How long after the election will Illinois, California, wait to request a public pension bailout from Washington, DC?
My bet is it won’t be long. One definitely gets the sense that nearly everything economic is “on hold” at the moment as the new QE starts pumping through the system and everyone waits to see if the Obama train will continue on. But after the election all bets are off. Things will happen quickly.
The guys over at Zerohedge see a potential PIIGS like crisis in the United States. California looks terrible fiscally, as does Illinois, and a number of other states with large public pension exposures. Washington will likely ride to the rescue with “free” bread for those who kowtow.
So line up everyone to either eat (if you’re in a public union) or to be eaten (if you’re a taxpayer).