Midnight tonight marks the end of fiscal 2009 for 46 states in the US
and various state constitutions require 45
…to have a final budget by tomorrow morning
10 states are facing a true blue crisis
California, Connecticut, Pennsylvania,
North Carolina
Delaware, Illinois, Ohio, Indiana, Mississippi and Arizona
do not have budgets in hand on the eve of the new fiscal year
Of those 10
California and Arizona are looking particularly dire
Arizona faces a $3 billion budget shortfall
or around 30% of its annual budget
California needs to fill a whopping $24 billion gap
roughly 26% of its annual tab
Gov Schwarzenegger says without a budget
he’ll be forced to start writing IOUs tomorrow
to the state’s creditors
“Whenever I talk about the Great Depression
and compare it with what is going on today
I get a lot of skepticism” says Chris Mayer
“What you have to remember, though
is the Great Depression unfolded like a train wreck in slow motion
It took awhile before it became the Great Depression
It wasn’t like someone flipped a switch and poof
bread lines, Hoovervilles and hobos
Another point to remember is that the Great Depression
was a global economic event
It wasn’t just confined to the U.S.
You have a take a wide-angle view of the global economy
to get a better sense of the breadth of the slump”
And so it is today
In terms of industrial output
we’re tracking the Great Depression’s path pretty closely
The State Budget Crisis Peaks Tonight
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