Faros Trading reminds us

On a day when the market focussed on the Budget vote in Ireland, a country that makes up about 1.8% of Europe's GDP, we are concerned that no one is looking at the growing problems in New York, California and Illinois, three states that comprise 25% of the US GDP.  The expiration of the Build America Bond program could prove to be a terrible price for the US to pay and we expect squabbles in the US Congress regarding the bailing out of States in 2011 that could easily rival that which we have witnessed from the European Union over Ireland and Greece. 

Via Zero Hedge
I wrote the BABs plank in the Split Government Party, we support BABs because it is market based, and it is a way around the delusional Senate and their mandates. The three bankrupt big states are going belly up and BABs is a big restructuring help. If the Tea Party wants to continue with their deficit expansion program, they might focus their Big Government ideals toward the BABs. However, salvaging BABs will require a QE3.