Not to mention Red Queen’s Races: At the main Pajamas site, Ronnie Schreiber writes, “> California Will Be Bankrupt Before General Motors” href=”http://pajamasmedia.com/blog/california-will-be-bankrupt-before-general-motors/”>California Will Be Bankrupt Before General Motors:
General Motors owes billions of dollars. If GM fails and is liquidated, those creditors will end up with pennies on the dollar, but at least the automaker has assets that can be sold to fund those payouts. If California and its cities default on their obligations will they sell off the Golden Gate Bridge or Big Sur to satisfy holders of municipal and state bonds? The first installment of the loan package for GM and Chrysler crafted by the Bush administration will tide them over until March. Interestingly, March is also when California will run out of money if Sacramento can’t agree on tax hikes and spending cuts. It’s entirely possible that California will go bankrupt before GM.
Incoming President Obama’s lucky in one sense: all of these train wrecks will be occurring very early on his watch. If he’s lucky–and like Bill Clinton, has enough Republicans in Congress working to mute his craziest plans–he just might be in good shape for re-election, as the legacy media will helpfully forget all of the bad news of 2008 and 2009.