Mish has spent a lot of time on the issue of state pensions and budgets in general, but to be very fair, it is a HUGE issue and he was on the forefront of addressing it. These states are bankrupt and are just beginning to realize what a predicament they are in due to their pension obligations. This will have major implications for the US in the future as the states try to handle the problem.

He has spent countless hours slamming the bankers, but they have already gotten their bailouts. He rallied people night and day to call the representatives to block the bailout. The bondholders won, the taxpayers lost.

The next issue is the states. I think he has it right. Who wins this time…..the bondholders or the taxpayers? I certainly hope we have turned the corner on this issue and we (the taxpayer) win the next round.

People lending money with the fear of losing money is what makes people act responsibly…..it is a very important ingredient in our economic system.