Homestead mailing list

["Marie McHarry" <mmcharry AT gmail.com>]

On Wed, Oct 1, 2008 at 5:45 PM, Lynn Wigglesworth <lynnw1366 AT hotmail.com> 
wrote:
>
> bob ford wrote:
>> 1)Just like you lynn, they have mortgage payments.  Unlike you, they 
>> depend on outside jobs to make those, and other, payments.

> I just heard California threatening that the whole state government
> could be shut down because of lack of money by the end of the month.
> Does that mean that they have no cash and borrow money that often to
> make payrolls, etc? A LOT of people and governments need a wake up call
> to start living within their means.

I don't know about California, but Illinois pays for government out of
current receipts for the most part. If tax revenues are down, payments
to state vendors slow down. Right now health care providers are
hurting because the state is several months behind on its bills. The
state meets payroll before it pays, say, nursing homes (or any other
vendor).

Regardless of what sort of bailout is done, the economy is going to be
hurt, businesses are going to suffer revenue loss (and some will go
out of business), and people will lose jobs. The question is, how big
is this contraction going to be. And how sharp will it be.

Marie