What Would It Mean If U.S. States Went Bankrupt?
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- čas přidán 17. 05. 2020
- On April 21, Senator Mitch McConnell stated he was in favor of the idea of letting states declare bankruptcy. The statement was met with fierce backlash from several politicians and sparked media commentary. While states cannot currently legally file for bankruptcy, some in the legal and political world are supportive of the idea, as many states are suffering significantly due to the coronavirus pandemic. Allowing states to go bankrupt would be a complex process, and not at all an option without significant risk.
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What Would It Mean If U.S. States Went Bankrupt?
Let's open a lemonade stand to bail out the USA!
The Defense Department can have 'pancake breakfasts'!!!!
Instead of 'giving' surplus military equipment to Israel and
the US/municipal police departments, sell it to them!!!
@@kryztofkowalski4628 you’re lying I didn’t even know that lol. Wth are you sure? I’ve seen many lemonade stands here. This is probably sarcasm XD
@@kryztofkowalski4628 oh yeah you need a permit to sell food. In Mexico you don’t, thus why I always get food poisoning over there. Cops will let most kids sell lemonade though even though technically not legal without a permit but they’re just kids. Adults however they’ll probably ask for a permit
Then the IRS would tax you 50% of every glass...
@@maeudaou7347 there are mom and pop restaurants in the u.s lol. We don’t always eat McDonald’s in fact McDonald’s is like the worst fast food.
We are bankrupt. We just don't have debt collectors big enough to come after us
Gold. Perfect summary.
The Strait Way GOSPEL.
Thank you for the wonderful speculation of my knowledge into the world of finances. State governments and federal government. I'm sure I'm not confused on either of the two. I'm guessing the federal government is fine because it can just print more money correct?
@First Last I guess I can take that from a keyboard Warrior on CZcams. Thanks for the advice. By the way I set you up. It's the Federal Reserve that prints money. And going default on loans is bankrupt in all intents and purposes.
I'm glad highly intelligent people are out there in the comments section educating others. Thank you for your diligent work
@First Last here is my Omega comment to you. Get a life
It's been bankrupt for a long time, just that no one dares to call it.
We talking financially bankrupt or morally bankrupt?
@@ShadowFoxSF The first follows the second.
@@ShadowFoxSF "Why not both?"
Went south ever since the Israelis conned Bush Jnr to lie about WMDs and illegally invade Iraq.
It's actually very good that states can't declare bankruptcy aka default on their debts imagine 25 out of the 50 or all 50 went bankrupt . That would literally mean the country itself went bankrupt and that would destroy the economy and faith in the us dollar
4:37 - The ultimate "whatever" teenager rolling eyes and walking away while dad contemplates the financial collapse of the country.
LOL I saw that! >D
I wish all people interviewed like this
Bailout of U.S people is not allowed, only rich people can be bailed out
When were rich people bailed out?
who is the government but a bunch of rich elites? even they should be bailed out too?
Just printing money isn’t exactly a bailout. It doesn’t really change anything. It’s just an illusion.
Jonathan McCain how many rich people have their fortunes tied to large corporations. They will receive up to 4.5 trillion is bailout money. How is that not socialism for the rich, and don’t tell me it saves jobs many of these companies took money and still laid off people anyways.
are you an idiot, rich people don't get bailed out because they can actually manage money and don't spend it on drugs and food all the damn time
Let’s make a gofundme page and buy a state that goes bankrupt and make it our own. Write your Ideas and thought down below
Lets just act like we still have a spine and revolt against big government overeach
Boojyman would you prefer the federal government to do nothing?
The Onion had it right in 2009 czcams.com/video/TRgRz3nSG7o/video.html
Can we buy Wyoming? It'd probably be the cheapest.
Only if it could leave the Union and not beholden to the current failure of a government and it’s lobbies
No income for 3 months the states now knows what the average person feels.
robfrmny21 that’s not the average person get a job
@@SoloLynx in the middle of the pandemic in America? You do realise that the video you just watched is because people went to work during covid?
@@SoloLynx one does not "magically" get a job when they want one.
@@SoloLynx trying to get a job is stupidly hard right now. Everyone’s getting fired over the smallest infractions and the compensation/pay is awful and often not worth it.
If it now costs more to drive to work from gas money than you actually earn there spending 9 hours a day busting your butt, why would you do that?
Such a covid thing to have your daughter in the background of your living room doing random stuff and having a bored look on her face while in a call with a major organization, lol.
“By far Illinois, is in the worst shape.” Couldn’t agree more. But thanks for rubbing it in CNBC.
The Chicago mayor is hilarious to me. Her tone is very stern and dictatorial like about people staying in their homes.
Michigan not far behind 😃
Hey at least Illinois isn't getting handouts from the government? Like lots of southern states are.
Awww! nice. :) 😎
nicholas dean
Illinois does get handouts like all states do because of the social programs created by the democrat party. But if you are referring to states taking more than they pay in, I hate to inform you of this but my “southern state” of Texas pays in an enormous amount more than what they take in. And we don’t have a state income tax.
Minimalists! This is your time to shine!
Comrade, didn't you know that minimalism is a common lifestyle in Russia? :D
@@deniskhakimov are you joking ? 💀
Yes, the air is cleaner than it has been in decades. And it's still free.
Honestly if company’s invested more into training there employees and offered internships regularly than the country would be in much better condition. Collage is not needed for most jobs and puts people into dept and prevents people from actually making money.
Stop with the kid having ,it makes the poor more poor
State bankruptcy: All state pensions gone and more...
No pensions
No unions
*Ever*
On the up side future generations get liberated
@@astutecultivator2418 I see your point on future liberation from debt from pensions and unions, however, future gens would not necessarily have pensions or unions either, and good luck trusting the private sector cover that.
@jesse glenn i am referring to services like PD or fire, sorry of i wasnt clear. One line zingers like your ignorant statement won't solve anything.
@jesse glenn you mean that corporations would control our police, our pensions, our healthcare, our schools, our taxes, and even where we are allowed to go to work? Oh, we cant have that 🤣
Lesson learned: be prepared and save money!
Can’t save any money if it’s so expensive just to be alive and pay for the basics, such as food, water, and shelter, that your entire paycheck is gone.
And that’s _if you have a job._ not to mention people that have been saddled with debt
But yes on paper you’ve got a valid point and saving money is a good idea
Someone threw cash at McConnell and yelled “thanks for bailing out corporations” 11 years ago we should do it again
You mean under Obamas "Too big to fail?"
I DECLARE BANKRUPTCYYY! -Michael Scott
check out the netflix original series space force
This is the comment I was looking for 🤣
😂👍
My mom did that in the 80's.
Don't get any CREDIT CARDS in the FUTURE.
PAY CASH MOVING FORWARD.
I would like to see which states really need a bailout and the reasons WHY they need a bailout. If they need it because of poor spending from years and decades past, then no bailout. Learn to run you state with better fiscal responsibility!
Illinois, the 1st thing Dan Harmon did was to ask the federal government for a bailout.
Maybe for California so we can take care of the entire USA homeless...
@ TX has a good debt to asset ratio. The worst states tend to be blue states or formerly blue states. Many businesses are fleeing CA to TX.
@Luke Smith
It's not practical to do that. You wouldn't have enough votes to get it passed in the senate. If a state is denied they won't vote for it.
Without 'slavery' and/or 'Jim Crow' laws,
the South doesn't have a snowball's chance in Hell!!!!!
The US has run on a 'war economy' since 1947!!!
No war, no prosperity!!!
Did you watch the video? 7:55
YOU KNOW THE STIMULUS THAT WAS GIVEN TO US NOT ONLY WAS A BLESSING TO US.
IT HELPED OUR BUSINESSES SURVIVE
"MONEY WAS BEING CIRCULATED"!!!
Dude, we live in a strange timeline, would not surprise if US can actually goes bankrupt
When you have debt in the trillions and you have trump in charge , by definition you are bankrupt . trump paid Powell to go out Sunday to paint a pretty picture ,about the economy and he had to charge the paint at the store .NO CASH you see.
No worries they can print money anytime. Tax payers will pay whatever state needs
Dude it is bankrupt! The only thing keeping it going is blood money, oil, and whoever needs our military industrial complex more. The US government isn't a government at all, they're a corporation!!
Its been coming for fifteen years while they steal more yearly.
USA is third world infrastructure and education is low level
its bankrupt for ten years
PUTIN WILL GET HIS RUBLES WORTH !
Gosh, the U.S. was so unprepared for this in all entities- feels like a movie I’m watching. State Bankruptcy? Wow wow wow🤦🏾♂️
can't wait to see how it'll happen. Historical moment indeed!
@@Saiyajin47621 Yes the Big Collapse!!!
D Collins I agree
Reason the United States was so unprepared was because of Our President Donald Trump... He's an idiot..
Nah. It was certain people refusing to do their jobs and playing politics for the last 5 months.
HOW ABOUT STARTING TO TAX THE BILLIONAIRES..AND REDUCE THE MILITARY ,SPENDING AND CUT DOWN THE SIZE OF THE GOVERNMENT..STOP ALL THAT GOVERNMENTAL,LOOTING OF THE NATIONAL TREASURY.
I'm fine with the Federal Government helping states impacted by COVID. BUT, a lot of the states that are crying for more money louder than everyone else (California, New York, Illinois, etc.) had MAJOR pre-existing financial issues that were largely self-inflicted. I was seeing articles saying California might "go under" as far back as November 2019. COIVD is not a "get out jail free" card.
The states are corrupt as hell. I pay $800 a month in property tax for my home alone. Everytime I turn around there is a fee or charge. Let's audit the states and see if they are responsible enough for aid.
Politics aside, this video is very well researched and put together.
This is a good channel.
@@ArtDocHound guys, this is mainstream media though ..
DangerDave
It’s a good channel when it supports their ratings. they seem to have considerable bias but this is a good video.
Should point out how Mitchs state of Tennessee take more money then it gives to the federal government. That k. Fact federal money is what keeps his state afloat while he is saying states like NY should go bankrupt, even though NY does pay more into the federal system then it receives.
@@mezcaomezcal4724 in tax receipts alone sure.
He lightly touched in underfunded liabilities.
Take a look at the balance sheet, paints a different picture.
www.truthinaccounting.org/library/doclib/NY-2018-2pager.pdf
Our politicians need a 50 percent pay cut. There is no government like no government
Somehow I have a feeling that you aren't an anarchist but a capitalist "libertarian"
I agree completely. They’re getting paid too much and doing too little in addition to their multiple “perks” they get on the side.👋👋👋👋👋👋👋
What is sad the president receives less income than other politicians.
they get enough money from k street and corruption anyways lmaoo
We paid politicians more than we could afford
No cops, no firefighters, no EMTs, no DOT, no unemployment, no services. Should be real fun.
Me: Oh this is an interesting video, wonder what my state will be
Video: Illinois is BY FAR the worst when it comes to this situation...
Me living in Illinois: 1 out of 50 chance and it had to me be huh?... ;-;
nah....NY will be worse...
Americans are fighting each other, party versus party, state versus state, or sometimes state versus the federal government. Not the best time to fight, isn't it United States? Where is the "unite"?
the state system never promotes true unity because the central government is weak.
lol I wonder where you are from.
That's what makes america work. It's a REPUBLIC, aka, a collection of smaller governments. Our central goverment has become far too bloated
Union is gone, like the Soviets. Goodbye 2nd superpower, should have dismantled in 2001
Fruits of two party politics.
Bankruptcy for states but billions in corporate bailouts and tax cuts. Hmmm what's wrong with this picture?
NOT PAYING ANYMORE HIGH TAXES YOU KNOW THE GOVERNMENT HAS BEEN TAKING FROM US ALL FOR YEARS ....
Maybe Greenland could buy America?
Haha. Who would want it.
Greenland is already owned by Denmark
Sounds like a plan. Contact trump on his private cell to negotiate price and to direct funds to his personal account.
I thought the u.s was trying to buy Greenland lol. Tbf we are in debt but the government is like “welp no ones here trying to stop us” kinda messed up cause we’re basically robbing other countries. I still like living here cause of the nice houses, cars, and guns so I don’t think I’ll move but it’s pretty messed up.
@@Sub4CarClips I live in Italy and the situation here is faaar worse than the US’s. I would move to the US even tomorrow if I could. You really don’t understand how lucky you are to be an American citizen. Europe is becoming more of a third-world continent by the day. Just look at how our politicians are poorly managing the distribution of vaccines compared to the US. 🇺🇸🇺🇸🇺🇸
Its like US debt is the titanic
While covid is the ice berg.
The ship is sinking slowly.
There was nothing slow about the titanic’s sinking. After the iceberg it didn’t even last 2 hours before it snapped in half and the remaining upper half was nearly upside down by then, killing everyone inside.
Fort Knox...no more gold.
Printing presses...no more ink.
Printing digital and the internet not going away..
@@cattigereyes1 try to get them to go and print off some bitcoin, impossible, its bitcoins time
no paper, only toilet paper, but is in use to wipe other peoples as
whay do you mean no more gold dude it has never been in there the united states gold is and has already paid that dept a long time ago DA ! because now they are looking there when there is nothing to be even lookin at or in good suject though very good . because that is what the state would turn too as a last resort but what do you do when it has already been used they are saying as a consumer as we are that invest as much as a consumer because that is the next way instead of a plastic and that s scary ...
I m sure there will still be tonnes of gold that US took away or stole from Iraqi and libyan people after invasion unless those gold be again stolen by elites in the army..
Meanwhile , I'm always interested in knowing on what's happening in Alabama ...
@David Butler I get kind of tired of white people pretending they aren't racist just because they don't live in the South. Never met a white person that wasn't racist. You people have issues.
Lots of fun in the homes of Alabama. Brothers, sisters and cousins are playing fun games together since they have more time.
@@Gee-xb7rt All colors are racist to an extent...And people like you very definitely have issues regardless of your color...
@@Gee-xb7rt Go back to Africa.
ULA should be proud!
Nothing but millions will suffer, politicians don’t take accountability for there actions
now you know why they want your guns.
gotta look on the bright side. it would mean trump's presidency ended in a total FAILURE.
There should be a special type of bankruptcy where when the state files for bankruptcy they are no longer allowed to do any new projects or higher on any new people until the debt is fully paid up
It would mean the workers would have to bail out the parasites, as usual.
I am against bailouts, but ppl say its the right thing to do, but i believe in the forestfire approach. That is, natural destruction for the big trees is good for the forest because it allows for new plants to recieve their turn in the sun. Here is an article about politicians refusing to allow businesses to die off according to the natural cycle. (Mitt Romney is the focus and is getting blasted for not disagreeing with bailouts, something i respect)
abc7chicago.com/archive/8180098/
@@greenstorm5568 I am for and against. You should always support well managed companies through tough and uncertain times, like this Covid-19 pandemic. This is a pandemic that affects industries at disproportionate amounts (physical services vs online services). You can be managing a world class airlines like Singapore Airlines, and it only has cash reserves enough to tide past 90% of the risk events it has estimated. Would it make sense to let such a company who has such a proven track record, and management that actually factored in their risks, did not engage in share buybacks or wasteful spending, or corporate bloating and crazy bonuses, to go down and under because of the 1% off-chance of a pandemic. Most companies, even the best run, do not have the cash flows to tide 1 or 2 years with $0 in revenue. They have the assets to back them, but not the liquidity. And that's why they end up in bankruptcy, so that debtors can rip apart their assets to split up the pot and recoup their losses.
Next video: Can the United States go bankrupt?
Not all
Yes.
America doesn't care, they simply print new money like always when they need, don't as for the Gold back up, there is nothing, they believed in PetroGold, but it is less worth then Water !!! Finally, America will not be paying their bills for the loans which they own to Russia and China!!!
It's already bankrupt. Having debt more than GDP means it is equivalent to bankrupt for more than a year....ideally it means all Americans need to work and not consume till debt is lesser than GDP. So is the case with many countries. Specially debt ridden.
It is actually a debt to our tomorrow or if we delay to our next generation. There are no free lunches.
See, being Bankrupt only works if you have some one who will force you to give them money.
No one:
Michael Scott: I declare BANKRUPTCY!
Reduce the salaries of all politicians. Fire the doctor who acted like Howard Hughes who died earlier than most anyway.
Ha sadly we will be taxed beyond belief lose our jobs but the politicians will never take a pay cut. I will bet you anything they will push for a raise. 🤦♂️🤦♂️
@@joserbazil Hi fr: overtaxed NYC metro area... Litchfield County, CT.........lol.... if they still there... they might also make a run for them dar hills ! fishun, huntin' dat varmit, farmin' pickin' fruits n berries wild vegies..etc......I'll go retreat at my farm I bought jest 4 dis..... lol....
Lol that would barely have an effect on the state budget
The president is the king of bankruptcy ...
the "king of bankruptcy" is a self made billionaire. what is your great plan that would've stopped us from losing money?
@@ianp7383 he could of closed the country down earlier
How is he self made?...didnt daddy financed him with millions on his young days...i cant even comprehend how people keeps spinning trumps B.S
Ian P must be from Illionis and unemployed
Josh blue txsla it’s actually the opposite way around all the hate and bigotry comes from the party of blue it has for the last 200 years.. you know the party that never had diversity until late 90s. The party that Malcolm X called the modern slave handler’s. The party that Martin Luther king was executed by.
The party that founded the KKK it was against the civil rights movement of freeing of slaves.
The blue party that has more lynchings under its political belt in any country in the world.
Jimmy Carter in 1971 had this country on the verge of socialism we stood in line for fuel, food, water, and toilet paper all controlled by the government.
Jimmy Carter also destabilize the Middle East and caused the Iran-Contra conflict that’s still a problem today. Jimmy Carter launches his presidential campaign from the world headquarters of the KKK.
The blue party has more child molesters and rapists in public office then the other party.
Jerry Nadler, Nancy Pelosi, Joe Biden have all been in office for over 30 years in Congress under two double term Democrat presidents and still could not fix the problems in Government.
If we simply look 90% of all the states they talk about on this program are 100% controlled by the #voteblue crew.
Please show me how the blue party is for the people when every single bit of what they do politically is against the people since the invention of the Democratic Party in the United States for over 200 years.
How is Moscow Mitch still in government?
Because his state votes for him every 6 years
The Same can be said for Nanna P, there are surprisingly enough people that think they do a good job, and we have to endure them and the damage they wage for another 6 years
Easy, racists, loons, and ignornace.
I really like this guy's voice... He's my favorite of all these reporters making these CNBC CZcams reports
I'm not American, but nonetheless, I can't wrap my head around the notion of a state declaring bankruptcy! Does that mean that all state employees don't get paid? State troopers, DMV, state universities, state parks, bridges, railways, transportation..etc. etc.not to mention state senators and their staff? It doesn't compute! Comments welcome
It means that the creditors write the debt off and loan them more money.
*watch taxes skyrocket.*
They will have to, after all borrowing is no longer an option when the interest you accrue is greater then your ability to pay.
@@carlospulpo4205 well when the interest rates turn negative you would no longer have to worry about that
They won’t really go up, they’ll cut the value of the dollar in half and you’ll get a pay raise to compensate so you’ll pay twice as much in taxes, probably at a higher tax bracket effectively giving you a higher tax rate on the same purchasing power
@@SnehPatel96 That's not how that works.
Go look up "Modern Monetary Theory" about how they won't, at least until the wheels fall off the cart completely.
4:35 I’m convinced this dude in the suit isn’t wearing pants.
Funny!
I already live outta my van so I’m good!😂
guess i should have bought a van also......
@@mrmustangman my whole life I never really cared for vans, after my divorce I sold my hummer and bought a minivan so I could carry my things, never thought I would need it to live in!
@@tonyl1483 i was almost homeless had it not been for a credit card i have.... i hope and pray that your luck changes soon and that you will be blessed abundantly.....
@@mrmustangman down by the river
We can’t even afford a van these days.
It’s gonna be the 1930s again with hobos wandering the streets, sleeping in boxcars/abandoned vehicles or sheds, and trying to scrap together enough money for their next meal from working odd jobs and begging.
Background music only belongs in a cartoon not something serious
Terri Michaels
best I've heard it said !!!
😅😅😅😅👍
This is a cartoon we are living in.
lol, Alexander Hamilton is turning in his grave!
*rapping and dancing
We waz kangz
@@fishjohn014 ahh reaorts to racism. The hateful, rebellous and sickness yall possess is crazy
Aaron Burr be like how about no
@@marquisbutler2780 it's a joke my dude. Get some thicker skin
CNBC: What would it mean if U.S states went bankrupt?
Government: money printing machine go Brrrrrrrrrrrrrr
.... until no living organism on this planet will accept a US dollar as payment for 'anything'. With the USD now worth about less than 3¢ ea., we're probably closer to functional national bankruptcy than we think we are.
Remember that the US went technically bankrupt in 2009.
Hi Fr: overtaxed NYC metro area...Litchfield County, CT.......lol !... I will be going up to my farm up in dem dar hills n pointing out ! ha...ha...ha... nope no sharin' neither...my neighbors all set ! lol.....
Actually, the definition of bankruptcy is to default on obligations, money from the Federal government doesn't enter the picture.
But, the Feds can give or lend money to the state and if it's in the interest of all that the assistance be given, the Federal government has many options to raise funds... one is to print money as you say, another might be for the Federal government to itself issue debt which would be a way to say that the Federal government is backstopping the state. Those are a couple but there are likely many other options the Federal Reserve (and government) has that's not available to states.
Looks like Rome 2.0 is finally going to happen 😂😅🤑💵
......lol........... : .........
do you even realize that if the US does fall, the entire world will be in flames and crash even harder?
@@DanielK1213th i dont think so china holds more import export then USA does and more of it is yuan can control oil network
@@liladevi3169 Not sure but I think he meant US allies. I realize when someone from the West talks about the “world” they mean the West. Including Korea and Japan. Basically all those countries that are tied to the major Forex currencies .
The UK is actually closer to the brink of collapse than the US is, but we’re not far behind.
Russia and China are becoming scarier each day.
How can a country be bankcrupt when she is free to print money as she wants and threaten any country who doesnt want to acknoweldge the US dollar..
Look At CNBC coming in with some Journalism lately. Love it. Keep it up these have been good videos lately.
MSNBC has access to pretty much any expert it wants anywhere in the world. FOX can't say that.
🤣
@@lairdriver MSNBC is trash reality non-sense like other political commentary networks. You can't get news from them when they measure success as being more right than wrong and never walking back the statements when they are wrong. You still have a lot of misguided MSNBC viewers who think Trump colluded with Russia.
CNBC is a bit different in that they do the legwork. That's why they have poor ratings, they actually report the news.
I would say they could cut some of their unnecessarily high defence budget but knowing America, I wouldn't be surprised if they lowered education and healthcare spending
Epicentre space force
ironically, the healthcare budgets dwarf the defense budget, (which i agree is still hella high).
Yup or bash welfare and cut spending on programs like tanf snap and make people on tanf have work requirements smfh
Well this was informative and scary. Thanks!
Do we have a recession every 10 years tf
2001 due to over hyping technology and the use of the Internet (the Internet existed many years before but only in the years leading up to 2001 was there Internet commerce).
2008 due at least in part to George W Bush's well meaning policy that everyone(yes, everyone!) should be able to live in a home they own, so the real estate industry responded by lending to borderline and unqualified thereby creating massive "junk bond status" R.E. loans. Then financial institutions got the idea that if they packaged up a bunch of these junk loans, there were buyers for them.
2020 Actually, first published accounts of Covid was the last day of 2019. Februrary, Trump "Oh, Covid. Just the flu. Zero cases in USA, it'll disappear." March/April. Trump "It's a hoax." May Trump"It's still a hoax, but I'm initiating Warp Speed" implementing DPA. June-Nov Trump Covid? It's a hoax. Oh, and vaccine for Covid will be ready for everyone before the November elections."
So, do we have to have a recession every 10 years(actually 3 in the past 20)?
Only if we want one. Every one of the last 3 recessions was due to poor economic policy in hindsight although before the bubble burst each time there were no complaints.
Most low income citizens still haven't seen a stimulus check yet
Wow! I thought everyone that was eligible already received them.
@@JessicaHicks why would you just believe a random statement of fact by a stranger on the internet?
@@JessicaHicks- Every qualified person whose 1040 is on file has received a stimulus direct deposit if they have a financial institution routing number and account number on file.
If not, either notify IRS of your current routing number and account number or wait for IRS to get to you with a paper check. Make sure that IRS has your current mailing address.
Still waiting on mine. Probably not until June I've heard.
I'm still waiting for me check too. It keeps says "Status not Available" on the IRS website
“U.S. States”? 🤦🏻♂️
You’re dumb.
UNITED STATES OF CORPORATIONS THEY MEAN.
@@acostasanchez1 You're the dumb one. "U.S. States" means United States States.
I don't think the United States can go bankrupt ,but it will be the wisest decision to invest heavily on this current pandemic legacy. And l no if you start up an investment today it will yeild you a good ROI ........
Exactly 👊👊
@Stanley Anderson Best advice ✔️✔️
Always pick up a profitable stock to invest in and get a good professional broker before trading .......
@@themartiniguy9840 Really 🤔🤔
@@themartiniguy9840 okay l understand your point that's true !
@Eric Donald I'm a big time successful trader in FOREX
However, in spite of a looming fiscal tsunami certain States continue to operate status quo. For example California, everything is "free", they monetarily support illegals, support drug addicts, and able bodied charges. So, no, States are not broke they are broken and corrupt!
The average TLC (taxis and Uber) insurance is $400 per month in NYC. During this pandemic they did not allow any alternative payment plan or discounts even though many drivers are not working.
That’s your choice, you can change your job.
Stop the the background music when someone is talking!!! It's a stupid idea to play a background music while someone is speaking!
did not notice this till i saw your comment
Background music happens in many forms of media, it happens on the radio, it happens on TV, it happens on film.
I like it
background noise was pretty annoying. i couldn't get through the video.
I think normally it should be fine, but in this video it's a bit louder than it should be.
Thank you I have been seeking this information
How about if your a politician and your state goes bankrupt you loose your pensions and all benefits from your gov job. You’ve made your millions while in office.
I m not American but this is interesting video. Thank u CNBC!
The question is when it’s gonna happened?
yesterday
Politicians preach "Modern Monetary Theory" which state that very high deficits and debts are not really a problem as long as credit continues to be available to perpetrate further borrowing forever.
That is not what politicians preach at all, politicians would rather you forget you even know those 3 words modern monetary theory, politicians have even tried to condemn MMT. MMT also does not state high deficits and debts are not a problem as long as "credit continues to be available to perpetrate further borrowing forever."
However, understanding MMT would help you understand that public debt, the national debt and deficit spending in itself is not a problem, the real problem is private debt. Private debt like credit card debt, student loan debt, mortgage debt, car loans, corporate private debt, all these debts can get too high and that's when we get bubbles.
@@henrygustav7948 Well, until you got into personal debt, I agreed. I haven't heard that MMT goes so far as to evaluate personal debt, only macroeconomics that refer to the big picture (ie big, big national economics). I would suggest a caveat, though... IMO MMT must still be managed well and such things as perceived recklessness and irresponsibility would be punished.
I suppose public policies can effect the attractiveness and feasibility of personal debt, but I think how personal debt is evaluated is stepping a bit beyond .
@@tonysu8860 MMT looks at the big picture. Recognizes that there are 2 ways money is created and 2 ways it is destroyed. Govt spending and bank loans create money while fed govt taxation and repayment of bank loans destroy money and credit money respectively. MMT is a description of money, banking, federal finances, macroeconomics, inflation. MMT is just a true description of how our monetary system works, how its used is a political choice. If you understand MMT then you would understand much of how the 2008 GFC happened, what led to it. It helps you to understand and dispel many economic myths, for example a sovereign currency issuing nation does not ever need to borrow its own currency and that the issuance of treasury bonds are a political choice to provide a class of people with unearned interest income.
@@tonysu8860 MMT has 30 years of research behind it, if there is something you don't understand or haven't looked at its because you haven't searched hard enough. MMT economists have written extensively throughout decades.
4:38 the girl walking in the background lol
The American dollar will become weaker and weaker and weaker. We need to stop printing money and change the way we operate. Enough printing money.
This happened in Nazi Germany and it’s happening right now in Mexico where the left has printed so much paper that you can wipe your ass with it and it’s not worth anything.
This actually almost happened here in the United States under Jimmy Carter the guy that launched his presidential campaign from the world headquarters of the KKK...
@@Ask-Jesus-for-the-Holy-Spirit the hyper-inflation you speak of occurred in THE WIEMAR REPUBLIC, it is what led to the collapse that the nazi party rose out of......
We???? Lol.. Ur funny
There is a third option: decrease the size of the state !
Thank you for the video.
you can say something going wrong when you hear a politician start his Sentence with : come on man. :D
Whether it is right or not
The fact that certain states have been fiscally irresponsible is not the Federal government's responsibility.
Pots and Kettles. Do you think the Federal Government isn't right behind the states on the insolvency train?
@@jamestheotherone742 The federal government is on a similar track.
However, that does not mean it should bail out the states.
You realize that states SEND money to federal government as well right?
@@lairdriver Your point is?
Is federal government being fiscally responsible? From what I heard the national debt is increasing every year, I don’t know if this can be continued forever.
It means Governors would be held accountable for miss managing their state, (before the pandemic).
@Matthew Ortiz, yes let’s start with the richest state in the country which also has one of the highest tax burdens and therefore ability to pay its expenses. By all means let’s waste our time on states that are able to pay their bills rather than states like Kentucky which can’t.
Very informative thank you so much .
I don't think people understand the issue with declaring bankruptcy.
Creditors won't let you borrow, which leads to issues keeping your government running, people don't get paid, municipalities shut down, and it spirals.
States should be required to run balanced budgets. Citizens can live outside their means, so neither should they. The federal government is there only in extreme circumstances, and if you went the last 10 to 15 years of mismanaging your budget, you deserve what's coming to you.
Technically yes but highly unlikely
technically, no they can't because the sovereign debt is denominated in the currency they can create through the Federal Reserve. The compromise is that they can inflate away their debt through currency debasement - a separate problem that potentially compromises reserve status.
CNBC keeps putting out great content
I would say it's a lot better than the CNN and some other's.
I actually think not allowing states to declare bankruptcy is a good thing, it forces states to manage there finances effectively
Tourism to Seattle and San Francisco had already been declining significantly prior to the virus due to how filthy they have become with human waste on city sidewalks and huge tent camps lining the roads. Long term residents have been moving away to other states for the same reason.
Victory gardens and home raised livestock for the win.
👍👍
6:29 Stella wrote in 2010.. literally days August 30, 2012 lol
Why doesnt this talk about why we are in this spot?? Is it because we have teachers making 90K, cops making 145K, state engineers 90K all PLUS PENSION???
9:53 Tosses in a house key for the rainy day fund
Canada would buy America and Americans mainly would become a lot happier
I think we should just buy Washington and Hawaii.
If they would of closed all travel in December we would of been alright
I doubt it. I contend it was impossible to contain when it was only in China. The information in December was also poor in regards to this virus which would have prevented any sort of response in December. This virus has a 2 week incubation time and may show no symptoms in some carriers. As a result it's impossible to trace over the course of a month with how the global supply chain works.
A possible method is completely locking everything down for 2 weeks, then test the entire population. The issue is how do you test 300 million people in a quick fashion when our healthcare system does not have enough lab technicians to complete that task within a year. It's an unrealistic proposition, and that's assuming every other country around the world does the same. You would have a reinfection of the population within weeks after lifting the lock down.
If we didn't lock down and instead isolated the vulnerable population, there would have only been a minor economic change. We did so in order to prevent our healthcare system from being overwhelmed. But now we know that our system can handle it. It's better to expose low risk individuals to the virus rather than waiting for 2 years in the hopes a vaccine is developed.
And really worked on getting all the states the help they needed instead of bidding against the state's so they could have their own that they did not help any of the states. We are going to have a very hard time getting back after what Trump and the Republicans did by trying to screw everyone else. As long as they got the money they wanted and we couldn't find out what they were doing everything would be great like they say our economy is better than any time in history.
@@annajorgensen1627
A planned central response is very slow, it's just that the people who promote it don't re-evaluate it's effectiveness. Obama was big on solving every issue with a centralized response. This is why his responses were always slow and the size of the federal government was enormous. Bush also acted in a similar manner.
The only federal agency that can act in a timely manner is the Department of Defense, and that is only certain scenarios when the President has discretion on their response.
The initial poor testing response was an issue with the CDC not approving other testing kits, then supplying faulty testing kits pushing testing back a month. The poor initial PPE production has to do with the minimum month long process for the FDA to approve new manufacturing.
If we had a central response, instead of state governments responding more quickly. We would be waiting on the CDC and FDA to make approvals delaying the process by months.
The real travel ban that took place was so highly criticized by the most of the media and politicians (it was called phobic, racist, etc) that you think it should have happened earlier? It's funny how quickly people forget the criticism that took place, or try to act like it never happened.
@@annajorgensen1627 ???. Yep, by all means, let's not blame the country that started the virus and has created a WORLD FINANCIAL meltdown (not just in the US). We'll also ignore that they hid it and in the meantime bought much of the world's PPE for themselves before announcing there was a problem. If we're going to blame, lets start with the source that created the problem.
I thinks that it’s a bad IDEA for states to file bankruptcy. They need to create business for revenue to their states. They also need to audit every department to stop corruption and gross misappropriation of funds.
Why bankruptcy? Which countries in the world were calling the White House about collecting past due bills or so called National debts? IF USA went down, the whole world went down with it.
"united" states lol
How much better would these events be if businesses and government bodies were required to have 1/4 of annual income in cash on hand and can only be used for losses and not credit or expenditures? We tell businesses to spend what they want and never expect responsibility. 2008, 2020, and when? When will we learn from our mistakes and find ways to prevent repeated exposure to things that can be made easier with small adjustments in base operational standards?
Why would they do that? Each crisis is a land grab opportunity, massive stock discounts and businesses takeovers.
What businesses are you taking about, all businesses?
EqualsThreeable pretty much. If we allow stock buybacks that put a company more at risk of bankruptcy and artificially increase a stock’s price without any fundamental improvements to the business, it is clear we dont encourage companies to save for hard times...
@@EqualsThreeable Yes. Pretending only one economic model applies is weak. Socialism provides constructive ways to keep everyone working a living wage in conditions that provide good health potential and sustainable outcomes that capitalism cannot produce monetary stimulation from. Capitalism can allow for competition and for a variety of products. Alone, and they are not the only ideals of thought, they can offer a lot of flaw, but when combined in a way, they can protect each others flaws. Capitalism isn't going to clean the air, but socialism may not provide innovative outcomes. We should tier our economy to protect core values like, and limited to: education, healthcare, food, water, shelter, energy, internet, and what not. We should build on that for semi-capitalistic ambitions like offering services on energy, food options, and research. We can then allow more raw capital instincts to produce new products based on the base regulations of society. Going plastic free, and being the only company, is just not profitable, but if it was required, BOOM. But i digress as i could go all day on how to build an economy.
The only problem is that federal policy , at the administration level, impacts the expenses of states.
Law enforcement is but one example. Congressional policy is different, but executive policy is not representative of a particular state.
if NYC for example claimed bankruptcy , whos paying the million plus pensions currently being collected?? should not be the US taxpayer that has never stepped foot in NYC
So what would it mean if states went bankrupt? I'm not sure the video answered that question. What would be the impact on the economy, and what would be the impact on financial markets? Who are the creditors, would it be a restructuring or a default? Would government services and benefits halt?
How does a senator even begin to suggest this? Did he not go to law school? Any school?
Michael Li political science 🤣
I don't think you understand. The united states is collapsing, our demographics, our debt, political polarization, and now this pandemic and great depression. It is not going to happen all at once, it is the slow disintegration of our institutions.
@@Distress.
It's based on Republican greed. If states are allowed to go bankrupt they won't have to pay their debts or pensions.
They want something to hold over the governors' heads in the future, long after recovery occurs. Any action performed in the future, no matter how beneficial, will be met with "didn't your predecessor bankrupt the state?" A similar tactic is probably in place to keep Senators in line by Trump and/or his puppet masters.
We have this thing called a PRINTING PRESS
-Alan Greenspan Fed Chair
They print as we watch our dollars turn into dimes.
How can the government bail out cruise lines, which are not even USA corporations, and not assist the states? why don't they let the cruise industry file for bankruptcy?
I'm pissed because of dmv shutdown.. why we pay insurance companies?
If you crash and total another car, and you are the one who caused it. Do you have an extra $10k to pay the person, whose car you destroyed? Probably not thats why in your insurance policy they will pay for like 70% and you are responsible for 30%. Without insurance you have a High chance of going bankrupt especially without thousands in rainy day funds
It also goes the other way around, if someone crashed into you and destroyed your car. You probably want to be paid. But you cant really sue someone for money they dont have (the judge might through away the case) , so if they dont have $10k to replace your car (whatever the costs) you cannot sue them. The insurance will give u a huge chunk and then you sue the person for the remainder (if they dont pay or cannot, if they cannot usually its a smaller amount so the judge might accept it)
I’m glad there are so many economic and political experts in this comment section!
Your welcome
Basic MATH.
Well the Democratic states already are, thats why they have the highest taxes.
SO SAYS THE ECONOMIC EXPERT...LMAO LMAO LMAO. You know jack shi*. Grad of High school? I doubt it. RIGHT WING MORON
The republican states are the biggest receivers of government handouts.
In the UK a lot of people have been given 80% of their current wage through furloughs. Does the US not do this or something? Why are so many people unemployed
The US doesn't care about any of it's people. It never has.
Lol that girl in the background 4:32
lmao this made my day 😂😂😂
And what's so funny about her? She's just walking around doing nothing interesting.
@@kevintheminion1497 yes
What about it, it’s a average day
@@leinadcruz96 What?
Remembered the good old days when the Republicans and the Democrats actually worked together?
Ikr. Like, yeah we all think differently. But at some point we must set politics aside and work together. We’re all not that different, the only difference between us and them is red and blue.
What, like, under Reagan?
He divided the middle and upper class, turned Iran into our enemy, and funded the terrorist groups which plague us to this day. Not our finest hour...
Don't worry, you'll pay the debt with your pension fund. Just look at Detroit, and see that it's only starting to go down.
Apparently you missed the 11th Amendment to the U.S. Constitution, which says that a creditor can NOT sue a state in Federal Court - so the only remaining court is State Court. All a State needs to do is pass a law saying they don't have to pay, the State Court will uphold the law, and bankruptcy will have been accomplished WITHOUT need for any new Federal law. There was a similar situation following the U.S.Civil War, where some States had printed their own money to support the Confederacy. After the war, there was NO WAY of collecting from those states - thereby showing that this approach to bankruptcy does indeed work.