http://www.nytimes-se.com/2009/07/04/new-york-bike-path-system-expanded-dramatically/

http://www.bloomberg.com/apps/news?pid=20601039&sid=aXgKicYOQKm8&refer=home

"And now Americans are saying that the industry that brought the economy to its knees with its endless financial spinning should itself be brought low, demanding an end to the life- altering, lottery-like windfalls that Wall Street parcels out to itself every January or February. "

"The industry, however, seems not to get it."

"Maybe the survivors are in denial. Perhaps they believe that surely since they did a good job this year -- presuming they don't work in mortgage securities or derivatives or whatever the real losers are -- that they deserve the same bonuses they got during the seven fat years."

"OR maybe they think if they get just one more good hit, they will have accumulated 'the number' they need to retire and never work again."

Wait until we find out the legislature's proposals. How about a pension "incentive," to "save money" by allowing current "highly paid" public employees to retire five or more years early, along with lower pay and benefits for new hires? AGAIN!

I agree with you 100%. So what happens now to those liberals who like public transportation, pensions, and unions? Pro-union policies have always been a core part of the Democratic Party and liberalism in general. Who is to blame for the United Auto Workers boondoggle? Actually, in that particular case it seems like Republican GM executives made promises to the union they knew they couldn't deliver in the long run. But they did deliver for years and years. In general, I don't understand- why did unions bite so much more than they could chew that now everyone hates them?

Your condemnation of unions seems to be non-partisan- or, rather, everyone is to blame for inappropriate borrowing. So who do we turn to? The Libertarian Party?

Don't worry, no one on the Upper West Side reads the Post anyway.

I meant a bank, so it could get emergency funds from the Federal Reserve, because no one would buy its credit card receivables.

"Because of the credit crunch, cities are essentially unable to borrow in the private capital markets to meet their pension obligations, according to the letter."

Wrap your heads around this and understand.

Some time in the past, politicians cut a deal with public employee unions to vastly increase their compensation, in the form of the right not to work and get paid for years and years. To avoid hostility to the higher cost of public services, they deferred that cost to the future, until people like themselves could move out or die off, by assuming a higher rate of return.

So now it is the future, when the past public services have to be paid for with today's taxes, with no public services in return. So what to do? Borrow money, so today's young people have to pay for yesterdays overpriced public services tomorrow.

Borrow from who? Wall Street? The banks? They are only intermediaries, and if you borrow from them, they have to get money from people who save. But if people realize the future has been destroyed, why save for it? Who saves? Almost no one.

And among those who do save, the only place they feel safe putting their money is with the federal government. Not long term, where inflation can wipe it out, only short term. So the only people who can borrow are those who get money from the federal government, which is the only intermediary that that can get money from people who save.

There isn't enough to go around, because there aren't enough savings to go around. Yesterday, the Treasury decided to drop the bailout of mortgages because it only had money for a more pressing crisis -- no one will invest in auto loans, credit card debt, and student loans. If that doesn't change everyone drops out of college in the spring, because there is no money, and when you swipe your credit card it is rejected -- not because you are over your limit, but because the credit card company has no money left.

The day before Amex became a credit card company.

And now the MTA has borrowed to the hilt and is broke, as are the state and soon the city. And what is the Dean Skelos solution? Keep spending more, and cut taxes, while our state legislators fight for us by being strongly for or against gay marriage!

In case you're wondering what made me down enough to write the following last winter.

http://www.r8ny.com/blog/larry_littlefield/preparing_for_institutional_collapse.html