The States Will Be Bailed Out

Texas has a larger deficit than California in relation to GDP. Not only that, the far right swept into state office on a pledge to cut 'fat' from a public sector that doesn't exist. (Excluding the law-and-order biscuits with gravy, cause we love cops down in Texas.)

This will all become clear after Good Hair is done with his silly little book tour. That man does like to prance around.

Rick Perry may have won his third term as Texas governor this month, but the prize is a state budget deficit analysts estimate has grown as high as $25bn.(1)

Why does this foreshadow a bailout ? It will become a bipartisan affair. The whole trick will be to do it while cuttin' taxes, bustin' teacher's unions, and kickin' ass.

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In the end, the federal government will probably start buying state debt.

Print Baby, Print.

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1'Texas faces deeper cuts to balance budget' - Financial Times