Wake Up! Alarm Bell Ringing!

Did you see 60 Minutes last night?

I do not know what has gotten into the Obama loving crowd over there, but on the heels of a scathing report on unemployment last month, comes a very troubling piece on the day of reckoning facing the states.

Decades of irresponsibility, wreckless spending, far to excessive expenditures for entitlements and the refusal to slam the door in the face of unions have led many states to a critical time for choosing.

How bad is it? Meridith Whitney, who called the housing blow up, and New Jersey Governor Chris Christie are among those interviewed on the subject. A must watch:



The decisions facing the states are not only the states problem, but in the era of bailout nation, likely the United States problem well sooner than you may think. Christie, who is taking on the powerful unions and winning, has New Jersey on the right path, but California, who just re-elected many of left wing moonbats who put the Golden State in peril, continues to travel down a road leading them, and likely us as California is the eighth largest economy in the world, off the cliff.

Illinois was singled out as a economic catastrophe. The comptroller of the state minced no words in describing the deadbeat status of the Land of Lincoln. Unfortunately, Abraham Lincoln is no longer around to run things in Illinois, but among those who were, and helped put this state in such a horrendous economic condition, is none other than our champion of change himself, President Barack Obama. It is quite evident Obama is using many of the same policies that put Illinois in peril, most notably the transfer of wealth through entitlements, in his effort to rescue the United States in time of severe recession. I got a news flash for you. It will be unsuccessful.

These are not revenue problems, but are spending problems.

Whitney is someone worth listening to, and she is predicting historic defaults on municipal bonds, long ranked among the most stable investments with typically low levels of risk. Not anymore! Municipal bonds, or munis, are bonds sold by states, counties, cities and other political titles other than the federal government and are most often exempt from federal taxation. Although risk does vary on these instruments, the fear of widespread default has been rarely considered.

This is the other big crisis besides housing, and the scariest part, says Whitney, is the level of complacency. Oh good! Everyone is re-arranging deck chairs on the Titanic! Dump bonds if you still have them and buy commodities.

Chris Christies said the credit cards have reached their limit, and there is no money available in New Jersey. Few in Washington recognize this as the federal government continues attempts at spending us into irrevocable debt, but help may be on the way. A newly elected batch of conservative Tea Party Patriot Republicans are coming, and once things get set on track in Jersey, a true conservative leader with economic insight and some chutzpah may come in 2012 in Chris Christie.

Lead, follow or get out of the way!