The Obama Administration is providing a further tacit bailout of the states and the guaranteeing of more debt by the federal government and thus the tax payers. Bloomberg indicates that the administration is seeking to extend and expand the Build America Bond Program indefinitely. It was to end this year.
Sadly the taxpayer is on the hook for ever more debt while increasing the level of moral hazard. As Bastiat wrote "Everyone wants to live at the expense of the State. They forget that the State lives at the expense of everyone."
