this is exactly what happened in in argentina during their fiscal crisis. the difference is that in argentina the states are called provinces. the middle class better prepare themselves against the government bankrupting them.
I guess the party in CA had to end sometime !! The good news is that Arnie has found where the toilet is ! The bad news is that he complains so loud that the dollar bill is still too small, now that they have saved on loo paper.
Someone needs to promote a debt service holiday for a month or two... Those with no debt would simply pull "x" cash out of the bank for the duration of the "holiday." Just saying...
You know it. But this all stems from the original dangerous precedent of the government taking money from people who earned it and giving it to those who didn't. Only suckers work for a living and pay their bills on time. Careful voting will see to it that the rich (who take more than their fair share by working, providing capital, leadership and jobs, and investing) will be forced to pay for the poor (who are screwed out of their fair share because they don't work). A California bailout will force governors into the same game. Whoever promises the biggest pile of freebies wins the election - and (if this bailout goes through) there's absolutely no need to raise taxes to pay for them - not when Uncle Karl is ready with the printing press.
The future of California and the US is already here today: http://www.cnn.com/video/#/video/us/2009/05/30/vercammen.hidden.underworld.cnn Humans will evolve into giant rats and roaches! or was it the other way around......hmmmmm.
Arnold is going to use the latest election result to slash spending drastically. Its too late to recall him so he will do some draconian stuff. This will be entertaining. A blue state is going to have to slash its liberal spending programs and there is nothing the legislature can do but foam and fulminate. Its like the end of Terminator-II. Arnold is looking bad with big pieces of him torn off and half his face blown away. But suddenly he shows up at the last minute on the conveyer belt with an M-79 Blooper. "Get Down!"
Texas didn't have a housing bubble anywhere near the size of California's? Texas benefited from big oil profits during the oil bubble? Houston based Enron's raping of the West Coast during their "energy crisis?" 10% of Texans have an outstanding arrest warrant, many of which due to traffic violations ($$)? I don't know. You tell me.
From cities and states trying to make up shortfalls with "click it or ticket" laws that have gone overboard. Democratic controlled states are in the tank while those with a more responsible GOP government are doing much better. You tell me who has the better policies.
Last time I looked it up, three states in the country had a balanced budget...And Arnold is in the Grand Old Party. As a matter of fact, since 1967 (Reagan), California has had a GOP governor for 31 out of 43 years, or 23 out of the last 27 years if you go back to 1983.