Fact

 

Just forget the CHIP and Medicaid data, think about how the unemployment rate has affected State Revenues.  California might not be the only state in trouble soon.

So far each state this year has lost 2-3% revenue, not to mention increasing unemployment payments, increased health care cost and other expenses that increase due to less people working.  That is just this year, so take California for instance which went from 5% in 2006 to 10% in 2009, which would mean a 15% loss in revenue.

So as long as unemployment keeps rising we can expect more home defaults and more states losing money, through revenue losses.  Don't worry California, you won't be the last to issue I.O.Us, warrants. 

But YEAHHH!!! UNEMPLOYMENT IS LAGGING!  LAG THIS CNBC!