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Unsanitized: A Few Weeks to Stop a Depression — David Dayan

Summary:
We’re back from a holiday weekend but the Senate is still out of session, having left Washington without acting on more economic aid. The official line from Republicans is that it’s time to see how previous efforts work before considering more. And anyway, the economy’s opening back up, maybe it won’t need federal support. This is a dangerously wrong attitude, especially because of the realities of the political calendar. Decisions will be made in the next few weeks that will put the nation on a direct path to depression without Congressional intervention. That’s because the fiscal year for many states begins on July 1, and budgets must be adopted between now and then. California has a June 15 deadline for how to fill its giant budget hole, which could be as much as billion. Other

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We’re back from a holiday weekend but the Senate is still out of session, having left Washington without acting on more economic aid. The official line from Republicans is that it’s time to see how previous efforts work before considering more. And anyway, the economy’s opening back up, maybe it won’t need federal support.
This is a dangerously wrong attitude, especially because of the realities of the political calendar. Decisions will be made in the next few weeks that will put the nation on a direct path to depression without Congressional intervention.
That’s because the fiscal year for many states begins on July 1, and budgets must be adopted between now and then. California has a June 15 deadline for how to fill its giant budget hole, which could be as much as $54 billion. Other states scheduled to adopt a budget within this period include Colorado, Delaware, Georgia, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Wisconsin....
The folks in charge don't seem to appreciate systemic risk.

American Prospect

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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