Markle wrote: 2seaoat wrote:People living in fiscally responsible states will be furious. While they acted responsibly, they are going to be forced to pay for others irresponsibility.
How do you define fiscally responsible? The truth is that those states which pay the most taxes and get the fewest government dollars back are often the very states which are faced with debt.
http://en.wikipedia.org/wiki/Federal_taxation_and_spending_by_state
http://taxfoundation.org/blog/monday-map-state-debt-capita
If fiscally responsible means that those states with the highest debt quit sending money to the states with the less debt, you may be on to something.
I understand that this is complex and it appears to be over your head. States have their own budgets and spending, outside of Federal spending. Cities and municipalities do as well. DETROIT is a city, it is BROKE and deeply in debt from so many give aways and corruption over the years.
Try again.
No, you try again, you stupid partisan hack.
http://opinionator.blogs.nytimes.com/2013/08/11/the-wrong-lesson-from-detroits-bankruptcy/?_r=0
(read the whole article)
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http://www.bloomberg.com/news/2013-03-14/only-wall-street-wins-in-detroit-crisis-reaping-474-million-fee.html
Only Wall Street Wins in Detroit Crisis Reaping $474 Million Fee
"The only winners in the financial crisis that brought Detroit (9845MF) to the brink of state takeover are Wall Street bankers who reaped more than $474 million from a city too poor to keep street lights working.The city started borrowing to plug budget holes in 2005 under former Mayor Kwame Kilpatrick, who was convicted this week on corruption charges. That year, it issued $1.4 billion in securities to fund pension payments. Last year, it added $129.5 million in debt, 9.3 percent of its general-fund budget, in part to repay loans taken to service other bonds.
Detroit, which is trying to avoid becoming the largest U.S. municipal bankruptcy, struggles to serve residents after revenue declined when the auto industry collapsed and the city began to empty. Michigan (BEESMI)’s Republican governor, Rick Snyder, is preparing to name an emergency manager, who will have to address debt and derivatives taken on in the last eight years.
“We have no lights, no buses, poor streets and now we’re paying millions of dollars a year on our debt,” said David Sole, a retired municipal worker and advocate for Moratorium Now Coalition, a Detroit group that fights foreclosures and evictions. “The banks said they need to be paid first. But there is no money.”
The city, which peaked at 1.85 million residents in 1950, has lost more than a quarter of its population since 2000. The 700,000 inhabitants who remain endure unreliable buses, inadequate police and fire protection and broken street lights that have darkened entire blocks.
Covering Shortfalls
Banks including UBS AG (UBS), Bank of America Corp.’s Merrill Lynch and JPMorgan Chase & Co (JPM). have enabled about $3.7 billion of bond issues to cover deficits, pension shortfalls and debt payments since 2005, according to data compiled by Bloomberg. Liabilities rose to almost $15 billion, including money owed retirees, according to a state treasurer’s review.
The debt sales cost Detroit $474 million, including underwriting expenses, bond-insurance premiums and fees for wrong-way bets on swaps, according to data compiled by Bloomberg. That almost equals the city’s 2013 budget for police and fire protection.
The largest part is $350 million owed for derivatives meant to lower borrowing costs on variable-rate debt..."
VULTURE CAPITALISM on a grand scale...
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