If you liked the bailout of Wall Street banks, you are going to love what’s next: a bailout of state and local governments.
Public finance newspaper The Bond Buyer reports today that an effort is underway to lobby Congress to spread the wealth around to local governments who have overspent their bank accounts:
“Spending by states and municipalities accounts for 12% of gross domestic product, Kanjorski said, adding that a contraction in the governmental sector will lead to a worsening of the economy.”
They have to be kidding. The only way out of the mess too many state and local governments are in is to create a “contraction in the government sector.” In what alternate universe will borrowed federal money do anything but make it all worse?