16 Reasons Why California Is The Next Greece

[MNeagle]

16 Reasons Why California Is The Next Greece

Read more: http://www.businessinsider.com/why-california-is-the-next-greece-2010-05#ixzz0neA7jmNg




For now Greece isn't the world's top concern, and if the Euro bailout works, then Portugal and Spain have some breathing room.

The world's next big worry should be California.

Like Greece, it's afflicted with a mix of financial and social problems that have sent the state on a downward spiral. And in terms of the state's core structural flaw, it's got one HUGE similarity.

The only big question is: Could Washington come together to bail the state out?



Read more: http://www.businessinsider.com/why-california-is-the-next-greece-2010-05#ixzz0neAHEkW7

[Ifyouseekay]

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[MNeagle]

They sure as heck better take care of CA if they can take care of Europe!

[mick silver]

it only paper they can print 24 hours a day 7 days a week 30 day a month ... i am waiting for the day when everyone losses trust in the paper

[Book]

http://www.blog4brains.com/wp-content/uploads/2007/02/immigration_rally.jpg

Maybe Mexico will bailout their California.

:oo-->

[MNeagle]

What's your suggestion then?

[Book]

What's your suggestion then?


http://www.tardis.ed.ac.uk/~kate/images/boy%20eating%20popcorn.jpg

Prep and simply let it all crash.

:)

[JohnQPublic]

it only paper they can print 24 hours a day 7 days a week 30 day a month ... i am waiting for the day when everyone losses trust in the paper


Invest in high-speed press companies now!


http://www.webeqinternational.com/wp-content/gallery/fwjustlookatthislowpricedgosspress/Goss%20high%20speed%20press.jpg

[Quantum]

Biblical Debt Jubilee is the solution.

Erase ALL debts worldwide, and start over with Godly economics.

But Satan's children won't let that happen, and those in love with money will agree.

[gunDriller]

Biblical Debt Jubilee is the solution.

Erase ALL debts worldwide, and start over with Godly economics.

But Satan's children won't let that happen, and those in love with money will agree.


Declare Kol Nidre for all debts owed to Jewish & Israeli bankers. problem partially solved.

California would still have $500 billion in pension obligations.

i guess it's pretty obvious they're going to just keep printing money. which i guess means, they're going to create debt & credit accounts on various computers in the Fed. & the Treasury, and pretend it's money. No printing necessary.

i tried to find a Fed money curve for the heck of it. found this
http://alfred.stlouisfed.org/graph/alfredgraph.png?chart_type=bar&s_1=1&s[1][id]=WRESBAL&s[1][vintage_date]=2010-04-29&s[1][cosd]=2010-03-31&s[1][coed]=2010-04-28&s[1][range]=Custom&s[1][line_color]=%230000FF&s_2=1&s[2][id]=WRESBAL&s[2][vintage_date]=2010-05-06&s[2][cosd]=2010-03-31&s[2][coed]=&s[2][range]=Custom&s[2][line_color]=%23FF0000

Reserve Balances have dropped $1.1 Trillion since March 31, 2010 ? what's going on there ?

[BabushkaLady]

What's your suggestion then?


http://www.tardis.ed.ac.uk/~kate/images/boy%20eating%20popcorn.jpg

Prep and simply let it all crash.

:)


I agree Book! It may actually be a much needed bath!

[1970 Silver Art]

The Fed. gov't is just going to end up bailing out California IMO. California has too many problems and it is not just illegal immigration. California has too many entitlement programs and too many people are trying to take advantage of it and no money to pay for it. CA is just FUBAR in my opinion.

I may have to borrow some of Book's popcorn because it will be a show that we all will we be forced to watch unfold. ;D

[osoab]

California, Illinois, New York, New Jersey, etc, etc.

They along with most are screwed.

If they bail one out, they have to bail them all out.
It's better to kick the can as long as possible.

If it is a bail out for all, what kind of austerity measures you think will happen?
You think will hav people storm Congress?

1970 Silver Art put it best. There are too many obliagtions. Too many leaches.
Too many people that are dependent on some form of taxing body to provide for them.

[steveoc]

There is an story they tell you at military staff college with a question at the end .... it reminds me of this bailout situation.

It goes something like this :

http://boomercharged.net/wp-content/uploads/2009/02/tank_battle.jpg

You are in command of 3 battalions that are advancing in line. After the first day of combat, reports are coming back about the progress of each battalion.

On the left flank, the first battalion has hit heavy resistance, taken heavy losses, but is poised to breakthrough the enemy lines.

In the centre, the second battalion has also hit heavy resistance, taken heavy losses, but the enemy position is strong, and it looks like the attack may have to be called off in the centre.

On the right flank, the third battalion has met light resistance, taken light losses, and has broken through the enemy line.

Now, you have at your disposal some reserves and a tank company that you can commit to battle. Which battalion do you assign the reserves and the tank battalion to ?

1st battalion is poised to break through the enemy lines with a little more help.
2nd battalion is in dire need of support, or they may break.
3rd battalion has their situation under control.


?

People are usually split 50/50 over 1st and 2nd battalion getting the reserves, depending on how aggressive or cautious the student is.

The reserves and the tank company should both get assigned to the 3rd battalion. Its called reinforcing success, and its how you make large breakthroughs and decisive changes on the battlefield that hopefully put a quick end to the whole affair.

Any bailout or debt jubilee is just throwing more resources into the 2nd battalion meat grinder. Its a nice compassionate gesture, but it is reinforcing failure, and only serves to setup the next disaster.

You see the same thing in business as well - pet projects that never seem to get off the ground, but continue to consume resources at a constantly growing rate. People are too afraid to pull the plug on them sometimes, because of the past 'investment' in the pet project that needs to be justified at some future time.

And how many 'relationships' go down the same path ?

Cut your losses and put your money and energy into those things that are already working, and yielding good returns.

[mamboni]

There is an story they tell you at military staff college with a question at the end .... it reminds me of this bailout situation.

It goes something like this :

http://boomercharged.net/wp-content/uploads/2009/02/tank_battle.jpg

You are in command of 3 battalions that are advancing in line. After the first day of combat, reports are coming back about the progress of each battalion.

On the left flank, the first battalion has hit heavy resistance, taken heavy losses, but is poised to breakthrough the enemy lines.

In the centre, the second battalion has also hit heavy resistance, taken heavy losses, but the enemy position is strong, and it looks like the attack may have to be called off in the centre.

On the right flank, the third battalion has met light resistance, taken light losses, and has broken through the enemy line.

Now, you have at your disposal some reserves and a tank company that you can commit to battle. Which battalion do you assign the reserves and the tank battalion to ?

1st battalion is poised to break through the enemy lines with a little more help.
2nd battalion is in dire need of support, or they may break.
3rd battalion has their situation under control.


?

People are usually split 50/50 over 1st and 2nd battalion getting the reserves, depending on how aggressive or cautious the student is.

The reserves and the tank company should both get assigned to the 3rd battalion. Its called reinforcing success, and its how you make large breakthroughs and decisive changes on the battlefield that hopefully put a quick end to the whole affair.

Any bailout or debt jubilee is just throwing more resources into the 2nd battalion meat grinder. Its a nice compassionate gesture, but it is reinforcing failure, and only serves to setup the next disaster.

You see the same thing in business as well - pet projects that never seem to get off the ground, but continue to consume resources at a constantly growing rate. People are too afraid to pull the plug on them sometimes, because of the past 'investment' in the pet project that needs to be justified at some future time.

And how many 'relationships' go down the same path ?

Cut your losses and put your money and energy into those things that are already working, and yielding good returns.



Excellent analogy Steveoc - most appropos.

Yes, they will print, and print, and print; and for a very simple reason: they have no other choice as it is their only game plan. Gold and silver know this and they are riding high and will continue to do so. More and more people are figuring out that the paper investment chase is not only rigged, but a slow motion circular firing squad. And the increasing volatility is exhausting people. They will run to the only safe haven left: GOLD (and SILVER).

[JDRock]

What's your suggestion then?


http://www.tardis.ed.ac.uk/~kate/images/boy%20eating%20popcorn.jpg

Prep and simply let it all crash.

:)


this should have been the rule for wall st as well....2 thumbs up.

[Trinity]

Greece was the trial run. A small bit of belt tightening by fatso governments and massive new debt plus monetization of the debt (devaluing of currency) is going to be the solution. For now.

Who is going to buy these bonds?


Portugal sells $1.34 billion worth of bonds

AP News | 2010-03-10 12:12:15
Portuguese debt agency says euro990 million ($1.34 billion) bond issue is oversubscribed

Financially troubled Portugal raised euro990 million ($1.34 billion) Wednesday in a key bond auction that had more bids than bonds available, suggesting the government's austerity plan is easing market concerns about the country's ability to pay off its high debts.

Alberto Soares, president of the Portuguese debt agency, told The Associated Press the institution received bids worth euro1.58 billion ($2.15 billion) for the April, 2021 bonds at a rate of 4.17 percent

"It went very well," Soares told The AP by phone.

Link to Article (http://www.englandsoccernews.com/article/Portugal%20sells%20$1.34%20billion%20worth%20of%20 bonds/?k=j83s12y12h94s27k02)


EDIT: Changed long link to named link to prevent horizontal scrolling. -Gaillo

[Twisted Titan]

Eager investors in the Cayman Islands will be buying those Bonds hand over fist.


T

[Trinity]

On cue. The world is a stage.



Schwarzenegger Warns of "Terrible Cuts, Absolutely Terrible Cuts" Coming in California

From The Business Insider, May 12, 2010:

More evidence that California is the new Greece.

As the state grapples with a horrible budget situation, Arnold Schwarzenegger is warning of pain ahead.

Specifically, according to the SacBee, Schwarzenegger press secretary Aaron McLear said:

"What you can expect generally is no taxes and terrible cuts, absolutely terrible cuts... We're not going to get through the deficit we have without some really tough decisions and some really terrible cuts."

This is going to get really ugly, and though California may stave off default, there's no way they'll be able to stave off the horrible demand destruction that will result from these "absolutely terrible cuts


Link to Article (http://finance.yahoo.com/tech-ticker/schwarzenegger-warns-of-%22terrible-cuts-absolutely-terrible-cuts%22-coming-in-california-483776.html?tickers=tlt,tbt,xlf,ncu,nvx,nkl,cev&sec=topStories&pos=6&asset=&ccode=)


EDIT: Changed long link to named link to prevent horizontal scrolling. -Gaillo

[jedemdasseine]

Eager investors in the Cayman Islands will be buying those Bonds hand over fist.


T

Indeed, and an understatement. The Caymans are ground zero for the other side of the fraud.

[sirgonzo420]

The Fed. gov't is just going to end up bailing out California IMO. California has too many problems and it is not just illegal immigration. California has too many entitlement programs and too many people are trying to take advantage of it and no money to pay for it. CA is just FUBAR in my opinion.

I may have to borrow some of Book's popcorn because it will be a show that we all will we be forced to watch unfold. ;D





Borrow?

Haha... I'm not sure he'll want it back after you're done with it...

[1970 Silver Art]

The Fed. gov't is just going to end up bailing out California IMO. California has too many problems and it is not just illegal immigration. California has too many entitlement programs and too many people are trying to take advantage of it and no money to pay for it. CA is just FUBAR in my opinion.

I may have to borrow some of Book's popcorn because it will be a show that we all will we be forced to watch unfold. ;D





Borrow?

Haha... I'm not sure he'll want it back after you're done with it...




You have a very good point there and then I just realized something...........I do not even like popcorn. :ROFL: