Tuesday, September 8, 2020

A long time to get these public sectors back to running

 Lightfoot warns of employee layoffs to erase 2021 budget shortfall now pegged at $1.25B

California and now Illinois means a long drawn our recession as these governments attempt to get clues. In the mean time, Powell and the Fed promise a large and increasing bank tax, coming close to 1% of GDP.  That is a lot of banking taxes to pay for bailing out the large public sector states.

The total bailout will be near 15% over ten yeas, much better then Reagan's communist bailout of that little Bush kid in the Texas S/L disaster.  But it is still a very long slog and a very deflationary periods, until the Senate defaults.

No comments: