Can the U.S. Afford to Let California Fail?

[SirRedeye]

http://www.time.com/time/nation/article/0,...1904936,00.html

1 years, and $65 billion bailouts- nothing to show for it exept for higher gas prices, cost of living ect...-lol

*disclaimer..: - i work for a living, but i cant afford what i work for...a few years ago, i was almost eligible for retirement... hopefully it gets better yall,~ i, myself hate seeing, reading or hearing about all these sob stories...

BOOM, HEADSHOT!

[AROCES]

The Federal should not bail out California and just let it be so it can correct all its wrong doings.

A Federal help would be nothing really but trying to save a political party that is in power now who eventually made a mess of California.

[The Silver Thong]

The Federal should not bail out California and just let it be so it can correct all its wrong doings.

A Federal help would be nothing really but trying to save a political party that is in power now who eventually made a mess of California.

Agreed as any moneys given will do little to correct the problem.

[Bill Hill]

Let Hollywood burn baby burn..

[SRCivic98]

I agree with everyone thus far. I say don't give a bail out to a state like California because they've got hollywood, adult films, celebrity central pretty much, and loads of other ways to bring in tourist dollars. Now they're wanting a bail out because everyone else got a bail out pretty much. I'd say let them go under and as a matter of fact, let the nation go under that a way we can start over from another from a blank page. Besides everyone of these businesses and companies that got a bail out are now asking for another one. yet the gas prices continue to rise and are expect to go beyond $5.00 a gallon and taxes are going up after July too, at least here in North Carolina, sales taxes across the nation are to go to eight to ten cents on every dollar, etc etc. The news just gets worse and the only way for it to end is if this nation goes under and we have to start over. Then again the last option anyone in their right mind would want is a world war amongest everyone because A - Every male has a job as a soldier. B - Women pretty much do all the jobs back home, C - Lots of people get employeed to make bombs, ammo, weapons, planes, clothes, etc. Then the economy has a little bit of a boost but sometimes if you tax your people to death then they'll eventually turn on you and fight back. So who knows what will happen but either way it's not going to be good. I know what I'm waiting for and I'm ready for it too, but that's just me.

[IronGhost]

They should sell California to North Dakota. That state has a budget surplus, and only 4 percent unemployment.

[AROCES]

They should sell California to North Dakota. That state has a budget surplus, and only 4 percent unemployment.

And let the California voters out the N Dakota officials and replace them with their own????

[WoIverine]

At least we'd be rid of San Fran. lol

[questionmark]

I have an idea: Given that the state is broke, Hollywood being displaced by Bollywood, no more gold in the Sacramento River and most menial workers Mexican anyway, why don't give it back to the Mexicans?...we do with everything else we don't need anymore...

[ExpandMyMind]

I have an idea: Given that the state is broke, Hollywood being displaced by Bollywood, no more gold in the Sacramento River and most menial workers Mexican anyway, why don't give it back to the Mexicans?...we do with everything else we don't need anymore...

[SRCivic98]

I have an idea: Given that the state is broke, Hollywood being displaced by Bollywood, no more gold in the Sacramento River and most menial workers Mexican anyway, why don't give it back to the Mexicans?...we do with everything else we don't need anymore...

that's true. but then it would mean that they might ask for texas back too, lol. Then it'll the the Mexican American War all over again.

[Arden]

What I find ******ed about this budget mess in CA is that they state government is taking it out on the people. "Hey lets cut jobs and school budgets that'll save us a lot of money!" Of course in doing that they still expect they people they just laid off who are probably gonna be homeless now to "spend more more to stimulate the economy." 1+1 does not = 5. I Live in CA and if i were to lose my job, I'm seriously gonna gather some of my friends and start a tent city in front of the state capital. It's not like I have anywhere else to go haha!

[Stardrive]

The Federal should not bail out California and just let it be so it can correct all its wrong doings.

Agreed. We've had enough of the Fed bailouts for folks who fleece the system.

[Guardsman Bass]

I can see why they chose not to bail out the state, since if they bail out California from a budget crisis, you can guarantee that a bunch of other states will come running and demanding for help every time a recession drives state tax revenues downward.

That said, they probably could help California, but they really need to make that aid dependent on some political changes, like reforms to the state constitution.

[Raptor Witness]

[L.A. County rings up $1.5 million for unused phones] - LA Times - July 19, 2009

Los Angeles County government has more than 8,000 phones that never ring. The annual cost to taxpayers? At least $1.5 million and climbing.

Officials worry that some lines may have never served a county purpose. One was registered to a now-defunct ticket brokerage in Hollywood called Theatix. For 14 years, the bill for the line -- currently $38 a month -- has been paid by taxpayers.

Don Ashton, a spokesman for the supervisors' executive office, said he could not explain who approved the line or who signed off on the invoices, paid out of a Board of Supervisors account, for all these years.

"We haven't been able to find that out," he said.

The discovery of so many abandoned lines raises serious questions about oversight, particularly when county officials have asked everyone to tighten their belts ... cont. at link above.

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You know what's really sad? This story will probably never make it past the L.A. Times. Yet when California declares bankruptcy, and it will, the False Prophet(electronic media) will blame the housing crisis.

The truth is, California can't be rescued, because to do so would be a moral hazard that lawmakers in Washington can't assume responsibility for. So who will save them?

Edited June 19, 2009 by Raptor Witness

[questionmark]

that's true. but then it would mean that they might ask for texas back too, lol. Then it'll the the Mexican American War all over again.

can't have Texas! There's still oil 'round there!

Besides, I would hate having to fly to Mexico to see my family (not that it makes that much difference)

[pbarosso]

1. who else is going to pay for the deficits besides the people? government would have to be reduced to almost nothing and you cant have that with democrats in office.

2. what we need to do is tax the illegal aliens here for their use of hospitals and health care, road use, dmv fraud, tax evasion, penalize companies like the restaurant business for employing fake ID people(and every wendy's or buger king is guilty).

2.1 getting rid of the prison system in california will free up 10 BILLION dollars alone. put them on an island or on antarctica!

oh, and of course like in norway or sweden or finland (one of those) make all fines (such as traffic violations, and city code violation fines) subject to a percentage of income system::::

--that way, if a guy in a porsche does 120mph or fails to stop at a red light, he should be forced to pay the same percentage of his income that us poor folks do. So if a traffic fine is $300 to someone making $30,000 a year it is 1% of his yearly income, but if some rich azz-hole gets a traffic fine you think he cares? whats $300 to him? say he makes $1,000,000 a year, that would make his fine $10,000, Cities and state funds would be greatly increased.

[AROCES]

[L.A. County rings up $1.5 million for unused phones] - LA Times - July 19, 2009

Los Angeles County government has more than 8,000 phones that never ring. The annual cost to taxpayers? At least $1.5 million and climbing.

Officials worry that some lines may have never served a county purpose. One was registered to a now-defunct ticket brokerage in Hollywood called Theatix. For 14 years, the bill for the line -- currently $38 a month -- has been paid by taxpayers.

Don Ashton, a spokesman for the supervisors' executive office, said he could not explain who approved the line or who signed off on the invoices, paid out of a Board of Supervisors account, for all these years.

"We haven't been able to find that out," he said.

The discovery of so many abandoned lines raises serious questions about oversight, particularly when county officials have asked everyone to tighten their belts ... cont. at link above.

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This is obviously officials spending or finishing their budget to assure them of the same $$$ on the next fiscal year.

You keep taxing like California and the waste and corruption will keep on going. And when election comes the Politicians talk about hungry children and poor old people so we have to raise taxes more. Its their job to get money from the public to redistribute it to those who supports them. It's a way of life to many in California, the government as a legalized extorsion tool.

And why do voters keep voting for them? For they are fooled into believing only the rich gets hurt by it and that they will get free of this and that.

Edited June 19, 2009 by AROCES

[Raptor Witness]

This is obviously officials spending or finishing their budget to assure them of the same $$$ on the next fiscal year.

You keep taxing like California and the waste and corruption will keep on going. And when election comes the Politicians talk about hungry children and poor old people so we have to raise taxes more. Its their job to get money from the public to redistribute it to those who supports them. It's a way of life to many in California, the government as a legalized extorsion tool.

And why do voters keep voting for them? For they are fooled into believing only the rich gets hurt by it and that they will get free of this and that.

This house of cards began with California, and it will end with them in a great shudder. It is an enormous powder keg, but the fuse is still burning.

The state of confusion has only one card to play right now, and that is to print money and give it to the banks, or whomever is deemed "too big to fail." Well, isn't the eighth largest economy on earth, just a little too big to fail?

This is a problem, which if ignored, has at least as great a potential to collapse the entire U.S. economy, as [AIG.] Yet, this isn't being discussed publicly, because our government is so afraid of creating more panic, however legitimate.

California's debt can only be self serviced with bonds backed by the American Taxpayer, or else they'll have to pay much higher interest rates to the private sector that will shut down any hope of recovery and/or repayment. After all, who is going to insure these bonds? Not only that, but how will they compete with the U.S. Treasury, which is set to auction off a mammoth amount of debt next week?

[Treasury to Auction $104 Billion In Debt Next Week, a Record] - By: Reuters | 18 Jun 2009 | 03:36 PM ET

It's s vicious circle right now. The government hands the banks money, they in turn buy the bonds that the treasury is issuing, the treasury then repo's or buys back the bonds, and on and on until the house of cards collapses, precipitated by a simple puff of wind.

Edited June 21, 2009 by Raptor Witness