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A nurse at a London hospital who took a hoax call about Catherine the Duchess of Cambridge was found dead on Friday. Jacintha Saldhana let through a call from an Australian radio station purporting to be the Queen calling about the ailing Duchess.

It wouldn't be the worst thing that could happen to the country.

If President Obama and Congress can't come to agreement on new tax and spending policies by the end of year, the U.S. could slip into recession, defense and domestic programs will see damaging cuts, and the American people may become convinced that Washington can't govern the nation.

On the other hand, the lack of a deal would do a lot to help erase the federal deficit.

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If President Obama and Congress fail to reach a deal on tax and spending changes, the nation would feel a lot of fiscal pain. But it also may benefit from the long-term fiscal restraint that would come from keeping tax hikes and spending cuts in place.

More than 200 school districts across California are taking a second look at the high price of the debt they've taken on using risky financial arrangements. Collectively, the districts have borrowed billions in loans that defer payments for years — leaving many districts owing far more than they borrowed.

In 2010, officials at the West Contra Costa School District, just east of San Francisco, were in a bind. The district needed $2.5 million to help secure a federally subsidized $25 million loan to build a badly needed elementary school.

Charles Ramsey, president of the school board, says he needed that $2.5 million upfront, but the district didn't have it.

"We'd be foolish not to take advantage of getting $25 million" when the district had to spend just $2.5 million to get it, Ramsey says. "The only way we could do it was with a [capital appreciation bond]."

Those bonds, known as CABs, are unlike typical bonds, where a school district is required to make immediate and regular payments. Instead, CABs allow districts to defer payments well into the future — by which time lots of interest has accrued.

In the West Contra Costa Schools' case, that $2.5 million bond will cost the district a whopping $34 million to repay.

'The School District Equivalent Of A Payday Loan'

Ramsey says it was a good deal, because his district is getting a brand-new $25 million school. "You'd take that any day," he says. "Why would you leave $25 million on the table? You would never leave $25 million on the table."

But that doesn't make the arrangement a good deal, says California State Treasurer Bill Lockyer. "It's the school district equivalent of a payday loan or a balloon payment that you might obligate yourself for," Lockyer says. "So you don't pay for, maybe, 20 years — and suddenly you have a spike in interest rates that's extraordinary."

Lockyer is poring through a database collected by the Los Angeles Times of school districts that have recently used capital appreciation bonds. In total, districts have borrowed about $3 billion to finance new school construction, maintenance and educational materials. But the actual payback on those loans will exceed $16 billion.

Some of the bonds can be refinanced, but most cannot, Lockyer says.

Perhaps the best example of the CAB issue is suburban San Diego's Poway Unified School District, which borrowed a little more than $100 million. But "debt service will be almost $1 billion," Lockyer says. "So, over nine times amount of the borrowing. There are worse ones, but that's pretty bad."

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The Labor Department's glad tidings Friday about the uptick in job creation last month might morph into bad news next month for many of the long-term unemployed.

That's because the boost in November hiring, with employers adding 146,000 jobs, might make it more difficult for Democrats to argue in favor of having Congress renew the extension of benefits for people out of work more than six months.

As things stand, four in 10 Americans who receive unemployment insurance will lose their extended benefits if federal aid expires as scheduled on Dec. 29.

If that were to happen, "it would be devastating for these unemployed workers and their families; in many cases, this is the only income they have," says Judy Conti, a lobbyist with National Employment Law Project, a group that advocates for low-wage workers. "It's the middle of winter — when people need heat and food and shelter."

But conservatives now have a stronger argument to make when they say the job market is healthy enough to offer opportunities to those who have been out of work a long time. In November, the unemployment rate dropped two-tenths of a point to 7.7 percent, the lowest level in four years.

A Cutoff Looms

The future of unemployment benefits for the long-term unemployed is part of the ongoing budget negotiations in Congress. Lawmakers are trying to sort out a complicated cluster of tax-break expirations and automatic spending cuts. Collectively, those budget problems are commonly called the fiscal cliff.

One of the issues involved in the negotiations is the federal Emergency Unemployment Compensation program. Unless Congress reauthorizes it for 2013, more than 2 million long-term unemployed workers will be cut off from federal benefits.

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