Thanks to far too many years of Democratic rule in the state legislature and an occasional goofy governor from the fringes of the far left (Jerry Brown, Gray Davis, etc.), the once great state of California has been reduced to a third-world disaster, reminiscent of the neighboring failed state of Mexico.
California’s mismanagement of fiscal affairs has grown “progressively” worse, with unflattering emphasis on “progressive.”
As usual, the state is in a financial quandary, this year to the tune of $16 billion dollars, which Governor Brown plans to eradicate with an increase in taxes which he hopes will be approved by voters in November.
Brown will likely succeed in getting the ding bats here to commit financial suicide by raising their own taxes.
You see, voters are none too bright here, which is why Brown is governor and the state legislature is dominated by moon bats whom appear to be clones of Barack Obama, if only in utter disregard for financial responsibility.
Example: A Democrat in the state legislature recently opined that “Living within one’s means” is an outdated concept, to be avoided at all costs.
Her Democrat colleagues have followed this spend-happy liberal’s advice with gusto, which is why the state may soon fall into the Pacific Ocean---not because of an earthquake, but because of the excessive weight of debt!
Assuming that the Brown taxes are approved, the current budget shortfall will put to bed the current budget gap.
However, when that $16 billion is pumped into state coffers, the message that Democrats will receive is: The dummies took the bait: Time to abandon frugality and spend, spend and spend!
In short order, the irresponsible donkeys (asses, all!) will create another ungodly budget short- fall.
Once again, the minority of people who actually work and conduct their financial affairs in a responsible, orderly fashion will be forced to deal with fiscal Armageddon.
Regrettably, the spending insanity is not confined to Sacramento. As reported at reference 1, financial bankruptcy is in the future for two California cities:
Last week, the city of Stockton, California filed for Chapter 9 bankruptcy protection, this week it's Mammoth Lakes, California.
The two cases appear to be very different in structure and cause, but they also have some commonalities. Stockton's problem was an overwhelming amount of structural public debt, the cause of which appears to be profligate spending and borrowing without a Plan B in case of falling revenue.
Mammoth Lakes, which is in Mono County, went a slightly different route by asking a developer, Mammoth Lakes Land Acquisition, (MLLA) to make improvements to the Mammoth Yosemite Airport, in exchange for the right to build a hotel complex on a 25 acre parcel of the airport property. The rights the city of Mammoth Lakes were offering included an option to buy the acreage also.
L.A. Times and the city website each report various aspects of the problem. The L.A. Times reports that when the city found the addition of a hotel to the property would interfere with FAA guidance and policies for use of the airport for aviation purposes, they backed out of the agreement. It was determined by the city, the hotel project would make it impossible to extend the runway enough to allow Boeing 757 jets to land there.”
There is one upside. The unemployment picture has brightened somewhat—for bankruptcy lawyers!
Sadly, the anti-business environment just got much uglier as the California legislature has passed a bill which kicks lenders in the groin for trying to foreclose on properties in default, as reported at reference 2:
SAN FRANCISCO (Reuters) - California legislators on Monday approved a sweeping bill aimed at stopping abusive practices by mortgage lenders and helping homeowners avoid foreclosure.
The legislation, among the most ambitious of its type in the nation, would bar banks from moving ahead with foreclosures while still negotiating with homeowners over loan modifications, a practice known as "dual-tracking.”
It would also allow lawsuits against banks for so-called "robo-signing," in which foreclosure documents are signed en masse without review. Revelations about robo-signing helped lead to a $25 billion settlement of a multi-state foreclosure lawsuit against major banks.
California Attorney General Kamala Harris, a central player in the foreclosure lawsuit settlement, also played a lead role in developing the legislation approved Monday.
Governor Jerry Brown has not formally weighed in on the legislation, but he is expected to sign it in the coming days.”
Let there be no doubt about it: If the bill is sufficiently anti-business and will cause jobs to leave the state, Jerry Brown will sign it—with gusto!
California: Where bankruptcy and foreclosures are more honorable than having a job and living responsibly.
Reference 1 http://www.examiner.com/article/another-california-town-files-for-bankruptcy
Reference 2 http://articles.chicagotribune.com/2012-07-02/news/sns-rt-us-usa-foreclosure-californiabre862011-20120702_1_foreclosure-documents-highest-foreclosure-rates-real-estate-market