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Title: States Will Be Slammed by Default
Source:
Frum Forum - Pew
URL Source: http://www.frumforum.com/states-will-be-slammed-by-default
Published: Jul 27, 2011
Author: Pew/Frum
Post Date: 2011-07-27 20:18:43 by go65
Keywords: None
Views: 3163
Comments: 7
Pew reports that a federal default will cascade through state governments, forcing tax increases and budget cuts on local taxpayers. Medicaid budgets would be slashed. Federal money for unemployment benefits would halt. State colleges would lose federal grants. Different states would experience different kinds of shock. Take Colorado. A federal default would cause more than 53,000 federal employees to be furloughed. All national parks would be shut down, and thousands of military service members would not be paid until a deal is reached. With Colorado’s large military presence, this could strike at the incomes of many families. Moody’s has created a watch list warning the states of Maryland, New Mexico, Tennessee, Virginia and South Carolina as being at the highest risk for a downgrade. Should the federal government default and downgrade from its current AAA rating, these states will suffer most, largely due to their high federal employment numbers and Medicaid exposure. Some states are taking preventative action. New Mexico – which takes in $500 million of federal funds each month for unemployment and forestry programs – has asked agencies to request any federal reimbursements by Friday, to ensure the return of their payments. California borrowed $5.4 billion from a bank on Tuesday to avoid the interest increases that would accompany a default. This will increase municipal debt, but may save the state in the case of a default- instigated financial disaster. The direct risk to states is obvious. There is also a less discussed risk that a federal debt downgrade will raise state borrowing costs. “Maryland had a bond sale scheduled for this week – a $700 million bond sale,” said Pew Research Manager Sarah Emmans. “And the treasurer decided to postpone part of it due to the uncertainty of the August 2 deadline.” Increases in state borrowing costs will disrupt local economics. “State and local governments actually issue debt to build things like roads, bridges and highways,” said Emmons. “So if there’s a default, then it’s harder for them to issue debt. They might have to cancel or postpone a lot of those projects that both create jobs and also provide vital services to taxpayers.” A recent article claims most of us are affected by the “normalcy bias” – a mental state causing us to underestimate the severity of the looming default and generating our inability to cope with it. But some states are taking actions to prepare themselves – and their cash stocks – for financial disaster. “State and local governments can’t go very long without that federal money,” said Emmons
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#1. To: go65 (#0)
But will it affect the rich? That's all that matters.
So just tell the Senate Democrats and Obama to sign the bill and it's done.
Now, I know I’m not going to change the minds of any of the True Believers…those who read all of Reverend Al’s sermons, and say things like, “You know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, …”. Can I get an ‘amen’??
So the majority party should cave to the minority party in order to crush the man on the street while the banks/military skate. Yeah. Lenin thought the exact same....on majority as minority. 8D
Sign what bill? The one that "Stumpy" Boehner cannot get passed?
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
Word is he has the votes to get the bill passed, although almost no one is really happy with it
Now, I know I’m not going to change the minds of any of the True Believers…those who read all of Reverend Al’s sermons, and say things like, “You know, global warming can mean warmer OR colder, wetter OR drier, cloudier OR sunnier, windier OR calmer, …”. Can I get an ‘amen’??
America...My Kind Of Place... "I truly am not that concerned about [bin Laden]..." "THE MILITIA IS COMING!!! THE MILITIA IS COMING!!!" I lurk to see if someone other than Myst or Pookie posts anything...
The Republicans are the majority party. There are more of them in office across the country then demoncrats. Defaulting will only hurt the sleezebags living high off of the government. Trump is right Default and make that asshole in the whitehouse a one term president. It would also force the government to throw lazy government workers to the streets to get a real job.
#2. To: go65 (#0)
#3. To: no gnu taxes (#2)
So just tell the Senate Democrats and Obama to sign the bill and it's done.
#4. To: no gnu taxes (#2)
So just tell the Senate Democrats and Obama to sign the bill and it's done.
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#5. To: war (#4)
The one that "Stumpy" Boehner cannot get passed?
#6. To: no gnu taxes (#5)
The one that "Stumpy" Boehner cannot get passed?
--GW Bush
--Sarah Palin's version of "The Midnight Ride of Paul revere"
#7. To: mcgowanjm (#3)
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