Tuesday, May 11, 2010

The Global Financial Crisis: A Report from the New York State Front

The New York State legislature has approved an emergency budget bill that would authorize Gov. David A. Paterson to furlough about 100,000 state employees, roughly half the state’s work force, without pay for one day.

While some lawmakers, including many who voted for the bill, questioned the legality of the furloughs, they said they had little choice but to approve the legislation because failing to do so would have effectively shut down the state government, reports NYT.

Fiscal woes be damned, public employee unions contended that the furloughs, which officials said would be the first for state workers in New York, would be illegal, and they said they would seek a temporary restraining order in Federal District Court here to block the governor's plan.

Remember, this is all warm up action for the big show in July at the state level in California and local level with Los Angeles.

The big question: What type of new hidden inflationary tool is Fed Chairman Ben Bernanke designing to bailout California and Los Angeles?

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