Obama's role has been as mediator to ensure that the worst policies be pursued: tax cuts for the wealthy and corporate types combined with out of control spending. The Republicans failure to offset the Bush tax cut extension for their plutocrat buddies, by only achieving token spending cuts also ensures that the worst possible policies are enacted. To say the fiscal crisis end game is in play and that you deserve the Government you elect is the understatement of the new century.
To give you perspective, let’s pretend some reasonable political approach was crafted to return entitlement spending to the 40 year average within the budget, that being 42%, versus 44% now.
Meredith Whitney presents her case about muni debt in a Fortune article that is a well written detail of her points. There is a huge revenue and expenditure gap that exists for many states that has been plugged by a Ponzi scheme. Reserves have been used up. Federal stimulus help is going away. From what I heard MW say in the past, this later event was critical and crucial to the timing. It will be the tipping point. The Charlie Gasparino piece in contrast is just an exercise in ad hominems and not even a very skillful one at that. It does zero to educate or inform the reader.