Where will Europe get the money?

Video: Public employee of the year awards (SNL)

Mish put this up a few days ago. If you haven’t seen it, it’s a must-watch.
http://www.popmodal.com/nvp/player/nvplayer.swf?config=http://www.popmodal.com/nvp/econfig.php?key=eb054f3ea718f61adfa1

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This version may play better in the US:

http://www.hulu.com/embed/AmuCTb1tvO-5YOc5N-97Mg

This is why your state and local governments are bankrupt, as well as the national governments of Greece, Portugal, Spain, Italy and probably soon France.

Selling munis today is like selling Greek bonds six months ago — the numbers guarantee default. The only question is whether or not there are bailouts, but like with the GIPSI states, there will be a lot of uncertainty leading to higher rates in the interim, and in the end they can’t all be bailed out.

Look at these rates. Considering the risks, that’s a pretty skimpy premium over Treasuries, even considering the tax advantage.

Source: Bloomberg.com