Blue State Meltdown: Illinois Has Days to Plug $13 Billion Deficit

Liberal social programs and powerful public employee unions have taken a toll on the state of Illinois. They are facing a $13 billion deficit and few good options.
states financial crisis

(Bloomberg)- Illinois lawmakers will try this week to accomplish in a few days what they have been unable to do in the past two years -- resolve the state’s worst financial crisis.

The legislative session that began today as the House convened will take aim at a budget deficit of at least $13 billion, including a backlog of more than $6 billion in unpaid bills and almost $4 billion in missed payments to underfunded state pensions.

Is the Financial Bust Connected to Illegal Alien Mortgages?

An article at Human Events has drawn a connection between the crash of the sub-prime mortgage market and subsequent meltdown of the American banking system and failed mortgages given to illegal aliens.

With deceptive media and obfuscating punditry, a false picture was painted that the people who got these subprime loans were poor folks or house flippers, or greedy boomers who re-financed to buy their new Volvo and swimming pool. Nope. Wrong! Those cases were few. In actuality, those subprime mortgages issued in the last several years that went into foreclosure went mostly to illegal aliens, the exploiting landlords who rented to illegal aliens, and other citizen minorities who lost jobs to illegal aliens, especially displaced African-Americans in the agricultural, trades and services industries.

Here is a look at the maps on a state level:

Foreclosure activity map. Source here.


Illegal immigrant populations. Source here.

Is it even possible for illegal immigrants to get mortgages? According to CAPS, the answer is yes.

Beyond the anecdotal, Kenneth M. Donohue, inspector general, Office of Inspector General, U.S. Department of Housing and Urban Development (HUD), in Washington, D.C., wrote last year of "seeing a trend with organized groups in some parts of the country to recruit illegal aliens to purchase FHA-insured homes." Illegal aliens are not allowed to buy FHA-insured homes. Mr. Donohue said that "unscrupulous mortgage professionals" would help illegals obtain fraudulent Social Security numbers and other identifying documents.

Based on the correlation of the maps and the fact that illegals did receive mortgages, it is possible there is a connection between illegal immigration and the banking crisis.

California is in a Budget Meltdown and the Legislator is Debating Cow Tails. Geez. (video)

California has a $26 billion budget deficit and is now issuing IOU's to creditors. If you thought they would be working hard to solve the budget crisis, you would be wrong. They are debating Cow Tails. Unbelievable.



Hat tip to @Ddonfon on Twitter for this great video.

Hugo Chavez wants to host Russian strategic bombers

The voters of this country have elected an inexperienced young President. Many wondered if this would cause our adversaries to become adventuresome and challenge us. That is exactly what happened in the Cuban Missile crisis during John F. Kennedy's tenure in the White House. We barely avoided global thermonuclear war during that crisis. Next time, we may not be so lucky. Now that President Obama is in the White House, the Russians are looking for a place close by to keep some of their strategic bombers in case a political decision is made to advance deploy strategic forces. Hugo Chavez has offered an island. Also, Cuba is being considered. Is anyone having a feeling of "déjà vu"?

Official: Cuba, Venezuela May Host Russian Strategic Bombers

Saturday, March 14, 2009


MOSCOW — A Russian Air Force chief said Saturday that Venezuelan President Hugo Chavez has offered an island as a temporary base for strategic Russian bombers, the Interfax news agency reported.

The chief of staff of Russia's long range aviation, Maj. Gen. Anatoly Zhikharev, also said Cuba could be used to base the aircraft, Interfax reported.

The Kremlin, however, said the situation was hypothetical.

"The military is speaking about technical possibilities, that's all," Alexei Pavlov, a Kremlin official, told the Associated Press. "If there will be a development of the situation, then we can comment," he said.

Zhikharev said Chavez had offered "a whole island with an airdrome, which we can use as a temporary base for strategic bombers," the agency reported. "If there is a corresponding political decision, then the use of the island ... by the Russian Air Force is possible." (excerpt) read more at foxnews.com

No police, fire protection or garbage pick up. Mayor shuts down city.

What would you do if you had no police, fire protection or garbage pick up? The Mayor of Turrell, AR shut all city services down in response to a budget crisis. He is refusing to answer any questions about the cause. Reportedly, the budget crisis has to do with the IRS. Local residents are outraged. One resident stated he would rather have a dog for Mayor.

Video from ABC24 Top Stories

Lack of confidence in Obama is dropping the DOW

Investors are refraining from buying stocks because they are uncertain about how the administration of President Barack Obama will handle the worst financial crisis since the Great Depression. There is no confidence by investors that the bloated stimulus bill will do anything for the economy in any reasonable time frame. Investors were hoping for a tax cut, but they are now expecting tax increases instead. When you add the talk of nationalizing banks to this witches brew of economic problems, the Dow may see 6000 before the slide stops.

LEAD: Dow hits lowest closing since May 1997 on deeper economic concern
Feb 23 05:47 PM US/Eastern
(AP) - NEW YORK, Feb. 23 (

New York stocks tumbled Monday with the Dow Jones index ending at its lowest level in 11 years and nine months on increased pessimism about the future of the U.S. economy.

The Dow Jones Industrial Average, which fell 100.28 points and hit its lowest closing since October 2002 last Friday, lost an additional 250.89 points to 7,114.78, its lowest close since May 1997.

The Dow fell three trading days in a row, losing about 440 points during the period.

The tech-heavy Nasdaq Composite Index, which fell 1.59 points Friday, lost another 53.51 points to 1,387.72. (excerpt) read more at breitbart.com

Europe is in an economic meltdown

As bad as the economy is in America, the situation is far worse in the European countries. The entire country of Iceland is bankrupt and the government has been toppled. France is facing rioting in the streets. Other European governments are watching their currency value collapse and unemployment rise to staggering levels. Compared to Europe, the USA is doing well.

Governments across Europe tremble as angry people take to the streets
Ian Traynor, Europe editor
The Guardian, Saturday 31 January 2009

France paralyzed by a wave of strike action, the boulevards of Paris resembling a debris-strewn battlefield. The Hungarian currency sinks to its lowest level ever against the euro, as the unemployment figure rises. Greek farmers block the road into Bulgaria in protest at low prices for their produce. New figures from the biggest bank in the Baltic show that the three post-Soviet states there face the biggest recessions in Europe.

It's a snapshot of a single day – yesterday – in a Europe sinking into the bleakest of times. Excerpted from guardian.co.uk

Computer models forecasting global warming are not scientific

Since I am in the middle of an area ravaged by an ice storm, it seems appropriate to talk about the weaknesses of the global warming theory. The global warming predictions have been a failure. Temperatures have been falling globally since 2002. Now, the former chief of NASA says the computer models predicting radical climate change are not proven scientifically.

No Scientific Forecasts to Support Global Warming

January 29, 2009
Jennifermarohasy
YESTERDAY, a former chief at NASA, Dr John S. Theon, slammed the computer models used to determine future climate claiming they are not scientific in part because the modellers have "resisted making their work transparent so that it can be replicated independently by other scientists". [1]

Today, a founder of the International Journal of Forecasting, Journal of Forecasting, International Institute of Forecasters, and International Symposium on Forecasting, and the author of Long-range Forecasting (1978, 1985), the Principles of Forecasting Handbook, and over 70 papers on forecasting, Dr J. Scott Armstrong, tabled a statement declaring that the forecasting process used by the Intergovernmental Panel on Climate Change
(IPCC) lacks a scientific basis. [2]Excerpted from rightsidenews.com

For more global warming fun, Weather Channel Founder Blasts Gore.

Proof positive that democrats are responsible for bank crisis

Have you been wondering who is responsible for the bank crisis and the failure of Fanny Mae and Freddie Mac? Every voting age American should be required to watch this video. The video is from 2004 Congressional hearings about regulating Fanny Mae and Freddie Mac. You will see Republicans pointing out problems and calling for more regulation of Fanny Mae and Freddie Mac. You will see Barney Frank, Maxine Waters and other Democrats denying there is a problem and criticizing the regulators and Republicans for trying to prevent the upcoming crisis. If this video doesn't make you ashamed to be a member of the Democratic Party, nothing will.
2004 Congressional hearing on Fanny Mae and Freddie Mac

2215 pages of inefficiency brought to you by the UAW

Here is what a UAW contract looks like. It weighs 22 pounds. It no wonder the big three can not compete in the global market. Honda and Toyota don't have to deal with that kind of crap. It would take a team of lawyers just to understand this document.

Ever wondered what a UAW contract looks like? Here is all 22 pounds of it (in this case, Ford’s 2,215 page 2007 master contract; Coke can is for scale and because I was thirsty).

I’ll tell you this much, those 2,215 pages don’t include much regarding efficiency and competitiveness. What you’ll find are hundreds of rules, regulations, and letters of understanding that have hamstrung the auto companies for years. (Excerpted)from laborpains.org

If you’d like to read the contracts for yourself, here they are:
More information here.