slip dear Department of Central Planning and Internet supervision), and who will soon be accused of having unprotected (yet arguably consensual) sex with a Swedish man. But just in case she is on to something, here comes the president's plan to bail out the (otherwise perfectly solvent and all, we promise) states. The NYT reports that "President Obama is proposing to ride to the rescue of states that have borrowed billions of dollars from the federal government to continue paying unemployment benefits during the economic downturn. His plan would give the states a two-year breather before automatic tax increases would hit employers, and before states would have to start paying interest on the loans." But where are the details you may ask? Patience grasshopper: they will be included in the latest budget proposal which has been delayed for nearly half a year now as the printer ran out of zeroes. "The proposal, which administration officials said would be included in
the 2012 budget that the president is scheduled to unveil next week, was
greeted coolly by Republicans on Capitol Hill, who warned that the plan
would ultimately force many states to raise their unemployment taxes in
the years to come." Ah yes, the Republicans - those paragons of sound financial judgment and sounder virtue. After all who can forget whole "Tea Party thing" which did so much to prevent the incurrence of a few hundred billion in additional debt over the next decade to pay for the latest Russell 2000 at 36,000 hairbrained ponzi scheme concocted by Rudolph von Bernankestein.

More from the NYT on why QE3.1 - the Muni Edition (not to be confused with QE3.7 the MBS edition, or the QE3.495 the ICE gold margin requirement edition, and most certainly not with QE3.495,440,559 the "Kill the David Einhorn shorts" edition) is just around the corner:

Administration officials will make the case that the plan helps the economy and states in the short run, while bringing overdue changes to the unemployment insurance system in the long run. And Republican lawmakers could find themselves under pressure from Republican governors, whose states owe the federal government billions of dollars.

The administration is also betting that employers will back the proposal, especially in states where their taxes would otherwise go up. Michigan, for instance, owes the federal government $3.7 billion it borrowed to pay unemployment benefits. Under current law the state would be forced to pay $117 million in interest to the federal government this fall, and the federal tax on employers would automatically step up each year to repay the debt.

The state’s newly elected Republican governor, Rick Snyder, has been lobbying for relief; his press secretary, Sara Wurfel, said that while they would need to see the details of the plan, they would “very likely welcome the much-needed relief.”

Robert Gibbs, the White House press secretary, said, “We are giving help to some states who have had to borrow and not been able yet to pay back.”

The states are in a tough spot. Many entered the recession with too little money in their unemployment trust funds, and they quickly ran through what little they had as unemployment rose and remained stubbornly high month after month.

So, uh, can we all drop the pretense and agree that while certainly scaring the children (who will all need PhDs in number theory in a few years just to count to the debt target, pardon, limit) and the idiots, Meredith has been pretty much spot on?

In fact, we can even forgive her for telling Congress to fuck off with their witch hunts:

Citing scheduling conflicts, Ms. Whitney has declined an invitation to appear before the panel of the House Oversight and Government Reform. But the subcommittee’s chairman, Representative Patrick T. McHenry, Republican of North Carolina, said that would not dissuade him from investigating her record.

“This isn’t a gotcha thing, but she’s going to be part of the hearing, whether or not she participates,” he said. “If she doesn’t want to come forward in a venue like this, that makes a statement.”

And some more details on how Obama will arrive in one of Blackhawk Ben's stealth Commanche gunships:

In his budget, officials said, Mr. Obama will call for deferring interest payments on the debt and postponing the automatic tax increases. Then, in 2014, to bring that money back into federal coffers, the administration proposes to raise the minimum level on which employers pay taxes.

Current law requires states to collect unemployment taxes on at least the first $7,000 of income; that minimum has not been raised in decades.

The president’s proposal would raise that minimum taxable wage base to $15,000. The rate of the federal portion of the unemployment taxes would then be lowered, so the proposal would not raise federal taxes on states that do not owe the federal government money. But it would speed the rate at which states that do owe money repay the federal government, and allow states to collect more unemployment taxes to rebuild their trust funds if they do not lower their tax rates.

It was that prospect — that the higher wage base would lead to higher taxes for states after 2014 — that drew rebukes from Republicans in Congress.

Don't worry children. It is for your own good. Plus if this plan falls through, the world will end. And yes, Meredith is certainly a witch and should be burned at the stake. Surely she will be able to fly away to safety due to the null hypothesis of her witchiness, and if she actually does burn: well, mistakes were made...



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Wed, 02/09/2011 - 00:03 | 945366 mcguire
mcguire's picture

kick the can down the road until world war 3 starts, then everyone takes a haircut.. austerity in peace is a hard sell, but austerity in war.. that is patriotism.  and if that fails, just use the old "they left the children to die on the cold floor" ploy..

Wed, 02/09/2011 - 00:15 | 945413 mcguire
mcguire's picture

off topic: hilarious max keiser quotes from today on blythe masters:

blythe masters as the modern marie antoinette, says "let them eat plastic rice, let them eat derivatives of representations of virtual food... on farmville..."

"she's sick.. she is trying to mate with a credit derivative, and she gave birth to a swap"

Wed, 02/09/2011 - 08:35 | 945889 Thomas
Thomas's picture

By bailing out the states we can preclude the necessary changes until its too late. I can taste vomit in my mouth.

Wed, 02/09/2011 - 00:06 | 945373 SpeakerFTD
SpeakerFTD's picture

Give the Tea Partiers some credit.   Their guys shot down the Patriot Act today.  Baby steps.

Wed, 02/09/2011 - 00:16 | 945410 hack3434
hack3434's picture

Yet the body scanners are still up.

Wed, 02/09/2011 - 02:07 | 945625 A Nanny Moose
A Nanny Moose's picture steps. Rome was neither built, nor burned in a day. The bureaucrats run the show.


Wed, 02/09/2011 - 09:30 | 945982 blindfaith
blindfaith's picture

baby steps...optimism indeed.  Look at the nonsense these bozos are debating now...not a damn thing that is going to cure any current physical problem this nation has.   Spin wheels, look busy, do nothing.

I have two very good friends on the hill, one Democrat and one Republican that work for committees and or Senators over the last 25 years.  They both tell me the same thing, tearfully,...NOTHING IS CHANGING!  The new crop is just like the old crop.  30 seconds in town and the powers in DC had them. ANY OF YOU who expect that any of these new politicians are going to do YOU bidding will be fooled once again.  They both tell me that the corruption, greed, and dishonesty on the hill is so bad that both are thinking of quiting, they can't stand it anymore.  AND these are two fine, fine people that we don't need to loose.  And, we have the balls to point a finger at other nations.

My God, who knows...maybe 2012 really is not a joke and the government knows it and just wants to keep the lid on things until then.

AS for Rome, they intended to leave a legacy, they planned that...are we?  Or will we just be a flash in the night?

Wed, 02/09/2011 - 11:01 | 946220 Cardinal Fang
Cardinal Fang's picture

Oh, shut up! There is no such thing as a bureaucrat we cannot afford to lose. I am always amazed at people who are somehow disappointed that the government can't fix anything. This level of naivete is astounding.

Wed, 02/09/2011 - 11:37 | 946356 holmes
holmes's picture

Two gov't beaurocrats who can't take it anymore after 25 years of aiding and abetting the great Ponzi. How noble, how courageous. Or maybe, the Gov't pension is kicking in?

Wed, 02/09/2011 - 01:03 | 945521 Zon
Zon's picture

Except the majority of democrats voted no, while 100 plus republicans voted yes. Also, so called Queen of Tea party Michelle Bachmann voted yes to extend the patriot act

Wed, 02/09/2011 - 07:19 | 945843 nmewn
nmewn's picture

The Tea Party doesn't have "a leader"...and refuses to accept one...and in so dong, scares the hell out of both sides.

Which is what we want...isn't it?

Wed, 02/09/2011 - 12:47 | 946634 tamboo
Wed, 02/09/2011 - 19:21 | 947851 nmewn
nmewn's picture

"puhleeze stop drinking tea party koolaid."

This coming from a guy with an Adolph Hitler avatar who never passes on a chance to screech joo!!!...LOL.

By the way...I never click on links by people I don't fall into this category...but I see "koch-industries" in the link.

So apparently your premise is, if one is wealthy they should not fund causes with which they hold a common view with those who are less wealthy. So you would feel the same way about your brother nazi Soros?

Koolaid indeed.

Wed, 02/09/2011 - 01:07 | 945528 midtowng
midtowng's picture

No. The Democrats shot down the Patriot Act today.

Wed, 02/09/2011 - 08:59 | 945866 Bob
Bob's picture

Credit where credit is due.  Props to the Tea Party.

Likewise to Kucinich and other so-called liberals who provided the bulk of the votes. 

Wed, 02/09/2011 - 00:06 | 945380 lizzy36
lizzy36's picture

Stunned that the morally inclined Bill Gross (certainly NOT part of the money and greed culture) frontran another government bailout. Stunned.

Wed, 02/09/2011 - 00:08 | 945386 sunny
sunny's picture

Kittens??  Really?  No one saw that coming, how were we to know?



Wed, 02/09/2011 - 05:06 | 945780 StychoKiller
StychoKiller's picture

She turned me into a newt!  (But I got better!) :>D

Wed, 02/09/2011 - 00:09 | 945388 pleseus
pleseus's picture

Here comes the Federal Bailout of States.  QE3 will consist of muni bonds, mortgage and other shit junk purchases.  Bill Gross is jacking off in his Newport Beach mansion right now.

Wed, 02/09/2011 - 01:45 | 945596 Founders Keeper
Founders Keeper's picture

[Here comes the Federal Bailout of States.]---pleseus

"More" Federal Bailouts of States, I think you intended.

He who pays the piper, calls the tune. The states should be flatly rejecting any and all Federal money. The first state to do this will be the winner.


Wed, 02/09/2011 - 09:14 | 945952 blindfaith
blindfaith's picture

your are joking right?  Even the mighty righteous South Carolina, Tennessee, and Texas will step up to the plate and cry loud and long that they won't take a penny in public, but grab it like a hungry raccoon and run when you look away.

Wed, 02/09/2011 - 10:49 | 946165 sun tzu
sun tzu's picture

You mean they are grabbing back their own money that was taken by the federal government in the first place. It's the Obama welfare states like Maryland and Virginia that are pigs at the federal trough

Wed, 02/09/2011 - 08:55 | 945914 New_Meat
New_Meat's picture

"Here comes the Federal Bailout of States."

Federal bailout should come with consequences--like, 'ok, but you are grounded and can't be a state for a while.'

- Ned

Wed, 02/09/2011 - 00:12 | 945392 Kali
Kali's picture

Another nail in the coffin for small bizzes.  Higher unemployment taxes, probably MUCH higher in the near future.  There is no way to plan for the future of a business in this climate.  And people wonder why there are no jobs?  The Feds aren't bailing anyone out, the taxpayers are bailing everyone out. 

Wed, 02/09/2011 - 10:50 | 946171 sun tzu
sun tzu's picture

It's not the taxpayers money. It belongs to 0bama

Wed, 02/09/2011 - 00:12 | 945404 Hulk
Hulk's picture

Glad to hear Meredith told them to fuck off...

Wed, 02/09/2011 - 00:14 | 945409 Kali
Kali's picture

+ 1 fat middle finger

Wed, 02/09/2011 - 00:31 | 945459 I am a Man I am...
I am a Man I am Forty's picture

why, let her get her ass up to congress and give her dog and pony show so she can talk her book, the woman doesn't mind slobbering all over the mic on cnbullshit every chance she gets plus it will help her business, truth is she doesn't have her shit together on the muni bond stuff, u can take that to the bank

even though ca and illinois should implode she still doesn't know what she is talking about

so far, she is wrong, $6M in defaults this year in a $2T market


Wed, 02/09/2011 - 01:02 | 945518 traderjoe
traderjoe's picture

Long some muni's I take it?

Yes, the defaults are coming. You take one major muni BK/default, and the market will go bidless. Just like auction rate securities...

Wed, 02/09/2011 - 02:10 | 945631 I am a Man I am...
I am a Man I am Forty's picture

yes!  but not ca il or nj, sold those near the peak of the bond market, i only care about defaults, i don't care if interest rates go up, i will invest in more munis when the price is right, but that ain't now


thanks for asking!

Wed, 02/09/2011 - 10:51 | 946177 sun tzu
sun tzu's picture

I'm sure you did. Everyone sells at the top on the internet

Wed, 02/09/2011 - 11:46 | 946396 Hephasteus
Hephasteus's picture

While bench pressing 350 lbs.

Wed, 02/09/2011 - 01:25 | 945562 Threeggg
Threeggg's picture

Is that you Gasparino ?

Wed, 02/09/2011 - 01:57 | 945611 sun tzu
sun tzu's picture

I suppose you have your shit together. You're just jealous that nobody wants to see your ugly ass slobbering over the mic

Wed, 02/09/2011 - 02:07 | 945626 I am a Man I am...
I am a Man I am Forty's picture

you don't know what i look like so fuck off

Wed, 02/09/2011 - 10:52 | 946181 sun tzu
sun tzu's picture

Did I piss off your ugly ass face? boohoohoo asswipe

Wed, 02/09/2011 - 12:26 | 946544 Chump
Chump's picture

You are not very Sun Tzu-ish.  More Jersey Shore-ish, really.

Wed, 02/09/2011 - 00:30 | 945455 Misean
Misean's picture

It's not a loan, just a deferment of borrowed UE benifits. Once everyone blows through their benefits and is on food stamps, then the State governments can charge sales tax on food, and these taxes and their steady increases can be added directly to the COLA on the food stamp cards. And Benny can install new warp cores on the printer matrix to pay for it all. Perhaps he can power those warp cores with solar cells...

Wed, 02/09/2011 - 00:33 | 945467 Cursive
Cursive's picture

Is this like a mortgage payment holiday for the states?  Once again, our leaders have one set of rules while the common folk are held to a higher standard.  WTF all of this shit.  Let's just skip to the Red Money proposal.  I only ask that the Red Money proposal include the abolition of the FRB and the IRS.  Reboot this pathetic clusterfuck.

Wed, 02/09/2011 - 01:59 | 945616 Founders Keeper
Founders Keeper's picture

[I only ask that the Red Money proposal include the abolition of the FRB and the IRS.  Reboot this pathetic clusterfuck.]---Cursive

Thanks for your post, Cursive.

I expect things will get a lot more clusterfucky before the reboot.

For instance, I expect a lot more "holidays": bank holidays, foreclosure holidays, unemployment holidays, stock market holidays, election day holidays, etc.


Wed, 02/09/2011 - 05:09 | 945782 StychoKiller
StychoKiller's picture

Throw in some state funerals for VIPs of every persuasion, AND IT'S PARTY TIME! :(

Wed, 02/09/2011 - 00:43 | 945486 Mercury
Mercury's picture

Any state that accepts this federal largess will be that much closer to suicide.  After this they will have that much less control over their own affairs...

One government to rule them all

One government to find them

One government to bring them all

And in central planning bind them

Wed, 02/09/2011 - 02:55 | 945695 Sheepneck
Sheepneck's picture

Hehe nice!

Wed, 02/09/2011 - 07:25 | 945849 nmewn
nmewn's picture

"Any state that accepts this federal largess will be that much closer to suicide."

Our new governor here (Fla.) just proposed the largest budget cut in our states history. Our last governor (Crist) accepted the "shovel ready jobs stimulus" from Barry...which of course only delayed the inevitable adjustments that must be made.

Now, the gnashing of teeth and rending of clothes begins in earnest ;-)

Wed, 02/09/2011 - 08:42 | 945901 weinerdog43
weinerdog43's picture

And yet, his proposal has an increase of about 100 extra staff for his office.  Nice. 

Austerity for thee, but not for me.

Wed, 02/09/2011 - 19:08 | 947822 nmewn
nmewn's picture

Sometimes it takes a bigger crook than the ones that are there now weinie...he's cutting 8600, a good start...maybe his 100 is for security ;-)

Watch and learn.

Wed, 02/09/2011 - 01:01 | 945515 jmc8888
jmc8888's picture

I guess I never really realized that now (well not now...technically soon...but not yet....maybe) our Federal Gov't is in the usury business bleeding our states.  The Federal Gov't would then turn around and pay the banksters off for its loans. The situation the banks created through capturing federal employees to open their playgrounds, and the havoc it ultimately wrecks(ed), then turns what Hamilton did on his head.  Instead of federal gov't clearing the way for states to survive by taking buzz cut loans onto the federal books, instead they would be on the hook so the federal gov't would survive. (who then in turn is on the hook so the banksters survive).  Instead of the federal gov't as a force for enabling the American spirit, it would instead crush it.  Again, for the banks.  I'm picturing Spaceballs and the giant Vacuum.

Of course that's only if the federal gov't throws the states to wolves.  They haven't yet, but it's all set up to happen at some point....just maybe not now.



Wed, 02/09/2011 - 01:06 | 945526 Shameful
Shameful's picture

Mhhh, waiting for that budget.  Expecting it to be big and beefy...bigger, longer, and uncut.  No crony capitalist left behind, no crook left in the cold.  I can only hope that it's introduction starts with "Excuse me while I whip this out".

As to the increase in 2014, whatever.  I have all of 0 concern for 2014.  If Zimbabwe Ben and the Bailout Boys haven't slagged the dollar and plunged us into a nightmare economic hellstorm by then, I will be to busy dancing a jig dancing a jig to care about it.  If my wages still buy food and fuel in 2014 I'll be a happy camper.

Wed, 02/09/2011 - 01:13 | 945538 Misean
Misean's picture

"Expecting it to be big and beefy"

They make pig out of beef now? Is that one of those hedonic adjustment substitution things?

Wed, 02/09/2011 - 02:57 | 945698 Sheepneck
Sheepneck's picture

"Zimbabwe Ben and the Bailout Boys"

Sounds like a really bad garage band.

Wed, 02/09/2011 - 05:13 | 945783 StychoKiller
StychoKiller's picture

One crack-necked, beat-up guitar with 3 usable strings, and some warped drumskins -- but no one can play in tune or in time, so it's all good (if you like to listen to cats fightin' that is!)

Wed, 02/09/2011 - 06:49 | 945820 Sudden Debt
Sudden Debt's picture

You can book them for 1 trillion $ per gig.

Wed, 02/09/2011 - 06:56 | 945826 docj
docj's picture

But, oddly enough, they want to be paid in PMs.

Wed, 02/09/2011 - 01:23 | 945554 dumpster
dumpster's picture

theretalking about F.u.t.a ,,   an additional tax on top of the state suta tax,,

This futa tax is 0.7 percent of payroll to something like 7200  bucks ,, so the double to 15,000 dollars on the payroll check.  Will add additional costs to employers

The State also Levy's a unemployment tax that ranges from 0.2%  of payroll  to a max of some set payroll number .. different in each state ... 15,000  to 25,000 bucks or higher ,, this rate can increase to as high as 8.0% for employers with a large turn over ,, usually the rate for most business settles in the 3.0% range,  seasonal, roofers, and the like usually have this highest rate. 

then the mandatory workers comp .. some times as high as 100%  for roofers.   .50 for a secretary of wages paid



Wed, 02/09/2011 - 08:46 | 945905 Blano
Blano's picture

Here in Michigan, because the loans haven't been paid back yet, employers ALREADY pay a 75% penalty on their FUTA tax to the Feds along with the regular tax.  So we're already nearly paying at the 15,000 rate for all practical purposes.  Also our state rate runs around 8-9 percent a year even though we have zero employee turnover.

Snyder was supposed to be a different kind of Governor, but if he's begging Washington for help, he's just as bad as everyone else.

Wed, 02/09/2011 - 01:28 | 945569 TruthInSunshine
TruthInSunshine's picture

I'm going to request access to the discount window, TARP, TALF, SNAP, HEAT, PD status w/POMO, supplier of defective body armor & grenades to the DoD, BAB issuer status, and some other shit that I can bank easy coin with from the Federal Monstrosity that is probably now responsible for close to 50% of our GDP, and then I'm going to hit up states for tax credits, supplier status for 'energy code upgrades,' administrator of state health, welfare and nutrition programs, pension fund management, and a variety of other bullshit, and if I am denied, I am going to do a sit-in with Bernanke, Geithner and the governors of each state.

I want a piece of the Banana Republic Pie, Godamnit.

Wed, 02/09/2011 - 01:43 | 945593 ThirdCoastSurfer
ThirdCoastSurfer's picture

$117 million by Fall. Interest only. For Michigan! Talk about your NINJA loan. 

$9 million just to air that Eminem Superbowl commercial. What will history record of these events? 

Why can't they just set up a "Good Government / Bad Corporation" and set it up like BOA and its "Legacy Division"?  After all, Jefferson County, Alabama is already attempting to use a similar structure to avoid bankruptcy on their $3.2 BILLION, with a B, dollar sewer system, that's right, sewer system. 

 "John S. Young, the court appointed receiver overseeing Jefferson County's sewer system, has told the county legislative delegation that county lawyers are preparing proposed bill to create an independent corporation to operate and finance the sewer system, Birmingham News writer Barnett Wright reports."


Wed, 02/09/2011 - 01:56 | 945610 Caviar Emptor
Caviar Emptor's picture

Teapot Dome sounded so much cooler than Jefferson County Sewer. So appropriate: at least back then they struck oil. Only turd sludge left under the ground soon.

Wed, 02/09/2011 - 05:17 | 945788 StychoKiller
StychoKiller's picture

"John S. Young, the court appointed receiver overseeing Jefferson County's sewer system, has told the county legislative delegation that county lawyers are preparing proposed bill to create an independent corporation to operate and finance the sewer system,


I propose that they do one of them thar fancy Chinese reverse merger stock IPOs!  WTF, could it hurt to try?

Wed, 02/09/2011 - 07:39 | 945859 Miss Expectations
Miss Expectations's picture

"$9 million just to air that Eminem Superbowl commercial. What will history record of these events?"

That Christina Aguilera didn't deliberately mess up the National Anthem.  (Honestly, I didn't know who she was before this and I'd rather stick a pin in my eye than watch football.)

Wed, 02/09/2011 - 02:02 | 945619 Caviar Emptor
Caviar Emptor's picture

Dear ZH readers, this will put us yet one step closer to state run capitalism. Politicians are just pretending not to want it, red or blue, like drunk partly-virgin twat at a frat party. 


Wed, 02/09/2011 - 02:34 | 945661 e_goldstein
e_goldstein's picture

is "partly-virgin" similar to "a little bit pregnant?"

just curious. 

Wed, 02/09/2011 - 12:31 | 946563 Chump
Chump's picture

It means she gives up the butt to preserve her "purity."

Wed, 02/09/2011 - 02:39 | 945671 bob_dabolina
bob_dabolina's picture

It's very seldom do I read something and smile the whole way through. This was a great piece.

Wed, 02/09/2011 - 02:43 | 945677 serotonindumptruck
serotonindumptruck's picture

This makes me wonder how many state governors and legislatures will accept these repayment terms, which would certainly be the politically and fiscally expedient route to take.

OTOH, there's been a fair amount of interest amongst States' Attorneys General with regard to Constitutional legal challenges under the 10th Amendment (States Rights).

The 10th Amendment protects the individual states by allowing for a type of "opt out" of any Federal law deemed unconstitutional by the respective state constitutions.

Unfunded mandates from Washington DC are popular targets for 10th Amendment challenges. 

Of course, such answers can likely be deduced through an acknowledgement that the political level of corruption (and perhaps the fear of legislative inaction) would result in the majority of the States' capitulation.

Wed, 02/09/2011 - 08:46 | 945907 weinerdog43
weinerdog43's picture

Well, how many states turn down federal highway funds?  I'd wager not many. 

Wed, 02/09/2011 - 04:06 | 945753 ivana
ivana's picture

maybe bakruptcy first than restructuring (firing officials, downsize services) than bailout...

Wed, 02/09/2011 - 05:19 | 945789 StychoKiller
StychoKiller's picture

Can someone write me out of this "Twilight-Zone" script already?!

I'm all for starting a company to transport all remaining sane persons to Mars at this point...

Wed, 02/09/2011 - 09:04 | 945929 tarsubil
tarsubil's picture

Sorry dude. This train doesn't have any more stops. But it is always on time.

Wed, 02/09/2011 - 05:51 | 945793 cossack55
cossack55's picture

"as the printer ran out of zeros".  LMFAO. Good one, Tyler.


"she is going to be part of the hearing, wether she participates or not".  Patrick McHenry, N.C. (R) Obviously no relation to Patrick Henry.  Sounds more like Roland Freisler.  Too bad ol' Roland caught a 500 pounder dropped from 27,000 ft with his teeth.  Maybe history repeats.  One can only hope.  Brings up Orwell....

"In a time of universal deceit, telling the truth is a revolutionary act."

Wed, 02/09/2011 - 06:15 | 945807 Zero Govt
Zero Govt's picture

"Republican lawmakers could find themselves under pressure from Republican governors, whose states owe the federal government billions of dollars."

Washington is 'cleverly' painting itself into a financial corner marked 'Going Bankrupt'. Meridith must be really worried by these insolvent mathematical retards (politicians)

“If she doesn’t want to come forward in a venue like this, that makes a statement.”

Yes maybe she'll let time reveal the truth rather than the vein hope a bent political process stuffed with windbags will suffocate the actual truth in the usual Washington BS and snake oil

Wed, 02/09/2011 - 08:47 | 945908 New_Meat
New_Meat's picture

"... vein hope ..."

Is that like congresscritters bleeding out?

Wed, 02/09/2011 - 06:34 | 945813 King_of_simpletons
King_of_simpletons's picture

“This isn’t a gotcha thing, but she’s going to be part of the hearing, whether or not she participates,” he said. “If she doesn’t want to come forward in a venue like this, that makes a statement.”


The only statement it makes is that you people in Washington DC are corrupt buffoons beholden to the whims of banks. What a moronic statement to make in this day. The "venue" is nothing more than a fucking witchhunt paid for and bought by the banking cartel.

Wed, 02/09/2011 - 06:35 | 945816 sabra1
sabra1's picture

can't wait to see the 2, 5s and 10s reaction after the budget!

Wed, 02/09/2011 - 07:55 | 945862 TireBite
TireBite's picture

Call your state reps. At the very least,you can use their secretary as a verbal punching bag.

Wed, 02/09/2011 - 07:58 | 945864 ciscokid
ciscokid's picture

HEAVEN OR HELL   While walking down the street one day a Corrupt Senator was tragically hit by a car and died.   His soul arrives in heaven and is met by St. Peter at the entrance.   "Welcome to heaven," says St. Peter. "Before you settle in, it seems there is a problem. We seldom see a high official around these parts, you see, so we're not sure what to do with you."   "No problem, just let me in," says the Senator..   "Well, I'd like to, but I have orders from the higher ups. What we'll do is have you spend one day in hell and one in heaven. Then you can choose where to spend eternity."   "Really?, I've made up my mind. I want to be in heaven," says the Senator.   "I'm sorry, but we have our rules."   And with that, St. Peter escorts him to the elevator and he goes down, down, down to hell.   The doors open and he finds himself in the middle of a green golf course. In the distance is a clubhouse and standing in front of it are all his friends and other politicians who had worked with him.   Everyone is very happy and in evening dress. They run to greet him, shake his hand, and reminisce about the good times they had while getting rich at the expense of the people. They played a friendly game of golf and then dine on lobster, caviar and the finest champagne.   Also present is the devil, who really is a very friendly guy who is having a good time dancing and telling jokes.   They are all having such a good time that before the Senator realizes it, it is time to go.   Everyone gives him a hearty farewell and waves while the elevator rises...   The elevator goes up, up, up and the door reopens in heaven where St. Peter is waiting for him, "Now it's time to visit heaven.."   So, 24 hours passed with the Senator joining a group of contented souls moving from cloud to cloud, playing the harp and singing. They have a good time and, before he realizes it, the 24 hours have gone by and St. Peter returns.   "Well, then, you've spent a day in hell and another in heaven. Now choose your eternity."   The Senator reflects for a minute, then he answers: "Well, I would never have said it before, I mean heaven has been delightful, but I think I would be better off in hell."   So St. Peter escorts him to the elevator and he goes down, down, down to hell..   Now the doors of the elevator open and he's in the middle of a barren land covered with waste and garbage. He sees all his friends, dressed in rags, picking up the trash and putting it in black bags as more trash falls from above.   The devil comes over to him and puts his arm around his shoulders.   "I don't understand," stammers the Senator. "Yesterday I was here and there was a golf course and clubhouse, and we ate lobster and caviar, drank champagne, and danced and had a great time. Now there's just a wasteland full of garbage and my friends look miserable. What happened?"   The devil smiles at him and says, "Yesterday WE were campaigning.  Today, YOU voted.."     Vote wisely in Elections 2011        

Wed, 02/09/2011 - 20:20 | 947974 Buck Johnson
Buck Johnson's picture

And that is the truth, we have a leadership both in politics and in business that are destroying our country and large swaths of the planet in order to make a buck. 

Wed, 02/09/2011 - 08:25 | 945877 pragmatic hobo
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"... as the printer ran out of zeroes ..."


that's a good one.

Wed, 02/09/2011 - 08:32 | 945884 Forgiven
Forgiven's picture

Seems Obama's plan will last just long enough to get him through the next election.  Obama is a scumbag.

Wed, 02/09/2011 - 09:09 | 945942 tarsubil
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Yeah, notice how Bush is done with politics completely. Must be nice to rape the country and then walk away (to a palatial estate with armed security protecting you).

Wed, 02/09/2011 - 08:59 | 945920 max2205
max2205's picture

I can't sleep at night with all the noise of cans being kick down the road

Is this the only strategy they teach in Congress 101?

Wed, 02/09/2011 - 10:21 | 946080 Cash_is_Trash
Cash_is_Trash's picture

The whole country is labeled TBTF.

Whose gonna fight the upcoming wars when they're in your backyard??

R. Chris Whalen bitchezzzzzzzz

Wed, 02/09/2011 - 10:22 | 946081 gwar5
gwar5's picture

FBN: Gasparino says Muni crunch is overblown -- but anchor disagreed.

Gasparino: Munis would have to default $2.5 billion/ week for 1 year. "Won't happen".

Anchor: Muni's just running on fumes from last Fed stimulus bailout. Forestalled until now.

So, who's right?  I'm thinking must somewhere in between. But if more muni's default and States seek alternative remedies, others will quickly follow creating the wave.

Wed, 02/09/2011 - 10:30 | 946097 Pants McPants
Pants McPants's picture

Maybe I am misunderstanding something here, but the total amount paid by each state is the same after the tax holiday expires, correct?

If that's true, what's the incentive to be fiscally responsible now?  Why not waste more Federal money now and pay it back later with depreciated currency?

I realize governments need no incentive to spend more money and screw citizens "for their own good" ... but this reeks of madness.

Again, I'm likely missing something.

Wed, 02/09/2011 - 10:50 | 946174 HedgeFundLIVE
Wed, 02/09/2011 - 11:22 | 946292 Problem Is
Problem Is's picture

If I were a small business operator, I would say...

More stinkin' taxes? I don't need hire any employees...

Wed, 02/09/2011 - 11:49 | 946413 Hephasteus
Hephasteus's picture

Apple municipality pro.

256 bit cpu to easily handle those really large quad precision numbers that compounding interest easily produce.

Eyeview infinity 6 monitor setups to display those really large quad precision numbers in easy to read large fonts.

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