This from New York:
New York state faces a $1 billion cash shortage in June, budget director Robert Megna told reporters today.
The state is considering all options to deal with the shortage, including borrowing, Megna said.
“We are significantly underfunded in the first week of June,” Megna said.
If retail sales are up – and the experts say they are – then where are the sales tax revenues? If employment is picking up, then where are the income tax revenues? If the economy is improving, then where is the decline in government expenditures as people start looking after themselves?
The only way to think this economy is ok is not just to think that employment is a lagging indicator, but that everything other than the stock market is a lagging indicator. Other than this absurd, sucker rally – which is already past it’s prime and Lord only knows what is keeping it afloat – there isn’t a single indicator out there telling us that we’ve turned the economic corner.
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