Gridlocked Congress might respond to docked pay

February 16, 2012

California now cuts lawmakers’ income if they don’t pass budgets on time. That could work in Washington, too, where a bill to the same effect was just introduced. As Wall Street knows, financial incentives are powerful. Many politicians would be loath to lose generous perks, too.

The case for Washington bailing out some states

January 10, 2011

The newly-installed governors of Illinois, California, New York and Connecticut face huge budget gaps that are worrying financial markets.