Video: '60 Minutes' investigates state governments with mountains of debt and uncontrolled spending

Last night, '60 minutes' ran a segment on the economic crisis facing state and local governments.

“The day of reckoning is at hand,” the '60 minute's' Steve Kroft announces ominously, “The States have collectively spent a nearly half a trillion dollars more than they collect in their taxes, and there is a trillion dollar hole in their pension funds. . . .
 some believe that it could derail the recovery, cost many of public their jobs and require another big bailout package that no one in Washington wants to talk about.”

This segment features Meredith Whitney, a well known financial analyst who predicted the credit crisis and the housing bubble. She now points to state and local governments as the next financial crisis.

The video also features Governor Chris Christie's battle to fight for the financial health of New Jersey and examines other states in trouble such as Illinois and California.

“The federal government doesn't have the money to paper over it anymore, either, for the states,” Christie says. “The day of reckoning has arrived.”

The video has a few ads, but the entire segment is very interesting. Watch below:

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