California in Peril - Continued
As Thraxxus mentioned just previously, yes my wonderful Golden State is having issues. Big-time cash flow issues, mostly caused by the current real-estate crisis, and its effect on tax revenue. The perilous drop in housing prices means less property taxes. Also, the drought didn’t help either. Vallejo was kicking around the bankruptcy escape clause, probably as some kind of cry for help. No, not Vallejo! Puhleaze.
As a result, California and our glorious leader, Heir Schwarzenegger, seem to be a bit bond-crazy. Admittedly, the word “bond” makes my eyes gloss over like Tori Spelling evaluating her credit card statement. Here is a good Q&A about state-issued bonds that you may find interesting - or not. Guess which side of the fence I’m on? So Cali is borrowing a buttload of money. Man, I’ve been there before.
However, I do know this - there is no way the 35th largest economy in the world is going bankrupt. Are we paying our government employees way too much? Oh yeah. Here is a great article in The SF Chronicle a while back (link) about cops pulling down obscene salaries because of overtime; some low-level policemen were making more than the mayor! The article is a good summary of the fiscally irresponsible carnage happening on CA city and state payrolls. This type of corruption goes on everywhere - need I even mention Chicago? Boston?
Furthermore, California is not the only state with a budget crisis. Nevada, Pennsylvania…hell, Michigan is practically a demilitarized zone as we speak. So does that make me feel better? Heck yeah. They don’t have awesome beaches! In Reno, are you an hour from the mountains, ocean, or desert? Why go to a more financially stable state when you can hang out in California, the fun-loving, freewheeling, suntan state? Also, the people are a lot prettier. If I’m going to drive on potholed roads on the way to my disappearing job, I might as well have a nice view.
In all seriousness, the economy is cyclical. This is how it worked, works, and will work. Could I buy a house somewhere else? Make a little less money with a lot lower cost of living? Maybe. Did I mention I live in California?
