News
Politico | Report: Fiscally, states shaping up
The budget picture in states across the country has begun to show signs of improvement, a new report Thursday shows.
Econ Comments
Daily Finance | Abracadabra! Bankrupt Cities are Suddenly Un-Bankrupt! (Or Not)
Last month, the capital city of Pennsylvania filed for Chapter 9 bankruptcy protection. Harrisburg had taken out a $317 million loan to fund a municipal incinerator, but it didn't have the money to pay even interest on the loan, much less the principal.
Washington Times | MILLER: The waste eraser
Line-item veto would slow down Washington’s big spenders.
Blogs
Atlantic: McArdle | World's Central Bankers Hand Dying Europe a Band-Aid
While this is billed as a coordinated global action, this is really about dollars, and the Fed. No other currency is seeing that much excess demand.
EconLog | Nick Rowe Asks About Debt Growth
My line is that the nonfinancial sector wants to issue long-term, risky liabilities and to hold short-term, riskless assets. The financial sector accomodates by doing the reverse.
Atlantic: McArdle | Reasons to Worry About the Prospects for a European Bailout
Then there are the reasons to worry that it won't happen at all, such as the German hyperobsession with their hyperinflation, and the genuine questions about whether it's even possible for Greece and Italy to execute (not just plan!) an austerity program under German aegis. All of this conspires to make me very, very worried.
Mercatus Center: Neighborhood Effects | Why Do Some States Face Steep Borrowing Costs?
One of the interesting—and alarming—developments in state finance over the last few years is the spread between borrowing costs among the states.
