Cities, states, and municipalities are sinking by the minute. And unless unions agree to concessions (which they won't) massive layoffs are coming everywhere you look.
...Layoff stories are endless, and layoffs in the public sector have barely started. Those layoffs are likely to be staggering unless Obama and Congress are willing to go much deeper in debt, specifically to bail out failed states.
The budget deficit religion in Obama's state of the union message will surely be put to the test.
4th quarter GDP numbers will give one last reason to celebrate. However, that will be the last hurrah. The next GDP report will be nothing more than a rear view mirror look of inventory rebuilding, failed stimulus plans like cash-for-clunkers, and housing tax credits.
Here's a sobering thought for all the stock market bulls: The best of this "recovery" is now likely behind us, the official unemployment rate is still over 10%, and massive layoffs are on the horizon for city and state workers across the country. _Mish_via_NewsAlert
First the private sector is parasitised by the public sector. Then the public sector itself falls apart for lack of a private sector to support it. At that point sundry violence and reorganisation occurs, and the process tends to start over for another cycle.
There is no safety in public employment. Just a temporary abeyance of the laws of the universe.