Friday, May 07, 2010

Forty six little Greece's

All but four U.S. states this year are facing budget shortfalls which total nearly $200 Billion.

Like Greece, the states can't print their own money, meaning they have to choose between borrowing money or instituting unpopular spending cuts and/or tax increases. Greece's economic mess was created by continually borrowing too much, while the current civil unrest was sparked by switching to spending cuts and tax increases. If this sounds like a no-win situation, that's because it is.

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