"The State of Illinois is still paying off billions in bills that it got from schools and social service providers last year. Arizona recently stopped paying for certain organ transplants for people in its Medicaid program. States are releasing prisoners early, more to cut expenses than to reward good behavior. And in Newark, the city laid off 13 percent of its police officers last week.
While next year could be even worse, there are bigger, longer-term risks, financial analysts say. Their fear is that even when the economy recovers, the shortfalls will not disappear, because many state and local governments have so much debt — several trillion dollars’ worth, with much of it off the books and largely hidden from view — that it could overwhelm them in the next few years."
"But without action, lawmakers face the prospect of delivering a tax hike to all taxpayers at the end of the year, when the current rates expire and revert to higher pre-2001 and 2003 levels.
Negotiations between the Obama administration and a bipartisan group of lawmakers centered on a two-year extension of current rates.
At the same time, a jump in the unemployment rate to 9.8 percent is putting pressure on Republicans to accede to President Barack Obama's demand that Congress extend unemployment insurance for a year. GOP congressional leaders had opposed an extension of benefits without cuts elsewhere in the federal budget.
"I think most folks believe the recipe would include at least an extension of unemployment benefits for those who are unemployed and an extension of all of the tax rates for all Americans for some period of time," said Sen. Jon Kyl of Arizona, the Senate's Republican negotiator in the talks."
"American Silver Eagle bullion coins sprinted out US Mint doors in November 2010. Prior sales records were shattered left, right and center.
2010 Silver Eagle coin sales were higher for a second straight month, supported by physical demand driven by November silver prices which soared 15 percent and reached above $29 an ounce. But more impressive for the .999 fine silver pieces:
November was their best ever month
They broke the all-time mintage record
Their year-to-date sales became an annual record "
- Other news, headlines and opinion:
Eurozone under pressure to aid euro with more cash ("creation of pan-European bonds")
Czechs Have De Facto Ability to `Opt Out' of Euro, Necas Says
Italy, Spain Lead Increase in European Sovereign Credit Risk
China's credit bubble on borrowed time as inflation bites (Ambrose Evans-Pritchard)
Moody's Cuts Hungary Close to Junk, Warns of Risks
Spain may extend state of emergency after strike
State's fiscal crisis leaves 16 CNY farms waiting for cash (NY)
Oregon Timber Counties Face Financial Collapse
Russians to gain US uranium foothold
Euro's Worst to Come as Trichet Fails to Calm Crisis, Top Forecasters Say
PBGC helped preserve pensions for 360000, as deficit widened in FY 2010
Wal-Mart, Carrefour Face Temporary Price Controls in Southwest China City
Trade in gold coins on the rise (Greece)
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