As the California Budget crisis worsens..

I'll admit first that I haven't been paying as much attention as I probably should be to the plight of my neighbors to the south. But something crossed my mind as I was reading news of banks not committing to take California's IOUs and the feds repossessing state parks...


What has recently been the Federal Government's MO when a "too big to fail" corporation goes under?


GM anyone?

I'm pretty sure the State of California counts as "Too big to fail"...

So I'm asking the people of ATS, as lots of you know way more than I do about these things..

Do you suppose the feds might be looking at stepping in and trying to rescue CA?
If so, would it undergo a complete government restructuring under the feds?
Would this constitute a conflict of interest between the states and federal government?
Would the feds set up a federal territory within CA, separate from CA, like a sort of west-coast DC to operate from?
Would a federal takeover of California constitute an Intolerable Act similar to the Massachusetts Government Act?


Like I said, I don't know a lot about the situation in CA, but these are some things that crossed my mind while reading the news.

I would really like to read some of your thoughts on this..

Nope....the CDS Gnomes stand to make too much money with California's failure......

Hmm.. By CDS I assume you mean Credit Default Swap..

That whole concept seems shady to me.. Banking on failue..


Anybody else with an opinion..?

reply to post by nasdack24k


i wouldn't be surprised if california got "bailed out"
either way its only a matter of time before chaos breaks out on the streets. if you count an incredible increase in robberies as chaotic, then its already begun.
there have even been criminals that apologize while they are putting guns in peoples faces, because they claim they need to feed their family and such.

people can say what they want about the social programs in california. but it is what it is and many people (almost ALL criminals, mind you) rely on these programs to feed and house their family. take that away and there will NEED to be martial law *knocks on wood* for all the rioting and chaos that would ensue....
sadly i haven't been able to "escape" yet...but you can all watch what happens to california and know that its really just an example of what will likely happen to the rest of america in time.

I think crime is on the rise everywhere as a result of the economy.. It definitely is here..

I know of a guy who runs a barber shop who got robbed at gunpoint not too long ago.

You're right about the social programs and such. Unfortunately though they seem to just spawn more dependence on the same programs. So what are the options? Let it snowball out of control until the state can't afford it, which is where CA seems to be now, or cut it off early and piss off a lot of shady folks. Either way people lose their freebies in the end and many resort to crime.

I personally feel bad for the state employees who are getting paid in IOUs.. (although isn't fiat cash the same thing..?) I'm wondering how much difficulty they will have exchanging these IOUs for cash and the things they need. I understand there's already a market for these IOUs forming as they're supposed to pay out around 3-4%.. IF they pay back.... Big IF from the looks of it..

Originally posted by double_frick
reply to post by nasdack24k

 

people can say what they want about the social programs in california. but it is what it is and many people (almost ALL criminals, mind you) rely on these programs to feed and house their family. take that away and there will NEED to be martial law *knocks on wood* for all the rioting and chaos that would ensue....

Reminds me of Kim Jong Il

All these problems and super-corrupt arnold still defends spending billions of $ of taxpayer money on welfare, schooling, and hospital care for illegals.!!!

Arnie is collecting MILLIONS OF $ in bribes every year from big Business to let the illegals invade and run wild.