officers. he says municipal bankruptries are rare and doesn't expect them. but -- >> there's only so much money to go around. so the interest will be paid on the debt. the bondholders will be paid. but there will be budget cuts and perhaps tax increases in other areas that will cause pain and frankly citizens are going to notice. >> but, several of the new governors have pledged not to raise taxes, which leaves them with the unpopular choice of cutting programs. wolf? oh. >>en employment across the country, 9. 8%. very high. some of the states it's higher. it's having a huge toll on these states as well. >> it's contributing to the weakened tax base for states and that's only furthering the strain on them. >> mary snowe in new york for us watching the story. thank you. new year and a new cafferty file. jack is back with the cafferty file. happy new year, jack. >> you too, wolf. good to see you. as the new congress gets down to business this week. no shortage of things for them to devote themselves to.