GM and Chysler Bankruptcies

[kandrathe]

At that point, it's either use fiscal stimulus, or wait it out.

Like the overprotective parent, the government meddles in things and only makes them worse. If I knew they could come in like a surgeon and fix it, then I might be more agreeable. But, they are more like the drunken uncle who solves everything with booze. And, its booze he bought by borrowing your money. The governments solution to our financial problems are a choice between; 1) "I could take less of your money and run up huge deficits", or 2) "I could take more of your money and run up huge deficits".

There are food riots at your house? During dinner, no less?

I have two boys. We have a mini tramp in the house to help erode excess energy. Caring for boys is applying the proper technique for keeping their batteries charged, while simultaneously keeping them drained.

I didn't say things weren't getting worse, or that there aren't people in need. That's just a long way yet from food riots. Predicted events are not the same as actual events. (Not to mention that the Austrian solution to food riots is about the same as the Austrian solution to anything: stand back and let the market work its magic. Is that really where we want to go? Private philanthropy as the only thing between the needy and hunger, when that same philanthropy is currently dropping like a rock?)

I guess you don't read "Food Industry News". :D Point taken. I forget sometimes that others are not as prescient as I. { Please ignore the WMD in Iraq discussion we had in 2001. Unless they really did move them to Syria, and then I was right. :P}.

Which makes me wonder why so many of them are trying to make some stink about rejecting stimulus money. But yes, quite a few states are in serious trouble, and will continue to be, unless the economy turns around.

That is easy to explain. The federal bail out of 2009, allows politicians the easy way out and will delay the budget tightening needed by 2010. States cannot print money, and therefore deficits at the State level are bad (as California and others can attest). Even in my State, the Fed's money allowed us to float this year by only cutting $2.7 billion from the budget, rather than the projected $4.6 billion we need to cut to match revenue projections. So, our tax addicted State gets a methadone shot from the Feds to make detox a bit less painful but also will take at least twice as long. Government, is by far, the largest employer here, so a downturn in the economy has ripple effects which make our recessions longer.