Grab Your Wallets....Your Uncle Needs $$$$
NEW YORK (MarketWatch) -- California Gov. Arnold Schwarzenegger said that California may need up to $7 billion in emergency funding from the federal government as the state is almost running out of cash to pay for daily government operations, according to a report Friday in the Los Angeles Times. In an email obtained by the newspaper, Schwarzenegger wrote: "Absent a clear resolution to this financial crisis, California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing."
Again...this is another issue I have been warning you about. This is just the beginning. States and Cities are seeing revenues evaporate. Many only survived for the past few years by borrowing more and more. Just look at our wonderful President and the Federal Government. Now spread that over the entire nation and each state and municipality.
Expenses are skyrocketing. Deficites are exploding. And fewer and fewer can afford to pay taxes.
We are going to have HUNREDS of BILLIONS of shortfalls just from local governments.....and these shortfalls are going to keep growing larger. Cut programs and cut staff and the economy will contract further and unemployment will keep rising. Keeping spending and tax rates will absorb everyone's income.
This too is another very serious issue among a growing list of serious issues. Its funny, niether of the candidates are addressing the problem really facing America....it is not a credit crisis.....it is a shrinking revenue crisis......and since much of the past revenues was based on writing toxic loans.....where do our politicans expect to make up TRILLIONS in annual revenures?
Based on my analysis....we could be looking at a 80-95% top marginal tax rate.....for those of you old enough.....that is what it used to be not too long ago. This time conditions are much worse.