What will happen when the next financial shoe drops?

By Noble Johns

NEW YORK (BNW) –
When will it end? What will happen next? Where do we go from here? These are some of the vexing questions of our time. In other words, the shit’s fucked-up. So much so, that it will take a decade to recover from the excess of our conspicuous consumption.

For the past thirty-years, greedy Americans have out spent, out lied and out done themselves. And as a result, we have brought the whole world to the brink of financial ruins.

The news is so bad and will be for so long, that I would have rather been caught fucking a chicken in broad daylight than to be caught in the mess we find ourselves in today. The shit’s gone get worst before it gets better any time soon.

Now, the governors are begging for a bailout because the states’ treasuries are out of money. Who will be the next to feed from the pockets of the American taxpayer?

Five U.S. governors have urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession. Right!

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin — all Democrats — said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.

New Jersey governor, Jon Corzine said he hopes some of the $700 billion authorized by Congress in the Troubled Asset Relief Program would be available to help the housing market.

Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

"It's clear that the federal government needs to step in and jump-start the economy," said Gov. Deval Patrick of Massachusetts.

Their pitiful cry gives new meaning to the saying, “being poor, broke and hungry.”

The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states.

The governors said during a conference call with reporters that the plan had been discussed with Congressional leaders and the incoming administration, which had indicated its willingness to help.

The remainder would be used to fund middle-class tax cuts, stimulate the embattled housing market, and stem the tide of home foreclosures through a loan-modification program.

"The Obama team has been very receptive in listening to us," said Gov. Jim Doyle of Wisconsin. He said "quite a number" of other governors back the initiative.

The Republican Governors Association, however, said the level of federal aid being sought would create a burden for the future.

"The proposal by the Democratic governors goes beyond things like 'shovel-ready' infrastructure projects and is essentially a bailout of these states' general funds," Nick Ayers, executive director of the Republican Governors Association, said in a statement. "Now is the time to focus on finding cost-effective ways to provide essential services without burdening future generations with ever greater debt."

Doyle of Wisconsin said the plan would allow states to maintain essential services at about the current level until 2010, when the national economy is expected to begin a recovery.

The proposal comes amid expectations that the Obama administration, which takes office on January 20, will provide hundreds of billions of dollars in economic stimulus to boost the shrinking U.S. economy and halt the loss of jobs.

Paterson of New York said his state's budget deficit has surged to $15.4 billion currently from $5 billion in April 2008, despite a 3.2 percent cut in the education budget.

Corzine said the money called for represents about 3 percent to 3.5 percent of the economy, equivalent to the amount that the economy is expected to contract by over the next two quarters.

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