California will declare bankruptcy and the US government will bail it out. Why worry?
Most people assume that when California finally goes bankrupt...that Washington will come to save them. I have doubts over this. Most states are going to ask about the amount involved, and then TELL California to make massive cuts or they won’t accept something like this. By massive cuts...I’m talking about thirty to forty percent. I don’t think the legislature or Governor will accept those terms...and the majority of states will go against them.
All in all...you have to believe that an exodus of people will occur at that point...and tax revenue will decrease.