> Jochem wrote: > In terms of the real economy it doesn't mean anything, it is just numbers.
The problem is that, as Robert pointed out, State and city governments have been promising to pay their employees pensions that they can't currently afford for decades. At some point this has to catch up with them and that point is here. The first wave of cities heading for default began about 5 years ago when cities had to stop hiring and forego necessary work in order to pay their pension obligations. That will increase to the point where the cities and states can no longer conduct daily business and then a default will occur. At that point the pensioners can sue the government or the government can come up with the money. In order to come up with the money they either have to raise taxes or get a federal bailout which would come from federal taxes. So start adding up the bailouts: 1.) City and state persion and medical benefit default (starting) + 2.) Corporate pension default (steel has happened, airlines in progress, then auto) + 3.) Federal pension default (Social Security) + 4.) Medicare default (already happening) + 5.) Medicaid default (already happening) = A LOT OF MONEY! That, of course, also ignores the fact that the US already borrows $3 billion a day to operate. So where is the bailout money going to come from? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Save $10 Download ZoneAlarm Security Suite http://www.houseoffusion.com/banners/view.cfm?bannerid=66 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:157693 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
