It's the dot-com meltdown squared for places that had housing loot rolling in, and oh-so-wisely spent it. Now the tax revenues are falling off the cliff, and the cities and states are looking around wondering where all the free money went.
We'll see bankrupt banks, we'll see bankrupt builders and we'll see bankrupt lenders. But brace yourselves for bankrupt cities and states. You'll see services like police, fire, education, and infrastructure cut to the bone, and you'll see tax increases on everything - cigarettes, cars, houses, incomes and more.
Bubbles suck. They make people do stupid things, and they make government, who is run by really dumb people, do REALLY dumb things.
Here's the view from housing-crash-central Phoenix Arizona. Too bad they didn't read HP. And get used to potholes and dumb kids as spending gets slashed.
Maricopa County looks to cut spending
Facing a nasty revenue slump, the Maricopa County Board of Supervisors is expected to approve a plan today that would cut spending and squeeze more bang out of its $2.2 billion budget.
The spending plan is in reaction to a dark fiscal outlook that could darken considerably more over the next several months and even years. Today's plan is likely the first step to avoid multimillion-dollar budget shortfalls, layoffs and delays of high-profile projects, finance officials said.
"We budgeted with a worst-case scenario in mind," said Supervisor Andy Kunasek. "By the look of things, it appears we weren't as pessimistic as we should have been and revenue are much worse than expected. But we'll make the cuts we have to."