America's First Failed State?

[FOTD]

Terminated by the terminator?

Wonder what effect this has on the municipal bond market, states ratings, and interest rates.

The devastation to the underclass is growing beyond the pale. This is an interesting read about the next shoe to drop. Stimulus 2? Tarp 2?


Will California become America's first failed state?

http://www.guardian.co.uk/world/2009/oct/04/california-failing-state-debt

"But the state that was once held up as the epitome of the boundless opportunities of America has collapsed. From its politics to its economy to its environment and way of life, California is like a patient on life support. At the start of summer the state government was so deeply in debt that it began to issue IOUs instead of wages. Its unemployment rate has soared to more than 12%, the highest figure in 70 years. Desperate to pay off a crippling budget deficit, California is slashing spending in education and healthcare, laying off vast numbers of workers and forcing others to take unpaid leave. In a state made up of sprawling suburbs the collapse of the housing bubble has impoverished millions and kicked tens of thousands of families out of their homes. Its political system is locked in paralysis and the two-term rule of former movie star Arnold Schwarzenegger is seen as a disaster – his approval ratings having sunk to levels that would make George W Bush blush. The crisis is so deep that Professor Kenneth Starr, who has written an acclaimed history of the state, recently declared: "California is on the verge of becoming the first failed state in America."
"I believe in California. It pains me at the moment to see it where it is, but I still believe in it," said Michael Levine.



We can only hope that Van Jones and more people like him will find a way to continue their greening work, in California.

Since this devil is a Sooner, he will take the position that Texas was the first failed state.

[stageidea]

I don't know if they are about to actually fail or whose is to blame for California's issues.  I wouldn't narrow it down only to the Govenator.  It is without a doubt on the shoulders of everyone who lives there.  But yes they have spent themselves to the poor house over the years.  But they are not the first state to hit the economic skids over the years.  And as the 8th or 10th largest GDP in the world I would not rush to count them out.   

[Red Arrow]

If CA had a Democrat Governor, it would be Bush's fault.

[FOTD]

If CA had a Democrat Governor, it would be Bush's fault.

Did either of you read the article? Nobody is "blaming" the terminator....besides, he's a RINO because he backs health care reform.

[Red Arrow]

Did either of you read the article?

No, I almost never read any of your links.

[sgrizzle]

With teh surplus auctions and all the other changes AS made, I'm betting California would be WAY WORSE without him.

[cannon_fodder]

It has an unemployment rate nearly as high as Germany and projected budget shortfall about quarter of that of the UK (based on comparative GDP).   

Yep, total failure.  Yay for hyperbole in journalism!

California has serious issues it needs to take care of, and it makes sense.  It went from a largely agricultural state with a couple large cities to a mega state with 75 cities of 100,000 of more people in the span of one generation.  Meanwhile, California prides itself for being on the cutting edge in all things . . . including new government ideas (in America).  It has a wide open philosophy that tends to encourage boom and busts cycles.

They need to get their budget in order.  They need new rules that say "NO" to people.  If they had any sense at all they would avoid this entire situation by budgeting 10% of predictions and putting that money into a reserve fund (when the good times roll again.  Instead of increasing the budget 10% throw that into the fund).  After 10 years of funding the reserve fund they would be able to use the reserve fund as THE BUDGET for the next year and replace it with current years tax receipts.   Thus, never having budget problems of this magnitude again.

[sauerkraut]

California spent alot of money on illegal aliens, it's really a mess. That's radical liberalism in action. Another state to watch is Michigan- it has the nations highest unemployment and that state is totally run by democrats from the governer to the state house and many cities, and it has been democrat controled for years & years. (Detroits unemployment rate is pushing 30% worse than a depression)  If Obama gets his way our whole country will be like Michigan. "Cap & Trade" can bring the USA  down to 3rd world nation status by killing the econony and driving out business and it won't be long till people are living in huts. Things are bleek. The 2010 elections can do alot of good. If  we can just get republicans to get a few more Senate seats then Obama's radical agenda will be stopped. In 2012 we need to elect someone like Sarah Palin for president.

[rwarn17588]

California spent alot of money on illegal aliens, it's really a mess. That's radical liberalism in action. ...  If Obama gets his way our whole country will be like Michigan. "Cap & Trade" can bring the USA  down to 3rd world ... If  we can just get republicans to get a few more Senate seats then Obama's radical agenda will be stopped. In 2012 we need to elect someone like Sarah Palin for president.

Man, that's a whole lot of wingnut self-parody there.

I think sauerkraut's doing a spoof, or he's a lot dumber than I think he is.

[Townsend]

Man, that's a whole lot of wingnut self-parody there.

I think sauerkraut's doing a spoof, or he's a lot dumber than I think he is.

That's what I started to think too.  He's someone's joke.

If he's not, they shouldn't allow him in places like the public library.

[Conan71]

Palin? for President?   

[rwarn17588]

Palin? for President?   

She'll form an advisory committee to quit running for president. 

[sauerkraut]

I'm a big Sarah Palin supporter. She has the same view points as I do, she is pro-gun, pro-life, and pro-oil drilling.. She believes in tax cutting, she wants to cut the cap. gains tax and federal corp. taxes and doing those few things will turn the econony around. Ronald Reagan inherited a mess from Jimmy Carter and he turned it all around by cutting taxes and getting rid or regulations. Everything Obama is doing will make things worse, he is choking the economy. We are in for hyper inflation in a year or so. The national debt is the highest it's ever been. Obama will make every state as bad as California & Michigan. Ford is building a massive new car factory and guess where? In China, we are starting to lose our car industry to China along with  the steel industry that left years ago - The TV & electronics industry has been gone for years. We need to encourage companies to stay here with tax cuts and getting rid of regulations.

[rwarn17588]

I'm a big Sarah Palin supporter. She has the same view points as I do, she is pro-gun, pro-life, and pro-oil drilling.. She believes in tax cutting, she wants to cut the cap. gains tax and federal corp. taxes and doing those few things will turn the econony around. Ronald Reagan inherited a mess from Jimmy Carter and he turned it all around by cutting taxes and getting rid or regulations. Everything Obama is doing will make things worse, he is choking the economy. We are in for hyper inflation in a year or so. The national debt is the highest it's ever been. Obama will make every state as bad as California & Michigan. Ford is building a massive new car factory and guess where? In China, we are starting to lose our car industry to China along with  the steel industry that left years ago - The TV & electronics industry has been gone for years. We need to encourage companies to stay here with tax cuts and getting rid of regulations.

See? Spoofs just keep rattling on ... obliviously.

[Conan71]

I'm a big Sarah Palin supporter spooner. She has the same view points as I do, she is pro-gun, pro-life, and pro-oil drilling.. She believes in tax cutting, she wants to cut the cap. gains tax and federal corp. taxes and doing those few things will turn the econony around. Ronald Reagan inherited a mess from Jimmy Carter and he turned it all around by cutting taxes and getting rid or regulations. Everything Obama is doing will make things worse, he is choking the economy. We are in for hyper inflation in a year or so. The national debt is the highest it's ever been. Obama will make every state as bad as California & Michigan. Ford is building a massive new car factory and guess where? In China, we are starting to lose our car industry to China along with  the steel industry that left years ago - The TV & electronics industry has been gone for years. We need to encourage companies to stay here with tax cuts and getting rid of regulations.

There's a lot of other candidates with the same views who actually have some accomplishments.  Just because she can spew the talking points of the RNC doesn't mean she's a great candidate.  President Obama is great at spewing forth the talking points of the DNC.  How's that working for you in your world?  Apparently not well.

I like Sarah Palin and admire her ambition, but honestly, she's not well-suited nor experienced enought to lead the U.S.  After her total flake-out resignation as governor, I could not vote for her with a straight face.  She will get slaughtered in the primaries.  I'm guessing she's done before Super Tuesday.

A lot of the doom and gloom being pontificated by the talk show hosts you listen to is way, way over-blown.  Step away from talk radio for awhile and do some thinking for yourself instead of spouting off what others want you to think.

Yep, I am a registered Republican and I just did say all that about the holy idols of the GOP.