A forecast by Merrill Lynch analyst Ethan S. Harris, that the US will see at least one additional credit downgrade by the ratings agencies prior to the first of the year, such is our precarious debt situation.
In spite of this crisis, the President, who has repeatedly promised to "pivot to jobs", is now championing a transparent payoff to his most ardent special interest group: a multi billion dollar bailout of profligate State and Local governments under the guise of hiring laid-off "Teachers, Cops, and Firemen". All this is to be paid by "Taxes on the rich".
Apart form the fact that these public employee Unions are the largest contributors to Democrat party coffers and his campaign., he is attempting to condition this bailout on a promise of no further layoffs of said union employees going forward.
States and municipalities that are most in trouble are those in heavily Blue states, whose politicians have made bankrupt with unaffordable pay and pension promises. This "Jobs" bill is the ultimate "Moral Hazard".
When they want to raise your taxes , they always say it's for Teachers & Cops, but the money always goes to bureaucrats. Why should a Florida taxpayer bail out California, New York , and New Jersey state governments? These Union workers have priced themselves out of the market with unaffordable pay packages--and only by Union concessions can budgets be brought under control.
Barrett LeWald
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