Now that the government has balied out the auto industry, if that’s what you want to call throwing good money at bad, guess who’s next in line for some of that fake money that seems to make things ru moe smoothly? California and the steel industry. And when I say California, I’m talking all of the fifty states but California is the most critical situation.  <

Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country’s 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin — all Democrats — said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues. Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

Who doesn’t want more money? Then there’s the steel industry.

The steel industry, having entered the recession in the best of health, is emerging as a leading indicator of what lies ahead. As steel production goes, and it is now in collapse, so will go the national economy. That maxim once applied to the Big Three car companies. Now they are losing ground in good times and bad, and steel has replaced autos as the industry to watch for an early sign that a severe recession is beginning to lift.

Is there no end to who we don’t hand money out to until the world figures out that the money isn’t worth anything and we have spiraling and deadly inflation?

Ernie Fitzpatrick
http://www.articlesbase.com/economics-articles/steel-states-707490.html