devassocx

California's Permanent Crisis

So you are suggesting new taxes?

Where will that end?

The answer is NEVER!

The real solution is to stop the spending and for the state to
live within its means, which it hasn't done for many years.

What applies to household budgets ultimately applies to California
as well.

The party is over!

There is no more money and the smoke and mirrors have to stop!


On Jun 21 09:58 AM Mad Hedge Fund Trader wrote:

> this can't go on forever. Sadly, once again, my once beloved but
> now spurned home state of California is threatening to commit suicide.
> The formerly Golden State officially runs out of cash in 50 days,
> and our body building governator, Arnold Schwarzenegger, refuses
> to borrow any more until the legislature delivers $24 billion in
> spending cuts. Standard & Poor’s has placed it on Credit Watch,
> and premiums for credit default swaps on the state’s debt have already
> spiked back up to 300 bp. I got a letter today from Robert Birgeneau,
> Chancellor of the University of California at Berkeley, where my
> son goes to school, telling me that his budget shortfall has just
> leapt from $67 million to $145 million, and that tuition is going
> up 9.3%, while staff wages will be cut by 8%, and financial aid will
> be chopped to the bone. Yikes! And this is the place we are counting
> on to deliver the scientists, engineers, and professionals who are
> supposed to keep us globally competitive. Pleas to Obama for a bailout
> have already been brushed aside, like a pesky fly. He rightly sees
> us as an alcoholic friend asking to buy him just one last drink.
> A default would be no joke, as California accounts for 15% of US
> GDP, and ranks as the world’s eighth largest economy. Few realize
> that the state is home to the country’s second highest per capita
> payers of tax revenue into Treasury coffers, after New York (Sarah
> Palin’s Alaska is the lowest). Hardly a day goes by without banner
> headlines about closing state parks, cancelling local sports programs,
> or freezing payments to mothers with dependent children. In fact,
> most state residents now prefer the Sacramento government to go bust
> in order to bring a speedier resolution. There is only one possible
> solution. A new governor holds a constitutional convention to reduce
> the vote to pass a budget from two thirds to 50%, or a statewide
> voter initiative accomplishes the same. Maybe ex Ebay CEO Meg Whitman,
> who will run for Arnold’s job next year, is up to the task?