Visit with a few posts by Russ Winter and Mish Shedlock.
American masters of the universe and their toadies give self serving lip service to covering some events in Europe. They are forced to really. But when it comes to the last Ponzi standing, the US, we see little of the kind.
For example recent estimates of California’s budget deficit soared to $16 billion, compared to $9.2 billion estimated in January. Tax revenues are falling far short. Now the state proposes more tax increases and spending cuts. Even though California is a non-recourse state, bankruptcies are running hot. The other state to pay close attention to is Illinois, a political quagmire of the highest order. My prediction: both California and Illinois are political hot potatoes and Democratic states. Therefore any attempts at Federal bailouts of states will be gamed unmercifully. Look for this to develop pre-election.
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"The grim situation in California is about to get grimmer as Unemployment Benefits Go Bye-Bye
More than 200,000 long-term jobless Americans will lose their unemployment checks this week, when eight states roll off the federal extended benefits program.
Nearly half of them live in California, and the rest reside in Florida, Illinois, North Carolina, Colorado, Connecticut, Pennsylvania and Texas.
The federal extended benefits program has provided the jobless with up to 20 weeks of unemployment checks after they've run through their state and their federal emergency benefits, which together last up to 79 weeks...
"As noted above, California bears the brunt of this wave of benefit expulsions, and that will exacerbate the state's fiscal problems. For details, please see California Deficit Soars to $16 billion; Governor Brown Threatens Public Education Unless He Gets "Temporary" Tax hikes; How Brown Ruined California in His First Term; Four Point Solution.
California, like Greece is perpetually in fiscal trouble. Overoptimistic revenue forecasts coupled with spending $2 billion more than expected has California in a deep hole. Governor Jerry Brown has the same non-solution as ever, hike taxes.
Brown wants a "temporary" (as in seven years) tax hike. Given we all know there are no such things as temporary tax hikes in California (seven years is permanent enough in the first place), and also given the California school budget needs an axe, I say let him."
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