- Infowars - http://www.infowars.com -

States of Crisis for 46 Governments Facing Greek-Style Deficits

Posted By aaron On June 25, 2010 @ 3:38 pm In Old Infowars Posts Style,World News | Comments Disabled

Edward Robinson
Bloomberg
June 25, 2010

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.

  • A d v e r t i s e m e n t
  • {openx:49}

Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue.

Far from rebounding, the Golden State, with a $1.8 trillion economy that’s larger than Russia’s, is sinking deeper into its financial funk. And it’s not alone.

Even as the U.S. appears to be on the mend — gross domestic product has climbed three straight quarters — finances in Arizona, Illinois, New Jersey, New York and other states show few signs of improvement. Forty-six states face budget shortfalls that add up to $112 billion for the fiscal year ending next June, according to the Center on Budget and Policy Priorities, a Washington research institution. State spending is 12 percent of U.S. GDP.

READ FULL ARTICLE


Article printed from Infowars: http://www.infowars.com

URL to article: http://www.infowars.com/states-of-crisis-for-46-governments-facing-greek-style-deficits/

Copyright © 2013 Infowars. All rights reserved.