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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (49976)	5/12/2009 9:21:32 AM
From: The Reaper	1 Recommendation Read Replies (1) \| Respond to of 217905

We the people of California would be doing the state a favor if we voted down all five of these new tax/borrowing propositions and pushed CA into bankruptcy once and for all. It seems like a nuclear option but honestly, there is no other option left. The system is so bloated with legacy costs that it is impossible to save any other way.

To: TobagoJack who wrote (49976)	5/12/2009 11:45:08 AM
From: energyplay	Respond to of 217905

There are many Californians on this thread, they should also comment. The California proposal is about 70% serious and 30% political spin. 1) Tax revenues have dropped very fast. California tax revenues are heaily dependent on personal income tax and capital gains, meaning stock market. That's down, as are sales of major items. 2) Expenses are very high, because various politicians, including Gray Davis and Arnold, overpaid various employee groups in return for political support. 3) The California budget and budget process are basically out of control. Politically powerful groups, prison guards, teachers, and prevent or reduce budget cuts, other groups in the legislature block any tax increases. California has resorted to financial gimicks for financing plus extensive borrowing. How did the process get out of control ? Willie Brown, former speaker, lead a detailed and effective Gerrymandering of election districts, which result in very many districts with either extreme left or extreme right voter demographics, with few 'normal' districts. This will be fixed by redistricting in the future. ********** So California need Large Budget cuts and some selctive tax increases. If all the burden is put on tax increases, this will accelerate businesses and high income people leaving the state and finding more way to avoid taxes by buying in Nevada or over the internet. >>>Prisoners - about 180,000 currently locked up. Of the proposed 38,000 to be released, 19,000 are illegal aliens and will be turned over to the Federal government for deportation. With the new border fences, those sent to Mexico will have to face crossing more desert in the middle of summer, so that may keep many out until cooler weather. That means 19,000 supposedly low risk inmates to be released into a very bad job market. However, many will be able to find an abandoned house to live in....;-) >>>Teachers - about 6 years ago, class sizes were made smaller. That will need to be reversed. This is not good thing. >When governments are pushed to cut back, they often propose to cut essential services - fire, police patrols, teachers, etc. as a threat, instead of 'fat' or poltically powerful areas, like governor's staff, regulatory agencies like Cal Osha, or salaries. ******** This election happens next week, and voters in special elections tend to be wealthier, better informed, and older than general election voters. Several of the propositons are deceptively written, with actual details different than the title of the proposition. It is likely the propositions will be rejected, and some of what the governor is proposing will occur. The sky will not fall as a result, however.