CDZ How Long Until the First Blue State goes belly up?

[william the wie]

Only CA and IL are technically in default now. Not paying interest on IOUs for CA and not paying vendors for IL and usually these kids of defaults can be and have been ignored for years but the mortgage deduction cap and SALT provisions will get both states junk graded. That will trigger banktuptcy. Then will come other problems such as a criminal investigation of the politicians of both states. There may also be prison terms. I am just trying to figure out when, not if.

 

[shockedcanadian]

Only CA and IL are technically in default now. Not paying interest on IOUs for CA and not paying vendors for IL and usually these kids of defaults can be and have been ignored for years but the mortgage deduction cap and SALT provisions will get both states junk graded. That will trigger banktuptcy. Then will come other problems such as a criminal investigation of the politicians of both states. There may also be prison terms. I am just trying to figure out when, not if.

Its a sad situation. California used to be the place of invention and capitalist pursuit. They are still a place where tech companies head to innovate, but it's becoming dicey.

The danger will be if the same, backwards thinking that us causing economic dismay to California is exported to places like Texas, Nevada and the like. There are already major cities such as Houston and Dallas that have Democratic leaders, and it's only a matter of time.

America needs to stand up against socialist practices, I assure you that no rainbow awaits you.

 

[MarathonMike]

How many Ca cities already declared BK? 5 or 6?

 

[edthecynic]

Only CA and IL are technically in default now. Not paying interest on IOUs for CA and not paying vendors for IL and usually these kids of defaults can be and have been ignored for years but the mortgage deduction cap and SALT provisions will get both states junk graded. That will trigger banktuptcy. Then will come other problems such as a criminal investigation of the politicians of both states. There may also be prison terms. I am just trying to figure out when, not if.

Don't you DittoTards ever get tired of making fools of yourselves mindlessly parroting Limbaugh Lies?????

California’s lawmakers should have a surplus next year. Will they spend it or save it?

The state budget is in good shape to weather a moderate recession, and lawmakers should be able to sock away more money in reserves next year, according to projections the nonpartisan Legislative Analyst’s Office issued Wednesday.

The LAO’s outlook shows the state would finish its 2018-19 budget year with more than $19 billion in reserves – assuming lawmakers and Gov. Jerry Brown don’t make any more spending commitments. About $11 billion is obligated for the state’s rainy-day fund.

Lawmakers could spend about $7.5 billion of the surplus, although analysts recommend that they save it to prepare for a recession.

 

[BULLDOG]

Only CA and IL are technically in default now. Not paying interest on IOUs for CA and not paying vendors for IL and usually these kids of defaults can be and have been ignored for years but the mortgage deduction cap and SALT provisions will get both states junk graded. That will trigger banktuptcy. Then will come other problems such as a criminal investigation of the politicians of both states. There may also be prison terms. I am just trying to figure out when, not if.

Its a sad situation. California used to be the place of invention and capitalist pursuit. They are still a place where tech companies head to innovate, but it's becoming dicey.

The danger will be if the same, backwards thinking that us causing economic dismay to California is exported to places like Texas, Nevada and the like. There are already major cities such as Houston and Dallas that have Democratic leaders, and it's only a matter of time.

America needs to stand up against socialist practices, I assure you that no rainbow awaits you.

Texas can't afford to fund it's schools. hasn't been able to for several years.

 

[william the wie]

How many Ca cities already declared BK? 5 or 6?

There's several that have gone bankrupt again, and again in at least one case. I stopped keeping track years ago. And believe it or don't despite the drivel of ed the naïve CA is barely better off than IL where the murder rate is so high because they can't afford to hire competent police in adequate numbers and the no-go zones keep getting bigger. IL is likely to go first with CA a very close second.

The big question is do the moving vans move into Chicago when the bill reports out of committee in both houses, after signing or after the implementation date. The second big question is when will the vans be available for CA? The CBOE, CME, NYSE and NASDAQ moving out to greener pastures is easier to do than the mess CA is rapidly becoming.

 

[Syriusly]

How many Ca cities already declared BK? 5 or 6?

There's several that have gone bankrupt again, and again in at least one case. I stopped keeping track years ago. And believe it or don't despite the drivel of ed the naïve CA is barely better off than IL where the murder rate is so high because they can't afford to hire competent police in adequate numbers and the no-go zones keep getting bigger. IL is likely to go first with CA a very close second.

The big question is do the moving vans move into Chicago when the bill reports out of committee in both houses, after signing or after the implementation date. The second big question is when will the vans be available for CA? The CBOE, CME, NYSE and NASDAQ moving out to greener pastures is easier to do than the mess CA is rapidly becoming.

And by 'the mess California is becoming' you mean of course that California real estate prices keep soaring because demand far outstrips supply.

No sign that Google, for Facebook, or Salesforce, or Intel are fleeing California- though if they shifted some jobs it sure would help with the upward real estate pressure.

 

[Syriusly]

Only CA and IL are technically in default now. Not paying interest on IOUs for CA .

This being the 'clean debate zone'- show us how California is 'not paying interest on IOU's'.

Give us that citation.

Meanwhile- California's financial health has steadily improved since 2009.

S&P raises credit rating in California

 

[jwoodie]

Only CA and oIL are technically in default now. Not paying interest on IOUs for CA and not paying vendors for IL and usually these kids of defaults can be and have been ignored for years but the mortgage deduction cap and SALT provisions will get both states junk graded. That will trigger banktuptcy. Then will come other problems such as a criminal investigation of the politicians of both states. There may also be prison terms. I am just trying to figure out when, not if.

Don't you DittoTards ever get tired of making fools of yourselves mindlessly parroting Limbaugh Lies?????

California’s lawmakers should have a surplus next year. Will they spend it or save it?

The state budget is in good shape to weather a moderate recession, and lawmakers should be able to sock away more money in reserves next year, according to projections the nonpartisan Legislative Analyst’s Office issued Wednesday.

The LAO’s outlook shows the state would finish its 2018-19 budget year with more than $19 billion in reserves – assuming lawmakers and Gov. Jerry Brown don’t make any more spending commitments. About $11 billion is obligated for the state’s rainy-day fund.

Lawmakers could spend about $7.5 billion of the surplus, although analysts recommend that they save it to prepare for a recession.

You conveniently forgot to mention $200 billion in unfunded retirement benefits.

 

[HenryBHough]

California.

Sorry about the OP's color blindness problem.

 

[jwoodie]

And by 'the mess California is becoming' you mean of course that California real estate prices keep soaring because demand far outstrips supply.

So are you investing in California real estate?

 

[Syriusly]

And by 'the mess California is becoming' you mean of course that California real estate prices keep soaring because demand far outstrips supply.

So are you investing in California real estate?

I am invested in California real estate. If I could afford to compete with the tech boys I would be more invested.

 

[jwoodie]

I am invested in California real estate.

I asked if you were investing (present tense) due to the fact that

California real estate prices keep soaring because demand far outstrips supply.

Right now, the only things that are soaring are taxes. Soon there will not be enough people who can afford to buy homes at current prices, especially when interest rates start to rise.

 

[Syriusly]

I am invested in California real estate.

I asked if you were investing (present tense) due to the fact that

California real estate prices keep soaring because demand far outstrips supply.

Right now, the only things that are soaring are taxes. Soon there will not be enough people who can afford to buy homes at current prices, especially when interest rates start to rise.

Ah woodie- why do you have to lie in a CDZ?

Real Estate prices have been soaring for several years now.
California Home Prices & Home Values | Zillow
The median home value in California is $512,800. California home values have gone up 7.1% over the past year and Zillow predicts they will rise 2.5% within the next year.

 

[jwoodie]

Ah woodie- why do you have to lie in a CDZ?

Is English your second (or third) language? Do you understand the concept of tense? Why resort to name-calling in the CDZ?

 

[Staidhup]

No blue state will go belly up, simply declare bankruptcy, reorganize, screw bond holders, small business, retain government employee pension funds, raise property and income taxes, then congress will bail them out.

 

[Checkerboard Strangler]

You conveniently forgot to mention $200 billion in unfunded retirement benefits.

And I am going to not so conveniently point out that the radioactive phrase "unfunded liabilities" is a financial myth because there is little to no difference between an unfunded liability and a funded one.
Know why?
Because as shown by the cliff we narrowly avoided falling off in 2008, the truth is, ANY "funded" liability can quickly turn into an "unfunded" one.
An economic crash, like the one we narrowly avoided in 2008, would have rendered the value of many assets ZERO or close to it.
And don't bother arguing that the value would recover, because in a crash, few people are in a position where they can just sit around and wait while the asset recovers its value. Once they've been wiped out, they remain wiped out.
Screeching about unfunded liabilities is a form of hysteria not unlike that other favorite shibboleth of the Right, "fear of creeping communism".

Even if Congress were to set aside tax revenues to fund Social Security, Medicare and every other 'liability,' that money would still need to be invested in some kind of assets and the winds of economic fate might render those assets to be worth much less when they're actually needed than when they were first invested.

I don't care if you're talking about stock General Motors, or Citicorp, money market mutual funds, or even bank deposits.
In the end it's the federal government that ultimately stands behind these assets.

And by the way, if you're going to screech hysterically about California's UNFUNDED LIABILITIES, just remember that California is contributing to federal coffers at a higher rate than most red states, so if you live in one of those states, YOUR OWN unfunded liabilities are probably going to be backed up by those commies who live in Commiefornia.

You're WELCOME.

 

[MACAULAY]

You conveniently forgot to mention $200 billion in unfunded retirement benefits.

And I am going to not so conveniently point out that the radioactive phrase "unfunded liabilities" is a financial myth because there is little to no difference between an unfunded liability and a funded one.
Know why?
Because as shown by the cliff we narrowly avoided falling off in 2008, the truth is, ANY "funded" liability can quickly turn into an "unfunded" one.
An economic crash, like the one we narrowly avoided in 2008, would have rendered the value of many assets ZERO or close to it.
And don't bother arguing that the value would recover, because in a crash, few people are in a position where they can just sit around and wait while the asset recovers its value. Once they've been wiped out, they remain wiped out.
Screeching about unfunded liabilities is a form of hysteria not unlike that other favorite shibboleth of the Right, "fear of creeping communism".

Even if Congress were to set aside tax revenues to fund Social Security, Medicare and every other 'liability,' that money would still need to be invested in some kind of assets and the winds of economic fate might render those assets to be worth much less when they're actually needed than when they were first invested.

I don't care if you're talking about stock General Motors, or Citicorp, money market mutual funds, or even bank deposits.
In the end it's the federal government that ultimately stands behind these assets.

And by the way, if you're going to screech hysterically about California's UNFUNDED LIABILITIES, just remember that California is contributing to federal coffers at a higher rate than most red states, so if you live in one of those states, YOUR OWN unfunded liabilities are probably going to be backed up by those commies who live in Commiefornia.

You're WELCOME.

____________

I do not feel enlightened by this pompous screed which strikes me as unfunded with common sense....simple common sense which would naturally make one prefer to have his State possess a Funded Liability, even though there is a small risk that it could become Unfunded in the event of a financial disaster....anyone at all would rather have that than a State that has Unfunded Liabilities even in good times.

Just like I would rather live by a Volcano which has been dormant for centuries...knowing it could awaken and burn down my house....I would prefer that...to having a house that has already burned down because of the incompetency or corruption of the town which it is in.

What you are saying is that you think your corrupt and profligate retirement fund programs will be bailed out by the rest of the country....we are ready for that and there will be one hell of a fight before it happens.

______________

 

[Checkerboard Strangler]

You might want to re-read what I posted.

 

[Nosmo King]

And here I,thought we had to,worry about Kansas!