Rep. Patrick McHenry warns that government bailouts are over, leaving states in a bind.(Getty Images)
Rep. Patrick McHenry warns that government bailouts are over, leaving states in a bind.
(Getty Images)

Is the State Bond Market the Next Bubble to Pop?

February 17, 2011  •  From theTrumpet.com
The immutable law of the bond market is about to be broken.
 

The perfect storm is brewing, says Republican Congressman Patrick McHenry. States are lining up cap in hand before President Barack Obama, expecting a bailout just like everyone else. But “the era of the bailout is over,” he says.

What this means is that for the first time in decades, states face a Hobson’s choice to balance their budgets. No matter how they do it, it will be extremely painful.

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