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We speak but hit the top story.
State pension funds are in crisis and now the GOP is moving against a federal bailout for the states.
Pennsylvania governor Ed Rendell -- -- -- -- from Harrisburg Pennsylvania governor always good to have you back a welcome gets a good to -- We weren't Stewart now the three Republicans in the house have sponsored a bill which would offensively it essentially.
Put -- -- put a stop to.
Any federal bailout of state pension -- now I know that you in Pennsylvania have just signed a pension reform bill.
But not point it -- bring this up is look.
All we at a crunch time via in other states the situation with state retirement funds is so bad.
But we're right up against the wall -- -- -- -- default.
All there is a bailout from the federal government would you agreement made that we're at about point.
Well I'm not sure exactly at that point Stuart and I think one of the import of abilities congressman are pushing -- To have the states make an accurate report of what exactly their pension liabilities are and of course that's an accounting battle as much as anything else.
But I think that's number one I think we've got to -- across the fifty states.
What exactly is the total unfunded pension liabilities that somewhat.
And then number two figure out what we're gonna do about it -- I think that we should rule out federal help under any circumstances no but I also believe very strongly.
That the states have to take action themselves before the federal government should even consider helping the states the states have to take very typical action.
Am I right in saying that London is all becoming increasingly worried.
About lending money to states specifically Illinois and California may be New Jersey maybe New York as well because that -- about the deterioration.
In state pension funding.
Yeah I think that's a legitimate worry that lenders have I'm happy to say that during my eight years as governor even with the recession.
Pennsylvania's bond -- actually went up.
But it's it's sort of a precarious situation across the country and no question this is adding to lenders that's about the credibility of states.
Governor it's it's a Dalai Lama for president a -- -- is it because he would be naturally inclined to -- federal help but he he gives it.
Taxpayers in Missouri in Kansas and Texas are going to be very angry about bailing out previously wealthy states when -- just.
We've been profligate with the money it's a -- -- for President Obama somewhat questioned governor is.
Do you think he will bail out states.
I don't think is going to be a federal bailout in the next couple of years that an officer I think states are gonna have to make very.
Difficult decisions on their own.
And until they make those difficult decisions no one including the president is -- consider a federal bailout but didn't want it pushed.
-- -- them if lenders are unwilling to lend them the money that they desperately need.
It'll be well within a two year time friend -- backed crunch -- Well and it doesn't get us to be dealt with but one of the mistakes I think we made the balance.
And I think to bail out I think most took financial analysts who agree.
The bailout of Wall Street was necessary to keep the financial structure in this country knowing that it and the world for that matter.
Unpopular and the reason it was unpopular.
Is because we didn't put the right conditions on the bail -- not only conditions involving paying back the money and a lot of that money is you know has been paid back story.
But conditions about what these lending institutions had to do with the help they were -- So it's -- time comes that the federal government has to consider bailing out of state let's -- an individual state.
The only way that should be done is with the most stern and strict conditions put upon.
The federal help and again I'm not sure where there yet.
I think the states have got a belly up and do the right thing to be honest I'm not sure our pension reform bill went far enough.
Yeah I just got twenty seconds left but can you see the day.
When that some of the promises made to retired state look at is will be broken.
I don't know if they'll be broken Stewart will -- be -- probably be stretched out that's a possibility okay.
Governor Rendell believe your term in office is coming to an end in that five weeks five weeks five weeks what are you -- -- for the next five weeks.
But we got a lot of work to do and we're helping them.
Governor elect -- and with the transition and -- wanna get him off to a good start and what are you gonna do when the five weeks is up.
Well on the try to make money Stewart the other anti capitalist DREAM Act -- well I hope -- killing Jordan on this program as frequently as you did when you're governor Ed Rendell is always a pleasure of -- -- -- with us appreciate it.
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