Tornado Alley (PROG)

[BullNBear52]

He does not understand the probem,

I guess what I'm trying to say is that for the majority of states, I don't think a federal bailout is necessary. For a few, it might be, but it may be small enough that they can fund it without a stimulus bill,

The Feds are already bailing out the states,

23 states are currently borrowing money from the federal government to pay out their unemployment claims. So far, Idaho owes $71 million and California owes $4.5 billion. And in the coming months, 14 other states - including Nevada - are expected to join them.

But, just like any loan, the money comes with a fee.

"In terms of borrowing, we don't have to start paying interest until 2011," says Anderson. "But the going interest rate is 4.6 percent."

http://www.kvbc.com/Global/story.asp?S=11340872#

The projections are that the states and FUTA will not recover till around 2016. BTW FUTA is busted and has been borrowing from the Treasury.

In 2010 employers will see a 15-20% increase in UI taxes.