These recent reports from ProPublica show the divisive and greedy nature of governments, some of which have huge debt burdens. When the feds and the corrupt financial institutions – “five of the country’s biggest banks and an alliance of almost all states and the federal government” – came to an arrangement that would provide financial assistance as a result of the housing crisis, moneys were going to be distributed to the states to be redistributed to citizens stung by the illicit actions of the lenders.

So what did many of the states do with the money?

A foreclosed home stands boarded up on February 9, 2012 in Islip, New York. (Getty Images)

According to ProPublica, “States have diverted $974 million from this year’s landmark mortgage settlement to pay down budget deficits or fund programs unrelated to the foreclosure crisis, according to a ProPublica analysis. That’s nearly forty percent of the $2.5 billion in penalties paid to the states under the agreement. Click here to read more in the “Billion dollar bait & switch: states divert foreclosure deal funds.”

Here in Pennsylvania, where the state “foreclosure deal millions going?” It appears the state is “robbing Peter to pay Paul.”

To the impacted citizen homeowners? Wrong, guess again.

“As part of the mortgage settlement finalized in April, 2012, the five biggest banks agreed to pay $2.5 billion to 49 states and the District of Columbia. ProPublica contacted every state to determine whether the money will be going to consumer-focused efforts related to the settlement or not. Here is the breakdown of each state’s share. This graphic will be updated periodically as more states announce their allocations.”

In Pennsylvania “This dysfunctional system has created as much as $5.2 billion in unfunded liabilities for our state’s taxpayers.” says Pennsylvania’s Treasurer, Rob McCord, in this article from the Harrisburg Patriot-News.

And here is the Pennsylvania House Appropriations Committee, Democratic chairman, Joe Markosek’s response to Frequently Asked Questions about PA’s Debt.

The clarity of governnment’s insatiable spending is evident. Every government from the lowest level seemingly is on a spending and borrowing binge. What happens when the revenue streams go dry?