Saturday, October 4, 2008
This fourth scary image of October could be considered frightening in two ways, and no, I don't mean that The Terminator is scary. He's not scary. He's a nice guy, he works hard, and he's entertaining, too. The scary part is that California is on its way to bankruptcy. The other scary part is who will probably ask for a bailout next, and get it. The prospect of California cities and counties, as well as California itself, declaring bankruptcy should have been obvious for years now. There are three very strong reasons for this. Arnold's state has led the nation in overpriced, but we can't sell it, real estate, leading the crash patrol in home evaluations, which will bring lower city, county, and state revenues. Secondly, no state has ignored the obvious drain on its economy with the acceptance and proliferation of illegal immigration as much as California. In spite of what you may have been led to believe by a corrupt Republican national administration, California has never fully recovered from the military downsizing of the '70's and '80's, or from the tech bust of 2000. Our largest state has been suffering silently all along, just like the rest of us. I am afraid Arnold's $7 billion request is only the beginning.