If anyone thinks that what is going on in Greece can’t happen here they had better think again! The New York Times reported today that state debt has grown too big to camouflage with accounting tricks and other gimmicks. The states have to start getting realistic with how they budget their money and all the Enron accounting tricks they have been operating is ending.
The states want to blame the recession and financial meltdown that the country is experiencing, but the real truth is the states have been on a spending binge that was unsustainable and now the bill is coming due.
Everyday reports of how California has squandered taxpayer money. The state is facing major funding issues in regard to funding public employee benefits, without any solution on how to fix the problem.
All anyone has to do is read a paper and you find issues of misappropriation of funds or questionable spending practices. The fiscal solvency of the states will hamper any economic turnaround of the country.
How can a state with the eight largest economy in the world be broke? Their problems are our problem and the nation’s problem.
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