As if there wasn’t enough bad news to go around before this, the biggest news right now to many people may well be the fact that unemployment funds are running extremely low in most states in the country. In fact some states such as Ohio, New York, South Carolina, and Michigan have already completely run out and they were forced to get large loans from the federal government just to continue paying the unemployment benefits to those who have been approved. For example, two weeks ago Ohio borrowed $500 million from the federal government and expected to burn $50 million of that in one week alone! Clearly the surge in layoffs and unemployment has hit some states harder than others, but more than half of the states in the country are said to be at risk to deplete all of their funds within six months time.

This is definitely not the kind of economic news we need, but it’s just the truth of how bad things are right now. These state governments have been running low on resources for quite some time and the surge in recessionary layoffs has pushed them over the top to where they are unable to pay. The unfortunate thing about this is, the federal government is forced to loan them this money even though the federal government itself is in a terrible monetary deficit itself.

The recession is deepening, state unemployment funds are running out, and the federal government has a massive deficit that is growing larger by the hour. Does this sound like some pretty bad news to you? Yeah it’s sounds awfully bad to me as well. It is a vicious cycle which continues to feed on itself with higher and higher unemployment rates and the worst news of all is that there is no real end in sight. Be prepared for the worst and do everything possible to strengthen your family’s financial position.