32 States Now Officially Bankrupt

$37.8 Billion Borrowed From Treasury To Fund Unemployment; CA, MI, NY Worst

By Tyler Durdin
Zero Hedge

“In 2009, the State of North Dakota does not have any funding issues at all. We, in fact, are dealing with the largest surplus we’ve ever had.” Eric Hardmeyer, president of the state-owned Bank of North Dakota.

Courtesy of Economic Policy Journal we now know that the majority of American states are currently insolvent, and that the US Treasury has been conducting a shadow bailout of at least 32 US states. Over 60% of Americans receiving state unemployment benefits are getting these directly from the US government, as 32 states have now borrowed $37.8 billion from Uncle Sam to fund unemployment insurance.

The states in most dire condition, not unexpectedly, are the unholy trifecta of California ($6.9 billion borrowed), Michigan ($3.9 billion), and New York ($3.2 billion). With this form of shadow bailout occurring, one can only wonder how many other shadow programs are currently in operation to fund states under the table with federal money.The full list of America’s 32 insolvent states is below, sorted in order of bankruptedness, in millions of dollars.

California $6,900
Michigan 3,900
New York 3,200
Penn. 3,000
Ohio 2,300
Illinois 2,200
North Carolina 2,100
Indiana 1,700
New Jersey 1,700
Florida 1,600
Wisconsin 1,400
Texas 1,000
South Carolina 886
Kentucky 795
Missouri 722
Connecticut 498
Minnesota 477
Georgia 416
Nevada 397
Massachusetts 387
Virginia 346
Arkansas 330
Alabama 283
Colorado 253
Rhode Island 225
Idaho 202
Maryland 133
Kansas 88
Vermont 33
South Dakota 24
Tennessee 21
Virgin Islands 13
Delaware 12

2 responses to “32 States Now Officially Bankrupt

  1. OH who cares as long as USA can wage WAR and MORE WAR and WAR WAR WAR!!!! Eventually all the serfs will have to play soldier in the killing fields because that will be the ONLY form of employment for anyone in t he USA. Hip, Hip, Hooray!!!!!!!!!!!!!!!!!!!!!
    NOT

  2. Looks like somebody with a HS education needs to teach Tyler the basic definitions of a few financial terms. I guess fake headlines is all he has left to get ignorant readers.

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