Do the states and cities of America know how screwed they are now that their sales tax and property tax party is over?

Schools will close

Firehouses will close

Roads won't be repaired

Workers will be laid off

Crime will soar

Cities will go into decline

Tax rates will go up

This will not be pretty. Especially in LA, Phoenix, Vegas, Miami, Tampa and San Diego.

You'll also start hearing soon about cities defaulting on their debt, and going bankrupt. We're just days away from that.

You would have thought after the dot-com bubble that local and state governments would have learned their lesson and prepared for a rainy day. But this bubble bust will hurt them so much worse as they lose their sales tax revenue (so long HELOC buying binges) as well as their real estate taxes which will plummet along with the price of the taxed properties.

We're still just getting started. We know the cause, now it's time to see the effects.