Governor Mitch Daniels was given an opinion piece slot in the Wall Street Journal yesterday to lecture other states about how to "reset" their state governments to deal  with the new financial reality they all face.

No question a new reality exists, but we know gov Daniels article is a put up job by the friends of the WSJ corporate newsletter.  Why, because of all the praise given governor Daniels for getting his state's finances in order, including having $1 billion in the bank account, they left out the small detail of Daniels having pushed through the 2006 sale of  the Indiana Toll Road on a 75 year lease to a Spanish consortium for $3.6 billion. 

750 million dollars of the proceeds were put towards outstanding bonds on the property, put that still leaves a bit to help your books look better.  So, yeah, sure like Daniels suggests there will be an end someday to how the federal government finances itself, but Indiana too only has so many debt burdened highways and water treatment plants to sell off.

Here is the new reality that was not mentioned by Daniels and the WSJ:  The creditors are coming to take over the collateral of their insolvent debtors.