I applaud the whitehouse for not (as of yet) bailing California out. I have no idea what will happen BUT I hope the experience is enough to end the election of irresponsible "tax and borrow" politicians.
Illegals can get Section 8 housing assistance, MediCal and food stamps if they make a baby here. Some cross the boarder and rush to the emergency to deliver their babies - they don't pay the hospitals either. Many border hospitals were forced to close. An Americas may be sick or unable to find work, but without babies, there is no help for him/her. And when jobless Americans forced to sleep in cars, the local cops ticket them and impound their cars if they cannot afford the ticket. State & city help goes to illegals who delivers a baby in America. I don't mind the migrant workers who just want a job. I am dead set against those who come here just for the benefits. That is California for you! I live near the Mexican border.
Why do you continue to live there? There are 49 other states, several territories, and a couple of hundred other countries.
This is my interpretation: The government of California can not print dollars, but they love to spend money and have lots of debt. When spending reaches a limit, the government of California pays with IOU's. California banks are licensed by the government of California, conduct much business with government of California, and are manipulated - intimidated - into cashing the IOU's. If the California banks run into financial problems then the Federal Reserve - the Federal Government - will fix the banking problem. So the government of California is off loading their money problems onto the Federal Government. If the Federal Government regulators decide to stop banks from accepting California State Government IOU's then a crisis might appear but it might be blamed on the Federal government, not the State government.
Exactly, when do they just shut CA out of the markets and let them come up with an idea to get rid of the billions in debt, at this point there is so much owed that it doesn't make a difference if its $10 billion or $100 billion.
There was a budget due in the state of NY back on APRIL 1st, 2010, as of today JULY 29th, 2010 nothing has gone through.
Agree on all points! Good post! We need Libertarian leadership imo as the two party "system" isn't a system anymore... I wonder what CA muni's are yielding? It's nice to have a tax free yield (federally AND state tax free if you live there), but I wouldn't own any of that paper for obvious reasons.
May be shrewder than people realize. CA is home to Tesla Motors which recently teamed up with Toyota to manufacture more affordable electric cars here in CA. If the electric car industry catches on, may turn out to be a good long term investment.
Audio was leaked from a top level meeting with the California CFO. He was saying that there is no amount of taxation that could pay just the retirements of state workers... People that can't do the math [quite literally] are in charge and always will be.