The $24 billion budget crisis: Is California too big to fail?

[loco]

California on the brink

http://news.yahoo.com/s/ynews/ynews_ts418

"Almost every state is suffering from the effects of the recession, but not every state accounts for 12 percent of the national gross domestic product. According to AP, if California goes down, so goes the nation: California's annual $1.7 trillion economy is the world's eighth-largest economy and provides a significant chunk of tax revenue for the government; California alone funds many social programs for the entire nation."

There's your problem right there.   

[Soul Crusher]

California on the brink

http://news.yahoo.com/s/ynews/ynews_ts418

"Almost every state is suffering from the effects of the recession, but not every state accounts for 12 percent of the national gross domestic product. According to AP, if California goes down, so goes the nation: California's annual $1.7 trillion economy is the world's eighth-largest economy and provides a significant chunk of tax revenue for the government; California alone funds many social programs for the entire nation."

There's your problem right there.   

No.  They need to accept reality, sober up, and cut spending to the point where tax receipts and spending are in line.  Until then, the state will be a disaster area. 

[Hereford]

Ain't no way the feds would let us 'sink or swim'. No way.

Cali alone is worth just shy of 1/5th of the total electorial votes needed to get a democrat elected... and this state is garenteed to go Dem as long as the electorial system is in place. The way it works, SF and LA are about the two most important areas for the dem party IN THE NATION.

In reality, what will happen to our situation is that they will try to jump up taxes and out-run the spending. I thin in the next 20 years you will see massive amounts of decent people leaving and going elsewhere as soon as they can find employment out of state. What will be left is millions upon millions of low-lifes and non-contributors... and Cali will become a national money sink.

[GigantorX]

Ain't no way the feds would let us 'sink or swim'. No way.

Cali alone is worth just shy of 1/5th of the total electorial votes needed to get a democrat elected... and this state is garenteed to go Dem as long as the electorial system is in place. The way it works, SF and LA are about the two most important areas for the dem party IN THE NATION.

In reality, what will happen to our situation is that they will try to jump up taxes and out-run the spending. I thin in the next 20 years you will see massive amounts of decent people leaving and going elsewhere as soon as they can find employment out of state. What will be left is millions upon millions of low-lifes and non-contributors... and Cali will become a national money sink.

It's already happening. People are leaving and so is a lot of business to places like Nevada and such. The problem is they get a disproportionate amount of their tax rev. from property taxes and the business climate is a bit frigid.

But, even if the state falls to shit, which is, the non-contributers and parasites will undoubtedly be getting $$$ from Democrats and California will still be a Dem. state.