Tuesday, July 17, 2012

John Celock — Paul Volcker, Richard Ravitch Say State Budget Crisis Threatens 'Social Order'

State finances are teetering with $4 trillion in unfunded liabilities to cover pensions and health care for state workers, along with revenue shortfalls, antiquated financial practices and skyrocketing Medicaid costs, according to a report released Tuesday.The State Budget Crisis Task Force -- organized by former Federal Reserve Chairman Paul Volcker and former New York Lt. Gov. Richard Ravitch (D) -- is the first complete study of the state finances conducted without the involvement of state government groups. Volcker and Ravitch concluded that the dire financial portrait may lead to major cuts for social services, causing a cascade of further problems for state and local governments nationwide.
Read it at The Huffington Post
Paul Volcker, Richard Ravitch Say State Budget Crisis Threatens 'Social Order'
by John Celock

Although it's the right disgnosis, it's the wrong prescription.

2 comments:

Matt Franko said...

I think they are just recognizing symptoms Tom, perhaps coming up short of a true diagnosis.

Volcker has cred and is a big ( 6'7") moron.

If this goes thru maybe the 10-yr actually goes to 0% imo.

Rsp

Major_Freedom said...

Well, the prescription can't possibly be more of what caused the problem in the first place.