California maxed out its credit card (again)

Discussion in 'Wall St. News' started by Robert Weinstein, Jun 30, 2008.

  1. At what point do they actually say to themselves that they need to cut spending???

    "At the same time inflation is quickening, the Treasury and local governments are stepping up borrowing amid expanding budget deficits. The U.S. government's shortfall for May totaled $165.9 billion, more than in all of fiscal 2007."

    "While long-term debt costs are on the rise under Schwarzenegger, they're still less than they were under Davis, when investors demanded an average 44 basis points more yield than top-rated municipal debt to buy the state's 30-year bonds, according to Bloomberg and Municipal Market Advisors. That's cold comfort to Schwarzenegger as he faces higher costs to access money short term."
  2. jasonjm


    I live in Socal....

    there are a million laws, a million people with pointless state jobs, and a million obstacles to doing anything here.

    Complete mess

    I like living here, but what a complete mess, lol

    they should fire at least 75% of the state officials, repeal at least 75% of the laws, and ship every inmate in the socal prison system to a factory in vietnam to make us stuff for the rest of their sentence.

    Thats the only way to fix this place.

    But it will never happen will it.

    funny thing is the tax paying citizens of Socal seem to get zero for their money, literally nothing.

    Be interesting to see how this plays out, because they cant raise taxes (people will just leave and they will get less income overall, and the politician that raises taxes will get the boot) and they cant pay their bills. Your guess is as good as mine.

    My bet is the have same gameplan as the fed govt, pray for lots and lots of inflation.
  3. 377OHMS


    They don't. They just assume that current state tax revenue will grow. As soon as it goes flat or decreases the state can't pay its bills.

    Thank God for Prop. 13 which limits increases on property tax to 1% per year. If not for that we would be getting raped out here.

    Instead they have to rip us off in other ways...

    In my area of California they are threatening to turn off the street lights unless we pay a special tax assessment to keep them on. We just voted it down so I guess they are going to turn out the lights.

    They are hammering us with increases on electricity (already outrageously expensive here), increased water bills, sewage fees, trash fees, everything.

    When you combine these increases with fuel and grocery increases it begins to make you wonder.

    This is not the normal down-turn where folks tighten their belts a little. I think all of this represents a possible real shift towards something, well, new.

    I've noticed for the last 10 years or so the loft-district in downtown LA (little Tokyo) has been exploding with hundreds of small restaurants and loft apartments. Even freaking Pasadena has a downtown full of that new type of mixed-use property with the big malls replaced by clusters of high-rise apartments with retail and enterainment on the ground floor. Not much need for a car in these areas.

    I'm living large on a ranch with a ton of toys and a helipad but I could definitely see myself with a 2 bedroom apartment downtown with maybe one small car. I could get rid of 1 or 2 of these stupid dogs too. Maybe even find a girlfriend who has a job. :D I lived downtown for 5-years in engineering school and liked it there.
  4. heypa


    Residents of California have a stable population. All the growth comes from immigration both legal and illegal.Our politicians can only extrapolate spending trends. They have no idea how the economy works and believe that the solution to all desires (needs) is to grant them. Paid for of course through higher taxes and fees or bond issues.
    The people so far have tolerated it apparently because they are as dumb as our elected statesmen.Some day the system will collapse. Socialism does not work.Communism does not work. Constitutional Republics do not work once the elected representatives learn how to game the system. Democracy beyond a certain size becomes unmanageable.
    I guess that once you get beyond the tribal stage and start consolidating we are all doomed.
    All governments will eventually fail once the newness wears off and corruption flourishes.
    Think about it. Four Supreme Court Justices thought the Washington D.C. gun law was constitutional. They arrived at that without consulting the World Court or the European Union.
    What a bold thing to do.
  5. Same here in Wisconsin. There was a big push to have universal state health care by the left and even the dem governor knew it was a bad idea. Wisconsin is one of the highest overall taxed states as well. I think our property tax is the highest overall and we have an income tax on top of it.

    At the same time the dems main agenda is to spend more money we have a huge budget deficit.

    I knew drunken sailors when I was in the navy that had better financial spending restraint.

    Nevada keeps looking better and better to me every day. Of course that doesnt solve the other side of the country in DC.....
  6. 377OHMS


    Man, I don't know. Most of Nevada looks like the moon. Vegas looks unrecognizable to me anymore, kind of like Disneyland.

  7. hmmmm, I always thought the apollo moon pics looked kinda the same myself....LOL

    Was actually thinking sparks / reno area. Somewhere there is four seasons without minus 500 degree winters