Tuesday, June 08, 2010

Market Update, and the $24 Billion Medicaid Aid to States Debate

by Calculated Risk on 6/08/2010 04:01:00 PM

The euro is up slightly to 1.1944 dollars. The TED spread increased to 43.24 (a measure of credit stress). This TED spread has been increasing slowly ...

Stock Market CrashesClick on graph for larger image in new window.

And a market graph from Doug Short of dshort.com (financial planner).

This graph shows the ups and downs of the market since the high in 2007.

And on the issue of state budget cuts, from the NY Times yesterday: Medicaid Cut Places States in Budget Bind

The Medicaid provision ... was considered such a sure bet by many governors and legislative leaders that they prematurely included the money in their budgeting. ... at least 30 states will have to close larger-than-anticipated shortfalls in the coming fiscal year unless Congress passes a six-month extension of increased federal spending on Medicaid.
In California, Gov. Arnold Schwarzenegger’s proposed budget assumed $1.5 billion in increased federal aid for Medicaid. ... In New York, which started its fiscal year on April 1 without a financial plan, Gov. David A. Paterson’s proposed budget included $1.1 billion in unsecured federal financing.
“I’m very concerned about the level of federal spending and what it would mean for the long term,” said Gov. Jim Douglas of Vermont, a Republican and chairman of the National Governors Association. “But for the short term, states need this bridge to sustain the safety net of human services programs and education.”