I'm not a financial guru. I have one though. I'll mention this to him as we plan getting through 2012-2013 (I'm not a 1%'er, just a hard working investor). People look at municipal bonds as safe, tax free shelters in economic tough times. Now, the ability of cities to walk away from their obligations changes everything-IMHO. How these cities going to borrow money? No one will want their junk bonds as no one wants Greece's. _ _
from your artical yeah just think don this is one of the results that being crime rate in that area after the bust , just think all of calif will go bankrupt, then a significant rise in crime will come to be throughout the state. http://en.wikipedia.org/wiki/San_Joaquin_Valley _ _[/QUOTE]
[/QUOTE] No doubt about it. The leaders are unwilling to save their own state. The high speed rail project is insanity on display. It's like a bankrupt man buying a Corvette ZR1.
This thread reminded me of a line from a Mark Steyn column from yesterday: "Our elites have sunk into a boutique decadence of moral preening entirely disconnected from reality: A nonhomophobic chicken in every pot, an abortifacient dispenser in every Catholic university, a high-speed rail corridor between every two bankrupt California municipalities." California is where the Blue State model eventually leads.
Granny says is `cause dey smokin' all dat dope out there, dey don't know what dey's doin'... Moody's: More California cities at risk of bankruptcy Deliberate strategy to take on budget deficits, avoid obligations to bondholders See also: Jay Leno takes pay cut to save staff 19 August 2012 - Leno returned to the late night show in 2010 following an unsuccessful move to primetime.
One of the nice things about some municipal bonds in California is that property taxes rise to cover bond payments. And, if you're the last guy still owning "your" property, you get to pay the bond yourself. Probably, before such a thing happens is that the bond holders will have a lawyer group take over publicly owned facilities, like water companies and roads etc. and then jack the fees up high to pay the lawyers and the bond holders.
Yep, just hang tough, because when the state has to start bailing out all these cities, and the welfare has to cut severely, your little smog ridden paradise will be looking like east LA in no time at all. LOL! Liberals have run the state for more than 4 decades, and just look at how (*)(*)(*)(*)ed up they made it. It will soon be just an extension of third world Mexico with in the next decade
If anyone wins the lottery, don't invest in any bonds from the state of california. They have more spending than tax income, because the rich republicans in california don't want to pay for all those illegal immigrants there on food stamps and SSI.
I lived in CDA for some years...Didn't care for the 6 plus months of gray skys, the cold and all those blue eyes. (the last one was a joke) lol (CDA is still the best place on earth in the summer) While we all know CA has issues, I have no doubt that we'll continue to get by.
http://video.foxnews.com/v/1764490420001/how-did-stockton-ca-go-from-boom-to-bust Fox News had an excellent one hour special last night called "Cities Going Broke". The above link will connect you to a segment about Stockton, CA. It was a very well done special. America has crippled itself- IMHO. We allowed our manufacturing base to be sent overseas, but instead of admitting that we have impoverished many Americans, we tried to maintain the same standard of living with debt, growing gov't, and risky mortgage deals. The result has been all too predicable. _
I'd like to hear more from our friends in the Cereal State about this situation. It concerns me to see so many towns/cities in California going belly up. I don't know how long this can continue until the entire state implodes and starts looking to the rest of the country to bail them out a la Greece in the Euro zone.
Other than your fairy tale faith, how do you think California will print the money they need to get out of their hole? The human landscape has begun to change, and I moved to Idaho for exactly that reason. I not only grew up in California, I have been in business there for more than 40 years, and as of the last 5 years, I have zero employees because of the regulations and labor laws, and I can assure you, it continues to worsen for business. Sadly liberals have taken the most beautiful state in the nation, and have ruined it to the point of it soon to becoming a third world.
Obama care will. With Obama care, it will solve all of the world problems, just ask Dope and Chains, they will tell you it the ultimate fix all.
There is a solution for California. Are you familiar with the fable of the Phoenix? The bird had to be consumed by the fire before a new Phoenix could rise from the flames. Reform isn't politically possible now in this state. California will have to collapse completely in order to break the stranglehold of leftism on this state. This will entail protracted suffering. The suffering is necessary to change the unreflective mindset of Californians. Only then will rebirth be possible.
I suspect you're right, unless Obama wins and bails out the State. Then it continue chugging along like this for a few more years.