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What Went Wrong with California, New York, and New Jersey?

The good thing about Cali is that the state will soon fail and may take "Progressive Liberalism" with it.


On Jun 28 04:07 PM Mad Hedge Fund Trader wrote:

> the system is clearly broken. As the California budget battle reaches
> white hot temperatures, Fitches has cut the rating on the state’s
> debt to A-, and placed it on “credit watch”, a warning of further
> downgrades. The move is a delayed recognition of reality, as is the
> rating agency industry’s practice. The legislature tried, but failed
> to pass $12 billion in budget cuts, which governor Arnold Schwarzenegger
> said he would veto anyway, because they didn’t meet the full $24
> billion tab. In the package were increases in motor vehicle registration
> fees, $1.50 a pack in additional tobacco taxes, cancellation of health
> insurance for one million children, a production tax of 9.9% for
> in-state pumped crude oil, the firing of thousands of teachers, firefighters,
> policemen, and probation officers, and more smoke and mirrors accounting
> shenanigans that kick the can into the future. Some of the changes
> were only possible through a redefinition of the English language
> that turned “taxes” into “fees.”As California goes, so goes the nation,
> as many states will follow the Golden State into financial Armageddon.
> In a new era of soaring unemployment, restrained consumption, high
> savings, and crashing stock and property prices, states dependant
> on taxes on incomes, sales, capital gains, and property appraisals
> don’t do well. Make sure those muni bonds are insured. Why do I get
> the sickening feeling that I am watching a rerun of Thelma and Louis?