Our country is in grave financial trouble from top to bottom. From Federal government to the states, to individuals. We all have a spending problem, and a debt problem.

When an individual takes on debt, it's no one else's responsibility. When a state takes on debt, it's everyone's responsibility whether they like it or not.

If you live in an indebted state, the only way to escape paying is to move. There is currently no provision in the legal code for a state to declare bankruptcy.

Many, such as Jeb Bush, Newt Gingrich, and Thomas Sowell think there should be such a provision. It would allow states to discharge the insane debts that were never payable, and allow them to restructure over generous union contracts and pensions. Most importantly, it would force states who made bad choices to deal with the consequences of their own actions.

If you think Democrats would like to get on board with accountability, and dealing with the unions, you would be dead wrong. The Unions are a huge voting base for the Democratic party, and Obama certainly doesn't want to offend them. Personal accountability hasn't been a Democratic virtue for a long long time either.

Our Federal Budget isn't looking much better. We are running 1.5 trillion dollar deficits year after year, with no "exit strategy". We already borrow about 43 cents out of every dollar we spend.

President Obama is proposing bailing out failing states. This will let them continue the status quo for a while longer, and it will stop bankruptcy judges fiddling with union contracts. In a microcosm of our economy as a whole, he hopes that he can paper over the actual problems that we have.

If left unchecked, this can only lead to disaster for the country as a whole. The US doesn't have a single dollar to bail out states that made bad choices. For that matter, the US doesn't have a single dollar to bail out states that made good choices. We need to drastically cut our budget, not find new ways to spend.

More importantly, the states in trouble are solidly Democratic. The Washington Examiner reports that "The five states in the worst financial condition--Illinois, New York, Connecticut, California and New Jersey--are all among the bluest of blue states." and "Of the 10 states in the worst financial condition, eight are among a total of 23 defined by Gallup as "solidly Democratic."

A cynical analyst might say that Obama is rewarding the states that voted for him at the expense of the states that didn't. That is going to be the net effect whatever the intentions. Bailing out these states is only going to reward their wasteful policies, and allow the cycle to repeat. It's also going to be a millstone around the neck of fiscally responsible states.

The more bailouts of any sort that we see, the more strained our economy will be. This bailout policy is going to spread the poison of fiscal insanity instead of treating it.