Congress Worries States Will Run Out of Money

March 4, 2010 RSS Feed Print
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By Paul Bedard, Washington Whispers

Forget the "tech bubble," the "housing bubble," and the "financial bubble." Washington is now worried about the state and local government "borrowing bubble." Congress worries that as already happened in California, states and cities will start running out of money, see their bond ratings hit, and come begging to Washington, throwing the economy into further turmoil. "Governments have been overspending at every level, are leveraged to the hilt. They've borrowed to the hilt," says Tom Davis, a former Republican House member who runs the centrist Republican Main Street Partnership. Unless deficits are slashed, he adds, bond investors are "going to put their money someplace else, and at that point you lose control."

Tags:
state budgets,
recession,
Congress

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What will happen in the coming future... rather than have political ideology determine alliances, it will be alliance by age group. There will be big fights based on generational interests. There will be old people vs young people...the system will become increasingly unstable and unsustainable. The USA will become an enormous money argument which in my opinion, will spell ruin for the country socially and financially. What other result could there when the generation in power has simply done what is best for itself, with token gestures to the next generation? The young people will not only be asked to pay unrealistic sums of money to support the baby boomers, but will also be saddled withe the debts of that generation (and their politicians) as well. In native American culture, morality is measured by what condition things are left for the next generations. If they have left great bills to pay and social chaos, then its reasonable to say the generation, as a whole, was not a moral one and simply did whats best for itself. This realization suggests even attending church is hypocritical, if it also means indifference towards what condition things are left behind. I used to be all for AARP, now what I see coming is AARP aggressively lobbying for 'more' when this generation, as a whole, has voted to leave left behind debt for others to pay. Its like a house party mess which the next generation gets to spend their lives cleaning it up, while trying to make something of their own lives. We will likely see American's global standing reduced to unimaginably low proportions, and this great experiment in democracy will come to a close within this century. But what that closure details, I shudder to think. Just like ancient Rome, we are no better than they, even though we have things called the "iPod".

walt of PA 2:14PM March 14, 2010

If congress is so worried about states running out of money,besides quit spending,quit putting unfunded mandates on states such as more portions of healthcare takeover

Hunter of WI 2:34PM March 07, 2010

I have ann idea for states.Why don't they quit listening to eco wackos and develope the natural resources in their state.Instead of sending billions overseas,keep it here,put americans to work.Lower our electric bills,lower the cost of gas.Give us more money to spend.Quit expanding the size of all goverments,federal,state and local.We can't afford the price of goverments,any of them.Look at the 2 trillion dollar unfunded gov.pension plans..Privatize as much of gov.as possible,instead of it taking taxes to run things,the people would be paying more taxes in,and services would getting done cheaper and more efficently.Better for everyone,oh except the unions boo hoo!

Hunter of WI 2:28PM March 07, 2010

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