[$$$] - California Dreaming

[Johan]

Obama's administration threatens to rescind stimulus money to California over pay cuts. (http://www.latimes.com/news/local/la-me-health-cuts8-2009may08,0,4592200.story)

The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.

But, let's not forget that... (http://www.latimes.com/news/local/la-me-california-budget-crisis8-2009may08,0,7342537.story)

California could run out of money as soon as July, the Legislature's chief budget analyst warned Thursday, as a new poll showed voters poised to reject five budget-related measures on the May 19 ballot.

If the propositions do not pass, the state could find itself as much as $23 billion short of the money it needs to pay its bills over the next year, according to a new forecast by Legislative Analyst Mac Taylor. The poll, from the Public Policy Institute of California, found that even as voter interest in the ballot measures rises, all are trailing except the sixth one -- Proposition 1F, which would bar pay hikes for lawmakers in deficit years.

So, California tries to balance their books with one of the most expensive items on their books...salaries...and gets slapped for it.

California. The second-to-last place in America I would want to live (Detroit being the last place I'd want to live in America).

[NoName]

23 billion short? That's not a small number...

[National Kato]

Why do you think Arnie's scrambling? He's going to look into marijuana legalization (http://www.time.com/time/nation/article/0,8599,1884956,00.html), and that's only expected to help to the tune of $1.3 billion a year. I'm not sure if that includes cost savings from law enforcement.

[biosc1]

California. The second-to-last place in America I would want to live (Detroit being the last place I'd want to live in America).

Hey now...I think we should all chip in and buy a cheap house in Detroit. What are they going for now? $5,000 to $10,000? We could make our own real-life CoG community...

California definitely needs to do something to fix itself. It's a beautiful state, but the cost of living is just creeping higher and higher there.

[BlackPete]

Hey now...I think we should all chip in and buy a cheap house in Detroit. What are they going for now? $5,000 to $10,000? We could make our own real-life CoG community...

Even less than that. Here's a house that's $1 (http://www.realtor.com/realestateandhomes-detail/9303-Ward-St_Detroit_MI_48228_1109062963).

On that site, there's over 100 houses that are selling for $1000 or less.

Nothing can save Detroit now.

[BlackPete]

To get on topic... it's been fairly well known that California has been on the brink of bankruptcy for several years now. Quite frankly I'm amazed that it hasn't already filed for bankruptcy.

[Ancalagon]

Even less than that. Here's a house that's $1 (http://www.realtor.com/realestateandhomes-detail/9303-Ward-St_Detroit_MI_48228_1109062963).

On that site, there's over 100 houses that are selling for $1000 or less.

Nothing can save Detroit now.

When are they gonna activate RoboCop?

We can organize Big Brother: COG Edition.

EDIT: Also on topic, keeping the wage cuts wont cost the state $23 billion. The State screwed up its budget elsewhere, and those wage cuts, in the grand scheme of things, wont make a difference.

[Johan]

The State screwed up its budget elsewhere, and those wage cuts, in the grand scheme of things, wont make a difference.

Well, I know I'm not terribly good at math, but I think when you make a budgetary cut, there's an actual difference before and after.

I could be wrong. :confused:

[Narradisall]

I never thought Id ask this before, but can a state in America actually file for bankruptcy?

What DO they do if they run out of money? Go to the Fed?

[Ox]

A state's debt is sovereign: federal authority over it is so limited as to be virtually nonexistent. Since bankruptcy is a federal legal concept, states do not enter bankruptcy. Instead, they just stop paying -- this is what is known as "default." They may also say that they have no intention of ever resuming payments -- known as "repudiation."

In 1841 and 1842, eight states and the territory of Florida defaulted on their sovereign debt. This was caused by a financial crisis involving a banking crisis coupled with a real-estate collapse.

This (http://econ-server.umd.edu/~wallis/Papers/Sovereign%20Default%20and%20Repudiation_Wallis_ver sion8-3-04.pdf) is an awesome read.

[TheManEatingCow]

States that defaulted on and then repudiated debts invariably repudiated because they felt they had been victimized by corruption.

Good to know that buck passing isn't just a recent phenomenon. ;)

[NoName]

A state's debt is sovereign: federal authority over it is so limited as to be virtually nonexistent. Since bankruptcy is a federal legal concept, states do not enter bankruptcy. Instead, they just stop paying -- this is what is known as "default." They may also say that they have no intention of ever resuming payments -- known as "repudiation."

In 1841 and 1842, eight states and the territory of Florida defaulted on their sovereign debt. This was caused by a financial crisis involving a banking crisis coupled with a real-estate collapse.

This (http://econ-server.umd.edu/~wallis/Papers/Sovereign%20Default%20and%20Repudiation_Wallis_ver sion8-3-04.pdf) is an awesome read.

That's very interesting and filled with things I had no clue about.

Ox and Johan, I'm glad you two post here. I'm a lot less ignorant about the world around me because of it. (though right now I'm not sure if that's a good thing... ;))

[Stmfuller]

Even less than that. Here's a house that's $1 (http://www.realtor.com/realestateandhomes-detail/9303-Ward-St_Detroit_MI_48228_1109062963).

On that site, there's over 100 houses that are selling for $1000 or less.

Nothing can save Detroit now.

although if we buy our own CoG community, we could grow our own crops and such. We can save Detroit by leaving the United States :)

[Superman's Dead]

although if we buy our own CoG community, we could grow our own crops and such. We can save Detroit by leaving the United States :)

Yesssssssssss! Secession!

Every time threads about things like this are posted I keep having flashbacks to the middle of Atlas Shrugged, which leads to a Bioshock craving.

[Stmfuller]

you have no idea how much an improvement we could make in detroit by burning half the city down and turning it into farmland again.

[BlackPete]

you have no idea how much an improvement we could make in detroit by burning half the city down and turning it into farmland again.

But you'd still have to either live with the other half of the city, or trust that they don't try to steal from your farmland.

[muddi900]

In 1841 and 1842, eight states and the territory of Florida defaulted on their sovereign debt. This was caused by a financial crisis involving a banking crisis coupled with a real-estate collapse.


Apparently, history repeats it self.

[Narradisall]

A state's debt is sovereign: federal authority over it is so limited as to be virtually nonexistent. Since bankruptcy is a federal legal concept, states do not enter bankruptcy. Instead, they just stop paying -- this is what is known as "default." They may also say that they have no intention of ever resuming payments -- known as "repudiation."

In 1841 and 1842, eight states and the territory of Florida defaulted on their sovereign debt. This was caused by a financial crisis involving a banking crisis coupled with a real-estate collapse.

This (http://econ-server.umd.edu/~wallis/Papers/Sovereign%20Default%20and%20Repudiation_Wallis_ver sion8-3-04.pdf) is an awesome read.

That was awesome, and also worrying.

[Deadend]

Offtopic: Give me the money, I will find and begin living in the Detroit Colony. The city isn't ALL bad. There are a couple blocks that are ok. Basically everything within the range of the People Mover (the saddest, most gimped public mas transit system ever) is not too bad. The rest of the cit proper is shit.

Ontopic: 75 mil is a drop in the bucket for 23 billion. How about cutting funding for the war on drugs instead? It's a shitty situation all around.
I do not like the idea that a union may try and screw California out of stimulus money for $2 a person, and the whole aspect that it's for the not exactly cheap or efficient in-home poor/elderly care program.

[Krispy]

Oh c'mon. California is probably the most affluent places in the world. The bat the knees might teach us some modesty. :D

*Cries his government funded job good bye*

[Telefrog]

Offtopic: Give me the money, I will find and begin living in the Detroit Colony. The city isn't ALL bad. There are a couple blocks that are ok. Basically everything within the range of the People Mover (the saddest, most gimped public mas transit system ever) is not too bad. The rest of the cit proper is shit.

Give you money? You can't afford a dollar? :D

[Johan]

Tuesday's on the way! (http://townhall.com/Columnists/PaulJacob/2009/05/17/ode_to_california?page=1)

I think I hear/see the other shoe dropping.

[Johan]

California, here I come! (http://www.reuters.com/article/domesticNews/idUSTRE57020X20090801)

Um...I mean, no. Sorry.

[Ultima Thulian]

This country has long since fallen of the proverbial cliff and is finally getting close to reaching a "SPLAT!"

"Shut up. Shit's about to get sweet!"