NYT has a good article on politicians and public unions

Evidently the politicians in New York are striving to push the state toward bankruptcy by colluding with union on pension padding.
Kids before cheese gets the HT

The point about state bankruptcy is that politicians are deliberately pushing for it, thinking that a federal bailout is probable. The worst of Moral Hazards. We will see a rush to Federal receivership, all at once, as if state politicians planned it all along.

Jean Ross at CallBuzz has some interesting comments on California budget issues:

There will be no happy ending to this year’s story.

Even the one she proposes:

Go back to Washington, again, hand-in-hand with governors and lawmakers from around the country to make the point that prominent economists have made: state and local budget cuts threaten to derail an already fragile economic recovery.

In other words, California is bankrupt. One of the 32 states on the edge will declare federal receivership, and all the others will jump on board. It is the way we restructure government.