California Collapsing, page 1

California Collapsing

www.moneyandmarkets.com

Washington and Wall Street seem to be treating California as if it were a sideshow in the financial circus of these turbulent times.

It’s not.

California is home to the largest manufacturing belt in the United States and to Silicon Valley, the nation’s largest high-tech center.

California is America’s most populous state with 38 million people. Its GDP of $1.8 trillion is the largest in the U.S. Its economy is bigger than those of Russia, Brazil, Canada, or India.

And it's collapsing.

(visit the link for the full news article)

Major California counties are ground zero in the continuing mortgage meltdown:

Los Angeles County with 5.32 percent of mortgages 90 days past due … Monterrey County, 8.02 percent … Imperial, 8.13 … San Bernadino, 8.66 … Madeira, 9.21 … San Joaquin, 9.53 … Riverside, 10.2 … Merced, 10.57 … and more!

California’s inventory of foreclosed homes is skyrocketing. Home prices are plunging. And the impact of surging unemployment is just beginning to show up in the data …

Worst Unemployment in 64 Years

...snip...

My recommendations:

1. If you wait for Moody’s or S&P to act, it could be too late. Even if you can’t get what you might consider a good price, sell all California paper now!

2. Seriously consider dumping all tax-exempt bonds. I know the income is better than equivalent Treasuries. But if California defaults, it could set off a chain reaction of bond price plunges and defaults throughout the municipal bond market.

3. Don’t underestimate the impact California’s depression is having — and will continue to have — on the rest of the U.S. economy. At $1.8 trillion, the state’s GDP is so large, any further deterioration could wipe out every so-called “green shoot” in the national economy seen to date.

4. Stay safe, with a big portion of your nest egg in cash, tucked away in short-term Treasury bills … and with a very modest portion in gold, as an insurance policy against a dollar decline.

Good luck and God bless!

Quite contradictorily to what Bush said that would happen.



It's not the first time that California is said to be in one of the worst states in America, but it's gradually becoming more apparent that California might very well be the first state to collapse.

This system is rotten to the bone and unfortunately for the world, everyone is going down due to the increased globalization.


www.moneyandmarkets.com
(visit the link for the full news article)

[edit on 1-7-2009 by Mdv2]

reply to post by projectvxn

---

To all you who think California is some sort of socialist welfare state, what world do you live in?

For all your socialism blather, you sure seem happy to live off our dime: California gets about $ .75 back on each tax dollar we send to Washington. We're supporting your disrespectful butts, and getting pretty tired of it. I can't imagine how much we send to the New York banksters each year.

We've had Republican governors for quite awhile now, their fiscal policies have driven down the quality of education statewide, made a lot of peole homeless, and cost huge numbers of jobs. They've allowed corporate ripoffs left and right, just like everywhere else. If this is socialism, it sure looks a lot like conservative capitalism to me. We've been bled dry by successive frauds like Enron: my monthly electric bill hit $745 during the height of the crisis, after we cut usage by 35-40%. I've never recovered a dime of what was extorted then. Corporate America likes to charge us extra for everything: a sun tax for the privilege of living here. Gas were I live runs about $3.00 a gallon today, last year it hit $4.52 in some spots. We, the people of California, are pretty fiscally frugal in our own lives, we have to be: wages are low compared to the cost of living. If I'm living in a socialist paradise, nobody's told me about it, and I've never seen it.

My county supervisors just finished wasting several years and millions of taxpayers money unsuccessfully fighting state law about medical marijuana. Does that sound socialist to you? The strongest union in the state is not the teachers' union, nor a labor union, but rather the prison guards union. I guess that's socialist, too.

Someone suggested that what we need is our own state bank, so we can issue credit backed by our tax receipts, and quit paying interest to New York. I'm all for that.

Regardless, we're screwed now.

And guess what?

You're screwed, too.

Because we've been supporting the rest of the country, and we can't afford it anymore.

reply to post by AnonymousMoose

---

Indeed. I make incursions into California every so often...It's almost like stepping into a different nation... There is so much untapped potential in California it isn't even funny...Even though things might seem better in Nevada, it isn't rosy here either. Reno and Vegas have been hit hard by unemployment. Reno has just stopped hiring altogether. There are many homeless people on the streets here. The state is facing a 1.5 billion dollar shortfall, and with the smallest government this side of the Mississippi, that is a HUGE problem...As their isn't much to cut. This is a domino effect. And even cap and trade won't fix the revenue shortages that the Federal government is about to face. Even if they taxed everything 100 percent.

reply to post by apacheman

---

I don't remember posting anything about socialism. I'm addressing technical problems which have been heavily marred by decades of mismanagement. The chickens are coming home to roost, no matter how much one wants to babble on about politics. Political ideology is not technical, it is a religion, a dogma. I've spoken of no such thing. I didn't say republican or democrat, I didn't say Conservative this, Liberal that or even mentioned Libertarians.


It is no longer about this kind of BS political back and forth. I said it in that post before, it isn't a game any more. I also made a point to mention that this is going to be a national thing. We're all in this snowballing mess. No reason to fuel anxiety with useless politics.

Originally posted by apacheman
reply to post by projectvxn

---

To all you who think California is some sort of socialist welfare state, what world do you live in?

For all your socialism blather, you sure seem happy to live off our dime: California gets about $ .75 back on each tax dollar we send to Washington. We're supporting your disrespectful butts, and getting pretty tired of it. I can't imagine how much we send to the New York banksters each year.

We've had Republican governors for quite awhile now, their fiscal policies have driven down the quality of education statewide, made a lot of peole homeless, and cost huge numbers of jobs. They've allowed corporate ripoffs left and right, just like everywhere else. If this is socialism, it sure looks a lot like conservative capitalism to me. We've been bled dry by successive frauds like Enron: my monthly electric bill hit $745 during the height of the crisis, after we cut usage by 35-40%. I've never recovered a dime of what was extorted then. Corporate America likes to charge us extra for everything: a sun tax for the privilege of living here. Gas were I live runs about $3.00 a gallon today, last year it hit $4.52 in some spots. We, the people of California, are pretty fiscally frugal in our own lives, we have to be: wages are low compared to the cost of living. If I'm living in a socialist paradise, nobody's told me about it, and I've never seen it.

My county supervisors just finished wasting several years and millions of taxpayers money unsuccessfully fighting state law about medical marijuana. Does that sound socialist to you? The strongest union in the state is not the teachers' union, nor a labor union, but rather the prison guards union. I guess that's socialist, too.

Someone suggested that what we need is our own state bank, so we can issue credit backed by our tax receipts, and quit paying interest to New York. I'm all for that.

Regardless, we're screwed now.

And guess what?

You're screwed, too.

Because we've been supporting the rest of the country, and we can't afford it anymore.

The problem isnt with how much the federal government spends on you . The problem is how much YOU spend on YOURSELVES.

I live in florida. The state has 0 I repeat, ZERO income tax. What does Cali pay? 15%?. I pay the state of florida NOTHING out of my paycheck. We rebuild after every hurricane, we still get unemployment when needed, we have medicaid and always have a balanced BUDGET. Nobody is starving or being kicked out of hospitals in florida. There arent mass riots.


And guess what, the recession has hit us almost as bad as it has hit you. Why are we so much better off than CA? Simple. We are not stupid. We have a responsible government. We dont send idiots like Pelosi or Waxman to congress and sure as hell dont elect those who dont have our interests in mind.

And we are all republican down the line when it comes to state government. We loved Jeb Bush. He was Governor for 2 terms



Stop being partisan. California is in its own mess because it created it. It knows what it needs to do to solve it. Cut bullcrap spending. All of it.


man i really need a new keyboard i hate this thing.

[edit on 1-7-2009 by Spartak_FL]

copied from another thread





This video was made in 2008. There are now 33 known camps across the state with estimated over 40,000 occupants and growing daily.

Just think if California didnt spend 5.53 billion dollars a year on social services for illegals these people could all be housed. You made this bed.

[edit on 1-7-2009 by Spartak_FL]

Originally posted by randyvs
reply to post by projectvxn

---

blah blah blah 1st line. you can stop w/ the reposts.

nice contribution you have made to this thread.

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