Economic Girlie Man’s Pleas for Help Could be Boon to Investors
A few weeks ago, California Governor Arnold Schwarzenegger said his state might need a $7 billion loan from the federal government just to keep making payroll and securing basic services. Virginia faces a $3 billion shortfall, our very own New York has a $2 billion hole in its budget and there are many more states facing huge deficits. 
This wouldn’t be as much of a problem if state governments didn’t have state laws or constitutional amendments that demand a balanced budget. They just can’t run a deficit and be done with it (what would the federal government do if that was the case in D.C.?). Many states were in a precarious position with the slowdown in the economy and the credit crisis has only exacerbated their woes.
But what is bad for state governments could be good for investors.
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