California is quickly spiraling into an abyss of debt. Housing has fallen off the cliff and tax revenues are disappearing faster than HGH in The Arnold's house. This is the 8th largest economy in the world and it is teetering on the brink of a disaster. There is no easy answer for them as they are one of the biggest "welfare" states in the world. Just about the only thing that could help is a major earthquake or other natural disaster that would funnel "rebuilding" $'s there way.
Arnolds latest and greatest plan is to sell Muni Bonds backed by lottery revenue to offset the budget deficit. BRILLIANT! Borrow now pay later, that's the way to balance a budget. And even better, let's back the bonds by a disappearing revenue stream that can't possibly support the payments. CA is in for some massive cuts and tax increases or it may pass the buck for a year or two. Either way, that state will be a economic disaster area for the forseeable future. Anyone who thinks that CA can't drag down the rest of the country with it is a pot-smoking, dart-frog licking lunatic. And I should know one.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment