California does not Qualify for TARP of TARF

[roxotaku]

Looks like CA is in BIG TROUBLE! Can a state declare bankruptcy? All the state services will come to a halt and state employees will be out jobs....how can this happen? Will total anarchy ensue?

Edited by John Shipman
   Of DOW JONES NEWSWIRES

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Comments

[drjmaxwell]

Unlike GM, California can raise revenue at will. In fact, California recently put several revenue-raising ballot initiatives to its voters. They all failed, so the will is just not there. Now California voters are going to face the consequences of their actions.

I can't wait. I'm glad the Feds didn't step in.

Calfornia has a bloated bureaucracy with generous social services that can be slashed to the levels we enjoy in the Southeast. Also, their property tax system is a train wreck, and needs reform.

[roxotaku]

I remember that the voters voted against the revenue-raising measures.

I hope you are right, and CA will be forced to make severe cut backs without too much fallout (you know, like riots, skyrocketing crime rates, etc...).

[drjmaxwell]

Alternatively, they can raise taxes and pay for their services.

That's the sad thing that really came out of the Reagan years and has never died - this idea that the government should borrow against the future to pay for the present outside of a national emergency.

If you want lower taxes, that's great. But you get less government services.

If you want more government services, that's great. But you'll pay higher taxes.

I want lower taxes and more services and we'll just bill our kids. ARGH!