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Tuesday, December 21, 2010

State and Local governments bankrupt

Back in 2008, I posted on how the bankruptcies would eventually spread states. I was a TAD bit early. Sixty minutes posted a video on how the states are bankrupt. While I welcome the recognition by main street media, I am constantly bewildered how long it takes media to pay attention to these crisis situations.

NJ Governor Chis Christie pulls no punches.

"This is different, isn't it?" Kroft asked New Jersey's governor, Chris Christie.

"It is very different," Christie said. "The reason it's different is because the only choices left are choices that people previously have said were politically impossible, that you couldn't do. You couldn't cut K to 12 education funding. You couldn't do those things. They were, you couldn't talk about pension and benefit reform for the public sector unions. That were third rails of politics. We are now left with no alternatives."

"Just the third rail?" Kroft asked.

"Yeah, that's it. I'm just gonna grab it and go, and let the chips fall where they may," Christie said.

"This is unsustainable, right?" Kroft asked.

"Totally unsustainable. We have a benefit problem," Christie said. "It's not an income problem from the state. It's a benefit problem. And so we gotta change those benefits."

To be fair, New Jersey didn't fund the pensions 13 of the last 17 years. But there is no going back now....and instead the state employees will get hit. Every year NJ didn't fund the pension there should have been marches on the capitol to insist to alway fund. Water under the bridge now.

Video well worth the watch.


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