Schwarzenegger Leaves Us With A Budget Mess

[reformeddaytrader]

We now have a budget deficit @$25 Billion over the next 18 months that Schwarzenegger and the Sacramento legislators ignored. Because of bickering and infighting they never did anything for our @$ 6 Billion shortfall. We have @ $91 Billion in bond debt compared to @$ 34 Billion when Arnold took office.

So what does this mean?? Higher taxes and less spending and Jerry Brown with a tin cup looking for a handout from Obama..

And I bring this issue up here because if California goes bankrupt it will be far worse than the banks going belly up in 2008

[billisonboard]

Actors as politicians. With the track record, what can you expect.

[reformeddaytrader]

Ca taxpayers are left holding the bag for @ $7.4 Billion on the so called $ 18.5 Billion of the so called Economic Recovery bonds issued in 2004 when Arnold was sworn into office as our Governator .A job that was way above his pay grade and he made big bucks

[ChiTownVenture]

And I bring this issue up here because if California goes bankrupt it will be far worse than the banks going belly up in 2008

Let CA go bankrupt then split the state into two states N CA and S CA. This would help to reduce the impact of any future state(s) economic issues from affecting the country (assuming that both N and S would not collapse again at the same time).

[billisonboard]

Give California two more Senators?

[mudflap81]

Jerry Brown with a tin cup looking for a handout from Obama..

And if (when) it works, Deval from MA will be next in line followed by Cuomo from NY. The the floodgates really open and pretty much everyone but the South Dakota, Indiana, New Jersey, and a few others will want some handouts.

[ChiTownVenture]

I would imagine that the N and S would be polar opposites (as far as politics goes). Besides we need more Senators!

[reformeddaytrader]

Dec 28, 2010 9:35:10 GMT -5 ChiTownVenture said:

And I bring this issue up here because if California goes bankrupt it will be far worse than the banks going belly up in 2008

Let CA go bankrupt then split the state into two states N CA and S CA. This would help to reduce the impact of any future state(s) economic issues from affecting the country (assuming that both N and S would not collapse again at the same time).

Actually that is not wishful thinking but is being considered and being pushed by a few of the Southern California Mayors ... Villaragosa says it is still on the table but Jerry Brown said NO in his debates with Meg Whitman

[ChiTownVenture]

Actually that is not wishful thinking but is being considered and being pushed by a few of the Southern California Mayors

This has been an issue in CA for quite some time, I'm not sure that it would ever happen. Generally I think people in CA like being able to say they have the 8th largest economy in the world (and like the clout that goes with that).

[reformeddaytrader]

Meg Whitman said NO Way No How & Brown said NO but he has other issues on the table so this may be dead issue for at least 18 months with the threat of the state going bankrupt...

[floridayankee]

Dec 28, 2010 9:12:22 GMT -5 @reformeddaytrader said:

We now have a budget deficit @$25 Billion over the next 18 months that Schwarzenegger and the Sacramento legislators ignored. Because of bickering and infighting they never did anything for our @$ 6 Billion shortfall. We have @ $91 Billion in bond debt compared to @$ 34 Billion when Arnold took office.

Why you left coasters keep electing these boobs in to office is beyond me.

What really "grinds my gears" is now that Californians have destroyed their own state with their liberalism, they're starting to branch off to more conservative states and propose / approve the same destructive social programming.

I say we need that border fence on the right border of CA, not Mexico.

[reformeddaytrader]

Dec 28, 2010 10:28:40 GMT -5 floridayankee said:

Dec 28, 2010 9:12:22 GMT -5 @reformeddaytrader said:

We now have a budget deficit @$25 Billion over the next 18 months that Schwarzenegger and the Sacramento legislators ignored. Because of bickering and infighting they never did anything for our @$ 6 Billion shortfall. We have @ $91 Billion in bond debt compared to @$ 34 Billion when Arnold took office.

Why you left coasters keep electing these boobs in to office is beyond me.

What really "grinds my gears" is now that Californians have destroyed their own state with their liberalism, they're starting to branch off to more conservative states and propose / approve the same destructive social programming.

I say we need that border fence on the right border of CA, not Mexico.

Nah we need to increase the fences along the Mexican border and if you live in California for @ a year or so you will be hooked on the climate, beaches, resorts, and beautiful ladies in string bikinis that are very friendly and just love guys with Corvettes and tons of cash..

[AgeOfEnlightenmentSCP]

Ahnold attempted to cut spending and the CA legislature went into VETO-override mode. That's the inconenvient truth of the matter.

[AgeOfEnlightenmentSCP]

The real fun is going to start when "flyover country" tells states like CA to go scratch when they ask for a bailout. We just had an election where the central issue was spending and bail outs-- as in NO MORE!-- and ALL spending originates in the House according to the Constitution. It's an insurmountable legal obstacle to the CA bailout-- it's not happening, kids. So, CA will go into super-stupid (if you think they're stupid now, just you wait) mode which is what liberals always do when their spending plans inevitably fail-- and more wealthy, more businesses will re-locate and CA will collapse completely-- along with NY and IL. It's going to be fun to watch, and very- VERY- painful for residents of those states.

[floridayankee]

Dec 28, 2010 10:45:08 GMT -5 @reformeddaytrader said:

Nah we need to increase the fences along the Mexican border and if you live in California for @ a year or so you will be hooked on the climate, beaches, resorts, and beautiful ladies in string bikinis that are very friendly and just love guys with Corvettes and tons of cash..

Do you think them gold diggers would settle for a guy in a pickup truck and pickin' up the tab?

Although it was 28 this morning, generally we have the same great weather and the same bikini clad women without all the social programming of the left coast states.

[reformeddaytrader]

Yea but we don't have that dam humidity you guys do in Delray Beach but it is expensive living out here..

So you get what you pay for nice area but liberals ruining the state economy...and too bad we don't have anyone like Marco Rubio like you guys do.

[floridayankee]

Dec 28, 2010 11:02:27 GMT -5 @reformeddaytrader said:

Yea but we don't have that dam humidity you guys do in Delray Beach but it is expensive living out here..

So you get what you pay for nice area but liberals ruining the state economy...and too bad we don't have anyone like Marco Rubio like you guys do.

I'm actually in the Tampa Bay area....far enough from the city / beaches that I don't get the traffic and beggars but yet close enough that a trip to the city / beaches isn't much of a burden. The only regret is that I never got to see a shuttle launch. They were supposed to launch a couple days before our vacation weekend in Cocoa this past September so I had reworked my schedule to go early.

Then they scrubbed the launch

But....so far, I can't wait 'til that humidity gets back here. My yankee blood is thinning. My green camry has so much frost on it, it was about as white and my pickup.

[marshabar1]

Couple the weak leadership with a culture of entitlement, a culture of drug use, a culture of magical thinking, a flood of illegal labor and their children, tax policies that drive out viable businesses and wealthy citizens and you've got Cuba on the horizon.

No need for a reconquista when the state is built on the sand of indecision and fantasy. It'll take another actor like Ronald Reagan and some very hard choices to pull California out of this slide.

It happens again and again in history. Civilization grows soft and peasants walk in from the wilderness to take over. There's hardly a ruffle as it happens. The old folks lock themselves away and die. The young folks whine and entertain themselves with pleasures.

[reformeddaytrader]

California is about to become Nothern Mexico in a few years.....and you can take that to the bank..

[verrip1]

The Inland Empire has already become a scattering of dilapidated villages devolving towards being sites for the next Magnificent Seven movie.

In Sacramento, Jerry will be an actor, posing to the cameras as he wrings his hands, having zero impact. The Assembly and Senate can now run rampant with only a simple majority now needed to increase spending AND taxes. There is nothing that can stop them now. Not only are they unable to solve the current fiscal disaster, they will actually push the economy over the ledge into the abyss with even more spending. It's like watching a train wreck in slo-mo.

[Deleted]

Now I don't know because I don't keep up with CA politics but I remember hearing that Swar... got elected because of who he was (movie star) & not for his politics. Isn't he a republican governor with a mostly (as in they control) democrat legislature?

I know here in Texas the governor has very limited powers & really doesn't control anything (it's a Texas thing, we don't in general trust politicians). Is CA the same way? It would make a difference if it was as to who is to blame. (I'm not blaming the democrats, just asking).

[reformeddaytrader]

Oldtex......we removed Governor Gray Davis for incompetency and because Arnold had given big bucks to the RNC in California his name went on the ballot to replace Davis who we recalled...Arnold's only competition was Ariana Huffington and some other Wuss. So he became Governor in 2004 with tons of promises like Obama and failed miserably like Obama ....he called all the Liberals who were also misogynistic and or effeminate "Girly Men" and the gays thought that was a compliment but the misogynistic and effeminates didn't think so...and it all went down hill from there

[Value Buy]

The state of Illinois may not have the dollar total beaten, but they have you beat on the percent of non-funded expenses. Illinois is at something like 49% unfunded liabilities this year.
Nevada is 2nd
California is third at something like 30% unfunded liabilities.

[jarhead1976]

California's $500-billion pension time bomb
The staggering amount of unfunded debt stands to crowd out funding for many popular programs. Reform will take something sadly lacking in the Legislature: political courage.
Opinion
April 06, 2010|By David Crane

The state of California's real unfunded pension debt clocks in at more than $500 billion, nearly eight times greater than officially reported.

That's the finding from a study released Monday by Stanford University's public policy program, confirming a recent report with similar, stunning findings from Northwestern University and the University of Chicago.

[reformeddaytrader]

There is a major concern that California will have to raise our state income tax rates along with other local taxes and fees....somehow the Golden State isn't very Golden anymore..and with all the rain the coast line may float off to Hawaii

[deziloooooo]

I liked Arnold..liked to hear his views..I think California is so screwed up with the competing voices no one can make it right personlly...

[❤ mollymouser ❤]

Dec 28, 2010 9:12:22 GMT -5 @reformeddaytrader said:

And I bring this issue up here because if California goes bankrupt it will be far worse than the banks going belly up in 2008

Federal law permits individuals, businesses and local governments to file for bankruptcy reorganization and sometimes debt forgiveness. States are not covered by the law. No U.S. state has ever declared bankruptcy.

[reformeddaytrader]

How about not being able to service their debt ...then the Federal Reserve would have to print more money to cover this crisis but we are talking about mega billions

[❤ mollymouser ❤]

The State of California resembles a classic spendthrift; the world’s 8th largest economy, was long characterized by its numerous economic opportunities, inviting business climate, and bustling real estate industries. But, the state was also regularly in deficit for the last several decades. This did not seem to matter. The state continued to borrow against future revenue, in order to finance its budget requirements – much like an individual would borrow against the speculative increase in their home’s value to pay for existing bills. The way they were able to do this, was by the sale of short-term notes for cash (similar to bonds.)

www.mint.com/blog/finance-core/understanding-the-california-budget-crisis/

[Value Buy]

Dec 29, 2010 18:10:52 GMT -5 ❤ mollymouser ❤ said:

Dec 28, 2010 9:12:22 GMT -5 @reformeddaytrader said:

And I bring this issue up here because if California goes bankrupt it will be far worse than the banks going belly up in 2008

Federal law permits individuals, businesses and local governments to file for bankruptcy reorganization and sometimes debt forgiveness. States are not covered by the law. No U.S. state has ever declared bankruptcy.

Watching CNBC today, they talked about states, filing bankruptcy, and if the Federal Government would step in. They said the prevailing view is, they would. That is why the state's bonds are still close to par.