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Video: The coming collapse in the state budgets (Chris Christie says "Day of Reckoning is here")
Hotair ^ | 12/20/2010 | Ed Morrissey

Posted on 12/20/2010 7:22:17 AM PST by SeekAndFind

While you’re watching this excellent 60 Minutes story on the coming implosion in state governments, remember one key statement about halfway through this from Steve Kroft: the Great Recession didn’t cause this budget insanity, it merely exposed it. The overspending has been going on for decades, especially in places like Illinois, California, and New Jersey, as well as ridiculous union contracts that have California spending more on its public employees than it does on the entire state-owned public university systems it operates. Illinois has gotten so bad that landlords are evicting legislators from their business offices and police officers attempting to put gas in the tanks of their patrol cars have their state credit cards declined at the pump.

Chris Christie makes it clear when discussing the rail project he had to cancel. “We don’t have the money,” Christie explains, “we literally don’t have the money.” He’s not the only one, either (via The Right Scoop):

The “ride to the rescue” in Porkulus didn’t produce any improvement in behavior. Instead of either facing the music and making cuts in expenditures — especially in reducing bureaucracies — the states used the Porkulus bloc-grant funding to paper over their budget gaps and punt on the hard decisions. The federal government shouldn’t have borrowed money to provide that fig leaf the first time, and they won’t get an opportunity for Round 2 fig-leafism with a GOP House.

That leaves the states on their own to do what they should have done years ago — cut spending and press for pension reform in the public-union contracts. Will the states finally take control of their budgets? If they don’t, prepare for another collapse in the banking sector.

CLICK ABOVE LINK FOR THE CBS NEWS VIDEO...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: chrischristie; debt; statebudgets
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1 posted on 12/20/2010 7:22:24 AM PST by SeekAndFind
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To: SeekAndFind

Great video.

I really wish he would run for President.


2 posted on 12/20/2010 7:23:23 AM PST by GlockThe Vote (Who needs Al Queda to worry about when we have Obama?)
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To: SeekAndFind

Obviously true, no more time for borrowing, and spending, it is now time for cutting and tough decisions or what will come certainly will be a more bitter pill...The commies will say its the fault of the republic and free eenterprise, but they have spent like drunken sailers trying to buy power..
Time to starve the beast and leave their money grubbing hands bloody at the nubs..


3 posted on 12/20/2010 7:25:39 AM PST by aces
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To: SeekAndFind
" Illinois has gotten so bad that landlords are evicting legislators from their business offices and police officers attempting to put gas in the tanks of their patrol cars have their state credit cards declined at the pump. "

All right then......

The tyrannical government and liberals want to mess with conservatives who are rich and wealthy ? .... then, those rich and wealthy conservatives who are land lords and whom the government and liberals politicians owe money should start evictions and calling in their debt and loans.
4 posted on 12/20/2010 7:29:20 AM PST by American Constitutionalist (The fool has said in his heart, " there is no GOD " ..)
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To: SeekAndFind

Granholm has left bombs all over the place and the idiot we elected is letting her help him deal with financial issues.


5 posted on 12/20/2010 7:32:11 AM PST by cripplecreek (Remember the River Raisin! (look it up))
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To: SeekAndFind

Seemed to be an odd piece for a leftist news organization to run — pointing out how the Dem entitlement mode/unions have run states and cities into the ground.


6 posted on 12/20/2010 7:33:23 AM PST by TigerClaws
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To: SeekAndFind

“Socialism works great until you run out of other people’s money.”

Margaret Thatcher


7 posted on 12/20/2010 7:34:21 AM PST by DJ Taylor (Once again our country is at war, and once again the Democrats have sided with our enemy.)
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To: SeekAndFind

I watched this on 60 Minutes. This is why you need to be VERY careful in the Market. It’s a good time for quick gains, but be ready to sell at a moments notice because the stuff is coming home and soon.


8 posted on 12/20/2010 7:34:49 AM PST by devane617 (NEVER feed your cats canned Tuna fish. Mercury poisoning.)
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To: SeekAndFind

God I am glad I live in Texas. I know the Prerry-haters on the board will be all over me, but for all his shortcomings he has kept Texas away from this trap.


9 posted on 12/20/2010 7:35:02 AM PST by No Truce With Kings (I *saw* November from my house.)
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To: SeekAndFind

For states, there is no way out except to, for one thing, eliminate pensions for new hires (give them 401K plans instead). Also do massive cutbacks and layoffs in state welfare programs.


10 posted on 12/20/2010 7:36:15 AM PST by PapaBear3625 ("It is only when we've lost everything, that we are free to do anything" -- Fight Club)
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To: SeekAndFind

I almost barfed when the 60 Minutes “reporter” mentioned that Christie and his predecessors were to blame for the pension shortfall because they had not made the contributions necessary to keep them in the black (where does the $$ to do that come from????). They also made mention of how he had cancelled the rail project that would have provided 6,000 jobs. While Christie was given the chance to say that he didn’t have the money to pay for the jobs they did mention the massive cost overruns on the project that would have saddled NJ with billions more that they simply cannot pay for.

NJ’s spending has increased 70% in less than 10 years which is about 7% a year growth. Tax revenues have to grow at that rate to sustain it which is indicative of a hyper inflated economy.


11 posted on 12/20/2010 7:38:00 AM PST by misterrob (Thug Life....now showing at a White House near you....)
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To: SeekAndFind

Greed is alive & well and lives in the public sector.


12 posted on 12/20/2010 7:41:17 AM PST by skeeter
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To: SeekAndFind
Sooner or later the United States is going to have to nationalize the debt. There is no way to repay it. Period. We are all fools for believing any other thing.
13 posted on 12/20/2010 7:41:51 AM PST by Glenn (iamtheresistance.org)
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To: SeekAndFind

So the California GOP was very smart after all. Give the Dems total ownership of the State government at exactly the moment that the State implodes. GOP in Washington; Tea Party in the GOP - Good Luck with a bailout.


14 posted on 12/20/2010 7:44:05 AM PST by I am Richard Brandon
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To: SeekAndFind

The government had better get the illegals out of the country NOW. There will be riots enough as it is, adding the illegal factor will make it much worse. It’s dangerous, seriously dangerous.


15 posted on 12/20/2010 7:45:13 AM PST by McGavin999 ("I was there when we had the numbers, but didn't have the principles"-Jim DeMint)
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To: Glenn
Sooner or later the United States is going to have to nationalize the debt.

There are two choices. Either repudiate the debt or seize all that cash sitting in 401K and 403B plans.

Which one do you think they'll pick?

16 posted on 12/20/2010 7:47:26 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: SeekAndFind

Harry Reid is planning to bring the inappropriately named, 9/11 Health care bill to a vote today. The bill is not really about health care of first responders. It is about union contracts and spreading the costs of those big city contracts across rural America.


17 posted on 12/20/2010 7:47:36 AM PST by Eva
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To: SeekAndFind

Public debt... The Opium of the masses©


18 posted on 12/20/2010 7:50:58 AM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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To: SeekAndFind
This is a scary, but important video to watch:

http://www.cbsnews.com/video/watch/?id=7166293n&tag=topnews

When 60 Minutes runs a piece that portrays Gov Christie as a prophet and a hero, you know things are about to collapse.

If you hold Municipal Bonds (anywhere) - sell them immediately.

My office mate told me the "solution" to avoid collapse would be for NJ to "triple" its property taxes. We already pay 5 figures for property taxes.

There is no way they can increase them to cover the pensions for public employees. If they were to "triple" them - there would be a revolt, and I mean it.

19 posted on 12/20/2010 7:51:03 AM PST by SkyPilot
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To: SeekAndFind

I saw it last night and I couldn’t believe I was watching 60 Minutes. They actually let Christie speak. Great story from an unlikely source.


20 posted on 12/20/2010 7:51:17 AM PST by SC_Pete
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