[Soren]

Good advice. Corporations may be just as guilty. There was an article posted yesterday that seemed to imply states and municipalities were also shifting from long to short term debt, though derivatives were involved and it wasn't clear to me who was actually taking the risk of short term fluctuations. And didn't the federal gov't move to the short end during the Clinton administration?

[dalereed]

"didn't the federal gov't move to the short end during the Clinton administration?"

Sure did, that's partially how clinton was balancing the budget but it's going to really hurt in the long run but what does he care, he won't be in office when the payment comes due.

As far as the states using derivitives to finance their deficit, they are playing with fire and of course only us taxpayers are going to get stuck in the end.